Oil Prices Steady Near One-Week Highs Amid Fading US-Iran Deal Hopes

Oil prices steadied on Tuesday near one-week highs as hopes for a US-Iran peace deal dimmed. The US and Iran's negotiations to end their war and reopen the Strait of Hormuz have stalled, with President Donald Trump demanding compensation for damage incurred by the US.

Brent crude futures were flat at $87.81 a barrel, while US West Texas Intermediate crude futures held at $82.20 a barrel. These prices represent a 5% increase from Monday's highs, their highest since July 31.

Tim Waterer, chief market analyst at KCM Trade, said there appears to be a 'gulf' between the US and Iran over what an agreement would look like. This optimism has been unwound, giving oil prices a bid tone.