Oil has extended gains amid further concerns around the opening of the Strait of Hormuz, as Iran, working with Oman, suggested banning vessels deemed hostile from the strait and heavily fining those which violated the proposed rules, Reuters notes.

Brent crude futures were up 85 cents, or 1.03pc, at $83.34 a barrel by 11:34am PKT. US West Texas Intermediate futures rose 52 cents, or 0.67pc, to $77.81.

Oil futures settled up more than $3 a barrel yesterday as an Iranian lawmaker said a parliamentary committee is reviewing a preliminary bill to ban US, Israeli and other vessels deemed hostile from the Strait of Hormuz, and fine violators of the proposed restrictions up to 20pc of cargo value, according to the Fars news agency.

Analysts said the events that have unfolded this week signalled that the hostilities between Iran and the US are not yet over.