Oil Prices Climb as Iran Deploys New Tactics in Strait of Hormuz

KARACHI (Reuters): Oil prices climbed on Wednesday as Iran deployed new tactics to target ships transiting the Strait of Hormuz, aiming to keep crude prices elevated.

Brent crude futures rose 89 cents, or 0.8 percent, to $106.58 a barrel, while US West Texas Intermediate crude gained 80 cents, or 0.9 percent, to $94.94, Reuters reported.

According to two senior Iranian officials, Tehran has changed its offensive strategy against vessels in the past 10 days, altering both the type and pace of attacks. The decision was taken at the highest level of Iran’s leadership and coordinated across its ruling system, including the Revolutionary Guards.

Iran has tried to exert control over the Strait of Hormuz since the United States and Israel launched strikes against it on February 28. The waterway carried about a fifth of global oil and LNG trade before the war. Threats and attacks have severely curtailed traffic, driving prices up and cutting vessel transits to the lowest in more than two months.

The officials said one objective of the new strategy is to influence the outcome of the US midterm elections by frustrating US and allied efforts to bring down oil prices.

Gulf producers are now routing shipments close to Oman’s coast with US aerial support.