Oil jumps after Iran publishes restrictive plan for Strait of Hormuz
Crude oil prices rose significantly after Iran drafted restrictive conditions for ship traffic in the Strait of Hormuz, including potential bans on U.S. and Israeli vessels. The move complicates ongoing international efforts to secure freedom of movement in the vital waterway.
Why it matters
The Strait of Hormuz is a critical global energy chokepoint; restrictions here directly impact international oil supply chains and global inflation.
Crude oil prices rose Thursday after Iranian state news published a draft plan with restrictive conditions for ship traffic in the Strait of Hormuz.
Brent crude, the international benchmark, rose 3.8% to close at $82.49 per barrel. U.S. West Texas Intermediate gained about 2.8% to settle at $77.29.
Prices have fallen about 8% this week after Treasury Secretary Scott Bessent told CNBC on Tuesday that a deal to open Hormuz with freedom of movement could come as soon as Wednesday.
A deal still has not been announced but Iran and Oman are reportedly working on an agreement to define transit routes in Hormuz. Inbound traffic would transit Iranian waters while outbound traffic would go through Omani waters, according to media reports.
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