Oil Prices Rise on Iran-Oman Deal for Strait of Hormuz Transit

Oil prices rose on Friday as markets digested a pending agreement between Iran and Oman over transit rules for the Strait of Hormuz. The deal aims to set rules for ships passing through the strategic waterway, which carries around one-fifth of global oil exports.

The agreement comes after Iran reviewed a bill to ban US and Israeli vessels from the strait, but it's unclear whether an Iran-Oman pact would allow US-flagged or -owned vessels to pass through. The Strait of Hormuz is a critical chokepoint in global energy supplies, with Brent crude futures up 1.14% at $83.42 per barrel.

Analysts say the deal's structure and terms may face challenges due to US sanctions and insurance restrictions. Saudi Arabia has also warned of potential attacks from Iraqi militias and Yemen's Houthis, backed by Iran's Islamic Revolutionary Guard Corps.