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 jumped by 5% on Monday after Iran and the United States exchanged demands for compensation, 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 vital waterway could be reopened, while U.S. President Donald Trump demanded that Iran pay compensation for all the lives lost and injuries sustained.
Brent crude futures surged $4.17, or 4.99%, to $87.72 a barrel, while U.S. West Texas Intermediate crude futures rose $3.95, or 5.05%, to $82.13. These percentage gains marked the highest since July 29 for both contracts. Last week, the benchmarks had dropped more than 7% on hopes that Iran and Oman were on the verge of reaching a deal that would lead to the reopening of the strait, which previously carried a fifth of the world's oil and liquefied natural gas.
Iran claimed to be close to finalizing a pact with Oman to establish new shipping lanes through the strait, but reiterated the U.S. obligations.
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.
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