U.S. oil rises above $83 a barrel as Iran says Strait of Hormuz won't open until conditions are met

JUST IN: US crude rises above $83 a barrel after an Iranian official says the Strait of Hormuz will stay closed until Tehran's conditions are met. Brent is up 1.3% to $88.85, with Trump now demanding Iran pay reparations to the US.

US crude just punched through eighty-three dollars a barrel.

Here's why. Iran's Supreme National Security Council says the Strait of Hormuz — this stretch of water right here — stays closed until Washington meets Tehran's conditions. That's the chokepoint for a fifth of the world's oil, held hostage to a negotiation that's going backwards.

Because look at the demands. Trump wants Iran to pay reparations to the US. Tehran wants reparations from Washington. Both sides billing each other is how deals die, not how they close. Trump also says America has "100 percent" control of the strait — a bold claim about a waterway Iran just shut. Meanwhile Brent's at $88.85, and US crude stockpiles are at their lowest in over four decades. Here's RBC's Helima Croft on why the supply picture keeps darkening.

ING says risks are skewed to the upside. I agree. Brent closes this week above ninety dollars.

This is Kateryna Kovalenko, reporting for HIT.

Source Read the original reporting at cnbc.com