Oil rises on concerns over Strait of Hormuz reopening plans
XLE•Oil prices extend gains on Strait of Hormuz concerns
Oil extended gains on Friday amid further concerns around the opening of the Strait of Hormuz as Iran, working with Oman, suggested banning vessels deemed hostile from the strait and heavily fining those which violated the proposed rules.
Brent crude futures LCOc1 rose 80 cents, or 0.97%, to $83.29 a barrel by 0303 GMT. U.S. West Texas Intermediate futures CLc1 rose 64 cents, or 0.83%, to $77.93.
Oil futures settled up at over $3 a barrel on Thursday as Iran reviewed a bill to ban U.S. and Israeli vessels from the Strait of Hormuz where roughly a fifth of the world’s oil and liquefied natural gas transmitted before the war began at the end of February.
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%.
