Iran proposed banning U.S. and Israeli ships from passing through the Strait of Hormuz. Brent crude jumped 4%.

Oil prices rose sharply on July 6 after Iran’s state news agency published a draft plan setting out strict conditions for ships passing through the Strait of Hormuz.

October Brent futures rose as much as 4.5% to $83.06 per barrel, but the gain then slowed to 3.6%, and the price fell to $82.35. U.S. WTI crude rose 3.9% to $78.15 per barrel.

Iran’s state-run Fars News Agency published on Thursday the text of a document it called the “initial draft of a strategic plan for managing the Strait of Hormuz,” according to CNBC. Under the draft, Iran would ban U.S. and Israeli ships from passing through the strait. Ships from other countries that have caused damage to Iran will also be barred from using the strait until compensation is paid. Tehran intends to impose a fine of 20% of the value of the cargo on board the vessel for violations of the rules. According to Fars, the plan is currently under review by one of the committees of the Iranian parliament.

Traders interpreted the Fars report as a sign that oil exports from the Persian Gulf countries will remain limited in the near term, according to Bloomberg. “The longer the delays [in reopening the strait] persist, the more prices will rebound,” Bloomberg quotes Dennis Kissler, senior vice president of trading operations at BOK Financial Securities, as saying.

In addition, on Thursday, August 6, the Yemeni Houthis claimed to have attacked concentrations of Saudi Arabian troops in Yemen. The day before, they reported an attack on a Saudi tanker in the Red Sea near the Yanbu oil export terminal.

This article was AI-translated and verified by a human editor