Iran Strait of Hormuz Plan Boosts Oil Prices

Oil prices have risen sharply after concerns over vessel traffic through the Strait of Hormuz resurfaced. Brent crude futures climbed by nearly 1% to trade above $83 per barrel, while U.S. West Texas Intermediate (WTI) crude gained around 1%, approaching $78 per barrel in early trading.

The latest increase follows a sharp rally on Thursday when both benchmarks climbed by more than $3 a barrel after reports that Iran is considering new restrictions on vessel traffic through the Strait of Hormuz. Iranian media reported that a draft proposal under review by lawmakers would ban U.S. and Israeli vessels from using the strategic waterway and impose significant penalties on ships that violate the proposed rules.

Market sentiment shifted after these developments, with concerns renewed over potential supply disruptions. Oil prices had fallen earlier in the week due to hopes for diplomatic efforts leading to a broader agreement to restore normal shipping through the strait.