Oil Prices Extend Sharp Rally as Iran Moves Toward Banning US, Israeli Vessels From Hormuz

Oil Prices Extend Sharp Rally as Iran Moves Toward Banning US, Israeli Vessels From Hormuz

Published August 7, 2026 · Finance-Solutes.com Research Desk

Oil prices pushed higher again in Asian trading on Friday, extending a sharp rally as hopes for a full reopening of the Strait of Hormuz faded on reports that Iran is advancing a Hormuz ban targeting U.S. and Israeli-linked vessels transiting the critical waterway.

As of the Asian morning session, Brent crude futures were up roughly 1.4% at $83.65 a barrel, while West Texas Intermediate (WTI) futures rose about 1.3% to $78.26. Both benchmarks had already jumped sharply in the previous session — Brent gained close to 4% and WTI around 3% on Thursday — but remain on track to end the week down more than 7%, reflecting how volatile sentiment around the Strait has become.

Investor takeaway: The Strait of Hormuz remains the single biggest swing factor in oil markets right now. Any headline suggesting the waterway could reopen — or stay restricted — is likely to move Brent and WTI by several percentage points within hours. Investors with energy exposure should expect continued volatility rather than a clean directional trend until a durable resolution is reached.

Iran’s Parliament Reviews a Hormuz Ban Targeting US and Israeli Ships

According to Iranian state media, a parliamentary committee is reviewing a preliminary bill that would ban vessels linked to the United States and Israel — along with other vessels deemed hostile — from transiting the Strait of Hormuz, with fines of up to 20% of cargo value for violators. Iran’s Islamic Revolutionary Guard Corps (IRGC) has also said it carried out operations against what it described as “hostile targets” near the Strait, though the specifics of that claim have not been independently verified.

The news marks a reversal from earlier in the week, when oil prices had eased on expectations that Tehran and Oman were close to finalizing an arrangement to resume more normal shipping traffic through the Strait. Those hopes cooled once reports emerged suggesting any reopening could still exclude U.S. and Israeli vessels, keeping the underlying geopolitical risk firmly in place.

The Strait of Hormuz remains one of the world’s most important energy chokepoints, historically carrying roughly a fifth of global oil and liquefied natural gas shipments. Any formal restriction on traffic through it — even a partial one aimed at specific flags — is significant for global energy supply and pricing.

Houthi Attacks and a Russian Refinery Strike Add to Supply Concerns

Adding to the risk premium, Yemen’s Iran-aligned Houthi movement said it carried out missile and drone strikes on Saudi-aligned forces in the Marib and Hadramout areas of Yemen, claiming heavy casualties and damage to military camps and equipment. The attacks were aimed at Saudi-backed positions within Yemen rather than targets inside Saudi Arabia itself, but they renewed concerns that the broader Red Sea shipping corridor could again come under threat.

Separately, Ukrainian drones reportedly struck the Slavneft-Yanos oil refinery in Yaroslavl, Russia — one of the country’s five largest refineries — late Thursday, triggering a large fire. It was the second consecutive night the facility had been targeted, part of Ukraine’s ongoing campaign against Russian energy infrastructure.

• Strait of Hormuz legislation: Iranian parliamentary committee reviewing a bill to bar U.S. and Israeli vessels, with penalties up to 20% of cargo value.
• Diplomatic track stalling: Iran-Oman talks on reopening the Strait have not resolved the question of which vessels would be allowed through.
• Red Sea risk: Houthi attacks on Saudi-aligned forces in Yemen keep the wider regional shipping corridor in focus.
• Russian supply disruption: Repeated Ukrainian drone strikes on Russian refineries continue to weigh on global refined product supply.
• U.S. jobs data: Friday’s nonfarm payrolls report will be watched closely for signals on the Federal Reserve’s interest rate path, which affects fuel demand expectations.

Market snapshot (Asian session, August 7, 2026): Brent crude (October contract) ~$83.65/barrel, up ~1.4%; WTI crude ~$78.26/barrel, up ~1.3%. Both benchmarks remain down more than 7% for the week despite the two-day rally. Energy prices are moving quickly on geopolitical headlines — always check live pricing before acting on any figures here.

What Investors Are Watching Next

Beyond today’s Brent crude oil price move, markets are also weighing the U.S. nonfarm payrolls report due later Friday, which will offer fresh clues on the Federal Reserve’s interest rate trajectory. Higher rates are generally expected to slow economic activity and soften fuel demand, giving the jobs data an added layer of relevance for oil traders already navigating Middle East supply risk.

For now, the direction of oil prices looks tied less to any single event and more to the cumulative flow of headlines out of the Strait of Hormuz, the Red Sea, and Russian energy infrastructure — a combination that has kept 2026 oil supply risk elevated and volatility high through the week.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial or investment advice. Oil prices and geopolitical developments can change rapidly; always verify current figures before making any trading or investment decision. For personalized guidance, Finance-Solutes.com’s free courses and expert advisors are available to help you build a strategy suited to your own portfolio.

Source: Investing.com Vietnam — Giá dầu tăng mạnh khi Iran tìm cách cấm tàu Mỹ và Israel qua eo Hormuz

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