Hormuz Impasse Fuels Oil Price Rally

Oil prices continued their rise on Friday amid concerns over the reopening of the Strait of Hormuz. The strait, through which roughly a fifth of the world's oil and liquefied natural gas is transmitted, has been at the center of tensions between Iran, Oman, and other countries.

Iran, working with Oman, suggested banning vessels deemed hostile from the strait and heavily fining those who violated the proposed rules. This move comes after a parliamentary committee in Iran reviewed a preliminary bill to ban US and Israeli vessels from the strait, as well as fine violators up to 20 per cent of cargo value.

Markets have been skeptical about the prospect of a new pact fully restoring normal tanker movements, with some analysts noting that at least one short-lived arrangement earlier this year did not lead to confidence in a lasting solution. 'Markets have already seen at least one short-lived arrangement earlier this year, so confidence that a new pact would fully restore normal tanker movements remains low,' said Tim Waterer, chief market analyst at KCM Trade.

Meanwhile, Yemen's Houthis carried out missile and drone attacks on Saudi deployments in Marib and Hadramout. US President Donald Trump also weighed in on the conflict, stating that he believed it would be over soon.