US Threatens Indefinite Blockade of Iran, Oil Prices Rise

Oil prices rose slightly on Friday after the United States threatened to maintain an indefinite naval blockade of Iran, reviving concerns about crude supply. The threat comes as Iran curbs traffic through the Strait of Hormuz, which carried 20% of the world's oil before the conflict.

The Brent futures price rose 1 cent, or 0.1%, to $87.08 a barrel by 0247 GMT, while US West Texas Intermediate (WTI) crude futures rose 6 cents to $81.31 a barrel. The benchmarks were on track for weekly rises of about 4% after the prior session's fall of more than 2%.

Susan Bell, senior vice president for oil commodity markets at Rystad Energy, said that despite bearish crude stock data, the broader geopolitical backdrop is preventing a sharper price decline. The threat of an indefinite blockade has driven up fuel prices and put pressure on President Donald Trump to end a war that is unpopular at home.

KCM chief market analyst Tim Waterer noted that two opposing forces are acting as counterweights: the prospect of a longer war constraining supply, offset by forecasts from OPEC and the International Energy Agency lowering outlooks for demand growth. The result is a market that remains supported but struggles to break meaningfully higher.