Oil Prices Rebound on Iran-Oman Transit Deal Hopes

Oil prices rebounded on Friday as markets assessed a pending agreement between Iran and Oman to set rules for transit through the Strait of Hormuz.

The Brent crude futures rose by 93 cents, or 1.14 percent, to USD 83.42 per barrel at 1:14 p.m. CDT (1814 GMT), while West Texas Intermediate futures gained 96 cents, or 1.24 percent, to USD 78.25.

The market's focus is on whether the agreement would allow US-flagged vessels, US-owned vessels, or vessels headed for a US port to transit through the strait.

Analysts said the deal might not be easily workable due to US sanctions and restrictive insurance clauses. The proposed fees from Iran are between 5-7 percent of cargo prices, while Oman wants about 3 percent, but Washington seeks no fees at all.