🔶 Oil Prices Rise Following the US’s Proposal to Demand “Compensation” from Iran

The reduction in hopes for reopening the Strait of Hormuz and statements by Donald Trump about receiving war compensation from Iran as part of any peace negotiations caused global oil prices on Monday, August 10, to continue their course of a significant increase.

Oil prices have risen by about 10% over the past week, because despite the encouraging statements from the White House, it appears that Tehran and Washington still have not come close to an agreement over the Strait of Hormuz. On Monday, the US president said Iran should pay compensation because it killed American soldiers and Iranian protesters “over the past 50 years,” and that this issue will be raised in future negotiations with the country.

Stephen Innes, global strategist at Kinetics Intel, told AFP: «In fact, both sides are trying to use oil as a weapon without firing even a single shot. Washington is seeking to limit Iran’s ability to export its crude oil, while Tehran has pressured the corridor through which other countries’ oil passes.»