Oil prices and US government bond yields increased on Tuesday, August 11, 2026, following an exchange of war reparations demands between the United States and Iran that has pushed any potential deal to reopen the Strait of Hormuz further out of reach.

US President Donald Trump announced on Monday that he instructed his negotiators to seek compensation from Iran for Americans killed and wounded in attacks attributed to Tehran over several decades, including the 2000 bombing of the USS Cole and for Iranians killed in protest crackdowns. He further expanded the demand on Truth Social, stating that Iran should also pay for "the damages and death caused to the people of Lebanon, Syria, Yemen, and Gaza."

Tehran, which had sought compensation for five months of US and Israeli bombardment, maintains that the Strait of Hormuz will remain closed until Washington lifts its naval blockade, ends sanctions, and releases frozen Iranian assets.

On the market front, the front month contract on Brent crude traded around $89.8 a barrel, and West Texas Intermediate was about $84.2, both up roughly 2.5%. US Treasury yields rose across the curve, with the two-year yield over 4.25%, the ten-year above 4.7%, and the thirty-year higher than 5.27%, all at their highest levels this year.

In an interview with Axios published Sunday, President Trump described the US approach as "low-keying it," indicating semi-negotiations and a preference to let economic pressures on Iran mount rather than initiating a new military campaign.

Speaking from the Oval Office on Monday, Trump claimed the US controls "100%" of the Strait of Hormuz, asserting that only the US Navy holds sway in the region, that American forces have cleared Iranian mines, and that the blockade of Iranian ports is impenetrable.

According to Kpler data, confirmed vessel crossings through the Strait have dropped to 6 to 11 vessels per day recently, compared to 130 to 140 daily before the conflict, reflecting a significant reduction in traffic during the five-month-long conflict.

Sources