Oil Prices Rise as Iran Reviews Bill to Ban U.S. and Israeli Vessels from Strait of Hormuz

• Oil prices settled more than US$3 per barrel higher on Thursday, August 6, 2026, after an Iranian parliament committee began reviewing a bill that would ban U.S., Israeli and other vessels deemed hostile from transiting the Strait of Hormuz. Brent crude rose 3.83% to US$82.49 per barrel, while WTI gained 2.75% to US$77.29.
• The proposed legislation, which would also impose fines of up to 20% of cargo value on vessels that violate the ban, comes as negotiations over reopening the Strait continue.
• Geopolitical tensions remained elevated as Yemen's Houthis claimed missile and drone attacks on Saudi deployments in Yemen and reported attacks on Saudi oil tankers in the Red Sea and Gulf of Aden. The attacks underscore that risks to global energy supplies now extend beyond the Persian Gulf, with the Red Sea also remaining vulnerable to disruption.
• Gulf countries' crude oil and condensate exports stood at about 40% below pre-war levels in July. Meanwhile, Iran warned Gulf states that any new U.S. attack on its territory would trigger strikes on critical regional energy infrastructure.
• The outlook for oil prices remains closely tied to developments surrounding the Strait of Hormuz, with investors continuing to monitor negotiations and shipping conditions for signs of a durable agreement. Traffic through the Strait remains low, and the path to a lasting deal remains unclear, leaving investors focused on further developments.

(Sources: Reuters & Bloomberg)