Oil rose on signals that a U.S. blockade on Iranian ports could go on for an extended period, prolonging an unprecedented supply shock that has roiled energy markets.

Brent rose near $117 a barrel, while West Texas Intermediate traded around $105 a barrel. U.S. President Donald Trump has told his aides to prepare for an extended blockade and that it carries less of a risk for the U.S. than resuming hostilities or walking away from the conflict without a deal that curbs Iran’s nuclear activities, the Wall Street Journal reported, citing unnamed American officials.

In recent meetings, the president has opted for continuing to squeeze Iran’s economy and oil exports, the report said. He assessed that other options, including the resumption of bombing, carried more risk. Still, rhetoric has ramped back up, with crude prices approaching their highs since the conflict began.

“As long as there is no game plan to end this mess or at least open the Strait of Hormuz, the market will continue to tick higher,” said Robert Yawger, director of the energy futures division at Mizuho Securities USA.

The two sides have been locked in an impasse over peace talks, while flows of crude, natural gas and oil products from the Persian Gulf remain effectively cut off since the conflict began in late February. The crisis has sent prices of gasoline, diesel and jet fuel surging, raising inflation fears around the world.

“The stalemate could last for weeks,” Michelle Brouhard, the head of policy and geopolitical risk at Kpler Ltd., told Bloomberg Television. “It’s either gonna be the global market tells Trump that we can’t take this shortage of oil any longer, or it’s gonna be Iran who says we want to be able to get our oil out.”

A ceasefire has held since early April but recent diplomatic efforts to get negotiators from the two sides to meet have so far failed. Iran is insisting it won’t restart negotiations or reopen the Strait of Hormuz as long as the U.S. naval restrictions stay in place.

The American naval blockade appears to be putting pressure on Tehran. The nation is rapidly running out of crude storage space, which is threatening to accelerate production cuts, according to Kpler.

The U.S. is also ramping up pressure on Iran via other means. The Treasury Department’s Office of Foreign Assets Control has warned financial institutions of sanctions risks on Chinese oil refiners — mostly independent processors in Shandong province — over ties with the Islamic Republic. One of China’s largest private oil refiners was sanctioned over its links to Iran.

The Treasury Department has also issued “firm guidance” warning of significant sanctions exposure related to paying a “toll” to the Iranian government to gain passage through Hormuz. Tehran has been seeking to enact a national law to formalize a payment system for ships crossing the waterway.

Meanwhile, traders continued to digest the news that the United Arab Emirates will leave OPEC in a decision announced on Tuesday. UAE officials said the shortage caused by the war will require agility to respond to market demands without being constrained by the collective decision-making process by the wider group.

“Traders now focus on the next steps in peace talks and today’s U.S. inventory report for further signs of how quickly U.S. stockpiles are falling amid robust export demand,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “The near closure of the Strait of Hormuz prolongs a disruption that continues to tighten global energy markets.”

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—With assistance from Sharon Chen and Charlie Zhu.

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