Global oil prices rise again amid supply uncertainty

Global oil prices climbed sharply on Thursday (August 6) as renewed tensions in West Asia and growing uncertainty over the Strait of Hormuz raised fresh concerns about global energy supplies.

Brent crude, the international benchmark, rose $3.04, or 3.83 per cent, to $82.49 a barrel, climbing above the $82 mark. Meanwhile, US benchmark West Texas Intermediate (WTI) gained $2.07, or 2.75 per cent, to $77.29 a barrel.

Market analysts said the rally was driven by concerns over a proposed Iranian bill that could affect shipping through the Strait of Hormuz, one of the world's most important oil transit routes.

According to Iran's Fars News Agency, a parliamentary committee is reviewing draft legislation that would restrict vessels from the United States, Israel and other countries described by Tehran as "hostile" from passing through the strategic waterway.

The proposed bill would also allow authorities to impose fines of up to 20 per cent of the value of a ship's cargo on vessels that violate the restrictions.

The development has heightened concerns over potential disruptions to global crude supplies, pushing oil prices higher amid fears of escalating geopolitical tensions in the region.