Iran's Draft Plan Sparks Oil Price Surge

Crude oil prices surged on Thursday after Iran published a draft plan for ship traffic in the Strait of Hormuz, which includes restrictive conditions and potential penalties for violators.

The Brent crude benchmark rose by 3.6% to $82.36 per barrel, while U.S. West Texas Intermediate increased about 2.8% to $77.30. This move comes after Treasury Secretary Scott Bessent's comments on Tuesday that a deal to open Hormuz with freedom of movement could be reached as soon as Wednesday.

Iran and Oman are reportedly working together to define transit routes in the strait, where inbound traffic would pass through Iranian waters while outbound traffic would go through Omani waters. However, the draft plan published by Iran's state news agency Fars imposes stricter conditions on ship traffic, including banning U.S. and Israeli ships from transiting the strait.

The draft also states that other nations that have harmed Iran would not be allowed to transit until compensation is paid, with Tehran imposing penalties equivalent to 20% of the value of cargo aboard a ship on violators.