Oil prices were rising on Monday after the U.S. denied a report by Iranian state media saying that missiles had hit a U.S. warship trying to enter the Strait of Hormuz.
Brent international futures rose 3.3% to $112.11 a barrel and West Texas Intermediate U.S. futures jumped 3.4% to $105.68 a barrel in early trading.
The crude benchmarks jumped more than 5% after Iran’s state-run Fars News Agency said two missiles hit a U.S. frigate that was trying to pass through the Strait of Hormuz, forcing the ship to retreat.
Oil gave up some of its gains after U.S. Central Command denied the report, saying in a post on X that “no U.S. Navy ships have been struck.”
The United Arab Emirates said in a post on X that the ship targeted was a national tanker affiliated with the Abu Dhabi National Oil Company.
President Donald Trump said on Sunday that the U.S. would escort commercial vessels stuck in the shipping corridor, in an operation he dubbed “Project Freedom.”
Trump wrote in a Truth Social post that the U.S. had told countries it would “guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business.”
Major General Ali Abdollahi, who is head of Iran’s central command, said in response that the country would attack “any foreign armed force” approaching or entering the strait, “especially, the aggressive U.S. Army,” according to multiple reports citing the state broadcaster IRIB.
Crude prices have crept higher in recent weeks due to the stalemate between the U.S. and Iran, with some investors fretting that the apparent lack of progress in peace talks could lead to further disruption of shipping through the Strait of Hormuz.
Write to George Glover at george.glover@dowjones.com
