WTI Oil flirts with the $80 level amid speculation about US-Iran peace talks

• WTI Oil tests levels below $80 after dropping 12% from last week's highs.

• US President Trump affirmed that there are "very friendly" talks going on with Iran.

• Oman has proposed a voluntary fee scheme for vessels crossing Hormuz that has achieved regional support.

 Oil prices remain depressed on Tuesday, as hopes of a new round of peace talks between the US and Iran boosted hopes of a de-escalation of the Middle East conflict. The US benchmark West Texas Intermediate (WTI) barrel is trading a few cents above $80 at the time of writing, about 12% below last week’s peak.

US President Donald Trump helped boost market sentiment on Monday, affirming in an interview on Air Force One that "there are very friendly negotiations going on" with Iran and adding that he thinks that “there is a very good chance that something could happen”

Tehran, however, has denied any direct negotiations with US representatives. Still, investors remain hopeful that the diplomatic way will get its way through, as the truce extends for the third consecutive day.

Meanwhile, a Reuters report citing a Gulf source stated earlier on Tuesday that Oman presented a plan proposing a voluntary fee to vessels crossing the Strait of Hormuz to contribute to fund navigation, environmental protection, and search and rescue services. The report also affirms that the proposal has regional backing.