U.S. President Donald Trump accused Iran on Oct. 22 (local time) of making false claims, including about attacks on ships, to drive up oil prices ahead of the November midterm elections. Meanwhile, analysts said a sharp rise in freight costs could cause orders for U.S. crude to plunge.
Trump said on Truth Social that day, "Iran is doing everything it can to drive up oil prices ahead of the U.S. midterm elections," adding that it was "making up false claims that attacks hit their targets and claims of mine attacks." He also argued that more crude was passing through the Strait of Hormuz than before the war.
Trump cited a Wall Street Journal (WSJ) article to support his remarks. Citing data from Kpler, the WSJ reported that the volume passing through the Strait of Hormuz, together with the volume of ship-to-ship transfers in the Gulf of Oman, averaged about 14 million barrels per day in the week through Oct. 18, or 82% of the level before the war with Iran.
However, when volumes transported through alternative pipelines and other routes are included, total crude flows from the Middle East exceeded an average of 24 million barrels per day. That was more than the 23.3 million barrels per day recorded before the war. Although total crude flows from the Middle East have surpassed prewar levels, the figures cited by the WSJ do not support Trump's claim that the volume passing through the Strait of Hormuz has increased from before the war.
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