Iranian Parliament Proposes Ban on US and Israeli Vessels from Strait of Hormuz

Oil prices surged Thursday after an Iranian parliament committee proposed banning US and Israeli vessels from the Strait of Hormuz, sparking concerns over global oil supplies.

The proposed bill would fine violators up to 20% of their cargo value, with Brent crude futures gaining $3.09 (3.89%) to $82.54 a barrel by 12:37 EDT, while US West Texas Intermediate futures rose $2.49 (3.31%) to $77.71.

Crude traders remain focused on the Iran-US agreements and tensions in the region, with geopolitical risks persisting as Gulf countries' crude oil and condensate exports remain 40% below pre-war levels.

Houthi attacks on Saudi oil tankers have not significantly disrupted oil supplies yet, but might change if attacks escalate further.