US Threatens Indefinite Iran Naval Blockade as Oil Prices Steady
Crude oil prices steadied on Friday after the United States threatened an indefinite naval blockade against Iran, reviving supply concerns that countered a weaker global demand outlook and rising U.S. inventories. Brent futures rose 9 cents, or 0.1%, to $87.16 a barrel by 0130 GMT, while U.S.
U.S. Threatens Indefinite Naval Blockade and Economic Pressure
The United States announced on Thursday that it could maintain a naval blockade on Iranian ports indefinitely and would significantly ramp up economic pressure on Tehran as ceasefire negotiations remain stalled. U.S. Treasury Secretary Scott Bessent outlined the administration’s stance in an interview on Newsmax’s “Rob Schmitt Tonight” program, warning that upcoming measures would impose unprecedented economic isolation on the country. According to Reuters, the Pentagon chief confirmed that U.S. forces possess the capability to sustain the naval restrictions over the long term.
Treasury Secretary Scott Bessent said in the Newsmax interview.
Additionally, two vessels belonging to the state-owned Abu Dhabi National Oil Company were attacked while transiting the Strait of Hormuz on Thursday evening, an incident the United Arab Emirates government condemned as an Iranian attack, as noted by UAE state news agency WAM.
Strait of Hormuz Control and Market Counterweights
Tensions in the vital shipping lane remain high as Iran continues to restrict traffic through the Strait of Hormuz. The passage historically carried 20% of the world’s oil supply prior to the current conflict, driving up global fuel prices and placing heavy political pressure on U.S. President Donald Trump to end a war that lacks domestic popularity. Hossein Taeb, the recently appointed head of Iran’s Basj paramilitary unit, asserted that the strategic waterway remains under the management and control of the Islamic Republic, according to the semi-official Fars news agency.
Despite the supply risks posed by the ongoing blockade and maritime attacks, crude benchmarks fell more than 2% in the prior session after a six-session rally for Brent and a five-session rise for WTI. The downward pressure stemmed from forecasts released by OPEC and the International Energy Agency, both of which lowered their outlooks for global demand growth. Simultaneously, official data showed that U.S. crude stocks registered their largest weekly gain in more than three and a half years.
KCM chief market analyst Tim Waterer noted that these opposing forces have created a delicate equilibrium in the commodities market. “The result is a market that remains supported but struggles to break meaningfully higher while these opposing pressures remain in place,” Waterer said.