FX.co ★ Oil Prices Extend Gains as Iran Reviews Hormuz Transit Bill

Crude oil extended its rally on Thursday, climbing 3% to $77.50 per barrel after reports that an Iranian parliamentary committee is reviewing a draft proposal to impose tighter restrictions on shipping through the Strait of Hormuz. The draft would bar US and Israeli vessels from transiting the strait and require countries designated as hostile to pay compensation before being granted passage. Tehran has also proposed penalties for violations equivalent to 20% of a vessel’s cargo value and indicated that a full reopening of the waterway would depend on the lifting of the US maritime blockade. At the same time, Yemen’s Houthi forces said on Thursday that they had launched attacks on Saudi troop positions, further heightening geopolitical tensions in the region. Earlier in the day, US officials reiterated their belief that a nuclear agreement with Iran was within reach, though investors remained cautious about the likelihood of a robust and lasting peace.