TOKYO: Oil prices rose on Wednesday after two vessels were struck in the Strait of Hormuz and Iranian officials told Reuters that Tehran was using new tactics to target ships transiting the waterway.
Brent crude futures gained 63 cents, or 0.6%, to $106.32 a barrel by 0345 GMT, while US West Texas Intermediate (WTI) crude rose 66 cents, or 0.7%, to $94.80. Both benchmarks had climbed by more than $1 earlier in the session before paring their gains.
Iranian officials declined to disclose details of the reported tactics but said operations against vessels considered to be violating Iranian restrictions had changed around 10 days earlier. The United Kingdom Maritime Trade Operations agency reported that a container ship and a tanker had been struck by unidentified projectiles in the Strait of Hormuz on Tuesday.
Supply concerns also increased after Iran-aligned Houthi forces reportedly attacked an administrative building belonging to Saudi state-owned oil company Aramco in Dhahran, causing a limited fire, according to Saudi Arabia’s energy ministry. The group has launched missile and drone attacks against Saudi Arabia in recent days amid the kingdom’s support for Yemeni government forces.
Market analysts said escalating regional tensions were supporting oil prices, although expectations of increased Russian diesel exports could help ease fuel-market tightness and limit further gains.
The price movement follows an increase in Saudi oil production last month despite shipment disruptions linked to the US-Iran conflict, contributing to a broader production rise among OPEC+ members, according to OPEC.
Meanwhile, Russia said it saw no direct connection between its agreement to export diesel to the United States and peace negotiations with Ukraine. Reuters had reported that US envoys presented the deal to Ukrainian officials as part of efforts to encourage Russia to return to negotiations.