Oil prices extended gains on Friday as fresh uncertainty over shipping through the Strait of Hormuz raised fears of further disruption to global energy supplies.
Brent crude futures climbed 99 cents, or 1.2 percent, to $83.48 a barrel by 0010 GMT. US West Texas Intermediate futures also rose 85 cents, or 1.1 percent, to $78.84.
The latest rise came after oil prices jumped by more than $3 a barrel on Thursday following reports that Iran was considering restrictions on US and Israeli vessels using the Strait of Hormuz.
The waterway is a key route for global energy trade, with around one-fifth of the world’s oil and liquefied natural gas supplies passing through it before the war began in late February.
Iranian lawmakers are reviewing a proposal that would bar US, Israeli and other vessels considered hostile from using the strait. Under the draft bill, ships that breach the restrictions could face fines of up to 20 percent of their cargo value, according to Fars news agency.
The proposal has added fresh doubts over efforts to restore normal tanker traffic. Iran is seeking fees of 5 percent to 7 percent of cargo values from ships using the strait, while Oman is discussing a fee of about 3 percent. The United States has opposed such charges.
Industry sources have also raised concerns about whether the proposed arrangement can work, citing US sanctions and insurance restrictions on payments.
Oil prices had fallen earlier in the week as hopes for a settlement to the conflict improved. However, the market remains cautious about any deal.
“Markets have already seen at least one short-lived arrangement earlier this year,” said Tim Waterer, chief market analyst at KCM Trade. He added that doubts over a lasting agreement were helping support prices.
Adding to regional tensions, Yemen’s Houthis said they carried out missile and drone attacks on Saudi deployments in Marib and Hadramout on Thursday.
US President Donald Trump said on Thursday that he believed the war would end soon, but the latest developments have kept traders focused on the risks surrounding the Strait of Hormuz.