Strait of Hormuz Concerns Spark Oil Price Surge

Oil prices have surged as concerns over the Strait of Hormuz return. Brent crude futures rose nearly 1% to trade above $83 per barrel, while U.S. West Texas Intermediate (WTI) crude gained around 1%, approaching $78 per barrel in early trading.

The latest increase followed a sharp rally on Thursday when both benchmarks climbed by more than $3 a barrel after reports that Iran is considering new restrictions on vessel traffic through the Strait of Hormuz.

Market sentiment shifted after Iranian media reported that a draft proposal under review by lawmakers would ban U.S. and Israeli vessels from using the strategic waterway and impose significant penalties on ships that violate the proposed rules.