Oil prices steady near one-week high as Brent holds at $87.81

Oil prices continued to hover near their highest levels in over a week, as the possibility of a US-Iran deal to reopen the Strait of Hormuz faded. Brent crude futures closed at $87.81 per barrel, while US West Texas Intermediate futures remained at $82.20 on Monday. Both benchmarks surged more than 5 percent, reaching their highest levels since July 31.

The US president's demand for Tehran to pay compensation for damages suffered in conflicts, attacks, and protests was cited as the reason for the optimism fading, giving oil prices a clear buying signal. Tim Waterer, chief market analyst at KCM Trade, noted the widening gap between the United States and Iran over the terms of any agreement, suggesting that the initial enthusiasm for a deal was waning.