US Threatens Indefinite Iran Blockade, Sending Oil Prices Soaring

Oil prices rose on Friday as the United States threatened to maintain its naval blockade of Iran indefinitely, citing stalled ceasefire talks.

Brent crude futures climbed 1.64% to $88.50 a barrel, while West Texas Intermediate (WTI) crude gained 1.92% to $82.81 after the U.S. threat was made public.

The move comes amid weaker demand forecasts and a significant increase in U.S. crude inventories, with OPEC forecasting 2026 demand growth of 0.6 million barrels per day and the IEA expecting demand to contract during the second and third quarters.

Supply concerns are also being fueled by shipping disruptions through the Strait of Hormuz, which handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict.