Oil prices jumped

Oil prices surged on Thursday following the publication of an Iranian draft plan that imposed stringent conditions on ship traffic in the Strait of Hormuz. Brent crude, the global benchmark, experienced a 3.8% increase, closing at $82.49 per barrel. The U.S. West Texas Intermediate surged approximately 2.8%, settling at $77.29 per barrel.

Prices had plummeted by around 8% this week, following Treasury Secretary Scott Bessent's remarks on Tuesday about a potential deal to open the Hormuz route with freedom of movement, which could be reached as early as Wednesday. Although no formal agreement has been reached, Iran and Oman are reportedly collaborating on defining transit routes.

The draft plan, which is currently under review by an Iranian parliamentary committee, proposed much stricter conditions for ship traffic. According to the draft, Iran would prohibit U.S. and Israeli ships from passing through the strait, while other nations that have caused harm to Iran would only be allowed to transit once compensation is provided.

Iran's naval forces would impose penalties equivalent to 20% of the cargo value on any ships violating the restrictions. Separate from the Hormuz issue, Iran's Houthi allies in Yemen announced a Thursday attack on Saudi military positions in the region. The Houthis claimed to have targeted a Saudi tanker in the Red Sea off Riyadh's Yanbu export terminal, which is crucial for diverting oil shipments.

Another tanker reported hearing explosions off Oman's coast while transiting through the Hormuz Strait, but both the crew and vessel were reported to be safe by the United Kingdom Maritime Trade Operations Centre.