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

Oil prices rose on Friday and are set to end the week in positive territory after the US threatened an indefinite naval blockade of Iran, raising concerns about disruptions to crude supplies from the Middle East.

Brent futures were up 12 cents, or 0.14%, to $87.19 a barrel at 1047 GMT, while U.S. West Texas Intermediate crude futures were up 50 cents, or 0.62%, to $81.75 a barrel.

The US Treasury Secretary, Scott Bessent, said that the country will apply measures like never seen before in economic isolation of a country, implying little hope for a near-term resolution in the region.

Norbert Rucker from Julius Baer cautioned that while Middle Eastern supplies are constrained, forecasts point to weaker demand growth and US crude inventories posted their largest weekly increase in over 3-1/2 years.