Oil prices climbed on Friday as uncertainty over plans to reopen the Strait of Hormuz grew, with Iran and Oman considering restrictions on vessels deemed hostile and penalties for ships that violate proposed rules, Reuters reported.
Brent crude futures rose 99 cents, or 1.2%, to US$83.48 a barrel by 0010 GMT, while US West Texas Intermediate futures gained 85 cents, or 1.1%, to US$78.84.
The gains followed a stronger session on Thursday, when both benchmarks settled more than US$3 higher after Iran considered legislation that could restrict US and Israeli vessels from using the strategic waterway.
The Strait of Hormuz carried roughly a fifth of the world’s oil and liquefied natural gas before the war began at the end of February, making the prospect of prolonged restrictions a major concern for energy markets.
Iranian lawmakers are reviewing a preliminary bill that would ban US, Israeli, and other vessels deemed hostile from the strait and impose fines of up to 20% of the cargo’s value on violators, according to Fars news agency.
Iran is seeking fees of between 5% and 7% of cargo values for ships using the strait, while Oman is discussing a fee of around 3%. Washington, meanwhile, wants vessels to transit without such charges.
Four industry sources said the proposed arrangement would be difficult to implement because of US sanctions and restrictive insurance clauses surrounding payments.
The uncertainty has kept a floor under oil prices despite earlier optimism that a solution to the conflict was becoming more likely.
“Markets have already seen at least one short-lived arrangement earlier this year, so confidence that a new pact would fully restore normal tanker movements remains low,” said Tim Waterer, chief market analyst at KCM Trade.
Elsewhere, Yemen’s Houthis said they carried out missile and drone attacks on what they described as Saudi deployments in Marib and Hadramout on Thursday.
US President Donald Trump said on Thursday that he believed the war would be over soon.
