Global oil prices held firm near multi-week highs Tuesday as fading diplomatic progress between Washington and Tehran kept supply risks elevated across energy markets.
International benchmark Brent crude slipped 10 cents, or 0.11%, to $87.62 a barrel, while U.S. West Texas Intermediate dropped 5 cents, or 0.06%, to $82.08.
The minor pause follows a sharp 5% rally in the previous session after U.S. President Donald Trump demanded full war compensation from Tehran, retaliating against similar reparation demands issued by Iranian officials.
The rhetoric has derailed delicate negotiations mediated by Oman, dashing investor hopes for an immediate deal to reopen the Strait of Hormuz and lift the ongoing U.S. naval blockade.
The strategic maritime passage previously carried nearly one-fifth of global crude petroleum and liquefied natural gas shipments before military clashes erupted earlier this year.
Crude benchmarks had tumbled over 7% last week amid reports that shipping lane protocols were nearing completion, but talks hit an impasse over prerequisite demands.
Iranian Foreign Ministry officials reiterated that the transit corridor will remain closed to commercial traffic until Washington ends military operations, lifts economic sanctions, and compensates the Islamic Republic.
Traders are now pricing in a prolonged geopolitical risk premium, with analysts projecting crude could remain range-bound between $75 and $95 per barrel until diplomatic momentum resumes.
