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Oil surged nearly 4% as Iranian bill targeting Hormuz transit reignites supply fearsGlobal crude benchmarks rebounded sharply on Thursday, snapping a two-day sell-off as fresh legislative threats out of Tehran against commercial transit through the Strait of Hormuz reignited geopolitical risk premiums. |
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Global crude benchmarks rebounded sharply on Thursday, snapping a two-day sell-off as fresh legislative threats out of Tehran against commercial transit through the Strait of Hormuz reignited geopolitical risk premiums.
International Brent crude jumped $3.04, or 3.83%, to settle at $82.49 a barrel. US West Texas Intermediate (WTI) gained $2.07, or 2.75%, to finish at $77.29 a barrel.
The sudden price reversal was triggered by reports that an Iranian parliamentary committee is reviewing a draft bill to bar US, Israeli, and other designated "hostile" vessels from transiting the Strait of Hormuz. Under the proposed legislation, non-compliant vessels would face fines of up to 20% of their total cargo value.
The draft measure effectively erased recent market optimism over Oman-brokered diplomatic progress, forcing paper markets to re-price severe physical transit bottlenecks through the world's most critical maritime chokepoint.
Written by: Aiman Haikal
