Oil Futures Inch Higher After U.S. Troops in Persian Gulf Go on Alert

U.S. military forces in the Persian Gulf were placed on high alert, apparently after officials determined that "credible" terrorist threats were made against American targets.

Few details were emerging about the nature of the threats, but according to Reuters, U.S. forces, including the headquarters of the 5th Fleet in Bahrain, have been put on their highest state of alert. Following the news, crude oil, which has trended down mostly since last month, was higher. Crude gained 34 cents a barrel, or 1.3%, to close at $26.90. In mid-May, a barrel of oil priced at about $30 a barrel.

The Philadelphia Stock Exchange Oil Service Index fell 0.1% on Friday, while the American Stock Exchange Oil & Gas Index was up 1.1%.