WTI Steadies at $77.50 as Strait of Hormuz Tensions Escalate

Oil prices remained steady at around $77.50 per barrel on Friday as tensions in the Strait of Hormuz continued to escalate.

The volatility follows reports that Iran struck what it described as 'hostile targets' near Qeshm Island, disrupting shipping routes and casting doubt over efforts to fully reopen the vital waterway.

Tehran has proposed a draft agreement with Oman governing the strategic route, which would prohibit US and Israeli vessels from transiting the strait and require countries deemed hostile to pay compensation before passage.

The proposal outlines stricter conditions for commercial shipping than markets had anticipated, including penalties equal to 20% of a vessel's cargo value for violations.