Hormuz Uncertainty Pushes Oil Prices Higher
Oil prices rose by around 5% on Tuesday, following a similar surge in the previous session. The increase comes as US President Donald Trump and Iran's demands for concessions from Washington have cast doubt over efforts to reopen the Strait of Hormuz.
The Strait of Hormuz is a vital energy chokepoint, with approximately 20.9 million barrels of oil passing through it every day. This accounts for about one-fifth of global petroleum liquids consumption and one-quarter of global seaborne oil trade.
Iran has tied the reopening of the strait to concessions from Washington, including the lifting of sanctions. Trump has also introduced a new obstacle by saying Iran must pay compensation for people allegedly killed or seriously wounded by the country.