Brent Crude Tops $90 as Iran Demands U.S. End War, Unfreeze Funds

Brent crude oil surpassed $90 per barrel as hopes for a U.S.-Iran deal diminished amid escalating compensation demands and reduced shipping traffic through the Strait of Hormuz. President Trump asserted U.S. control over the waterway, stating the U.S. Navy had mine-swept the entire strait and demanded Iran pay compensation.

Iran stated Tuesday that the Strait of Hormuz will remain closed unless the United States ends the war and meets Tehran’s conditions, including unfreezing Iranian funds held overseas. Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said Washington must end the conflict and release frozen funds before Tehran will agree to reopen the strait. Iran has also delivered additional conditions to the U.S. through mediators.

Shipping traffic through the Strait of Hormuz fell to six vessels on Monday, down from a 10-day average of about 11. President Trump mocked Iran's demand for war reparations and described his options for Iran as economic failure or severe military action, while also stating the U.S. was building munitions 'like crazy' and blaming his predecessor for low stockpiles.

U.S. officials had suggested last week that negotiations involving Iran and Oman were making progress toward allowing more vessels through Hormuz, but Iran's latest demands complicate expectations for a quick agreement. The market has spent weeks reacting to suggestions that Persian Gulf shipping could normalize, even as tanker traffic has remained constrained and commercial vessels have continued to face security risks.