Oil steadies after US threatens to blockade Iran indefinitely
PERTH: Oil prices inched higher on Friday after the US threatened to maintain a naval blockade of Iran indefinitely, reviving crude supply concerns, after prices fell in the previous session on a weaker global demand outlook. Brent futures rose 9 cents, or 0.1%, to $87.16 a barrel by 0130 GMT, while US West Texas Intermediate (WTI) crude futures rose 4 cents to $81.29 a barrel. The two benchmarks…
Oil prices rose on Friday following a US threat to maintain a naval blockade of Iran indefinitely, reigniting concerns over reduced crude supplies, as prices slipped the previous day due to dwindling global demand outlook. Brent futures increased by 9 cents, or 0.1%, to $87.16 a barrel, while US West Texas Intermediate (WTI) crude futures climbed by 4 cents to $81.29 a barrel.
Earlier gains were pared back after a six-week surge for Brent and a five-week rise for WTI, but they were on track for weekly gains of around 4%. The US announced on Thursday its intention to keep a naval blockade of Iran indefinitely and intensify economic pressure on Tehran, as ceasefire negotiations have stalled. "Expect more announcements next week, as we will impose measures unseen in the history of economic isolation on a nation," US Treasury Secretary Scott Bessent stated in an interview on Newsmax’s "Rob Schmitt Tonight" program.
The latest US threats came as Iran continues to restrict passage through the Strait of Hormuz, which accounts for 20% of global oil before the conflict, elevating fuel prices and pressuring President Donald Trump to end a war that is unpopular domestically. Iran's newly appointed head of the Basij paramilitary unit, Hossein Taeb, declared the strait "under the management and control of the Islamic Republic," according to the semi-official Fars news.
While the prospect of an extended war constraining supply, a forecast from OPEC and the International Energy Agency predicted a lower outlook for demand growth. Additionally, data revealed that US crude inventories had their largest weekly increase in over three and a half years. Analyst Tim Waterer from KCM noted that these contrasting pressures were balancing each other out, causing the market to remain supported but unable to make substantial gains.
Two vessels from Abu Dhabi National Oil Company were attacked while transiting the strait on Thursday evening, as reported by the UAE state news agency WAM, with the United Arab Emirates government accusing Iran of the attack.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
