US Threatens Iran Blockade Indefinitely, Oil Prices Edge Higher

Oil prices inched higher on Friday after the US threatened to maintain a naval blockade of Iran indefinitely, reviving concerns about crude supply. The move came as the U.S. Treasury Secretary said the country would ramp up economic pressure on Tehran due to stalled ceasefire talks.

Brent futures rose 9 cents 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 two benchmarks fell more than 2% in the prior session but were on track for weekly rises of around 4%.

The threat of a longer war constraining supply was offset by forecasts from OPEC and the International Energy Agency lowering their outlooks for demand growth, while data showed US crude stocks made their largest weekly gain in over three and a half years. The result is a market that remains supported but struggles to break meaningfully higher.