US Threatens Indefinite Blockade on Iran Amid Oil Supply Concerns

Oil prices steadied on Friday after the US threatened to maintain a naval blockade of Iran indefinitely, reviving concerns over crude supply.

The United States said it could keep the blockade in place and would ramp up economic pressure on Tehran as ceasefire talks have stalled. The US Treasury Secretary Scott Bessent stated that 'we are going to apply measures like have never been seen in the history of economic isolation on a country.'

Brent futures rose 9 cents, or 0.1%, to $87.16 a barrel by 0130 GMT, while US West Texas Intermediate (WTI) crude futures rose 4 cents to $81.29 a barrel.

The recent US threats come as Iran continues to limit traffic through the Strait of Hormuz, which carried 20% of the world's oil before the conflict. The prospect of a longer war constraining supply was offset by forecasts from OPEC and the International Energy Agency lowering their outlooks for demand growth.