Iran Stiffens Demands on Strait of Hormuz, Oil Prices Rise

Oil prices rose on Tuesday as Iran stated it would not soften its demands to reopen the Strait of Hormuz, dealing a blow to hopes of quickly resuming traffic through the crucial waterway.

Brent crude for November settlement climbed 2.6% to $107.02 a barrel at 12:54 p.m. in Singapore, while West Texas Intermediate (WTI) rose above $94 a barrel.

Iran's stance follows US President Donald Trump's rejection of the country's proposal to reopen the strait in exchange for the release of detained Americans and concessions on Iran's nuclear program.

'We don't think this changes things much,' said Suvro Sarkar, head of energy research at DBS Bank Ltd., adding that the market had not expected the strait to reopen within seven days.