Oil jumps after Iran publishes restrictive plan for Strait of Hormuz
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 about 4% to $82.72 per barrel. U.S. West Texas Intermediate was up about 3.5% to $77.83.
Prices have fallen about 8% this week after President Donald Trump, Treasury Secretary Scott Bessent and Secretary of State Marco Rubio said a deal was near to increase traffic through the strait.
The Iranian state news agency Fars on Thursday published the text of what it described as an “initial draft of the strategic plan for managing Strait of Hormuz.”
Under the apparent draft plan, Iran would ban U.S. and Israeli ships from transiting the strait. Other nations that have harmed Iran would not be allowed to transit until compensation is paid, according to the draft. Tehran will impose penalties on violators equivalent to 20% of the value of cargo aboard a ship.
The plan is under review by an Iranian parliamentary committee, according to Fars.
Meanwhile, a tanker reported hearing two explosions off the coast of Oman while transiting Hormuz, according to a Wednesday incident report from the United Kingdom Maritime Trade Operations Centre. The crew and vessel are safe.
Iran’s Houthi allies in Yemen claimed Thursday to have attacked Saudi Arabian troop concentrations there. The Houthis said Wednesday that they attacked a Saudi tanker in the Red Sea off the coast of its Yanbu export terminal.