Key facts
- Two vessels sank near the Strait of Hormuz after being hit by projectiles.
- Iran stated it is increasing strikes in response to US port blockades and sanctions.
- The US is considering easing sanctions on Russian 'shadow fleet' vessels.
Oil prices fell more than 1% on Thursday as investors weighed supply risks from attacks in the Strait of Hormuz against potential US easing of sanctions on Russian tankers. Brent crude futures dropped 2.2% to $103.78 a barrel, and US West Texas Intermediate futures fell 1.4% to $93.75. Maritime officials reported that a container ship and a dry bulk carrier sank near the strait in separate incidents after being hit by projectiles. Iran has stated it is increasing strikes in response to US port blockades and sanctions. Increased output from Russia and the Middle East has tempered price gains, with Russia's crude oil production rising in September and exports from Middle East Gulf producers increasing significantly.