Oil prices gained on Friday after the United States threatened an indefinite naval blockade of Iran, reviving concerns about supply of crude after the previous session's fall on a weaker outlook for demand and a large build in US stocks, Asharq Al-Awsat reports.
Brent futures rose 90 cents, or 1.03%, to $87.97 a barrel by 0653 GMT, while US West Texas Intermediate (WTI) crude futures rose 91 cents to $82.16 a barrel, Reuters reported. The benchmarks were on track for weekly rises of about 4% after the prior session's fall of more than 2%, paring gains following Brent's six-session rally and a five-session rise for WTI.
"Despite the bearish crude stock data, the broader geopolitical backdrop is preventing a sharper price decline," Susan Bell, senior vice president for oil commodity markets at Rystad Energy said in a note. On Thursday, 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.
"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," Treasury Secretary Scott Bessent told Newsmax's "Rob Schmitt Tonight" program in an interview. The latest US threats come as Iran curbs flows through the Strait of Hormuz, which carried 20% of the world’s oil before the conflict, driving up fuel prices and putting pressure on President Donald Trump to end a war that is unpopular at home. The strait is "under the management and control of the Islamic Republic", however, the recently appointed head of Iran's Basj paramilitary unit, Hossein Taeb, has said, according to the semi-official Fars news.
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