Oil prices are climbing in Tuesday after Iran struck two vessels transiting through the Strait of Hormuz.
Brent crude, the international benchmark, climbed 0.85%, clocking in at $72.60 per barrel at 7:33 a.m. ET, while West Texas Intermediate, the U.S. benchmark, did so 0.66%, standing at $69 per barrel at the same time.
Citing a U.S. official, a new report detailed that Tehran fired at least two missiles at commercial ships going through the key waterway. Both sustained significant damages but there were no casualties, the official said.
The development takes place as talks between the countries are halted for the funeral of Ayatollah Ali Khamenei, killed by the U.S. and Israel on February 28 in the strikes that began the war.
Washington and Tehran had also agreed to halt strikes in the strait a week ago after a series of escalations that threatened to unravel the memorandum of understanding to end the war and begin negotiations on Iran's nuclear program.
Axios detailed in another report that the U.S. is trying to convince Iran to refrain from charging tolls for passage, arguing that Tehran stands to gain more from a nuclear deal than from charging tolls.
However, Iran has insisted on maintaining control of the strait, claiming that all ships must pass after coordinating with its authorities through routes approved by the country. However, others have been also making their way through the southern end of the waterway near the coast of Oman. Tehran has been largely targeting those vessels.
The country estimates it could make $40 billion a year from managing shipping, according to another report.
Citing Iranian officials familiar with the matter, The Wall Street Journal detailed that, if implemented, the plan would be a significant windfall for the regime as it would provide a source of income it did not have before the war.
The outlet went on to note that Tehran is presenting the idea to other countries in the region and wants its neighbors to be a part of it and share the revenues to make it more appealing.
Before talks were suspended, Vice President JD Vance said that the latest round of talks in Doha were making progress. "It's still pretty early, but talks are going well," he added. Special envoys Jared Kushner and Steve Witkoff met with mediators in the country to continue technical aspects of the negotiations.
