Oil prices increased on Friday, 14 August, after the United States warned it could impose an indefinite naval blockade on Iran, heightening concerns about crude supply disruptions in the Middle East.
The gains followed a drop in oil prices the previous day, which was attributed to a weaker demand forecast and a significant increase in US crude inventories, according to Reuters.
As of 06:53 GMT, Brent crude futures had risen by US$0.90, or 1.03 per cent, to US$87.97 a barrel.
Meanwhile, US West Texas Intermediate crude was up US$0.91 at US$82.16 per barrel.
Both benchmarks were set for weekly gains of around 4 per cent, despite having shed more than 2 per cent in the previous session, a slide that interrupted multi-day rallies for both contracts.
Tensions escalated after the US government said on Thursday it could continue its naval blockade of Iranian waters and intensify economic pressure on Tehran, Reuters reported.
The move comes amid stalled ceasefire negotiations, declining global oil supply and rising regional tensions.
Defence Secretary Pete Hegseth told reporters that the US military is capable of maintaining a naval presence to enforce the blockade, which he said has had a severe economic impact on Iran.
The Strait of Hormuz, through which roughly 20 per cent of the world’s oil previously passed, has seen a sharp fall in shipping traffic.
On Tuesday, only eight vessels transited the waterway, down from an average of 12 over the prior ten days and far below the pre-war average of 130 to 140.
Iran has tightened its control over the strait, attacking several ships and seeking to use the passage as leverage in its standoff with the United States.
The US lifted its blockade on Iranian shipping for a month in June but has since reinstated it, restricting Tehran’s access to hard currency and compounding damage from earlier strikes on Iranian energy infrastructure.
Meanwhile, the state-owned Abu Dhabi National Oil Company confirmed that two of its vessels were attacked while passing through the Strait of Hormuz on Thursday.
No injuries were reported.
The UAE government attributed the attack to Iran, marking the second incident involving the company in under a week.
Elsewhere, Russian authorities responded to a fire at the Baltic Sea oil export hub Ust Luga on Friday, which the regional governor said was caused by a Ukrainian drone attack.
Analysts said the combination of naval tensions, falling shipping volumes through one of the world’s busiest energy corridors and fresh attacks on tankers and export infrastructure has left traders bracing for further volatility.
While Friday’s gains partially offset Thursday’s losses, both benchmarks remain on track for solid weekly advances, underscoring how sensitive markets remain to any sign of escalation in the Gulf.
With ceasefire talks stalled and Washington signalling no timeline for lifting the blockade, market watchers say crude prices are likely to stay elevated in the near term, particularly if shipping through the Strait of Hormuz continues to slow or if further attacks on vessels are reported in the region.
