Oil Prices Up 10% in a Week as Hormuz Deal Hopes Fade and Houthi Attacks Continue

TLDR

• Oil prices have risen around 10% over the past week as Strait of Hormuz deal hopes fade
• Both the US and Iran are now demanding war compensation from each other, stalling talks
• Brent crude reached $87.93 and WTI hit $82.42 a barrel on Tuesday
• Houthi forces struck Saudi Aramco’s Jazan refinery, adding to supply fears
• Rising oil prices are reviving inflation concerns and increasing bets on a US interest rate hike

Oil has climbed sharply this week as negotiations between the United States and Iran over the Strait of Hormuz appear to be going backwards rather than forwards.

Brent crude futures rose to $87.93 a barrel on Tuesday, while West Texas Intermediate climbed to $82.42. Both contracts had settled up more than 5% on Monday alone.

US and Iran Trade Compensation Demands

The latest roadblock came when President Donald Trump said Monday he would seek conflict compensation from Iran as part of any peace deal. This was a direct response to Tehran’s own demand that the US pay war reparations before any agreement could be reached.

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