Oil prices edged higher on Friday following the US threat to impose an indefinite naval blockade on Iran
Oil prices stabilized after the US threat of an indefinite blockade on Iran. This revived concerns about crude oil supply, following weakening demand expectations in the previous session and a large increase in US inventories, which had dampened concerns about crude oil supply.
Despite the downward trend in crude oil inventory data, the broader geopolitical environment is preventing a sharper price drop.
Brent futures rose 1 cent, or 0.1%, to $87.08 a barrel as of 02:47 GMT, while WTI futures rose 6 cents to $81.31 a barrel.
Benchmark prices, which fell more than 2% in the previous session, are partially giving back gains from Brent's six-session rally and WTI's five-session rally, heading towards a weekly gain of approximately 4%.
On Thursday, the U.S. warned it could extend its naval blockade of Iran indefinitely and increase economic pressure on Tehran as ceasefire talks stall.
Treasury Secretary Scott Bessent said the U.S. would implement unprecedented measures in its history to economically isolate a country.
Hossein Taeb, the newly appointed head of Iran’s Basj paramilitary unit, said the Strait of Hormuz is “under the administration and control of the Islamic Republic,” according to the semi-official Fars News Agency.
This week, downward revisions to demand growth forecasts from OPEC and the International Energy Agency (IEA), and the largest weekly increase in U.S. crude oil inventories in more than 3.5 years, were offset by the possibility of a longer war that would restrict supply.
As a result, while these conflicting pressures persist, the market remains supported but struggles to rise meaningfully.
The UAE state news agency WAM reported that two ships belonging to the state-owned Abu Dhabi National Oil Company were attacked on Thursday while passing through the Strait of Hormuz, and the UAE government condemned the incident as an Iranian attack.
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