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Oil prices rise as U.S. threatens ‘economic isolation’ of Iran

CNBC/Reuters | 20 hours ago | 17/08/2026

Oil prices rose Friday after the U.S. said its naval blockade of Iranian ports could continue “indefinitely,” reigniting concerns over energy flows through the critical Strait of Hormuz.

 

Brent futures, the international benchmark, rose 1.7% to close at $88.52 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 1.4% to settle at $82.40.

Both benchmarks dipped 2% in Thursday’s session, but advanced more than 5% for the week.

Friday’s upward moves follow U.S. Treasury Secretary Scott Bessent’s warnings in an interview with Newsmax of measures aimed at the “economic isolation” of Iran which “have never been seen”.

Bessent’s comments came after U.S. Defense Secretary Pete Hegseth told reporters U.S. forces could maintain an indefinite blockade of Iranian ports.

The warnings come after the United Arab Emirates said Thursday evening that Iran attacked two vessels from the state-owned Abu Dhabi National Oil Company which were transiting the strait.

Thursday’s session saw prices retreat after Energy Secretary Chris Wright claimed that oil exports passing through the strait are now higher than many independent estimates.

The International Energy Agency said Wednesday that global oil demand is expected to fall further than previously expected this year amid the ongoing squeeze around the strait.

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