Crude Prices Soar Amid Strait of Hormuz Tensions and Houthi Attacks

Crude oil prices surged on Thursday as tensions in the Strait of Hormuz and continued attacks by Yemen's Houthi rebels on Saudi oil tankers fueled uncertainty over global oil supplies.

The September WTI crude oil contract closed up 2.07 (+2.75%) at $74.83 per barrel, while the RBOB gasoline contract settled up 0.0997 (+3.51%). The gains came as Iran and Oman proposed a plan to partially reopen the Strait of Hormuz, but with conditions that would restrict some oil exports from Gulf States.

The proposal, which is still under review, would allow vessels belonging to the US, Israel, or any other nation that has 'caused damage' to Iran to be prohibited from the strait. The move would further reduce global oil supplies and drive up prices.