Oil Prices Stable Amid Fading US-Iran Peace Deal Hopes

Oil prices have stabilized at $87.81 per barrel for Brent crude and $82.20 per barrel for WTI crude, following a surge of more than 5% on Monday to their highest levels since July 31.

The market's optimism about a US-Iran peace deal has faded, with President Donald Trump putting forward new demands that could make it harder to reopen the Strait of Hormuz.

Tim Waterer, Chief Market Analyst at KCM Trade, said there is a 'big gap' between the two countries over what an actual deal would look like, causing some optimism to reverse and giving oil prices another boost.

The risk of disruption around the Strait of Hormuz remains significant, with periodic restrictions and the threat of new incidents potentially keeping insurance costs elevated and forcing vessels to take longer routes.