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Crude oil prices climbed on Friday following reports that Iran has proposed a restrictive framework for navigation through the Strait of Hormuz. Brent crude for October delivery increased 1.25% to $83.52 per barrel, while U.S. West Texas Intermediate futures for September rose 1.10% to $78.14 per barrel. The proposed Iranian plan would restrict transit through the strategic waterway for vessels from certain nations.
According to Iran’s draft proposal, U.S. and Israeli ships would be prohibited from passing through the Strait of Hormuz. The plan also stipulates that other countries deemed to have caused harm to Iran would face transit restrictions until compensation is provided. Current negotiations between Iran and Oman regarding transit route definitions remain ongoing, though no formal agreement has been finalized.
Market analysts attributed the price increase to broader concerns about potential supply disruptions in the Middle East. Additional pressure on oil supplies came from recent military strikes on Russian refineries in Ukraine and a significant decline in U.S. imports of Saudi crude. These converging supply challenges prompted traders to reassess energy market risks and fueled dollar appreciation.
Diplomatic efforts to resolve the situation continue amid conflicting signals from both sides. U.S. President Donald Trump expressed optimism about an imminent resolution, while Iranian officials dismissed such statements as performative diplomacy, leaving the status of negotiations uncertain.
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