Crude oil climbed above $82 a barrel on Friday, advancing more than 5% for the week as the United States stepped up economic pressure on Iran to reopen the Strait of Hormuz. Treasury Secretary Scott Bessent said Washington would implement unprecedented economic measures while maintaining its naval blockade of Iranian ports, with further actions expected to be announced next week. The International Energy Agency, meanwhile, warned of a deeper global supply shortfall, projecting that 2026 will see the largest deficit in five years.
Diplomatic efforts have stalled, with Iran and Oman still unable to reach an agreement on reopening the strait, despite earlier optimism that a deal was near. US officials said American forces are expanding their capacity to escort commercial vessels through Hormuz, though transit remains hazardous, and some tankers have begun switching off their transponders. In the Red Sea, Iran-backed Houthi militants targeted Saudi Arabia’s Jazan refinery, adding to regional tensions. At the same time, additional Middle Eastern crude is expected to flow to the US, offering some respite for depleted inventories.
