New joint framework bars vessels linked to the US and Israel, lifting WTI crude prices by 3.3% amid rising regional tensions.
Oman and Iran unveiled a plan to prohibit US, Israeli, and other “hostile” vessels from transiting the Strait of Hormuz. The framework targets military and civilian ships linked to Israel or nations that have harmed Iran, requiring compensation before passage is permitted. Violations may incur fines up to 20%, with enforcement led by government and armed forces overseeing navigation and security in the Persian Gulf.
The Strait of Hormuz is a critical chokepoint for global oil shipments, with roughly 20% of the world’s crude passing through daily. Prior reports indicated no formal restrictions, though Iran has previously threatened closures during heightened tensions. The announcement follows months of escalating regional conflicts and maritime incidents in the Gulf.
West Texas Intermediate crude surged from $75.65 to $77.00, a 3.3% gain, after the report surfaced. The move reflects market concerns over potential disruptions to oil supply routes in the Middle East.