Iran's Draft Plan to Restrict US Vessels Sends Oil Prices Soaring
Oil prices rose significantly on Friday morning following reports that an initial draft proposal between Iran and Oman would ban US and Israeli vessels from transiting the Strait of Hormuz until compensation is paid for war damages.
The draft, which has been sent to a parliamentary committee for approval, aims to restrict transit by ships from nations deemed hostile. According to Fars news agency, violators will face fines of up to 20 percent of their cargo's value.
US President Donald Trump said on Thursday that a deal to reopen the strait had not been finalised. The move has sparked concerns among global traders and market analysts, with Brent crude futures rising 1.2 percent to $83.48 a barrel by 00:10 GMT, while US WTI futures gained 1.1 percent to $78.84.
The Strait of Hormuz is a critical waterway for oil exports, with over 20% of the world's oil passing through it daily. The recent tensions have already led to disruptions in global trade, with Saudi Arabia's main index falling 0.7 percent and Dubai's benchmark index declining 1.5 percent.