By: Economy Middle east

Oil prices rose on Wednesday, extending a multi-day rally, after reports that the U.S. will extend its blockade of Iranian ports, likely prolonging supply disruptions from the Middle East.

The Wall Street Journal reported that U.S. President Donald Trump has instructed aides to prepare for an extended blockade of Iran, signaling Washington will continue to pressure Tehran’s economy and oil exports by preventing shipping to and from its ports.

Brent crude futures for June rose 22 cents, or 0.21 percent, to $104.19 a barrel at 8:33 UAE time, marking an eighth straight day of gains. The more active July contract traded at $104.84, up 0.4 percent, while U.S. West Texas Intermediate futures for June rose 53 cents, or 0.53 percent, to $99.40 a barrel after gaining 3.7 percent in the previous session.

Although a ceasefire is in place in the U.S.-Israeli conflict with Iran, the conflict remains deadlocked as both sides seek a formal end to the fighting. Iran has shut shipping flows through the Strait of Hormuz, which carries about 20 percent of global oil and liquefied natural gas supplies, while the U.S. continues its blockade of Iranian ports.

The two sides remain far apart, with Washington pressing for an end to Iran’s nuclear weapons program and Tehran demanding reparations, sanctions relief and some form of control over the Strait of Hormuz.

The shutdown continues to drain global inventories, and market sources said the American Petroleum Institute reported another weekly drop in U.S. crude stocks. Crude inventories fell by 1.79 million barrels in the week ended April 24, while gasoline inventories dropped by 8.47 million barrels and distillate inventories fell by 2.60 million barrels.