US Threatens Indefinite Blockade of Iran, Oil Prices Rise

Oil prices rose on Friday and were on track for weekly gains after the United States threatened an indefinite naval blockade of Iran, raising concerns about disruptions to crude supplies from the Middle East.

Brent futures rose by $0.12 or 0.14%, to $87.19 a barrel at 10:47 GMT, while U.S. West Texas Intermediate crude futures increased by $0.50 or 0.62%, to $81.75 a barrel.

The threat of an indefinite blockade is seen as a significant escalation in the tensions between the US and Iran, with Bjarne Schieldrop at SEB Research stating that higher oil prices are a natural result of this approach.

Schieldrop also noted that there's little hope for a near-term resolution in the Middle East, citing the stalled ceasefire talks as evidence of this.