Oil steadies after US threatens to blockade Iran indefinitely

Crude prices nudged up on Friday as Washington signalled that its naval blockade of Iran could last without end, renewing fears about supply. By 0130 GMT, Brent stood 9 cents higher at $87.16 a barrel, a gain of 0.1%, while US benchmark WTI had added 4 cents to $81.29.

Both benchmarks had dropped more than 2% in the previous session, giving back part of a six-session Brent rally and a five-session WTI rise, yet they remain on course for a weekly gain near 4%. Treasury Secretary Scott Bessent told Newsmax that Washington would announce further economic measures next week, describing them as unlike anything previously attempted against a nation. Those remarks came as ceasefire talks stalled.

Iran continues to restrict shipments through the Strait of Hormuz, a route that handled 20% of global oil before the conflict, and the head of its Basij paramilitary unit has said Tehran controls the waterway. Offsetting that worry, OPEC and the IEA lowered their demand growth forecasts this week, while US crude inventories posted their largest weekly build in more than 3.5 years. Two Abu Dhabi National Oil Company vessels were struck while crossing the strait on Thursday evening, WAM reported, and the UAE condemned the incident as an Iranian attack.