TLDR Brent crude futures advanced 1.1% to reach $83.43 while WTI gained 0.8% to settle at $77.91 on Friday Iranian lawmakers are examining proposed legislation to prohibit American and Israel
Crude markets experienced an upward reversal Friday following the collapse of optimism surrounding a comprehensive reopening of the Strait of Hormuz. New developments regarding Iranian military operations and pending legislation aimed at Western shipping interests drove the price increase.
[[LINK_START_0]]Brent crude futures[[LINK_END_0]] advanced 1.1% to settle at $83.43 per barrel, while West Texas Intermediate posted gains of 0.8% to reach $77.91. Despite Friday’s rally, both benchmark contracts remained positioned for weekly declines exceeding 7%.
Throughout the earlier part of the week, markets had declined on speculation that Tehran and Muscat were nearing a shipping arrangement. This sentiment had pushed both Brent and WTI significantly lower before Friday’s turnaround.
The price recovery followed emerging reports indicating Iran’s Islamic Revolutionary Guard Corps conducted strikes against what it characterized as “hostile targets” in proximity to Qeshm Island within the Strait of Hormuz late Thursday evening local time, as reported by Iran’s semi-official Fars News Agency.
A committee within Iran’s parliament has commenced examination of draft legislation designed to prohibit vessels with American and Israeli connections from passing through the Strait of Hormuz. The proposed measure would additionally impose financial penalties reaching up to 20% of cargo value for violations.
Iran just dropped a draft plan that basically says: “We’ll open Hormuz when we’re good and ready… and on our terms.”
They’ve lined up a new route with Oman, but only if the U.S. lifts its blockade first.
American and Israeli ships? Banned. Anything they call “hostile”?… pic.twitter.com/UVGWbw2Ica
— Mario Nawfal (@MarioNawfal) August 7, 2026
The prospective Iran-Oman arrangement that had temporarily buoyed market confidence reportedly contains provisions that would specifically exclude Israeli shipping while demanding compensation from nations Tehran designates as hostile.
“Agreements to restore full access through the Strait of Hormuz continue to prove elusive, leaving market participants in a state of uncertainty,” noted Rob Haworth, senior investment strategy director at US Bank Asset Management Group. “Currently, traffic volumes remain suppressed and the pathway toward a sustainable resolution remains ambiguous.”
The Strait of Hormuz serves as the transit point for approximately one-fifth of worldwide oil and liquefied natural gas shipments. Any prolonged constraints on passage through this waterway represents a significant concern for global energy markets.
Regional hostilities beyond the Strait contributed to mounting market anxiety. The Houthi movement in Yemen, which maintains alignment with Iran, announced operations against Saudi military installations and critical infrastructure. These developments heightened concerns regarding Red Sea shipping corridors.
Reports emerged of a Ukrainian drone operation that allegedly ignited a significant Russian refining facility. This incident compounded existing supply disruption concerns already affecting market dynamics.
Market participants were simultaneously monitoring the forthcoming U.S. nonfarm payrolls release scheduled for Friday. The employment data carries potential implications for Federal Reserve monetary policy decisions. Elevated interest rates have the capacity to dampen economic growth and diminish fuel consumption.
Notwithstanding Friday’s upward movement, both Brent and WTI concluded trading substantially below the elevated levels observed earlier in the trading week. The substantial weekly losses underscore the rapid shift in market psychology following the failure to finalize the Hormuz transit agreement.
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