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 3.6% to $82.36 per barrel. U.S. West Texas Intermediate was up about 2.8% to $77.30.

Prices have fallen about 8% this week after Treasury Secretary Scott Bessent told CNBC on Tuesday that a deal to open Hormuz with freedom of movement could come as soon as Wednesday.

A deal still has not been announced but Iran and Oman are reportedly working on an agreement to define transit routes in Hormuz. Inbound traffic would transit Iranian waters while outbound traffic would go through Omani waters, according to media reports.

But the Iranian state news agency Fars on Thursday published an initial draft plan that placed much more restrictive conditions on ship traffic through Hormuz. The plan is under review by an Iranian parliamentary committee, according to Fars.

Under the apparent draft, 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 would impose penalties on violators equivalent to 20% of the value of cargo aboard a ship.

Meanwhile, Iran’s Houthi allies in Yemen claimed Thursday to have attacked Saudi troop concentrations there. The Houthis said Wednesday that they struck a Saudi tanker in the Red Sea off the coast from Riyahd’s Yanbu export terminal, which has played a key role in diverting oil shipments.

Another 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, according to the UKMTO.