Oil rises after US threatens indefinite blockade of Iran; set for weekly gains

Business Recorder reported that crude prices climbed on Friday and were heading for a weekly advance after Washington threatened an open-ended naval blockade of Iran. Brent futures rose $1.43, a gain of 1.64%, reaching $88.50 per barrel by 0810 GMT, while the US benchmark West Texas Intermediate rose $1.56 to $82.81, up 1.92%.

The US warned on Thursday that it could keep the blockade in place indefinitely and tighten economic pressure on Tehran, as ceasefire talks have stalled. Treasury Secretary Scott Bessent said further measures would be announced next week, describing them as unprecedented in scale. SEB Research's Bjarne Schieldrop said the latest approach implied a longer disruption in the Middle East, with little prospect of a quick resolution. Iran is restricting traffic through the Strait of Hormuz, a passage that before the conflict began in late February carried roughly a fifth of global daily oil and LNG volumes.

Shipping through the strait fell below its monthly average late in the week, with both countries claiming control of the waterway. WAM reported that two Abu Dhabi National Oil Company vessels were attacked there on Thursday, an incident the UAE condemned as Iranian. Separately, OPEC and the IEA forecast weaker demand growth. Julius Baer's Norbert Rucker said storage was holding up better than feared.