Oil rises after U.S. threatens indefinite blockade of Iran

Oil prices rose Friday after the U.S. threatened an indefinite naval blockade of Iran, renewing fears of disruptions to crude supply. The move comes after the prior session’s drop tied to a weaker demand outlook and a large build in U.S. stockpiles. Net takeaway: headline geopolitical risk is supporting prices, but demand concerns remain a counterweight.

Analysis

Oil prices rose Friday after the U.S. threatened an indefinite naval blockade of Iran, renewing fears of disruptions to crude supply. The move comes after the prior session’s drop tied to a weaker demand outlook and a large build in U.S. stockpiles. Net takeaway: headline geopolitical risk is supporting prices, but demand concerns remain a counterweight.