Oil Prices Jump as Iran Weighs Hormuz Vessel Ban

Oil prices climbed sharply on Thursday after reports that an Iranian parliamentary committee is reviewing a proposal that could restrict US and Israeli vessels from the Strait of Hormuz. The move added fresh supply-risk concerns to an already tense regional backdrop, lifting benchmark crude contracts by more than 3 percent in intraday trade, according to Dawn Business.

Brent crude futures rose $3.09, or 3.89 percent, to $82.54 a barrel by 12:37pm EDT. US West Texas Intermediate gained $2.49, or 3.31 percent, to $77.71 a barrel. The price move reflected renewed concern over one of the world’s most important energy chokepoints, which carries a large share of global oil and liquefied natural gas flows.

Strait of Hormuz worries return to the market

A lawmaker cited by Fars news agency said a parliament committee is reviewing a preliminary bill that would bar US, Israeli and other vessels deemed hostile from passing through the Strait of Hormuz. The report said violators could face fines of up to 20 percent of the value of their cargo.

The Strait of Hormuz has long been watched by energy traders because of its strategic importance to global supply chains. Dawn Business reported that before the Iran conflict began in late February, about one-fifth of daily global oil and liquefied natural gas supplies moved through the waterway.

Market analysts said the latest developments were enough to support prices even as traders continued to track wider negotiations involving the United States and Iran. Dennis Kissler, senior vice president of trading at BOK Financial, told the outlet that crude traders remain focused on US-Iran agreements and that delays can keep pressure on prices.

Red Sea tensions add to supply-risk concerns

Oil also drew support from renewed conflict-related developments elsewhere in the region. Yemen’s Houthis said on Thursday that they carried out missile and drone attacks on Saudi deployments in Marib and Hadramout. They said the strikes killed or wounded hundreds of Saudi-aligned fighters and destroyed military camps, weapons depots and vehicles.

John Kilduff, partner at Again Capital, told Dawn Business that the market is reacting to tensions as they rise and fall, and that the latest attacks matter because they highlight continuing risk beyond the Persian Gulf. He added that the events are a reminder that the Red Sea passageway could still face danger.

What investors are watching next

For oil traders, the immediate focus remains whether the Iran-related proposal advances and whether regional tensions lead to any disruption in shipping flows. Any formal restriction tied to the Strait of Hormuz would be closely watched because even the threat of disruption can affect crude benchmarks quickly.

At the same time, the market is balancing geopolitical risk against the pace of diplomatic developments between Washington and Tehran. That mix has kept oil prices sensitive to headlines and left room for rapid swings in both Brent crude and WTI.

For now, the latest move underscores how quickly energy markets can respond when supply routes enter the spotlight. The Strait of Hormuz remains central to global crude trade, and any escalation around it is likely to keep oil prices volatile in the near term.

FAQ

Why did oil prices rise on Thursday?

Oil prices rose after reports that Iran is reviewing a proposal that could restrict certain vessels from the Strait of Hormuz, raising supply concerns.

Which benchmarks gained?

Brent crude and US West Texas Intermediate both moved higher in intraday trading.

Why is the Strait of Hormuz important?

It is a key shipping route for global oil and liquefied natural gas supplies, making it highly sensitive to geopolitical tensions.