US Naval Blockade Threat Drives Oil Prices Higher Amid Geopolitical Tensions
Oil prices ticked up on Friday after the United States threatened an indefinite naval blockade of Iran, reigniting concerns about crude supply. Brent futures rose by a cent to $87.08 a barrel, while US West Texas Intermediate (WTI) crude futures increased by six cents to $81.31 a barrel.
The surge comes despite a weaker outlook for demand and a large build in US stocks. According to Susan Bell, senior vice president for oil commodity markets at Rystad Energy, the broader geopolitical backdrop is preventing a sharper price decline.
US Treasury Secretary Scott Bessent warned that the country could maintain a naval blockade of Iran indefinitely and ramp up economic pressure on Tehran as ceasefire talks have stalled. The threats come amid ongoing tensions in the Strait of Hormuz, which carries 20% of the world's oil.