Oil prices rose on Tuesday after Iran dispatched a warship to the Red Sea, sending tensions higher in the critical shipping route. Iran announced it sent the Alborz destroyer through the Bab al-Mandeb Strait connecting the Red Sea and the Gulf of Aden. This comes after the U.S. Navy destroyed three boats from Iran-backed Houthi rebels in Yemen last week, killing ten militants. The boats allegedly attacked a commercial ship. Brent crude rose 2.5% to $78.97 a barrel, and WTI gained 2.5% to $73.43 per barrel on concerns over potential conflict escalation disrupting shipping.