Oil Prices Rebound After Iran Draft on Strait of Hormuz Restrictions... Brent Climbs Back Above $82

[Financial News] International oil prices rose again after Iran unveiled a draft bill containing restrictions on vessels passing through the Strait of Hormuz. The move heightened concerns over supply disruptions as talks were under way to normalize traffic through the strait, while reports emerged that Iran was considering limiting the passage of U.S. and Israeli vessels, among others.
On the 6th local time, West Texas Intermediate crude oil (WTI) futures on the New York Mercantile Exchange closed at $77.29 per barrel, up 2.8% from the previous session. Brent Crude Oil futures, the global benchmark, rose 3.8% to $82.49.
The latest gain marks a rebound after a sharp recent decline in international oil prices. Prices had fallen about 8% earlier this week on hopes that negotiations would lead to the Strait of Hormuz being reopened and vessel traffic allowed to flow freely.
Earlier, Scott Bessent, United States Secretary of the Treasury, said in a CNBC interview on the 4th that an agreement to reopen the Strait of Hormuz and allow free movement of ships could come as early as the 5th.
However, with no official announcement of an agreement yet, uncertainty over the talks has risen again after Iran disclosed a separate plan to restrict passage through the Strait of Hormuz.
According to Fars News Agency, a committee of the Islamic Consultative Assembly is reviewing a draft bill that sets conditions for vessels passing through the Strait of Hormuz. The draft would ban U.S. and Israeli ships from transiting the strait and restrict vessels from other countries deemed to have harmed Iran until compensation is paid. It also includes a proposal to impose fines of up to 20% of a ship's cargo value for violations.
The measure has not yet been finalized and remains at the committee review stage. Iran is expected to prepare a final version after gathering expert opinions.
Meanwhile, Iran and Oman are reportedly holding separate talks to finalize shipping routes through the Strait of Hormuz. Under the plan under discussion, ships bound for Iran would pass through Iranian waters, while vessels leaving Iran would travel through Omani waters. No official statement has yet been issued by Oman.
 


[email protected] Lee Seok-woo, International Affairs Reporter