Oil Prices Surge as Iran Reviews Bill to Ban US Vessels
Oil prices surged on Thursday due to rising concerns about shipping disruptions in the Red Sea. The price of Brent crude futures settled up $3.04, or 3.83%, to $82.49 a barrel, while US West Texas Intermediate futures rose by $2.07, or 2.75%, to $77.29.
The increase was triggered by news that an Iranian parliament committee is reviewing a bill to ban US and Israeli vessels from the Strait of Hormuz and fine violators up to 20% of cargo value, according to Fars news agency.
Crude traders remain focused on the US/Iran agreements, with Dennis Kissler, senior vice president of trading at BOK Financial, stating that 'the longer the delays, the more prices will fade back to the upside.'
The Strait of Hormuz is a critical waterway through which about one-fifth of global daily oil and liquefied natural gas supplies flow.