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Oil rises on Strait of Hormuz reopening uncertainty and Iran rules
Brent futures rose 1.2% to $83.48 a barrel, while WTI gained 1.1% to $78.84, after Iran floated rules that could ban hostile vessels and impose up to 20% cargo-value penalties.
Oil prices increased on Friday as uncertainty grew around possible reopening of the Strait of Hormuz, after Iran working with Oman suggested restrictions on vessels deemed hostile and fines for violations, according to LiveMint Markets. Brent crude futures settled up 99 cents, or 1.2%, at $83.48 per barrel, while US West Texas Intermediate futures rose 85 cents, or 1.1%, to $78.84. The move extends gains after oil rose more than $3 per barrel on Thursday when Iran reviewed a proposed bill aimed at barring US and Israeli vessels from passing through the strait, a major shipping route for global oil and LNG. LiveMint Markets reported that the proposal includes penalties of up to 20% of a cargo's value for ships violating the proposed restrictions, and it also outlines transit fees of 5% to 7% of cargo value, while Oman is discussing a fee around 3%. Reuters cited industry sources saying implementing a deal would be difficult due to existing US sanctions and insurance-related restrictions on payments, while the US is pushing for unrestricted passage without transit charges. Separately, Yemen's Houthi rebels claimed responsibility for missile and drone attacks targeting Saudi deployments in Yemen's Marib and Hadramout regions on Thursday, adding to the broader risk backdrop around the region.
Latest closeWTI crude $78.07 ▲3.8%|Brent $83.46