Crude oil prices rise as Iran changes tactics in attacks on ships in the Strait of Hormuz

Global crude oil prices rose on October 14 following attacks on two ships in the Strait of Hormuz. Iran has changed its tactics for attacking vessels, seeking to keep crude oil prices high and increase pressure on the United States ahead of the midterm elections. Reuters reported the development.

Brent crude futures rose by 63 cents, or 0.6%, to $106.32 per barrel as of 03:45 GMT. US West Texas Intermediate (WTI) crude futures gained 66 cents, or 0.7%, to $94.80 per barrel.

Iranian officials have not disclosed details of the new strategy. However, one official said that about 10 days ago, Iran began using different tactics to attack vessels that Tehran considers to be violating its restrictions. According to the official, this has led to an increase in the number of attacks.

Priyanka Sachdeva, head of market analysis at Phillip Nova, said Iran was using its geographic position and influence on the global economy as leverage against the United States. Meanwhile, Iran’s allies, the Houthis, attacked an administrative building belonging to Saudi state oil company Saudi Aramco in Dhahran, causing a small fire.

At the same time, expectations of increased Russian diesel exports could limit further price gains. Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, forecasts that WTI crude will trade in a range of $90–100 per barrel.

Tags: prices