Oil rose after Iran sent a warship to the Red Sea in response to the US Navy’s sinking of three Houthi boats over the weekend, adding to regional tensions as ships continue to avoid the key waterway.
Brent crude climbed above $78 a barrel after declining by 5% over the prior three sessions, with West Texas Intermediate near $73. The US Navy said it was fired upon when responding to a distress call from a vessel in the Red Sea, resulting in the sinking of the three boats. In response, Iran’s Alborz destroyer entered the vital waterway on Monday, state media said.