Oil Prices Soar as Strait of Hormuz Reopening Hopes Fade
Oil prices rose by over one percent on Tuesday as hopes for a reopening of the Strait of Hormuz faded, fueling concerns about global energy supplies and inflation.
The standoff between the US and Iran has caused both major oil benchmarks to climb roughly 10 percent in the past week. West Texas Intermediate crude rose 1.5 percent to $83.37 a barrel, while Brent crude gained 1.3 percent to $88.85 a barrel at around 0715 GMT.
US President Donald Trump said he would seek conflict-related compensation from Iran as part of any peace negotiations, citing attacks and killings over several decades that Washington says were backed or carried out by Tehran.
The conflicting signals have raised doubts over the prospects for a rapid diplomatic breakthrough. Innes, global strategist at Quintex Intel, described the standoff as 'a game of chicken' where both sides are using energy leverage without necessarily escalating militarily.