US Threats Send Oil Prices Higher on Blockade Fears

Oil prices rose on Friday after US threats of an indefinite naval blockade of Iran increased concerns about crude supply. Despite weaker demand forecasts and a large build in US stocks, Brent futures rose by 1 cent to $87.08 a barrel, while US West Texas Intermediate (WTI) crude futures rose by 6 cents to $81.31 a barrel.

The price increase comes after the United States warned that 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 stated, 'Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation of a country.'

The Strait of Hormuz, which carries 20% of the world's oil, is under Iranian control. Iran has curbed traffic through the strait, driving up fuel prices and putting pressure on President Donald Trump to end a war that is unpopular at home.