3 weeks ago

Brent Nears $90 as Trump Demands Cloud Iran Deal Hopes

Brent Nears $90 as Trump Demands Cloud Iran Deal Hopes
Crude oil price rallies for fourth session amid US-Iran war uncertainty; Brent near $87 per barrel · livemint.com

Oil is a special liquid that helps cars run and keeps factories working.

There is a very important water road called the Strait of Hormuz, and it is mostly closed, so oil ships cannot pass through easily.

Before the war, about one-fifth of the world's oil and gas shipments passed through this water road.

When oil is hard to get, it costs more money.

The United States and Iran are trying to agree on how to open the strait again.

President Donald Trump asked Iran to pay money for people who were killed in past conflicts, while Iran wants the US to pay over $300 billion for war damages that Trump had agreed to in June.

Because the two countries disagree, people worry there will not be enough oil, so prices are going up.

One kind of oil costs about $82 a barrel, and another kind is near $87, heading toward $90.

Only five ships are moving through the strait right now, much fewer than the 14 that used to pass each day, and some experts think prices may keep rising.

Key facts

Brent Crude Price
$87.81 a barrel, near $90 after closing above $87
WTI Price
$82.20 a barrel
Monday's Rally
Both benchmarks climbed more than 5%, reaching their highest levels since July 31
Trump's Demand
Compensation from Iran for people killed in past conflicts, to be included firmly in all future negotiations
Iran's War Damages Demand
Over $300 billion for rehabilitation and economic development
Key Agreement
14-point MoU signed by Trump in June on the sidelines of the G7 summit in France
Strait of Hormuz Traffic
5 vessels transiting, versus a daily average of 14 after the June MoU
TD Securities Forecast
Brent expected to trade $10-15 above current levels

Quotes

US President Donald Trump

President of the United States

“Trump said on Monday that compensation for Iran had “never been mentioned” during negotiations or meetings.”
livemint.com
“"I demand compensation from Iran for all the people they have killed in past conflicts."”
CNBC TV 18

Sources

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