US-Iran war: Oil prices extended their gains for a fourth straight session after US President Donald Trump issued sweeping new demands on Iran, casting fresh uncertainty over prospects for a deal that could facilitate the reopening of the strategically vital Strait of Hormuz.
Brent crude futures were little changed at $87.81 a barrel, while US West Texas Intermediate (WTI) crude futures remained at $82.20 a barrel. Both benchmarks had climbed more than 5% on Monday, reaching their highest levels since July 31.
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US President Donald Trump has demanded that Iran compensate for the people killed in conflicts, after Tehran renewed its call for reparations as part of negotiations aimed at bringing the conflict to an end.
In a social media post, Trump said the new demands would be included “firmly” in any future negotiations. The tougher position could make it more difficult for Washington and Tehran to reach an immediate agreement to end the war and facilitate the reopening of the Strait of Hormuz.
Iran and Oman have been negotiating a possible arrangement to reopen the strategic waterway. However, Tehran said on Monday that any deal would require the US to lift its blockade and provide compensation for damages. Before the war, roughly one-fifth of global oil and liquefied natural gas shipments passed through the Strait of Hormuz.
Trump also said on Monday that compensation for Iran had “never been mentioned” during negotiations or meetings. However, a 14-point memorandum of understanding agreed between Tehran and Washington in June outlined plans for the US and regional partners to establish a $300 billion fund for the “rehabilitation and economic development” of Iran after the war.
The US president had indicated on Sunday that he was willing to allow economic pressure on Iran to intensify instead of launching additional military strikes to force the reopening of the Strait of Hormuz, where shipping traffic remains severely restricted.
(With inputs from agencies)
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