Brent near $87 as US says Iran blockade can last indefinitely

Oil futures are still headed for a weekly gain and have rallied more than 40% this year as the Iran war that began in late February drags on. The International Energy Agency this week forecast a deeper supply shortfall this quarter, with the deficit in 2026 projected to be the widest in five years, Bloomberg reported.

Traders are also monitoring diplomatic efforts to reopen the Strait of Hormuz, a critical waterway for global oil shipments. Iran and Oman have yet to reach a deal after optimism earlier this week that an agreement was close. Fresh attacks on tankers and energy infrastructure have kept the market on edge.

In India, retail petrol and diesel prices remained unchanged Friday, as they have since the last major revision by state-run fuel retailers on May 25. The three largest oil marketing companies – Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum – continue to absorb crude price volatility rather than pass it to consumers.

The IEA's supply outlook and the U.S. stance on Iran suggest the crude market faces a sustained period of tightness, with no diplomatic resolution in sight. Hegseth's comments reinforced that the blockade is not a short-term measure, adding a new layer of geopolitical risk premium to prices.