US Threatens Indefinite Blockade of Iran, Oil Prices Soar

Oil prices have increased after the United States threatened an indefinite naval blockade of Iran. The move has revived concerns about crude oil supply, despite a previous session's decline due to weaker demand and large US stocks build.

Brent futures rose $0.90 or 1.03% to $87.97 per barrel, while US West Texas Intermediate (WTI) crude futures increased by $0.91 to $82.16 per barrel. This comes after a prior session's fall of over 2%, which has been partially offset by the current week's gains.

Susan Bell, senior vice president for oil commodity markets at Rystad Energy, noted that despite bearish crude stock data, the broader geopolitical backdrop is preventing a sharper price decline. The United States has warned it could maintain a naval blockade of Iran indefinitely and increase economic pressure on Tehran as ceasefire talks have stalled.

Treasury Secretary Scott Bessent stated that more announcements are expected next week, with measures to be applied like never seen in the history of economic isolation of a country. The threat comes as Iran curbs flows through the Strait of Hormuz, which carried 20% of the world's oil before the conflict.