Oil Prices Rise on Strait of Hormuz Reopening Concerns
Oil prices rose on Friday as concerns grew over plans to reopen the Strait of Hormuz. The Brent crude futures price increased by 0.97% to $83.29 a barrel, while US West Texas Intermediate futures rose by 0.83% to $77.93.
Iran and Oman suggested banning vessels deemed hostile from the strait and fining those that violated proposed rules. Iran is seeking fees of between 5% and 7% of cargo value, while Oman is discussing fees of around 3%. The US wants no fees at all.
Analysts said the events this week indicated that hostilities between Iran and the US are not yet over. Lin Ye, vice president of commodities market, oil at Rystad Energy, stated: 'That's not the market pricing in a bad deal, it's pricing in confirmation that whatever emerges is a managed/conditional corridor, not a restoration of normal flow.'
US President Donald Trump said on Thursday that he believed the war would be over soon.