August 06, 2026
Oil prices jumped Thursday after Iranian state media published a restrictive draft plan for the Strait of Hormuz. Brent rose about 4% to $82.72 and WTI gained 3.5% to $77.83, reversing part of an 8% weekly decline driven by earlier deal hopes. The draft would ban US and Israeli ships, demand compensation from other nations, and impose 20% cargo-value penalties. It remains under parliamentary review. Separate reports of explosions near Oman and Houthi attacks in Northern Red Sea added to supply-risk concerns.
In Asia, Arab Light was lowered to a $2.00 per barrel discount to the Oman/Dubai average, down 50 cents from the prior month and the weakest level since June 2020, while lighter grades also declined and medium and heavy grades moved higher (See Figure 1).
The cuts were even sharper in Western markets, with all grades reduced by $3.00 per barrel in Northwest Europe and the Mediterranean and by $1.00 per barrel in the United States, where Arab Light was set at a $3.60 per barrel premium to ASCI. (See table below)
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