Oil Prices Steady as US-Iran Peace Deal Hopes Fading

Oil prices steadied near one-week highs on Tuesday as hopes of a US-Iran peace deal to end their war and reopen the Strait of Hormuz began to fade. President Donald Trump's demand for compensation from Iran for damage incurred has complicated efforts to reach an agreement, according to analysts.

Trump's response to Iran's conditions included demands that they pay compensation for people killed in wars, attacks, and protests, which is likely to make a deal even harder to achieve. This development has led to a decline in optimism about the prospects of a peace deal, giving oil prices a 'bid tone', according to Tim Waterer, chief market analyst at KCM Trade.

Oil prices had surged more than 5% on Monday to their highest since July 31 after Trump's initial response to Iran's conditions. However, with hopes of a deal now dwindling, prices have stabilized near one-week highs.