Oil prices continue to climb as the war in Iran sees no end in sight with the world’s economy hurting.

Iran says it will not open the Strait of Hormuz unless the United States pays it massive sums in compensation.

Brent is now at US$90 a barrel with WTI Crude at $83 a barrel.

J.P. Morgan Global Research projects that Brent crude will drift lower from an average of around $86 in the third quarter to around $80 by the end of the year.

Now President Trump is demanding Iran pay reparations to the U.S.for its soldiers killed in the conflict and damage caused to Israel and surrounding Arab states.

“We’re going to ask for money for the damage they’ve done over a 50-year period. So if there’s damages to be paid, I think Iran should pay those damages. Also with respect to the Iran negotiations, Iran should be responsible for the damages and death caused to the people of Lebanon, Syria, Yemen and Gaza,” President Trump announced.

U.S. government crude oil stockpiles have fallen to their lowest levels in more than 40 years.

“If the strait remains closed and oil inventories in OECD countries continue to be depleted quickly, the market could reach a tipping point around the start of Q4. This would be consistent with much higher prices possibly in the region of $120-$140 per barrel based on historical form,” said Kieran Tompkins, Senior  Climate andCommodities Economist at Capital Economics, speaking with CNBC.