Commodities
US Threats Fuel Oil Price Surge Amid Iran Blockade Tensions
Oil prices surged on Friday after the US threatened an indefinite naval blockade of Iran, sparking concerns about disruptions to crude supplies from the Middle East.
The US warned it could maintain a blockade of Iran indefinitely and ramp up economic pressure on Tehran as ceasefire talks have stalled.
Brent futures rose $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.
SEB Research's Bjarne Schieldrop said higher oil prices are a natural result of the latest approach by the US, implying a substantial extension of the trouble in the Middle East with little hope of a near-term resolution.