Oil Climbs as Iran, Oman Propose New Fees for Strait of Hormuz
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Oil prices rose on Friday, with Brent crude gaining 1.2% to $83.48 a barrel, driven by uncertainty over new shipping rules proposed by Iran and Oman for the Strait of Hormuz. The gains extended Thursday’s $3 surge as markets assessed the potential for fresh disruptions to tanker traffic. The rise came despite President Trump’s assertion that the regional conflict could end soon.
Price Action
Brent crude futures for October delivery climbed 99 cents, or 1.2%, to $83.48 a barrel by 0010 GMT on Friday, Reuters reported. U.S. West Texas Intermediate crude for September rose 85 cents, or 1.1%, to $78.84. The increases follow a settlement jump of over $3 on Thursday, which pushed Brent back above the $80 threshold for the first time since July 13.
Iran-Oman Strait Proposals
Iran’s parliamentary committee is reviewing a preliminary bill that would ban American, Israeli, and other vessels deemed “hostile” from the Strait of Hormuz, according to Inbusiness.kz. The legislation also proposes fines of up to 20% of the cargo value for violators. Separately, Tehran is advocating a transit fee of 5–7% of cargo value, while Oman is discussing a lower 3% tariff. The United States opposes any new charges, Reuters reported.
Supply Risk Persists
The Strait of Hormuz handled roughly 20% of global oil and liquefied natural gas shipments before the war began at the end of February. In addition to the legislative uncertainty, Yemen’s Houthis reported missile and drone strikes on targets in Marib and Hadramaut provinces, adding to regional instability. Tim Waterer, chief market analyst at KCM Trade, told Reuters that markets remain skeptical of a lasting resolution after a short-lived deal earlier this year, and this doubt is ‘putting a floor under prices.’
What's Next
Iran’s parliament is expected to continue reviewing the bill in the coming days. It remains unclear whether the proposals will gain international acceptance or instead deepen disruptions to one of the world’s most critical energy corridors.
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Oil Climbs as Iran, Oman Propose New Fees for Strait of Hormuz
