Oil Surges on Iran-US Compensation Row
Oil prices surged 5% on Monday after Iran and the US engaged in a heated exchange over compensation, casting doubt on prospects for a deal to reopen the Strait of Hormuz. Brent crude futures settled at $87.72 a barrel, while US West Texas Intermediate crude closed at $82.13.
The move marked the highest percentage gain since July 29 for both contracts, which had fallen over 7% last week on hopes that Iran and Oman were near a deal to reopen the strait. However, Iranian Foreign Minister Abbas Araqchi said that Tehran would not engage in talks with Washington while it was in breach of an interim agreement signed in June.
The US has also demanded compensation from Iran for 'all of the people that they have killed and gravely wounded,' according to President Donald Trump. This demand, combined with Iranian calls for the US to lift sanctions and meet other conditions before reopening the strait, has dimmed prospects for a deal.