Oil prices climb as Iran deploys new tactics to target ships transiting Hormuz
USO•Brent rose 0.6% to $106.32 a barrel and WTI gained 0.7% to $94.80 after two vessels were struck in the Strait of Hormuz and Iranian officials said they had begun using new tactics against ships.
1. Oil prices rise
Oil prices climbed on Wednesday after a container ship and a tanker were hit by unknown projectiles in the Strait of Hormuz. Brent rose 63 cents, or 0.6%, to $106.32 a barrel, while WTI gained 66 cents, or 0.7%, to $94.80; both contracts had risen more than $1 earlier before paring gains.
2. Iran’s new tactics
Iranian officials said the country had begun using different offensive tactics against vessels it considered in violation of its restrictions about 10 days ago, leading to more attacks. The officials said the moves were intended to keep oil prices high and influence the US midterm elections.
3. Regional supply concerns
Saudi Arabia’s energy ministry said Iran-allied Houthis attacked an administrative building belonging to Saudi Aramco in Dhahran, causing a limited fire. An analyst said concerns about conflict between the Houthis and Saudi Arabia were supporting prices, while expected increases in Russian diesel exports could limit sharp moves.
