Oil Prices Soar as Iran-US Compensation Dispute Escalates

Oil prices surged 5% on Monday after Iran and the US traded demands for compensation, dimming hopes for a deal to reopen the Strait of Hormuz. The dispute led to Brent crude futures settling up $4.17 at $87.72 a barrel, while U.S. West Texas Intermediate crude futures closed $3.95 at $82.13.

Iran insisted that the US must lift sanctions and pay compensation before resuming transit through the vital waterway. The country's Foreign Minister Abbas Araqchi said talks would not resume while Washington is in breach of an interim deal signed in June.

The latest attack on oil infrastructure came from the Iran-aligned Houthis, who struck Saudi Aramco's Jazan refinery on Sunday. This further threatened supply and caused price spikes.