US-Iran Tensions Push Oil Prices Up Nearly 2%
Oil prices rose on Friday as tensions between the US and Iran continued to escalate. The US threatened Iran with an 'indefinite' blockade, sparking supply worries that pushed oil prices up by nearly 2%. Brent crude, the benchmark for two-thirds of the world's oil, reached $87.97 a barrel, while West Texas Intermediate added 1.62% to $82.56 per barrel.
The US threatened Iran with an 'indefinite' blockade after Defense Secretary Pete Hegseth said the country's navy could maintain a presence in the region to enforce its blockade of Iran in the Strait of Hormuz. Hegseth stated that the US Navy can maintain a blockade indefinitely by rotating ships in and out.
US Treasury Secretary Scott Bessent also announced plans to inflict more financial damage on Tehran, stating that Washington would apply measures 'like never been seen in the history of economic isolation' next week.