PERTH — Oil prices ticked slightly higher on Friday following threats from the United States to maintain an indefinite naval blockade on Iran, reviving global crude supply concerns. The uptick comes right after prices dipped in the previous session due to a weakening global demand outlook.
Brent futures rose 9 cents, or 0.1%, to $87.16 a barrel by 0130 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 4 cents to reach $81.29 a barrel.
Both benchmarks had dropped over 2% in the prior session—snapping multi-day winning streaks—but remain on track for a weekly gain of around 4%.
U.S. Ramps Up Economic Pressure
The slight rebound in prices follows statements from Washington indicating that ceasefire talks with Tehran have stalled, prompting the U.S. to prepare tougher economic measures.
"Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation on a country," U.S. Treasury Secretary Scott Bessent said during an interview on Newsmax's Rob Schmitt Tonight.
Escalating tensions come as Iran continues to restrict maritime traffic through the vital Strait of Hormuz—a bottleneck that previously carried 20% of the world's oil. The restrictions have driven up global fuel prices, mounting domestic political pressure on U.S. President Donald Trump to resolve the conflict.
Confirming Iran’s stance, Hossein Taeb, the recently appointed head of Iran's Basij paramilitary unit, told the semi-official Fars news agency that the strategic strait remains "under the management and control of the Islamic Republic."
Attacks and Market Counterweight
Adding to regional instability, UAE state news agency WAM reported that two vessels belonging to the state-owned Abu Dhabi National Oil Company were attacked on Thursday evening while transiting the Strait of Hormuz. The United Arab Emirates government condemned the incident, attributing it to Iranian forces.
Despite supply fears and regional attacks, crude gains remain capped by broader macroeconomic pressures. Both OPEC and the International Energy Agency (IEA) lowered their demand growth forecasts this week, while data revealed the largest weekly build in U.S. crude stockpiles in over three and a half years.
Commenting on the tug-of-war in the markets, Tim Waterer, Chief Market Analyst at KCM, noted:
"The result is a market that remains supported but struggles to break meaningfully higher while these opposing pressures remain in place."
