Key facts
- Oil prices rose Friday due to US threats of an indefinite naval blockade of Iran.
- Tanker traffic through the Strait of Hormuz has significantly decreased.
- US Defense Secretary Pete Hegseth stated the Navy can maintain the blockade indefinitely.
- The US plans further announcements on economic measures against Iran next week.
Oil prices saw a slight increase as the United States threatened an indefinite naval blockade of Iran, raising concerns about potential disruptions to crude supply. Tanker traffic through the Strait of Hormuz has dwindled significantly, with only five crossings on Wednesday and nine on Thursday, down from a monthly average of 12.
Defense Secretary Pete Hegseth stated that the U.S. Navy can maintain the blockade indefinitely and that further announcements regarding unprecedented economic isolation measures against Iran are expected next week.
Despite the escalating tensions, oil prices did not fully reflect the situation, as traders focused on U.S. commercial inventories adding over 17.4 million barrels last week. However, global inventories are depleting, and China is increasing its crude purchases after a period of low imports.
Analysts suggest that if the stalemate persists, the physical oil market could reach a tipping point, leading to shortages and price spikes.