Trump Demands Spark Oil Price Surge Amid Strait of Hormuz Blockade

Crude oil prices continue to surge, reaching new heights as traders react to US President Donald Trump's latest demands on Iran. The Strait of Hormuz remains closed, with only five vessels transiting through it daily, down from a pre-deal average of 14.

The price of Brent crude has risen above $87 per barrel, nearing the $90 mark, while West Texas Intermediate (WTI) holds steady at over $82 per barrel. This comes after Trump made sweeping demands on Iran in a Truth Social post, including compensation for past conflicts and war damages amounting to over $300 billion.

Bart Melek, global head of commodity strategy at TD Securities, warns that the strait's closure has led to dramatically reduced global inventories and flows far below normal levels. 'We could see shorts cover aggressively,' he said, predicting that Brent prices may trade $10-15 above current levels.