Oil traders reassess geopolitical risks after draft bill threatens restrictions on vessels in the critical waterway.
West Texas Intermediate crude climbed nearly 2.8% to $76.50 per barrel Thursday after details of a proposed Iran-Oman agreement raised doubts about unrestricted oil flows through the Strait of Hormuz. The rebound reversed earlier losses driven by optimism over a potential deal.
Prices had fallen earlier in the week on hopes for smoother transit, but a draft bill reviewed by an Iranian parliamentary committee proposes banning U.S., Israeli, and hostile vessels from the strait. The bill also includes fines of up to 20% of a vessel’s cargo value for violations and requires compensation for damages before granting passage.
The proposed framework would route incoming ships near Iran and outgoing vessels near Oman, reinforcing Tehran’s push for greater control. Washington continues to insist on toll-free passage, calling Hormuz an international waterway.