Oil prices rose after Iran announced it was employing new tactics targeting ships
Oil prices climbed after Tehran stated, as part of efforts to keep oil prices high and influence US midterm elections, that it had employed new tactics by striking two vessels in the Strait of Hormuz and would continue to target ships passing through the strait.
Brent crude futures rose 34 cents (0.3 percent) to $106.03 per barrel as of 09:30 Turkish time (06:30 GMT), while WTI crude gained 28 cents (0.3 percent) to reach $94.42 per barrel.
Both oil benchmarks pared some of their gains after rising by more than $1 per barrel earlier in the day.
Although Iranian officials refrained from providing details on the new strategy, one official stated that Iran had begun employing different attack tactics about 10 days ago against vessels deemed to be violating restrictions, leading to an increase in attacks on such ships.
United Kingdom Maritime Trade Operations (UKMTO) announced on Tuesday that a container ship and a tanker had been struck by unidentified objects in the Strait of Hormuz.
Openly acknowledging that they are undermining US efforts to keep oil prices in check, Iranian officials state that the true intent behind the so-called "peace talks" is evident.
Iran is aware of its geographical significance and the potential havoc that high oil prices could wreak on the global economy; consequently, it may not hesitate to leverage this advantage.
Meanwhile, the Iran-backed Houthis launched ballistic missiles and unmanned aerial vehicles (UAVs) at Saudi Arabia throughout the past week in retaliation for the Kingdom's support of Yemeni government forces. Riyadh's international airport was targeted four times, and 13 people lost their lives in an attack on Saturday.
Supply concerns stemming from the conflict between the Houthis and Saudi Arabia are driving prices upward.
Expectations that rising Russian diesel exports will alleviate market tightness are likely to limit sharp price fluctuations in either direction.
Saudi Arabia increased oil production last month, despite disruptions to shipments caused by US-Iran tensions. In a statement on Tuesday, OPEC noted that this move led to a sharp increase in production within the OPEC+ framework.
The Russian government stated on Tuesday that it saw no direct link between the peace talks with Ukraine and the agreement to export diesel to the US.
This statement followed remarks made by US representatives to Ukrainian officials on Friday, indicating that the agreement in question was part of an effort to bring Russia back to the negotiating table for a peaceful resolution.
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