US Threatens Economic Isolation of Iran, Oil Prices Rise
Oil prices surged on Friday after US officials threatened to intensify economic pressure on Iran, reviving concerns over energy flows through the vital Strait of Hormuz.
The Brent crude futures benchmark rose by $0.67 to reach $87.74 a barrel, while US West Texas Intermediate (WTI) crude futures gained $0.37 to $81.62 a barrel.
US Treasury Secretary Scott Bessent warned of measures aimed at the 'economic isolation' of Iran, stating that the steps would be 'unprecedented.' This comes after US Secretary of War Pete Hegseth said that US forces could maintain the naval blockade of Iranian ports indefinitely.
The International Energy Agency (IEA) predicted a decline in global oil demand this year due to ongoing pressures linked to shipping through the Strait of Hormuz, which is one of the world's most important energy corridors.