After two ships were hit in the Strait of Hormuz, oil prices increased on Wednesday. Iranian officials told Reuters that they were using new strategies to attack ships in an effort to maintain high oil prices and influence the US midterm elections. By 06:30 GMT, US West Texas Intermediate crude futures increased 28 cents, or 0.3%, to $94.42 per barrel, while Brent crude futures increased 34 cents, or 0.3%, to $106.03 per barrel. In the early trade, both contracts had increased by more than $1.
Iranian authorities declined to disclose the specifics of the new approach, but one stated that approximately ten days ago, Iran began employing various offensive strategies against ships it deemed to be in breach of its regulations, which resulted in an upsurge in attacks on those ships. The United Kingdom Maritime Trade Operations reported on Tuesday that unidentified projectiles struck a tanker and a container ship in the Strait of Hormuz.According to Priyanka Sachdeva, head of market analytics at Phillip Nova, “the 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 ‘peace talks.'”Iran may not hesitate to use this leverage because it is fully aware of its geographic significance and the devastation that rising oil prices may cause to the world economy. Saudi Arabia’s energy ministry reported on Wednesday that the Houthis, who are aligned with Iran, attacked an administrative building held by the state-owned oil company Saudi Aramco in Dhahran, resulting in a small fire.
Also Read:
Authorities are Instructed by Sheikh Sultan to Promptly Transfer Land to its Successors
In Just Nine Months, Dubai Maritime City Rents 572,000 Square Feet as Revenue Increases Six fold
About Author
