Oil prices climb after Iran halts two ships in Strait of Hormuz

Oil prices rose on Friday after Iran announced it had stopped two ships attempting to exit the Strait of Hormuz, raising fears of disruptions to global energy supplies.

According to Reuters, Iran said four other tankers turned back following intervention by its forces. Meanwhile, two large tankers carrying oil from the Gulf were observed passing through the strait, which typically handles about one-fifth of the world’s energy shipments.

Shipping data from Kpler indicated that two additional vessels transporting essential goods crossed the strait. Kpler does not track ships that transit the strait with their transponders switched off.

Iran has blocked most cargo ships from passing through the Strait of Hormuz since the outbreak of conflict five months ago. Earlier this month, Yemen’s Houthi group, which is allied with Tehran, began threatening the Bab al-Mandab Strait, another critical oil export route.

Oil prices rose by more than 1% on Friday, as traders reacted to the Iranian reports following a similar, unconfirmed report earlier this week.

Brent crude futures are set to rise 23 percent for July, and economists and analysts surveyed by Reuters expect prices to climb further this year.

Shipping data from Kpler indicated that two additional vessels transporting essential goods crossed the strait. Kpler does not track ships that transit the strait with their transponders switched off.

Iran has blocked most cargo ships from passing through the Strait of Hormuz since the outbreak of conflict five months ago. Earlier this month, Yemen’s Houthi group, which is allied with Tehran, began threatening the Bab al-Mandab Strait, another critical oil export route.

Iranian media reported that passage through the strait remains impossible due to "ongoing hostilities from US military forces in the region." Some vessels have negotiated with Tehran for passage, sparking anger in Washington.