📈 Global Oil Prices Rise Amid Strait of Hormuz Transit Restrictions

• Market Movements: Benchmark Brent crude rose 0.97% (+US$ 0.80) to US$ 83.29/bbl, while U.S. West Texas Intermediate (WTI) gained 0.83% (+US$ 0.64) to US$ 77.93/bbl. This follows a >US$ 3/bbl climb on Thursday, though both benchmarks face a weekly decline of ~8%. • Key Drivers: Gains follow reports that Iran, in discussions with Oman, is reviewing a bill to ban U.S. and Israeli vessels from transiting the Strait of Hormuz—a strategic route accounting for ~20% of global oil and LNG traffic prior to the conflict. Under the proposal, hostile vessels face fines up to 20% of cargo value. • Fee Disagreements & Sanctions: Tehran seeks transit fees of 5% to 7% on cargo values, while Oman proposes ~3% and Washington advocates for no fees. Industry analysts caution that implementation remains unlikely in the near term due to existing U.S. sanctions and restrictive insurance clauses. • Regional Impact: Continued security risks—including recent Houthi missile and drone strikes in Yemen—reinforce market sentiment that any prospective agreement represents a conditional transit corridor rather than a full restoration of normal supply flows.