Oil Prices Steady Amid Fading Hopes for US-Iran Peace Deal

Oil prices stabilized near one-week highs on Tuesday as hopes of a US-Iran peace deal continued to dwindle. The price of Brent crude futures held steady at $87.81 a barrel, while U.S. West Texas Intermediate crude futures remained at $82.20 a barrel.

The optimism that had built up last week was unwound after President Donald Trump demanded compensation from Iran for damage incurred by the US in their conflicts and protests. This move complicated efforts to reopen the Strait of Hormuz, a critical waterway for oil exports.

Saudi Aramco has delayed the restart of its Jazan refinery until August 30 due to recent attacks on the plant. The 'chokehold risk' around both the Strait of Hormuz and the Bab el-Mandeb remains significant, leading to elevated insurance costs and longer shipping routes.