U.S. President Donald Trump has made tougher demands on Iran, making hopes for a quick agreement to reopen the Strait of Hormuz much weaker. Iran has also demanded compensation from the U.S., creating more tension between the two sides.
Trump said Iran should pay compensation for people killed or injured in past conflicts and for families of protesters who were killed by the Iranian government. He later expanded these demands to include damages linked to Lebanon, Syria, Yemen and Gaza. Iran is unlikely to accept these conditions.
The growing tensions have also pushed oil prices higher. Brent crude jumped around 5% to nearly $88 per barrel, while European diesel prices rose more than 10%. Attacks on energy facilities in Saudi Arabia, Libya and Russia added to concerns about global fuel supplies.
Iran says the Strait of Hormuz can only reopen if the U.S. stops what Tehran calls illegal actions, lifts its pressure on Iran and provides compensation. Trump, however, said compensation was never discussed and claimed the waterway is already open and under U.S. control.
With both sides taking a harder position, a quick agreement now appears unlikely. Higher tensions could continue to create uncertainty in global energy markets.