Oil prices edge higher as Iran tensions raise supply fears
Global oil prices have edged higher after the United States warned it could maintain a naval blockade of Iran indefinitely, renewing fears of disruptions to energy supplies.
By 2:47 GMT, Brent crude futures had risen 1 cent, or 0.1%, to $87.08 a barrel, while US West Texas Intermediate crude gained 6 cents to $81.31 a barrel, according to Reuters.
Both benchmarks are heading for weekly gains of about 4%, despite falling more than 2% during the previous session.
Susan Bell, senior vice president at Rystad Energy, said broader geopolitical tensions were preventing oil prices from falling sharply despite bearish inventory data.
Washington warned on Thursday that its naval blockade of Iran could continue indefinitely, while economic pressure on Tehran could also increase.
US Treasury Secretary Scott Bessent said further measures could be announced next week, potentially creating unprecedented economic pressure on a country.
The developments come as Iran has restricted maritime traffic through the Strait of Hormuz, a vital global energy route. Before the conflict, the waterway carried roughly 20% of the world’s oil shipments, making the current tensions a major concern for energy markets.
However, concerns over weak global demand are limiting further price gains. OPEC and the International Energy Agency have lowered their forecasts for global oil demand growth this year, while US crude inventories recorded their biggest weekly increase in more than three and a half years.
Meanwhile, the UAE’s state news agency reported that two Abu Dhabi National Oil Company vessels were attacked while passing through the Strait of Hormuz. The UAE condemned the incident and attributed it to Iran.