Oil Prices Steady Near One-Week Highs as US-Iran Deal Hopes Fizzle
Oil prices have stabilized near one-week highs as hopes for a US-Iran peace deal continue to dwindle. The optimism that built up last week, following President Donald Trump's response to Iran's conditions for a deal, has begun to fade.
The price of Brent crude futures fell 10 cents, or 0.11%, to $87.62 a barrel by 0405 GMT, while U.S. West Texas Intermediate crude futures were down 5 cents, or 0.06%, to $82.08 a barrel.
Trump's demand for compensation from Iran has complicated efforts to reopen the Strait of Hormuz, a key oil shipping route. The US President claimed that the US had control of the strait and had swept it for Iranian mines.
Tim Waterer, chief market analyst at KCM Trade, noted the significant 'gulf' between the US and Iran on what an agreement would look like. He believes that this will keep oil prices constrained in the near term.