Key facts
- Oil futures rose as concerns grew over Iran's proposed restrictions on vessels in the Strait of Hormuz.
- Iran is reviewing a bill to ban hostile vessels from the Strait of Hormuz and fine violators.
- Skepticism about the workability of a new deal to restore normal tanker movements has put a floor under oil prices.
- Brent crude futures rose 1.2% to $83.48 a barrel, and WTI futures rose 1.1% to $78.84.
- Yemen's Houthis conducted missile and drone attacks on Saudi targets.
- US President Donald Trump expressed belief that the war would end soon.
Oil futures climbed as concerns resurfaced over Iran's proposed restrictions on vessels transiting the Strait of Hormuz, a critical global energy chokepoint. Iran is reviewing a preliminary bill that would ban U.S., Israeli, and other vessels deemed hostile from the strait, with potential fines up to 20% of cargo value for violators. Oman is discussing fees of around 3% for ships using the corridor, while Iran seeks 5%-7% and the U.S. wants no fees.
Market skepticism regarding the workability of any new pact to restore normal tanker movements has provided a floor for prices. This uncertainty contrasts with earlier optimism about a potential US-Iran peace deal that had driven prices down. Brent crude futures rose 1.2% to $83.48 a barrel, and U.S. West Texas Intermediate futures increased 1.1% to $78.84.
Adding to regional tensions, Yemen's Houthis claimed responsibility for missile and drone attacks on Saudi deployments. Meanwhile, U.S. President Donald Trump expressed his belief that the ongoing conflict would conclude soon.