WTI hovers around $81.50 as US-Iran peace talks stall

• WTI may advance as Trump’s new compensation demands on Tehran have dimmed hopes for a near-term peace agreement.

• The US favors intensifying economic sanctions over military action to force the reopening of Hormuz.

• Oman-Iran talks to reopen the vital shipping route remain stalled pending a broader US accord.

West Texas Intermediate (WTI) oil price moves little after registering gains over 6.5% in the previous day, trading around $81.40 during the Asian hours on Tuesday. Crude oil prices are positioned to appreciate further as market uncertainty grows over a potential deal between the United States (US) and Iran to end the conflict and reopen the strategic Strait of Hormuz.

Hopes for a swift agreement have dimmed following US President Donald Trump’s issuance of sweeping new demands on Tehran, which include requiring Iran to pay compensation for individuals killed in regional conflicts. This move came directly after Tehran reiterated its own demands for reparations as a condition for winding down the war, leaving investors increasingly wary of prolonged supply disruptions.

Rather than launching new military strikes to force the reopening of the vital shipping route, President Trump indicated a preference for intensifying economic pressure on Iran. Meanwhile, diplomatic efforts between Iran and Oman to reopen the Strait of Hormuz remain stalled, with Tehran making any progress contingent on first securing a broader peace accord with the United States.

Oil support persists as TD Securities flags elusive Hormuz deal

According to TD Securities, a potential agreement to ease tensions in the Strait of Hormuz remains out of reach, with the bank stressing that a “Hormuz deal remains elusive.” This ongoing uncertainty, alongside continued disruption risks in key chokepoints, is helping underpin the constructive tone around Oil and trend-following positioning.