Oil rises 2% as Iran blockade fears grow
- Brent crude rose 1.64% to $88.50 a barrel, while U.S. WTI gained 1.92% to $82.81 on Friday.
- Prices climbed after the United States threatened to maintain its naval blockade of Iran indefinitely as ceasefire talks remained stalled.
- Supply concerns are competing with weaker demand forecasts and a 17.4 million-barrel weekly increase in U.S. crude inventories.
Brent crude futures rose 1.64% to $88.50 a barrel on Friday, while West Texas Intermediate crude climbed 1.92% to $82.81 as renewed U.S.-Iran tensions raised supply concerns.
The gains followed Thursday's decline of more than 2%, when Brent settled at $87.07 and WTI at $81.25 amid weaker demand forecasts and rising U.S. inventories.
The United States said it could maintain its naval blockade of Iran indefinitely and increase economic pressure as efforts to revive a ceasefire remained stalled.
Shipping through the Strait of Hormuz remained below August's daily average, while the UAE accused Iran of attacking two Abu Dhabi National Oil Company vessels on Thursday.
Following the latest U.S. threat, Brent crude was up $1.43 at $88.50 a barrel and WTI was up $1.56 at $82.81 at 0810 GMT.
The Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict, making restrictions on shipping a significant risk for energy markets.
Oil also faces downward pressure from fundamentals, with OPEC forecasting 2026 demand growth of 0.6 million barrels per day while the IEA expects demand to contract during the second and third quarters.
