US Threats Send Oil Prices Soaring on Blockade Fears

Oil prices surged on Friday as the US threatened an indefinite naval blockade of Iran, sparking concerns over disruptions to crude supplies from the Middle East.

The Brent futures price rose $1.43 or 1.64% to $88.50 a barrel at 0810 GMT, while U.S. West Texas Intermediate crude futures increased by $1.56 or 1.92% to $82.81 a barrel.

Bjarne Schieldrop of SEB Research stated that higher oil prices are a natural result of the US's latest approach, implying a substantial extension of troubles in the Middle East with little hope for near-term resolution.

US Treasury Secretary Scott Bessent warned that the country may maintain a naval blockade of Iran indefinitely and ramp up economic pressure on Tehran as ceasefire talks have stalled.