Oil prices remained elevated on Tuesday as hopes of a US-Iran agreement to end hostilities and reopen the Strait of Hormuz weakened.
WTI crude was trading 0.09% higher at $82.22 a barrel, while Brent crude stood at $87.80 a barrel.
Both benchmarks had gained more than 5% in the previous session, reaching their highest levels since July 31.
The increase followed US President Donald Trump’s response to Iran’s conditions for a possible peace agreement, with Trump demanding compensation from Tehran over deaths linked to conflicts, attacks and protests.
Trump later said the US had control over the Strait of Hormuz and had cleared the strategic waterway of Iranian mines. The developments reduced expectations of an immediate reopening of the route, putting renewed pressure on oil prices.
Iran sets conditions for Strait of Hormuz reopening
Oil prices had declined more than 7% last week after reports suggested that Iran and Oman were close to an understanding that could restore shipping through the strait.
The waterway is a critical energy route, carrying around one-fifth of global oil and LNG shipments before the conflict began.
Iran has said the US must lift sanctions and meet other conditions before the strait can reopen. Tehran has also maintained that compensation, an end to sanctions and a halt to military threats are among its demands.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei said the waterway would remain closed until the US ended what Tehran described as a naval blockade. He added that reopening would depend on conditions set by the US and Israel.
No direct US-Iran talks underway
Iranian Foreign Minister Seyed Abbas Araghchi said there were currently no direct negotiations between Tehran and Washington.
He said intermediaries were working to restart talks but added that Iran wanted the US to address alleged violations of an earlier understanding first.
Araghchi said technical discussions with Oman on alternative maritime routes through the Strait of Hormuz were nearing completion.
However, he clarified that such an agreement would not automatically result in reopening the waterway.
Oil markets continue to remain volatile due to concerns over possible supply disruptions. However, the current rise remains below the levels seen earlier in the conflict, when crude prices surged to $126 per barrel.
