To update prices and add analyst commentary

LONDON, June 29 (Reuters) - Oil prices rose more than 1 percent on Monday after tit-for-tat attacks between the United States and Iran showed the fragility of their interim agreement to end the trade war, but gains were capped by expectations that energy shipping traffic through the Strait of Hormuz would continue to recover.

Tehran and Washington agreed to resume talks on the Strait of Hormuz, boosting hopes of salvaging a temporary ceasefire agreement that was jeopardized after days of exchanging attacks.

Brent crude futures rose 77 cents , or 1.1 percent , to $ 72.76 a barrel by 1324 GMT, while U.S. West Texas Intermediate crude gained $1 , or 1.44 percent, to $ 70.23 a barrel.

“The war risk premium may remain in place until the situation in the Middle East has completely calmed down, with the pace of news related to the tensions decreasing,” said Achilleas Georgolopoulos, an analyst at XM brokerage.

Brent crude fell 10.6 percent last week, its third weekly decline, after oil shipments through the Strait of Hormuz rose to their highest level since the start of the US-Israeli war on Iran in late February.

“There are still many risks facing the oil market,” ING analysts said in a note released Monday. “However, market participants appear to be focused on what a continued recovery in oil flows might mean for the global balance… This clearly leaves significant risks that could push prices higher if the supply recovery proves to be slow.”

Shipping data showed that Middle Eastern oil and liquefied natural gas producers continued loading operations despite new attacks on ships in the Strait of Hormuz and renewed attacks between the United States and Iran in the past few days.

Saudi Aramco resumed loading crude oil at Ras Tanura, west of the Strait of Hormuz, on Friday after a nearly four-month hiatus.

Loading operations continued even after a company helicopter crashed yesterday, Sunday, in Ras Tanura, killing 14. The reasons for the crash are still unknown.