Recent space-geodetic observations have revealed daily and subdaily va
riations in the Earth's rotation rate. Although spectral analysis sugg
ests that the variations are primarily of tidal origin, comparisons to
previous theoretical predictions based on various ocean models have b
een less than satisfactory. This disagreement is partly caused by defi
ciencies in physical modeling. Rotation predictions based on a reliabl
e tidal-height model, with corresponding tidal currents inferred from
a modified form of Laplace's momentum equations, yield predictions of
tidal variations in Universal Time that agree with very long baseline
interferometer observations to 2 microseconds. This agreement resolves
a major discrepancy between theory and observation and establishes th
e dominant role of oceanic tides for inducing variation in the Earth's
rotation at these frequencies.