Oman-Iran plan blocks US, Israeli ships as Hormuz risks rise

Some details of the Oman and Iran plan to manage the Strait of Hormuz revealed that ships belonging to the US, Israel and other “hostile” countries will be prohibited. 

The plan revealed that military or civilian vessels linked to Israel would not be allowed to transit through Hormuz. Also, countries and individuals that have caused damage to Iran will not receive permission to pass through the Strait until compensation is paid.

Additionally, heavy fines would be imposed for violations, up to 20%, and the government, working alongside the armed forces, would have to take on duties including guiding navigation, overseeing vessel traffic, and safeguarding the security and environment of the Persian Gulf.

Market’s reaction

West Texas Intermediate, the US crude benchmark, jumped from around $75.65 to $77.00, up nearly 3.30% so far today, on a report from Fars that US and Israeli vessels would be banned under the Oman-Iran Hormuz framework.