US-Iran war Highlights: Iran says service fees should be charged for ships using Strait of Hormuz

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Oil prices jumped around 5% on Monday as the US and Iran remained divided over terms for reopening the Strait of Hormuz.

Brent crude, the international benchmark, rose 5% to $87.72 a barrel.

West Texas Intermediate (WTI), the US benchmark, climbed 5.1% to $82.13 a barrel.

US president Donald Trump said Iran is seeking compensation for damage caused during the five-month military conflict.

Trump claimed the conflict began because Iran refused to give up its ambition to possess a nuclear weapon.

Trump said Iran’s compensation request was never raised during previous negotiations or meetings.

He said the US would also seek compensation from Iran for people he claims were killed or seriously injured in attacks and conflicts.

Trump blamed Iran for casualties linked to conflicts allegedly led by former Iranian military commander Qassem Soleimani.

Trump said compensation should be paid to the families of those killed in the USS Cole bombing, along with thousands of others killed in combat.

Trump demanded compensation for families of protesters he alleged were killed by the Iranian government over the past 50 years.

Oil prices jump 3%: Brent crude rose 3% to $86.03 a barrel, while WTI gained 3.1% to $80.61 on Monday, after Iran sets conditions for Hormuz reopening.

Both oil benchmarks had fallen more than 7% last week on expectations that Iran and Oman were close to an agreement to reopen the strategic waterway.

Iran’s Supreme Leader Mojtaba Khamenei has made six new appointments across the Revolutionary Guards and armed forces.

Major General Pilot Ali Abdollahi has been appointed chief of staff of Iran’s armed forces.

Brigadier General Ahmad Vahidi has been named commander-in-chief of the Islamic Revolutionary Guard Corps (IRGC). (Reuters)

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said fees should be charged for maritime services provided in the Strait of Hormuz.

Baghaei said the issue of fees was not being discussed in detail at the current stage of negotiations between Iran and Oman.

He described the Iran-Oman talks as “smoothly and constructively” and said technical issues were still being worked out.

Baghaei attributed the closure of the Strait of Hormuz to what he called US and Israeli “military aggression” against Iran.

He said reopening the strategic waterway depends on the removal of conditions imposed on Iran.

Baghaei repeated that Iran is not negotiating directly with the United States, although the two countries continue to exchange messages through mediators.

Iran’s Supreme Leader Ayatollah Mojtaba Khamenei has called for “unity and cohesion” as the country faces economic difficulties and US sanctions.

President Masoud Pezeshkian spoke after he held a nearly seven-hour meeting with Khamenei amid tensions and signs of divisions among Iran’s leaders.

Pezeshkian said the two discussed people’s livelihoods, market conditions, employment and housing.

The meeting also focused on problems arising from US sanctions imposed on Iran amid its conflict with Washington.

Pezeshkian said Khamenei stressed the need to prevent divisions within the country.

Pezeshkian said Iran’s enemies were seeking to exploit internal divisions, adding that the country must work to prevent them from emerging.

The comments come amid apparent tensions among Iran’s leadership, although Pezeshkian did not provide details about the nature of the divisions.

Pezeshkian did not disclose when or where the meeting with Khamenei took place.

Pezeshkian made the remarks in an interview with Iranian state television IRIB that aired on Monday.

Brent crude gained 1.7% to $84.95 a barrel, while WTI rose 1.7% to $79.51 by 1218 GMT on Monday.

Tehran said the US must meet several demands before the Strait of Hormuz can be reopened.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said the Strait of Hormuz will remain closed until the US ends its naval blockade against Iran. He attributed the closure to US-Israeli military action and said reopening depends on conditions imposed by Washington and Israel.

The refinery has remained shut since July 27 following an attack by Yemen's Houthi militants, an earlier IIR alert said.

Saudi Aramco has delayed the tentative restart of its 400,000-barrel-per-day Jazan oil refinery by about two weeks to August 30, according to an IIR alert seen by Reuters.

India has also expanded its crude oil sourcing portfolio from 27 countries to 41, the Ministry of Petroleum and Natural Gas said in a written reply to the Rajya Sabha on the impact of geopolitical and transit risks on energy supplies.

India has increased the number of countries from which it sources LNG from six to 15 to reduce the risk of supply disruptions caused by geopolitical tensions and maritime transit challenges, the government told the Rajya Sabha.

Iran said it was nearing a final agreement with Oman on new shipping lanes through the Strait of Hormuz but stressed that the waterway would reopen only after the US meets conditions including compensation, lifting sanctions and ending military threats.

UN envoy for Yemen Hans Grundberg expressed concern over recent Houthi attacks on al-Makha (Mocha), warning that the escalation has raised the risk of a return to full-scale conflict. He called for maximum restraint and protection of civilians and infrastructure.

Iranian Deputy Parliament Speaker Ali Nikzad said the United States has "practically realised" that reopening the Strait of Hormuz has no military solution, amid ongoing efforts to establish a new shipping route through the strategic waterway, AlJazeera reported.

The UAE's Cybersecurity Council said national cybersecurity systems detected and thwarted advanced, organised cyberattacks targeting the aviation, energy and education sectors. The attacks involved attempts to breach digital infrastructure, compromise accounts and data, and launch targeted phishing campaigns.

Euro zone investor sentiment turned positive in August, with the Sentix index rising to 0.9 from -3.1 in July and beating expectations of -0.5. The index has risen for four straight months, reaching its highest level since February.

Iran sees no reason to be concerned that the new security pact between Pakistan, Turkey and Saudi Arabia is aimed at Tehran, Foreign Ministry spokesman Esmaeil Baghaei said. He said the deal reflected a shift towards regional countries relying on their own security capabilities.

Adnoc Gas Plc is considering a new liquefied natural gas export facility outside the contested Strait of Hormuz, Abu Dhabi’s latest move to build infrastructure bypassing the critical waterway that’s been severely disrupted by the Iran war.