US Threat to Block Iran Maintains Pressure on Crude Prices

Crude oil prices stabilized on Friday as the United States threatened to maintain its naval blockade of Iran indefinitely, raising concerns over global crude supplies.

The Strait of Hormuz, a strategic waterway that carried around 20% of global oil flows, remains at the centre of supply concerns. The warning came after two vessels operated by Abu Dhabi National Oil Company were attacked while transiting the Strait, with the UAE government condemning the incident as an Iranian attack.

The threat of an indefinite blockade and increased economic pressure on Tehran has prevented crude prices from extending their previous decline. Despite a weaker demand outlook and a large weekly increase in US oil inventories, Brent crude remained near $87 a barrel.