Oil prices climbed on Tuesday after Iran reportedly fired at least two missiles at commercial ships crossing the Strait of Hormuz, reviving fears over the world’s key oil chokepoint and the fragile truce between Washington and Tehran.

The rebound landed just days after crude erased its entire war premium and sank closer to pre-war levels. 

Oil Rebounds Following Sharp Slide Toward Pre-War Levels

West Texas Intermediate (WTI) crude rose 1.50% to $69.575 on Tuesday. Brent crude gained 1.64% to $73.169.

The wider energy sector also gained. Gasoline rose 0.17%, and heating oil added 0.62%, while natural gas climbed 1.48%.

Both oil benchmarks sit far below their wartime highs. Brent has dropped more than 22% over the past month, and WTI has fallen nearly 24% in the same span.

Missile Strikes Test a Fragile US-Iran Truce

The Strait handles roughly 20% of the world’s oil traffic, which magnifies the market reaction to any disruption there. Axios, citing two US officials, reported that Iran fired at least two missiles. The reported strikes came after a one-week agreement between the two sides to halt attacks in the waterway expired.

The United Kingdom Maritime Trade Operations centre reported an incident 8 nautical miles east of Limah, Oman. A southbound tanker was struck by an unknown projectile, causing a fire, according to UKMTO. 

A US official said a second commercial vessel was hit by an Iranian missile. Both ships suffered significant damage, though no casualties. 

The reported fire threatens a memorandum of understanding barely three weeks after both governments signed it. That deal, reached last month, aimed to end their nearly four-month war. A round of indirect talks in Doha last week closed without meaningful progress.

Meanwhile, the conflict has weighed on President Donald Trump politically. A recent poll found 58% of voters judged the war not worth the cost, while his approval rating held at 36%.

Whether oil extends its bounce or slips back toward pre-war support depends on how Washington responds.

Source: BeInCrypto