Iran Bill Threatens Oil Prices: US Vessels Banned from Hormuz

Oil prices surged by more than $3 per barrel on Thursday after an Iranian parliament committee began reviewing a bill that would ban US and Israeli vessels from the Strait of Hormuz, with violators facing fines up to 20% of their cargo's value.

The move sent Brent crude futures soaring to $82.54 a barrel, a gain of $3.09 (3.89%) by 12:37 p.m. EDT, while US West Texas Intermediate futures rose $2.49 (3.31%) to $77.71.

Dennis Kissler, senior vice president of trading at BOK Financial, attributed the price jump to traders' focus on US-Iran agreements and the escalating tensions in the region.