Hormuz Tensions Send Oil Prices Soaring Again

Crude oil prices surged for a second consecutive day on August 7 as concerns over the Strait of Hormuz grew. Iran proposed restrictions on vessels deemed hostile and severe financial penalties on ships that violate these rules.

The price of Brent crude, the international standard, rose by $0.99 or 1.2% to reach $83.48 a barrel, while U.S. West Texas Intermediate crude climbed by $0.85 or 1.1% to $78.84 a barrel.

This increase came after reports that Iranian lawmakers were assessing legislation to ban U.S. and Israeli vessels from navigating the strategic choke point.