WTI holds near $81.50 as US-Iran peace negotiations hit an impasse

Last Updated on 11/08/2026

• WTI could extend its gains as President Trump’s latest compensation demands on Tehran reduce expectations for a near-term peace deal.
• Washington is reportedly leaning toward tougher economic sanctions rather than military intervention to pressure Iran into reopening the Strait of Hormuz.
• Negotiations between Oman and Iran over restoring access to the key shipping corridor remain at a standstill while both sides await progress on a broader agreement with the US.

WTI crude oil extends its rally after surging more than 6.5% in the previous session, trading near $81.40 during Tuesday’s Asian session. Oil prices remain supported as uncertainty deepens over prospects for a US-Iran agreement aimed at ending hostilities and reopening the strategically important Strait of Hormuz.

Expectations for a quick resolution have faded after US President Donald Trump unveiled a new set of demands for Tehran, including compensation for victims of regional conflicts. The announcement followed Iran’s insistence on receiving reparations as part of any agreement to end the war, raising concerns that supply disruptions could persist for longer than previously anticipated.

Instead of pursuing additional military action to reopen the crucial shipping corridor, the US administration appears to favor escalating economic sanctions on Iran. At the same time, talks between Iran and Oman regarding the reopening of the Strait of Hormuz remain deadlocked, with Tehran linking progress to the achievement of a broader peace deal with Washington.

Additional support for crude prices comes from growing skepticism over a near-term diplomatic breakthrough. Analysts at TD Securities noted that a resolution to tensions surrounding the Strait of Hormuz remains difficult to achieve, describing a potential “Hormuz deal” as still out of reach. The bank added that persistent geopolitical risks and the threat of disruptions at major energy transit routes continue to provide a favorable backdrop for oil prices and trend-following market participants.