We study the effect of electron-electron interaction on transport through a tunnel-coupled single-channel ring. We find that the conductance as a function of magnetic flux shows a series of interaction-induced resonances that survive thermal averaging. The period of the series is given by the interaction strength alpha. The physics behind this behavior is the blocking of the tunneling current by the circular current. The main mechanism of dephasing is due to circular-current fluctuations. The dephasing rate is proportional to the tunneling rate and does not depend on alpha.