US and Iran Escalate Strait of Hormuz Standoff, Oil Prices Soar

Global oil prices surged on Tuesday as tensions between the US and Iran intensified over the reopening of the Strait of Hormuz. Brent crude, the international benchmark for oil prices, rose by 2% to $89 a barrel, while WTI, the US benchmark, increased by 2.3% to around $84 a barrel.

The price hike comes as the US and Iran imposed strict conditions on each other for reopening the strait, through which 20% of the world's traded oil passes. Tehran has demanded that the US lift its naval blockade of Iranian ports and pay reparations to Iran before reopening the waterway.

In response, President Donald Trump stated on Monday that the US is seeking compensation from Iran for its past actions, including killing people during unspecified conflicts.