Iran's Draft Plan Sparks Oil Price Surge Amid Strait of Hormuz Tensions
Oil prices surged on Thursday after Iran published a draft plan for managing the Strait of Hormuz, which includes restrictive conditions for ship traffic.
The draft plan, under review by an Iranian parliamentary committee, bans U.S. and Israeli ships from transiting the strait, while other nations that have harmed Iran will not be allowed to transit until compensation is paid.
Tehran will impose penalties on violators equivalent to 20% of the value of cargo aboard a ship.
Brent crude rose about 4% to $82.72 per barrel, and U.S. West Texas Intermediate was up around 3.5% to $77.83 after President Donald Trump, Treasury Secretary Scott Bessent, and Secretary of State Marco Rubio said a deal was near to increase traffic through the strait.
However, prices had fallen about 8% this week following their earlier announcement.