US Threats Send Oil Prices Soaring Amid Iran Tensions
Oil prices surged on Friday after the United States threatened an indefinite naval blockade of Iran, sparking concerns about crude supply. The move comes as tensions between Washington and Tehran remain high.
Brent futures rose by $0.90 to $87.97 a barrel, while US West Texas Intermediate (WTI) crude futures increased by $0.91 to $82.16 a barrel, according to Reuters.
The price gains follow a prior session's fall of more than 2%, with the benchmarks on track for weekly rises of about 4%. Despite bearish crude stock data, the broader geopolitical backdrop is preventing a sharper price decline, said Susan Bell, senior vice president for oil commodity markets at Rystad Energy.
The US warnings come as Iran continues to curtail flows through the Strait of Hormuz, which carried 20% of the world's oil before the conflict. The strait is 'under the management and control of the Islamic Republic', according to Hossein Taeb, head of Iran's Basj paramilitary unit.