Brent crude surged nearly 4% to an intraday high on Thursday after Iran proposed restricting vessels linked to the United States, Israel and other countries designated as "hostile" from transiting the Strait of Hormuz, stoking fears of supply disruptions through one of the world's busiest oil shipping routes.
Brent crude for October delivery rose as much as 4.30% to $82.87 a barrel, reflecting heightened geopolitical risk premiums as traders assessed the potential implications for global energy supplies.
The Iranian Consulate in Mumbai while sharing the draft proposal on X said that the proposed Strategic Plan for the Management of the Strait of Hormuz remains under expert review and is open to recommendations before any legislative action is taken.
1/ Draft details of proposed #StrategicPlan for the Management of the Strait of #Hormuz have emerged.
— Iran in Mumbai (@IRANinMumbai) August 6, 2026
The proposal remains under expert review and is open to recommendations before any final legislative action.
👉🏻Read the trailing threads for dits...#Iran #Oman
While the reported measures have not yet taken effect, the development heightened concerns over potential disruptions to global crude supplies, prompting a sharp rally in oil prices.
According to the draft shared by Iran Consulate in Mumbai, vessels belonging to the United States, Israel and other countries designated as hostile would be barred from passing through the Strait of Hormuz. It also proposes restricting ships or cargo that have participated in actions against the "Axis of Resistance."
The proposal further states that countries or individuals deemed to have caused damage to Iran would be denied transit through both the Strait of Hormuz and the Persian Gulf until compensation has been paid.
The draft also envisages penalties for violations, including fines of up to 20% of the value of a vessel's cargo. It proposes that the Iranian government, in coordination with the armed forces, oversee maritime navigation, monitor vessel movements and ensure the security and environmental protection of the Persian Gulf.
"The proposal is still at the expert review stage," the Iranian Consulate said, adding that Parliament has invited specialists and stakeholders to submit recommendations before the draft advances through the legislative process.
ALSO READ: Iran-Backed Houthis Kill 30 Saudi-Aligned Yemeni Troops As Gulf Proxy War Worsens
The developments added to already elevated tensions in the region after renewed attacks in Yemen.
According to Reuters, at least 30 Yemeni government troops were killed in attacks on military camps in Marib and Hadramout provinces on Thursday. The Iran-aligned Houthi movement later claimed responsibility for missile and drone strikes targeting what it described as Saudi military deployments in the two provinces.
The Houthis said they targeted Saudi troop concentrations in the Al Ruwayk, Al Abr and Al Thaniyah areas using ballistic missiles and drones, claiming hundreds of Saudi-aligned fighters were killed or wounded and that military camps, weapons depots and vehicles were destroyed. Reuters said it could not independently verify those claims.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.