Iran Claimed to Hit Several More Tankers in The Hormuz Strait. Oil Prices are Climbing Further.

Oil prices are climbing further on Thursday after Iranian forces said they hit seven vessels attempting to cross through the Strait of Hormuz. Should the figure be confirmed officially, it would be the largest for a single day since the war began in late February.

Brent crude, the international benchmark, climbed 2.91% at 8:10 a.m. ET and stood at $111.99 per barrel, while West Texas Intermediate, the U.S. benchmark, gained 2.46% and clocked in at $99.54 per barrel at the same time.

Prices are climbing even though oil exports from the Persian Gulf have surpassed levels recorded before the war as U.S. protection, alternative pipelines and lucrative shipping deals keep crude moving despite attacks on tankers.

Flows through Hormuz and alternative regional routes averaged more than 24 million barrels daily during the week ended October 18, according to The Wall Street Journal, which cited ship-tracking company Kpler. That exceeded the prewar average of 23.3 million barrels.

However, traffic through the Hormuz Strait itself remains below its previous level. Preliminary Kpler figures put flows through the strait, including offshore transfers in the Gulf of Oman, at approximately 14 million barrels daily, equivalent to 82% of prewar volumes.

The broader rebound reflects an expanding network of routes and shipping arrangements that has reduced Iran's ability to interrupt its neighbors' exports, even as vessels face serious danger.

Saudi and Emirati pipelines have helped redirect supplies. In September, approximately 40% of non-Iranian crude leaving the Gulf bypassed Hormuz, compared with 17% before the war.

At sea, some tankers operate as shuttles, collecting oil inside the Gulf and carrying it through Hormuz before transferring cargoes to other vessels near Oman. Those receiving ships then transport the oil to distant markets. American air cover offers some protection along the Omani coast. Tankers frequently switch off their tracking signals during crossings.

Iran is also threatening to escalate as tensions keep climbing. "If a country attacks us, we will both respond and go on the offensive," Revolutionary Guards spokesman Hossein Mohebbi said on Wednesday. He went on to claim that the previous doctrine was defensive and focused on responding to attacks, but will now be asymmetric.

There are no prospects of renewed talks. In fact, Israeli Prime Minister Benjamin Netanyahu sought to resume attacks against Iran earlier this month but Trump prevented him from doing so, according to a new report. Netanyahu then claimed the report was "incorrect."

Citing people familiar with the matter, the Financial Times noted that the Israel Defense Forces was ready to conduct strikes on the weekend of October 10. They would have targeted nuclear infrastructure as well as energy targets, including energy plants used with civilian purposes.

However, the outlet added, Trump did not give the green light as he is not seeking a resumption of the conflict before the U.S. midterms, which will take place on November 3.