Crude oil prices have risen roughly 10% over the past week as the United States and Iran remain far from resolving the standoff over the strategic waterway, despite earlier optimistic signals from the White House.
Brent crude futures slipped 10 cents, or 0.11%, to $87.62 a barrel by 0405 GMT on Tuesday, while US West Texas Intermediate crude eased 5 cents, or 0.06%, to $82.08 a barrel — both holding near recent highs after sharp gains.
The setback came after President Donald Trump said on Monday he would seek compensation from Iran over decades of attacks and killings allegedly backed or carried out by Tehran, as part of any peace negotiation. The statement was a direct counter to Iran’s own demand for US war reparations as a condition for resolving the crisis.
Trump’s comments followed remarks a day earlier in which he said he was “low-keying” his approach to the conflict, signalling a preference for economic pressure over further military action.
The renewed friction has raised concerns that a swift agreement may now be further away. Both major crude contracts jumped about 5% on Monday and extended those gains on Tuesday.
Jason Wong of BNZ said upward pressure on oil prices has persisted in the absence of positive developments on reopening the strait. Stephen Innes of Quintex Intel described the standoff as both sides trying to weaponise oil without firing another shot, with Washington working to choke off Iran’s crude exports while Tehran squeezes the route through which much of the world’s oil passes.
