Oil Prices Steady as US-Iran Deal Hopes Fizzle

Oil prices remained steady on Tuesday near their highest level in over a week as hopes for a US-Iran deal to end their conflict and reopen the Strait of Hormuz faded. The demand by US President Donald Trump that Iran pay compensation for damages suffered by his country is expected to complicate efforts to reopen the vital waterway.

Brent crude futures remained unchanged at $87.81 per barrel, while U.S. West Texas Intermediate (WTI) crude futures stood at $82.20 per barrel, holding steady after a 5% gain on Monday.

Analysts believe that the gap between the US and Iran over what an actual agreement would look like is causing optimism to fade, giving oil prices a clear buying bias. The risk of restrictions around both the Strait of Hormuz and the Bab el-Mandeb remains extremely high, forcing longer shipping routes and keeping insurance costs elevated.