Hormuz Strait Tensions Send Oil Prices Higher Again
Oil prices rose on Friday due to renewed concerns about the Strait of Hormuz transit plan. Iran and Oman proposed banning vessels deemed hostile from the strait and fining those that violate the rules.
The Brent crude futures price increased by 85 cents, or 1.03%, to $83.34 a barrel at 0634 GMT. U.S. West Texas Intermediate futures rose 52 cents, or 0.67%, to $77.81.
Prices fell earlier in the week as a possible solution to the conflict looked more likely, but benchmark Brent breached $80 on Thursday after falling below that for the first time since July 13.
An Iranian lawmaker said a parliamentary committee is reviewing a preliminary bill to ban U.S., Israeli and other vessels deemed hostile from the Strait of Hormuz. The proposed restrictions would fine violators up to 20% of cargo value, according to the Fars news agency.