Oil Rises for Third Day as Trump Adds Demands in Iran Talks

Oil rose for a third straight session as uncertainty grew over negotiations to reopen the Strait of Hormuz.

West Texas Intermediate traded near $82 a barrel on August 10, according to Bloomberg. It jumped 5.1% in the previous session, while 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. He added that the demand would be included in all future negotiations.

The comments came after Iran again demanded an end to the US blockade and compensation 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 in talks over reopening the waterway. Iran, however, is maintaining its position that the US must lift the maritime blockade and compensate it for war damage. Before the war, about 20% of global oil and liquefied natural gas shipments passed through the Strait of Hormuz.

Bart Melek, global head of commodity strategy at TD Securities, said the strait remains closed, global oil inventories have fallen sharply and shipping volumes have yet to return to normal. He said that could trigger broader short covering and added that Brent may trade $10 to $15 a barrel above current levels.

Trump said the previous day that he would intensify economic pressure rather than pursue a military response. Vessel traffic through the Strait of Hormuz is now running at about five ships a day, far below the roughly 14 a day recorded just after the US and Iran signed a memorandum of understanding in June.