US-Iran Tensions Send Oil Prices Soaring Past $87 per Barrel

Global oil prices surged past $87 per barrel as tensions between the US and Iran continued to escalate. The Strait of Hormuz, a critical waterway passage for global crude oil supplies, is now seeing only five vessels transit through it daily, down from its pre-war average of 14.

The current impasse has led to concerns about the prospects of a resolution between Iran and the US to end the West Asia conflict and reopen the waterway. At the time of reporting, Brent crude was quoted at around $87 per barrel, while the US benchmark, West Texas Intermediate, traded near $82 per barrel.

US President Donald Trump has demanded compensation from Tehran for all damages incurred by Washington, with Iran repeating its demand for war damages amounting to $300 billion. This gulf in demands is seen as a major hurdle to reaching an agreement and reopening the Strait of Hormuz.