Oil Prices Surge as Trump Reignites US-Iran Tensions

Oil prices rose more than two percent on August 11 after US President Donald Trump's comments weakened hopes of a near-term peace deal between Washington and Tehran.

The increase in oil prices came as Trump asserted that the US Navy has '100 per cent control' over the Strait of Hormuz, contradicting his earlier rejection of Iran's demand for financial compensation over damages incurred during US-Israeli military operations.

Trump said Iran should pay for damages it caused over the past 50 years, adding that Washington would seek reparations from Tehran in any future negotiations. The US President cited alleged Iranian involvement in various conflicts and mentioned victims of the 2000 USS Cole bombing as justification for his demands.