Oil prices rose in Asian trade on Monday amid concerns about supply disruptions after Iran published a draft of restrictive measures in the Strait of Hormuz, Reuters reported, BTA reported.
Futures for Brent North Sea crude, which is a reference for Europe, with delivery in October rose 1.25 percent to $83.52 a barrel. US WTI crude futures for September delivery rose 1.10 percent to $78.14 a barrel.
"Higher oil prices signaled that further inflationary pressure from the energy sector and the situation in the Middle East could not be ignored, which led to a rise in the US dollar and a decline in government bonds," Westpac said.
Iran plans to ban ships from the US and Israel from passing through the strait, and until compensation is paid, other countries that have harmed Iran will not be allowed to transit, according to a bill being discussed in Tehran.
Despite reports that Iran and Oman are working on an agreement to determine transit routes in the Strait of Hormuz, no agreement has yet been announced. According to media reports, incoming traffic is planned to pass through Iranian waters, and outgoing traffic through Omani waters.
An Iranian parliamentary committee is considering a bill that would ban Israeli and US vessels from passing through the Strait of Hormuz, an Iranian lawmaker was quoted as saying by Fars news agency. The bill would impose fines of up to 20 percent of the value of the vessel's cargo if the ban is violated.
According to the lawmaker, the proposed legislation is still being discussed by experts. He added that the Iranian parliament has invited experts to provide recommendations before the bill is finalized, Reuters reported.