Iran's Transit Fee Proposal Sends Oil Prices Higher Amid Hormuz Uncertainty

Oil prices rose on Friday amid uncertainty surrounding the reopening of the Strait of Hormuz, as Iran proposed transit fees for commercial vessels.

Brent crude increased by $0.75 (0.9%) to $83.24 a barrel, while US West Texas Intermediate (WTI) rose by $0.42 (0.5%) to $77.71 per barrel.

The uptick in prices follows a surge of over $3 per barrel on Thursday after reports revealed Iran's plan to ban US and Israeli vessels from navigating the strategic waterway, through which nearly one-fifth of the world's petroleum and liquefied natural gas (LNG) is transported.

Analysts emphasize that tensions between Washington and Tehran remain unresolved, with market volatility reflecting concerns over Iran's draft proposals. Lin Ye, a Rystad Energy analyst, noted that shipping might face conditional and controlled corridors rather than an immediate return to normal operations.