Oil Prices Soar 5% Amid US-Iran Compensation Demands

Oil prices surged 5% on Monday, erasing last week's losses, after Iran and the US traded demands for compensation, casting doubt over a deal to reopen the Strait of Hormuz.

The rally was compounded by fresh attacks on Saudi energy infrastructure and dwindling US emergency crude stockpiles.

Brent crude futures settled at $87.72 a barrel, while US West Texas Intermediate (WTI) crude futures closed at $82.13 a barrel.

Iranian Foreign Minister Abbas Araqchi stated that Tehran will not engage in talks with the US until it meets preconditions, including lifting sanctions and providing compensation for war damage.