FX.co ★ Oil Steadies as US Reviews Iran Proposal

WTI crude futures held above $96 per barrel on Tuesday after a volatile start to the week, as markets weighed the prospects for a durable ceasefire and a possible reopening of the Strait of Hormuz following a new Iranian proposal to the US. According to reports, Tehran indicated via Pakistan that it could halt hostilities if Washington lifted its naval blockade, agreed to a revised transit framework for Hormuz, and offered assurances against future military action. The US has voiced skepticism about the plan and is expected to table counterproposals in the coming days, with Iran’s nuclear program remaining a central sticking point. Now in its ninth week, the conflict has pushed energy prices higher and disrupted supplies in key markets, while the International Energy Agency has warned of an unprecedented supply shock amid rising risks of a demand slowdown.