Oil Rises for Third Day as Trump Adds Demands on Iran
Forecast Trend Report by Period
Oil rose for a third straight session as uncertainty mounted over talks to reopen the Strait of Hormuz.
West Texas Intermediate traded near $82 a barrel on August 10, Bloomberg reported, after surging 5.1% in the previous session. Brent settled below $88 a barrel.
President Donald Trump wrote on social media that he would seek compensation for everyone killed by Iran during the conflict and make that demand part of all future negotiations.
The statement came after Iran again demanded that the US end its blockade and compensate for war damage as conditions for reopening the Strait of Hormuz. The wide gap between the two sides has dimmed prospects for a near-term agreement.
Iran and Oman are holding negotiations on reopening the strait. Iran has maintained that the US must lift the maritime blockade and compensate for war damage. Before the war, about 20% of global oil and liquefied natural gas shipments passed through the Strait of Hormuz.
Bart Melek, TD Securities' head of global commodity strategy, said the strait remains closed, global oil inventories have fallen sharply and shipping volumes have yet to return to normal. That could trigger a broader short-covering move, he said, adding that Brent may trade $10 to $15 a barrel above current levels.
Trump said a day earlier that he would intensify economic pressure rather than pursue a military response. About five ships a day are now passing through the Strait of Hormuz, well below the roughly 14 a day recorded just after the US and Iran signed a memorandum of understanding in June.
