Crude oil prices moved higher today as the chances of a lasting peace between the United States and Iran shriveled following Iran\u2019s release of six conditions earlier this week and President Trump\u2019s unsurprising reaction to them.<\/p>\n
At the time of writing, Brent crude traded at $87.72 per barrel, and West Texas Intermediate was trading at $82.13 per barrel, after President Trump demanded that Iran pay reparations to the U.S. for war-related damages.<\/p>\n
\u201cWe’re going to ask for money for the damage they’ve done over a 50-year period,\u201d Trump told<\/a> media at the White House earlier this week, adding that \u201cSo if there’s damages to be paid, I think Iran should pay those damages,\u201d and that \u201cAlso, with respect to the Iran negotiations, Iran should be responsible for the damages and death caused to the people of Lebanon, Syria, Yemen, and Gaza!\u201d<\/p>\n Iran, meanwhile, said it was getting closer to finalizing its deal with Oman regarding their joint management of the Strait of Hormuz, noting that the conditions for reopening the waterway were still in force and Hormuz will remain shut down until the U.S. fulfils the conditions listed by Tehran earlier this week.<\/p>\n \u201cThere appears to be a gulf, no pun intended, between the U.S. and Iran over what any agreement would actually look like,\u201d KCM Trade chief market analyst Tim Waterer said as quoted<\/a> by Reuters.<\/p>\n \u201cCurrent rhetoric suggests any potential deal is still some way off, meaning risks remain skewed to the upside for oil prices,\u201d ING commodity strategists wrote in a note today. They added, however, that \u201cOil continues to move through the Strait of Hormuz even as disruptions persist, underscoring the market\u2019s ability to keep flows moving despite periodic turbulence.\u201d<\/p>\n Tankers are turning off their transponders to pass through the Strait of Hormuz, with Iraq reporting average daily export rates of 2 million barrels, Warren Patterson and Ewa Manthey noted.<\/p>\n By Irina Slav for Oilprice.com<\/p>\n