Oil Prices Surge on Iran Tensions Despite Weaker Demand Expectations

Global crude oil prices increased on Friday due to renewed military tensions surrounding Iran, which raised concerns over potential disruptions to global oil supplies.

The United States warned that it could maintain its naval blockade of Iran indefinitely, fueling uncertainty over the security of oil shipments and the broader global supply outlook.

Brent crude, the global benchmark, rose 9 cents, or 0.1%, to $87.16 per barrel at 1:30am GMT on Friday, while US West Texas Intermediate (WTI) crude gained 4 cents to $81.29 per barrel.

Tensions over the Strait of Hormuz have added to supply concerns, as the strategic waterway is a major route for global oil shipments and any prolonged disruption could significantly affect supplies and push prices higher.