Oil Prices Soar Amid Iran's Strait of Hormuz Restrictions

Oil prices surged on Friday due to fresh concerns over global supply following Iran's draft plan for restricting navigation through the Strait of Hormuz, a vital oil transport route. The move sparked caution among investors who are monitoring the risk of new disruptions in Middle Eastern oil flows.

The price hike was led by Brent oil contracts for October delivery, which rose 1.22% to $83.50 per barrel. West Texas Intermediate (WTI) oil, the benchmark in the US, also gained ground, with September contracts increasing 1.11% to $78.15 per barrel.

According to Westpac, the price rise could intensify pressure on global inflation. The bank noted that 'the rise in oil prices signalled a new inflationary impulse stemming from energy and the situation in the Middle East, lifting the US dollar and devaluing government bonds.'