Iran Blockade Threat Sends Oil Prices Mixed

The threat of an indefinite naval blockade by the US against Iran has sent oil prices mixed on Friday, but still poised for weekly gains. The Brent futures price dipped 12 cents to $86.95 a barrel, while US West Texas Intermediate crude futures rose 13 cents to $81.38 a barrel.

Bjarne Schieldrop, chief analyst for commodities at SEB Research, said higher oil prices are a natural result of the latest approach by the US, which implies little hope of a near-term resolution in the Middle East. He added that 'a return to normal flows out of the Strait of Hormuz is now suddenly without any near-term hopes.'

The US Treasury Secretary Scott Bessent stated that measures would be taken like never before in the history of economic isolation of a country, leaving room for more announcements next week.