US Threats of Iran Blockade Send Oil Prices Soaring

Oil prices rose on Friday and are set for weekly gains after the United States 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.

This marks the end of any near-term hopes for a resolution in the region, according to Bjarne Schieldrop at SEB Research.

The U.S. has been increasing economic pressure on Tehran as ceasefire talks have stalled.