The AD of static route is manually configured to 130 which is higher than the AD of OSPF router which is 110.

The reason for the loop is that R2 is forwarding the packets destined to 10.1.1.1 to R4, instead of R1. This is because in the redistribute OSPF statement, BW metric has a higher value and delay has a value of 1. So, R2 chooses R4 over R1 for 10.1.1.0/24 subnet causing a loop.
Now, R5 learns 10.1.1.0/24 from R3 and advertises the same route to R4, that R4 redistributes back in EIGRP. If R3 sets a tag of 1 while redistributing EIGRP in OSPF, and R4 denies all the OSPF routes with tag 1 while redistributing, it will not advertise 10.1.1.0/24 back into EIGRP.
Hence, the loop will be broken.

The route-distinguisher argument adds an 8-byte value to an IPv4 prefix to create a VPN IPv4 prefix. You can enter a route distinguisher (RD) in either of these formats:
- 16-bit AS number: your 32-bit number, for example, 101:3
- 32-bit IP address: your 16-bit number, for example, 10.0.0.1:1

By default, syslog and debug messages are stamped by UTC, regardless of the time zone that device configured. You should append localtime key word to "service timestamp {log | debug} datetime msec" global command to change that behavior.
https://community.cisco.com/t5/networking-documents/router-log-timestamp-entries-are-different- from-the-system-clock/ta-p/3132258