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TOKYO: Oil prices climbed on Wednesday after two vessels were struck in the Strait \u200cof Hormuz and Iranian officials told Reuters they were deploying new tactics<\/u> to target ships, as Tehran seeks to keep oil prices high and influence the US midterm elections.<\/p>\n
Brent crude futures rose 34 cents, or 0.3 percent, to $106.03 a barrel by 09:30 a.m. Saudi time, while US West Texas Intermediate crude futures \u200bgained 28 cents, or 0.3 percent, to $94.42 a barrel. Both contracts had climbed more than $1 in early trade.<\/p>\n
The Iranian \u200bofficials declined to provide details of the new strategy, but one said that Iran had started \u2060using different offensive tactics against vessels it considered in violation of its restrictions about 10 days ago, adding that this \u200bhad led to an increase in attacks on such ships.<\/p>\n
A container ship and a tanker were hit by unknown projectiles within \u200bthe Strait of Hormuz, the UK Maritime Trade Operations said on Tuesday.<\/p>\n
\u201cThe fact that Iranian officials are openly admitting to undermining US efforts to keep oil prices under control speaks volumes about the real intentions behind the so-called \u2018peace talks,\u2019\u201d said Priyanka Sachdeva, head of market insights \u200bat Phillip Nova.<\/p>\n
\u201cIran is well aware of its geographical importance and the havoc higher oil prices can inflict on the \u200bglobal economy, and it may not shy away from using this leverage.\u201d<\/p>\n
Elsewhere, the Iran-allied Houthis attacked<\/u> an administrative building belonging to state-owned oil firm \u200cSaudi Aramco \u2060in the city of Dhahran, causing a limited fire, Saudi Arabia\u2019s energy ministry said on Wednesday.<\/p>\n
The group has fired ballistic missiles and drones at Saudi Arabia over the past week in retaliation for the Kingdom\u2019s support of Yemeni government forces. Riyadh\u2019s international airport<\/u> has been hit four times, with a strike on Saturday killing 13 people.<\/p>\n
\u201cSupply concern stemming from conflict between the Houthis \u200band Saudi Arabia is driving \u200bprices higher,\u201d said Hiroyuki Kikukawa, \u2060chief strategist at Nissan Securities Investment, a unit of Nissan Securities.<\/p>\n
\u201cHowever, the expectation that increased Russian diesel exports will ease market tightness is likely to limit sharp price movement in either \u200bdirection,\u201d Kikukawa said, projecting WTI to trade between $90 and $100 a barrel.<\/p>\n
Last month, Saudi Arabia raised \u200boil production despite \u2060disruptions to shipments caused by the US-Iran war. That led to a sharp production increase<\/u> from OPEC+ \u2014 the Organization of the Petroleum Exporting Countries and partners including Russia \u2014 OPEC said on Tuesday.<\/p>\n
In Russia, the government said on Tuesday it did not see any direct link \u2060between peace \u200btalks with Ukraine and its deal to export diesel<\/u> to the US.<\/p>\n
The comment \u200bcame after Reuters reported that US envoys had told Ukrainian officials on Friday that the deal was part of an attempt to draw Russia back to \u200bnegotiations for a peace settlement<\/u>.<\/p>\n<\/div>\n