Oil prices rise over 2% amid dent to US-Iran peace hopes

New Delhi [India], August 11 (ANI): Oil prices rose more than two per cent on Tuesday as hopes of a near-term US-Iran peace deal weakened amid US President Donald Trump's remarks that Washington would seek reparations from Tehran and that the US Navy has "100 per cent control" over the Strait of Hormuz.
At the time of reporting, Brent crude was trading at USD 89.806 per barrel, up 2.1 per cent, while US crude was at USD 84.386 per barrel, up 2.3 per cent.
The rise in oil prices came after Trump said Iran should pay for damages he claimed it had caused over the past 50 years, while asserting that the US Navy currently controls the Strait of Hormuz.
"The only one that has control of the Strait of Hormuz right now is the United States Navy," Trump told reporters at the Oval Office, adding that Washington had a blockade in place and controlled which vessels could enter the strait.
Trump also said the US would seek compensation from Iran in any future negotiations.
"They asked for reparations, they asked for money for the damage that we've done. And I said, that's a good idea. Well, we're to ask for money for the damage they've done over a 50-year period. So if there's damages to be paid, I think Iran should pay those damages," he said.
Earlier, Trump had rejected Iran's demand for financial compensation over damages incurred during US-Israeli military operations in the country.
In a post on Truth Social, Trump said Iranian representatives were seeking compensation for damage caused during the "last five months Military Conflict", which he said began after Iran refused to give up its nuclear weapons ambition.
Trump said he had instructed US representatives to include his demands in all future negotiations with Tehran.
The U.S. President demanded compensation from Iran for casualties and injuries he attributed to Iranian actions, citing alleged Iranian involvement in various conflicts and also mentioning victims of the 2000 USS Cole bombing.
The latest comments come after Tehran linked its war reparation claims to conditions for a possible reopening of the Strait of Hormuz, alongside the lifting of US sanctions and the end of naval blockades.
The developments have added to uncertainty over the prospects of a diplomatic settlement between Washington and Tehran, with oil prices responding to the changing expectations around the conflict and potential disruption to energy flows. (ANI)