Oil prices surge 5% on U.S.-Iran demands over Strait of Hormuz

Oil prices jumped 5% on Monday, with Brent crude reaching $87.72 per barrel and West Texas Intermediate hitting $82.13. This surge reflects market anxiety over the conflicting demands of the United States and Iran regarding the Strait of Hormuz.

U.S. President Donald Trump stated that America would demand "compensation" for decades of Iranian actions. This demand directly counters Iran's long-standing condition for any agreement on the Strait of Hormuz: the U.S. must pay reparations. The analyst Arne Lohmann Rasmussen noted that Iran's demands are "clearly unacceptable" to the U.S., as they could make it appear Trump lost the war.

The market, which had anticipated an agreement, is now concerned about the diplomatic stalemate. Iran's Foreign Ministry spokesman reiterated that no direct negotiations with Washington are underway. Even recent progress claimed by Tehran with Oman on charting a future passage route in the Strait of Hormuz failed to reassure investors.

Meanwhile, European natural gas prices experienced an even sharper increase. The Dutch TTF futures contract, a key European benchmark, rose 10.99% to 61.65 euros per megawatt-hour. This spike is driven by concerns over replenishing natural gas reserves in Europe before winter.

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Many of these demands are clearly unacceptable for the United States because they make it difficult for Trump to come out of the war without giving the impression of having lost the war.