Oil edges higher as US threats to extend Iran blockade fuel supply disruption fears

Crude oil prices posted moderate gains on Friday after the United States signaled it could maintain a maritime blockade on Iran indefinitely, exacerbating market concerns over potential supply bottlenecks.

Brent crude futures rose to $87.08 per barrel, while US West Texas Intermediate (WTI) climbed to $81.31 per barrel. Both benchmarks are on track to wrap up the trading week with gains of around 4%.

The upward momentum is largely underpinned by geopolitical frictions and persistent shipping risks through the Strait of Hormuz, a critical chokepoint that accounted for roughly 20% of global oil trade prior to regional hostilities. However, broader gains remain capped by downgraded global demand outlooks and a sharp 17.4-million-barrel surge in US commercial crude inventories—the steepest weekly build recorded since January 2023.

N.Tebrizli

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