Iran demands $400bn to reopen Hormuz as oil hits $88.91

Iranian Major General Mohsen Rezaei, the newly appointed secretary of the Supreme National Security Council, announced on Wednesday, 12 August, that the Strait of Hormuz will remain closed unless the United States meets a sweeping new list of political and financial demands. The escalation has immediately impacted global energy markets, with Brent crude rising to $88.91 a barrel in early Wednesday trading. Tehran Demands $400 Billion in Total Assets Tehran’s conditions for reopening the world’s most critical oil chokepoint now include $300 billion in compensation for wartime damage and the release of $100 billion in frozen overseas assets. According to reports conveyed through mediators, Rezaei also stipulated that the U.S. must terminate its naval blockade, lift all sanctions, and withdraw military forces from the Middle East. Furthermore, Iran is demanding a region-wide ceasefire encompassing both Lebanon and Gaza, alongside new transit fees for vessels using the waterway. The shift indicates that Iran is no longer treating the Hormuz closure as a localized maritime dispute. By tying the reopening to a comprehensive political settlement, Tehran is utilizing its control over the…