US Threatens Indefinite Naval Blockade of Iran, Sending Oil Prices Soaring

Oil prices rose on Friday due to the US threat of an indefinite naval blockade of Iran. This move has raised concerns about disruptions to crude supplies from the Middle East.

Brent futures were up $1.43, or 1.64%, to $88.50 a barrel at 0810 GMT, while US West Texas Intermediate crude futures were up $1.56, or 1.92%, to $82.81 a barrel.

Bjarne Schieldrop from SEB Research said that higher oil prices are a natural result of the latest approach by the US, implying a substantial extension of trouble in the Middle East with little hope for a near-term resolution.

The US has warned it could maintain a naval blockade of Iran indefinitely and ramp up economic pressure on Tehran as ceasefire talks have stalled. Treasury Secretary Scott Bessent said that they will apply measures like never seen before to isolate the country economically.