US Threatens Indefinite Blockade of Iran, Oil Prices Rebound

Oil prices rebounded on Friday after the US threatened an indefinite naval blockade of Iran, reviving concerns about crude supply. Brent futures rose by $0.90 or 1.03% to $87.97 a barrel, while WTI crude futures increased by $0.91 to $82.16 a barrel.

The threat from the US comes as Iran continues to curb oil flows through the Strait of Hormuz, which carried 20% of the world's oil before the conflict. The strait is now 'under the management and control of the Islamic Republic', according to Hossein Taeb, head of Iran's Basj paramilitary unit.

Rystad Energy's Susan Bell noted that despite bearish crude stock data, the broader geopolitical backdrop has prevented a sharper price decline.