US-Iran Peace Deal Hopes Dashed as Oil Prices Climb

Oil prices steadied near one-week highs on Tuesday as hopes for a US-Iran peace deal to end the war and reopen the Strait of Hormuz dimmed.

The Brent crude futures rose $1.4, or 1.6%, to $89.12 a barrel, while US West Texas Intermediate crude futures were up $1.35, or 1.64%, to $83.48 a barrel.

President Donald Trump's demand for compensation from Tehran for damages incurred during the war and protests complicated efforts to reopen the strategic oil waterway.

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. He added that some of the optimism built up last week is being unwound, giving oil prices a 'bid tone.'