Oil steadies after US threatens to blockade Iran indefinitely

Oil prices rose on Friday after the United States announced it would maintain an indefinite naval blockade of Iran, reigniting supply concerns after a dip in prices the previous day due to concerns over weak global demand. Brent crude futures increased by nine cents, or 0.1 percent, to $87.16 a barrel, while US West Texas Intermediate (WTI) crude futures went up by four cents to $81.29 a barrel.

Both benchmarks had fallen more than two percent in the prior session, recovering to post a weekly gain of around four percent. The US stated on Thursday that it could keep the blockade against Iran in place indefinitely and increase economic pressure on Tehran as ceasefire negotiations were stalling. US Treasury Secretary Scott Bessent mentioned on 'Newsmax's Rob Schmitt Tonight' program that these measures would be unprecedented in economic isolation of a nation.

The threats came as Iran continued to restrict traffic through the Strait of Hormuz, which once carried 20 percent of the world's oil, raising fuel prices and putting pressure on US President Donald Trump to end a war that is unpopular domestically. The head of Iran's Basij paramilitary unit, Hossein Taeb, told Fars news that the strait is under the management and control of the Islamic Republic.

The potential for a longer war affecting supply was tempered by forecasts from OPEC and the International Energy Agency, which lowered their outlooks for demand growth. Meanwhile, US crude inventories made their biggest weekly increase in over three and a half years. Analyst Tim Waterer commented that the market was supported but had trouble breaking higher due to these conflicting pressures.

Additionally, two vessels from Abu Dhabi National Oil Company were attacked while passing through the strait on Thursday evening, according to UAE state news agency WAM. The United Arab Emirates condemned it as an Iranian attack.