Crude oil prices moved higher on Thursday after Iranian state media published a draft proposal outlining restrictive conditions for ship traffic through the Strait of Hormuz.
Brent crude, the international benchmark, gained 3.8% to close at $82.49 per barrel. U.S. West Texas Intermediate (WTI) crude rose approximately 2.8% to settle at $77.29 per barrel.
Despite Thursday’s rebound, oil prices remain down about 8% for the week after Treasury Secretary Scott Bessent said on CNBC Tuesday that an agreement to reopen Hormuz with freedom of movement could be reached as early as Wednesday.
Hormuz agreement remains uncertain
No formal agreement has been announced, but Iran and Oman are reportedly working on a framework to establish shipping routes through the Strait of Hormuz.
According to media reports, inbound vessels would pass through Iranian waters, while outbound traffic would use Omani waters.
However, Iran’s state news agency Fars published a preliminary draft plan on Thursday that included significantly stricter conditions for maritime traffic. The proposal is currently being reviewed by an Iranian parliamentary committee.
Under the reported draft, U.S. and Israeli vessels would be prohibited from transiting the strait. Ships from other countries considered to have harmed Iran would also be restricted until compensation is provided.
The proposal would reportedly allow Tehran to impose penalties on violators equal to 20% of the value of cargo carried by the vessel.
Regional tensions continue to affect energy markets
Additional geopolitical risks added pressure to energy markets. Iran-backed Houthi forces in Yemen claimed on Thursday to have attacked Saudi military positions.
The Houthis also said they had struck a Saudi tanker in the Red Sea near Yanbu, a key oil export terminal that has become important for redirecting energy shipments.
Meanwhile, another tanker reported hearing two explosions while traveling through the Strait of Hormuz near Oman, according to an incident report from the United Kingdom Maritime Trade Operations Centre. The crew and vessel were reported to be safe.
