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

Business Recorder reported that crude prices edged higher on Friday, with the week set to close in positive territory after Washington threatened an open-ended naval blockade of Iran. By 1047 GMT, Brent futures had climbed 12 cents, a 0.14% rise, reaching $87.19 a barrel, while West Texas Intermediate gained 50 cents, a 0.62% advance, to $81.75. On a weekly basis, Brent and West Texas Intermediate were on course to rise roughly 4.3% and 4.6%, respectively.

The United States said on Thursday it could keep its naval blockade in place indefinitely and step up economic pressure on Tehran while ceasefire negotiations remain at a standstill. Treasury Secretary Scott Bessent hinted at further measures in the coming week, and SEB Research's Bjarne Schieldrop said this stance leaves little prospect of a quick resolution in the Middle East.

Shipping through the Strait of Hormuz dropped below its monthly average as both Washington and Tehran asserted control over the waterway. Two vessels operated by Abu Dhabi National Oil Company were attacked while crossing the strait on Thursday, an incident the UAE government blamed on Iran, according to state news agency WAM. Before the conflict began in late February, the strait handled roughly one-fifth of global daily oil and LNG supply, while OPEC forecasts pointed to weaker demand growth and US crude stockpiles rose by the most in more than three and a half years.