Iran Claims Four Tankers Destroyed by Naval Mines South of Strait of Hormuz as Oil Prices Swing

Iran's Islamic Revolutionary Guard Corps said four oil tankers were destroyed and two others seized after striking naval mines south of the Strait of Hormuz early Wednesday, with the IRGC stating the tankers had switched off their radar and navigation systems and were traveling along what Iran described as an illegal shipping lane. Four tankers remained ablaze following the incident, the IRGC added in a statement.

The escalation came as oil markets were already on edge. U.S. crude futures fell roughly $1 in volatile trading as investors weighed the outcome of U.S. midterm elections and their potential effect on peace negotiations with Iran. The drop came despite industry data showing U.S. crude stockpiles unexpectedly declined the previous week, a signal that would ordinarily support prices.

The mine strikes represent the sharpest single incident in a weeks-long Iranian campaign against Hormuz shipping. Preliminary Kpler data showed oil flows through the strait averaged 7.8 million barrels per day last week, just 45 percent of prewar levels, and October recorded more than 35 shipping incidents, the most since the conflict began. Iran has been using underwater drones and limpet mines to target vessels, according to the Wall Street Journal. Gold firmed modestly as oil fell, a typical safe-haven rotation, while U.S. stock futures also dipped as markets awaited election results that analysts say could shape the trajectory of any U.S.-Iran peace talks.