Strait of Hormuz crisis: Oil jumps 5% as Iran sets reopening conditions, Trump demands compensation

Oil prices surged nearly 5 percent on Monday, as speculation surrounding the reopening of the Strait of Hormuz faded following a standoff between Iran and the United States, according to Reuters. Brent crude prices climbed 4.99 percent to $87.72 a barrel, while U.S. West Texas Intermediate (WTI) rose 5.05 percent to $82.13, marking the largest gains for both benchmarks since July 29.

This came as Iranian officials claimed proximity to finalizing an agreement with Oman on new shipping lanes through the strategic waterway, but insisted the full reopening would depend on U.S. meeting several demands. Tehran has listed demands including an end to U.S. sanctions, cessation of military threats, and compensation for damages caused during conflicts.

In contrast, U.S. President Donald Trump rejected Iran's compensation demand but vowed to seek reparation from Tehran for casualties inflicted by Iranian actions. The conflicting demands have complicated expectations of a swift reopening of the strait, with Iran insisting that any reopening must be contingent on U.S. compliance with its conditions.

Meanwhile, attacks on energy infrastructure, including a Saudi Aramco refinery and Ukrainian strikes on Russian oil facilities, have further exacerbated concerns over potential global oil supply disruptions. The situation remains fluid, with the key question now whether Iran and Oman can reach a viable arrangement for shipping through the Strait of Hormuz, and whether the U.S. is prepared to meet Iran's stipulations for broader reopening.