Iran and Oman talks over reopening the Strait of Hormuz lifted oil prices on Friday, August 7, 2026, as Iran reviewed proposed restrictions on vessels it deems hostile.
Brent crude futures were up 85 cents, or 1.03%, at $83.34 a barrel by 0634 GMT, while U.S. West Texas Intermediate futures rose 52 cents, or 0.67%, to $77.81. Oil futures had settled more than $3 a barrel higher on Thursday as concerns over the conditions governing passage through the strait returned to the market.
The Strait of Hormuz remains central to the price reaction because roughly a fifth of the world’s oil and liquefied natural gas normally transited the route before the war began at the end of February. Prices had fallen earlier in the week as a possible solution to the conflict appeared more likely, but benchmark Brent moved back above $80 on Thursday after falling below that level for the first time since July 13. Both benchmarks were still headed for a weekly loss of about 8%.
The immediate uncertainty centres on a preliminary Iranian bill being reviewed by a parliamentary committee. The proposal would ban U.S., Israeli and other vessels deemed hostile from the Strait of Hormuz and could impose fines of up to 20% of cargo value on violators. The restrictions remain proposed rather than implemented.
Lin Ye, vice president of commodities market – oil at Rystad Energy, said the market reaction reflected expectations that any reopening could involve managed or conditional access rather than a restoration of normal flows. That distinction leaves oil-price assumptions exposed not only to whether the strait reopens, but also to the conditions attached to vessel access.
Vandana Hari, founder of oil market analysis provider Vanda Insights, characterised the week’s signals around a possible agreement as producing substantial swings in market sentiment and said uncertainty remained over what would be required for an agreement to be reached.
The wider conflict also remained active. Yemen’s Houthis said they carried out missile and drone attacks on Saudi Arabian deployments in Marib and Hadramout on Thursday. U.S. President Donald Trump said on Thursday that he believed the war would be over soon.
The unresolved status of the Iranian proposal leaves energy-price assumptions sensitive to further changes in the conditions governing Strait of Hormuz traffic. A reopening subject to vessel restrictions or penalties would differ from a restoration of normal flows, leaving the terms of access central to oil-market planning.
