Oil prices climb as Iran deploys new tactics to target ships transiting Hormuz

Business Recorder reported that Brent crude was up 63 cents, or 0.6 per cent, at $106.32 a barrel by 0345 GMT on Wednesday. US West Texas Intermediate gained 66 cents to $94.80 a barrel over the same period. Both benchmarks had risen by more than $1 earlier in the session before giving back part of that increase.

The move followed reports that two vessels were hit in the Strait of Hormuz, with Iranian officials telling Reuters that Tehran was using new tactics against ships it considers to be breaching its restrictions. The officials did not give details, but one said the change began about 10 days earlier and had been followed by more attacks on such vessels. A container ship and a tanker were struck by unknown projectiles, according to the UK Maritime Trade Operations agency.

Separately, the Houthis attacked an administrative building owned by Saudi Aramco in Dhahran, causing a limited fire, Saudi Arabia's energy ministry said. The group has fired missiles and drones at Saudi Arabia over the past week, and one analyst quoted in the report said supply concerns from that conflict were pushing prices higher. A second analyst said expected Russian diesel exports could restrain sharp price swings.