Shares of energy companies rose alongside oil futures following reports that Iran fired on commercial vessels near the Strait of Hormuz.
U.S. oil futures rose $1.89 per barrel, or 2.76% to $70.44 a barrel and topped $72 a barrel in late trading amid fears the U.S. would tighten sanctions on Iranian oil once more. The U.S. revoked a license to purchase Iranian oil, issued as part of the ongoing peace negotiations, in response to the latest attacks. Analysts said Iran's attacks reflected concerns about losing leverage represented by control of the strait.
There were also signs that Gulf producers are gearing up for a price war as supplies start flowing through the strait again. Saudi Arabia reduced the price of its flagship crude grade for Asian buyers by $11 a barrel for August, its biggest monthly cut in more than two decades. Rivals, including the United Arab Emirates and Iraq, have also lowered their official selling prices.
Shell shares rose after an earnings preview suggested the British oil major's energy traders continued to benefit from volatility triggered by the conflict in the Middle East, even as lost Qatari natural-gas volumes squeezed output.
Write to Rob Curran at rob.curran@dowjones.com
