Concerns about efforts to reopen the Strait of Hormuz cause oil to climb.
NEW DELHI, Aug. 7 (Reuters) -
Amidst additional worries about the opening of the Strait of Hormuz, oil continued to rise on Friday. Iran, in collaboration with Oman, proposed prohibiting vessels deemed unfriendly from the strait and imposing steep fines on those who disobeyed the proposed regulations.
By 0634 GMT, Brent crude futures were up about 85 cents, or 1.03%, at $83.34 per barrel. West Texas Intermediate futures for the United States increased 52 cents, or 0.67%, to $77.81.
As Iran considered a measure to prohibit American and Israeli ships from passing thru the Strait of Hormuz, which regularly carried about a fifth of the world's oil and liquefied natural gas before the conflict started at the end of February, oil futures settled up more than $3 per barrel on Thursday.
Prices fell earlier in the week as a possible solution to the ongoing conflict looked more likely, but benchmark Brent breached $80 on Thursday after falling below that for the first time since July 13. Both benchmarks were headed for a weekly loss of about 8%.
Analysts said the events that have unfolded this week signalled that the hostilities between Iran and the U.S. are not yet over.An Iranian lawmaker said a parliamentary committee is reviewing a preliminary bill to ban U.S., Israeli and other vessels deemed hostile from the Strait of Hormuz, and fine violators of the proposed restrictions up to 20% of cargo value, according to the Fars news agency.
Amidst additional worries about the opening of the Strait of Hormuz, oil continued to rise on Friday. Iran, in collaboration with Oman, proposed prohibiting vessels deemed unfriendly from the strait and imposing steep fines on those who disobeyed the proposed regulations.
By 0634 GMT, Brent crude futures were up about 85 cents, or 1.03%, at $83.34 per barrel. West Texas Intermediate futures for the United States increased 52 cents, or 0.67%, to $77.81.
As Iran considered a measure to prohibit American and Israeli ships from passing thru the Strait of Hormuz, which regularly carried about a fifth of the world's oil and liquefied natural gas before the conflict started at the end of February, oil futures settled up more than $3 per barrel on Thursday.
Prices fell earlier in the week as a possible solution to the ongoing conflict looked more likely, but benchmark Brent breached $80 on Thursday after falling below that for the first time since July 13. Both benchmarks were headed for a weekly loss of about 8%.
Analysts said the events that have unfolded this week signalled that the hostilities between Iran and the U.S. are not yet over.An Iranian lawmaker said a parliamentary committee is reviewing a preliminary bill to ban U.S., Israeli and other vessels deemed hostile from the Strait of Hormuz, and fine violators of the proposed restrictions up to 20% of cargo value, according to the Fars news agency.
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