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Blockade threat reshapes markets
The United States threatened to maintain an “indefinite” naval blockade of Iran, a move that raised concerns about disruptions to crude supplies and helped set oil prices for weekly gains.
“Oil set for weekly gains after the U.S. threatened an indefinite naval blockade of Iran”
Reuters reported that Brent futures were down 12 cents, or 0.1%, to $86.95 a barrel at 9:11 a.m. EDT (1311 GMT), while U.S. West Texas Intermediate crude futures were up 13 cents, or 0.2%, to $81.38 a barrel.
Reuters also said that on Thursday the U.S. could maintain a naval blockade of Iran indefinitely and increase economic pressure on Tehran in response to ceasefire talks that have stalled.
Bjarne Schieldrop, chief analyst for commodities at SEB Research, said, "A return to normal flows out of the Strait of Hormuz is now suddenly without any near-term hopes," as the U.S. and Iran traded claims over control of the Strait of Hormuz.
The Reuters report added that before U.S.-Israeli attacks on Iran began in late February, the strait handled about one-fifth of global daily oil and liquefied natural gas supplies.
US says it can last
U.S. Defense Secretary Pete Hegseth told reporters that the United States Navy can maintain a blockade “indefinitely,” saying, "Indefinitely, the United States Navy can maintain a blockade like that because we’ll rotate ships in and out, as we have, and we’ll continue to,".
Al Jazeera reported that Iran rejected U.S. claims about Hormuz, quoting Iran’s Persian Gulf Strait Authority (PGSA) on X: "The Strait of Hormuz remains blocked and will not be reopened until Iran’s conditions are accepted,".
Al Jazeera also described concerns raised by U.S. lawmakers after reports of dire conditions on board the USS Abraham Lincoln, including accounts of sailors trying to jump overboard.
The Al Jazeera report said Democratic Senator Richard Blumenthal wrote that the aircraft carrier departed San Diego, California, in November last year with more than 5,000 US sailors and Marines on board and has now been “continuously at sea for a record length of nearly seven months”.
In parallel, CNBC said Hegseth told reporters that reports about poor conditions aboard the Lincoln, including food shortages and declining morale, were "completely misrepresented."
Pressure, shipping, and fallout
Alongside the blockade threat, the U.S. signaled it would intensify economic pressure on Tehran, with Treasury Secretary Scott Bessent saying, "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,".
“"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 of a country,"”
Reuters said crude oil prices climbed on Friday over renewed attacks on tankers and a war of words between the Trump administration and Iran's leadership, with Brent futures up 80 cents, or 0.92%, to $87.87 a barrel at 10:48 a.m. CT (1548 GMT).
Reuters also reported that two vessels from the state-owned Abu Dhabi National Oil Company were attacked while transiting the strait on Thursday, an incident the UAE government condemned as an Iranian attack.
NBC News said Vice President JD Vance told Fox News that keeping gas prices low is the United States’ “goal No. 1” in the Iran war, adding, "That’s goal No. 1 — keep oil and gas cheap for Americans all over our country."
The stakes described in the sources extended to global shipping and energy flows, with Al Jazeera noting that despite President Donald Trump’s claims of “full control,” only a handful of ships had been able to pass through the Strait of Hormuz this week.
