US Threatens Indefinite Naval Blockade of Iran, Oil Prices Bounce Higher

Oil prices inched up on Friday after the United States threatened an indefinite naval blockade of Iran, reviving concerns about supply of crude. The move comes as US-Tehran ceasefire talks have stalled.

Brent futures rose 1 cent to $87.08 a barrel by 0247 GMT, while US West Texas Intermediate (WTI) crude futures rose 6 cents to $81.31 a barrel. This marks a weekly rise of about 4% for both benchmarks after the prior session's fall.

The broader geopolitical backdrop is preventing a sharper price decline, according to Susan Bell, senior vice president for oil commodity markets at Rystad Energy. The US has warned that it could maintain a naval blockade of Iran indefinitely and ramp up economic pressure on Tehran.