Hormuz Strait Reopening Plans Send Oil Prices Soaring Again

Oil prices continued to rise on Friday as concerns over the Strait of Hormuz's reopening plans persisted. Brent crude futures rose by $0.99, or 1.2%, to $83.48 a barrel at 0010 GMT, while US West Texas Intermediate futures increased by $0.85, or 1.1%, to $78.84.

The increase was driven by Iran's proposal to ban vessels deemed hostile from the Strait of Hormuz and impose fines on violators up to 20% of cargo value. Oman is discussing fees of around 3%, while the US wants no fees at all.

Industry sources have expressed skepticism about the proposed deal, citing US sanctions and restrictive insurance clauses as major obstacles. '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.