Oil climbs 5% as Iran, US both demand compensation and Hormuz hopes fade
HOUSTON — Oil prices settled 5 percent higher on Monday after Iran and the United States traded demands for compensation, dimming prospects for a deal to reopen the Strait of Hormuz. Iran also said the U.S. must lift sanctions on Tehran, and meet a number of other conditions for reopening the vital waterway, while U.S. President Donald Trump said Iran must pay compensation for "all of the people…
Oil prices surged 5 percent on Monday as Iran and the United States clashed over compensation demands, casting doubt on the possibility of reopening the Strait of Hormuz. Iran insisted that the U.S. must lift sanctions and fulfill several other conditions before the critical waterway could reopen, while President Donald Trump insisted Iran must pay compensation for all lives lost and injuries sustained.
Brent crude futures climbed $4.17, or 4.99 percent, to $87.72 a barrel, while U.S. West Texas Intermediate crude futures rose $3.95, or 5.05 percent, to $82.13. These gains represented the steepest increase since July 29 for both contracts. The sharp rise came after hopes faded that Iran and Oman were about to reach an agreement to define new shipping lanes through the Strait of Hormuz, which had previously carried a fifth of the world's oil and liquefied natural gas.
Iran claimed it was close to finalizing a pact with Oman to establish these new lanes but reiterated that the U.S. must meet its demands.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
