Oil jumps after Iran publishes restrictive plan for Strait of Hormuz

Key Points:

• Crude oil prices surged on Thursday following the publication of a draft Iranian plan imposing restrictive conditions on ship traffic through the Strait of Hormuz, with Brent crude rising about 4% to $82.72 per barrel and U.S. West Texas Intermediate up about 3.5% to $77.83.
• Prices had declined roughly 8% earlier in the week amid optimism over a potential deal to increase traffic through the strait, as indicated by U.S. officials including President Trump and Treasury Secretary Scott Bessent.
• The draft plan, published by Iranian state news agency Fars, proposes banning U.S. and Israeli ships from transiting the strait and restricting other nations that have harmed Iran until compensation is paid, with penalties set at 20% of the cargo value for violators.
• The plan is currently under review by an Iranian parliamentary committee, signaling potential changes in maritime regulations in the strategically critical Strait of Hormuz.
• Additionally, a tanker reported hearing two explosions off the coast of Oman near the strait, though the vessel and crew remain safe, according to the UK Maritime Trade Operations Centre.