Oil Rises after US Threatens Indefinite Blockade of Iran

Oil prices saw an increase on Friday, driven by renewed concerns over crude supply following the United States' threat of an indefinite naval blockade against Iran. Brent futures rose by 1.03% to $87.97 a barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed to $82.16 a barrel. These benchmarks are on track for weekly gains of approximately 4%, recovering from a more than 2% fall in the previous session. Analysts note that the broader geopolitical landscape is currently supporting prices, preventing a more significant downturn despite bearish crude stock data and forecasts of lower demand growth from OPEC and the International Energy Agency. The U.S. warned on Thursday that it could maintain the blockade indefinitely and intensify economic pressure on Tehran, as ceasefire talks have stalled. Treasury Secretary Scott Bessent indicated that "measures like have never been seen in the history of economic isolation of a country" would be applied. These threats emerge as Iran has been curbing flows through the Strait of Hormuz, a critical chokepoint for global oil transport. The United Arab Emirates reported that two vessels from the Abu Dhabi National Oil Company were attacked while transiting the Strait of Hormuz, an incident condemned as an Iranian attack. Separately, a fire at Russia's Baltic Sea port of Ust-Luga, a major oil export hub, was attributed to a Ukrainian drone attack.

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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.