Oil Prices Up on Word U.S. Ship Fired on Boats

Oil prices rose sharply on news that a ship under contract to the U.S. Defense Department fired warning shots at two boats in the Persian Gulf. Retail gas prices, as expected, rose further into record territory, nearing $3.60 a gallon. Crude prices rose on initial reports that a U.S. ship had fired on two Iranian boats. The news raised concerns that a conflict between U.S. and Iranian forces could cut oil supplies from the region. A Navy spokeswoman said the origin of the boats was unclear.