Oil prices jump after Iran publishes restrictive draft plan for Strait of Hormuz

• Brent crude rose about 4% to $82.72 per barrel while WTI increased 3.5% to $77.83 following the Iranian announcement
• Iran's draft plan would ban U.S. and Israeli ships from the strait and impose penalties equivalent to 20% of cargo value on violators, with other nations required to pay compensation for past harms
• A tanker reported two explosions near Oman while transiting Hormuz, and Iran's Houthi allies claimed an attack on a Saudi tanker in the Red Sea

Oil Prices Surge on Iran's Draft Strait of Hormuz Restrictions

Oil prices jumped sharply Thursday after Iranian state media published a draft plan imposing restrictive conditions on maritime traffic through the Strait of Hormuz, a critical global oil chokepoint.

Key Price Movements:

• Brent crude rose approximately 4% to $82.72 per barrel
• U.S. West Texas Intermediate gained 3.5% to $77.83 per barrel
• Prices had previously fallen 8% this week following optimism about a potential U.S.-Iran deal

Draft Plan Details:

Iran's state news agency Fars published what it called an "initial draft of the strategic plan for managing Strait of Hormuz," which includes:

• Complete ban on U.S. and Israeli ships transiting the strait
• Restrictions on nations that have "harmed Iran" until compensation is paid
• Penalties equivalent to 20% of cargo value for violators

Geopolitical Context:

The draft plan emerged after President Trump, Treasury Secretary Scott Bessent, and Secretary of State Marco Rubio suggested a deal was imminent to increase traffic through the strait. Additionally, a tanker reported hearing two explosions off Oman's coast while transiting Hormuz on Wednesday, though the crew and vessel remain safe.

Regional Tensions:

Iran's Houthi allies in Yemen claimed responsibility for attacking a Saudi tanker in the Red Sea near the Yanbu export terminal, further escalating regional instability.

Market Implications:

The sudden reversal in oil prices underscores the market's sensitivity to Middle East geopolitical risks and the strategic importance of the Strait of Hormuz for global energy supply chains.