Global Oil Prices Rise After US Threat to Blockade Iran

Global oil prices rose slightly after the United States threatened to continue a naval blockade of Iran for an indefinite period.

Concerns that Iran’s crude oil supplies could be affected pushed prices higher after both major oil benchmarks fell by more than 2 percent in the previous session.

According to Reuters, Brent crude futures increased by 9 cents, or 0.1 percent, to $87.16 per barrel.

US West Texas Intermediate (WTI) crude also rose by 4 cents to $81.29 per barrel.

A day earlier, both benchmarks had fallen by more than 2 percent. The decline came after Brent had gained for six straight sessions and WTI had risen for five consecutive sessions.

Despite the latest increase, both benchmarks are still heading for an overall weekly gain of around 4 percent.

The recent movement in oil prices has been largely linked to US actions against Iran and the situation around the Strait of Hormuz. Any prolonged disruption to Iran’s maritime trade and oil exports could put further pressure on global crude supplies.

The US threat of a naval blockade has renewed concerns among investors that oil supplies from the Middle East could face further disruption.

At the same time, concerns about weaker global oil demand had pushed prices lower in the previous session. However, the latest developments involving Iran have once again increased fears about possible supply disruptions.