US Threatens Indefinite Blockade of Iran, Oil Prices Steady
Oil prices have steadied after the US threatened to maintain a naval blockade of Iran indefinitely, reviving concerns about crude supply. The move comes as ceasefire talks between the two countries have stalled.
The US Treasury Secretary Scott Bessent said on Newsmax's 'Rob Schmitt Tonight' program that the US will apply measures like never seen before in economic isolation on a country. This threat has driven up fuel prices and put pressure on US President Donald Trump to end the unpopular war at home.
Iran continues to limit traffic through the Strait of Hormuz, which carried 20% of the world's oil before the conflict. The recently appointed head of Iran's Basj paramilitary unit, Hossein Taeb, said that the strait is 'under the management and control of the Islamic Republic.'
The opposing forces acting on the market are offset by forecasts from OPEC and the International Energy Agency lowering their outlooks for demand growth. Data showed US crude stocks made their largest weekly gain in over three and a half years.