Oil prices rose more than two per cent on Tuesday as hopes of a near-term US-Iran peace deal weakened amid US President Donald Trump’s remarks that Washington would seek reparations from Tehran and that the US Navy has “100 per cent control” over the Strait of Hormuz. The rise in oil prices came after Trump said Iran should pay for damages he claimed it had caused over the past 50 years, while asserting that the US Navy currently controls the Strait of Hormuz. Trump also said the US would seek compensation from Iran in any future negotiations. Earlier, Trump had rejected Iran’s demand for financial compensation over damages incurred during US-Israeli military operations in the country. The developments have added to uncertainty over the prospects of a diplomatic settlement between Washington and Tehran, with oil prices responding to the changing expectations around the conflict and potential disruption to energy flows.