3 weeks ago
Brent Nears $90 as Trump Demands Cloud Iran Deal Hopes
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.
Crude oil prices extended gains for a fourth straight session (one report says a third straight day), with Brent at $87.81 a barrel and WTI at $82.20 after both climbed more than 5% on Monday.
US President Donald Trump demanded that Iran compensate people killed in past conflicts, saying the demand will be included 'firmly' in all future negotiations.
Iran renewed its call for over $300 billion in war damages for its rehabilitation and economic development, a fund outlined in the 14-point MoU Trump signed in June at the G7 summit in France.
Iran's foreign ministry spokesperson Esmail Baghaei said the Strait of Hormuz will not re-open until the US lifts its naval blockade of Iranian ports, even as Iran and Oman continue bilateral talks.
Only five vessels are transiting the Strait of Hormuz, below the daily average of 14 after the June MoU, and TD Securities expects Brent to trade $10-15 above current levels.
- Who
- US President Donald Trump, Iran's foreign ministry spokesperson Esmail Baghaei, and analysts Amrita Sen of Energy Aspects and Bart Melek of TD Securities
- What
- Crude oil prices extended gains, with Brent near $87-90 a barrel and WTI around $82, after Trump's sweeping demands on Iran clouded hopes of a deal to reopen the Strait of Hormuz.
- Where
- The Strait of Hormuz; negotiations involving the US, Iran and Oman, with Trump's demands posted on Truth Social
- When
- Monday through early Tuesday, August 11
- Why
- Trump demanded compensation from Iran for people killed in past conflicts, while Iran said the strait will not re-open until the US lifts its naval blockade of Iranian ports.
US Position
Iranian Position
Compensation for Past Conflicts
US Position
Trump demands that Iran compensate people killed by Iran in past conflicts, says he has instructed his representatives to put the demand firmly into all future negotiations, and maintains the point was never mentioned in prior meetings.
Iranian Position
Iran reiterates its demand for over $300 billion in war damages for the rehabilitation and economic development of Iran, a fund outlined in the 14-point MoU that Trump himself signed in June at the G7 summit.
Reopening the Strait of Hormuz
US Position
Trump's sweeping demands cloud hopes of a deal to reopen the Strait of Hormuz; on Sunday he indicated he would prefer intensifying economic pressure over launching additional military strikes.
Iranian Position
Iran says the strait will not re-open until the US lifts its naval blockade of Iranian ports, even as Iran and Oman continue bilateral talks on its future administration.
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










