Oil prices were little changed at the start of the week after initial optimism about a possible reopening of the Strait of Hormuz was tempered by Iran's position that the US must meet a number of conditions before shipping can be fully restored.
Brent crude futures were trading around $83.54 a barrel, little changed, at 06:43 GMT, while US West Texas Intermediate was down 15 cents to $78.03 a barrel.
Both major crudes lost more than 7% of their value in the past week on expectations that Iran and Oman are close to an agreement to restore shipping through the Strait of Hormuz. Before the war, this route carried about a fifth of the world's oil.
Tehran has said that the agreement with Oman is in the "final stages", but has insisted that the strait will not be fully opened until Washington meets additional demands. These include compensation for US strikes on Iran.
Iranian Foreign Minister Abbas Araghchi also said that there are currently no talks between Iran and the US and that Tehran will not start any while Washington, according to the Iranian side, is violating the interim agreement signed in June.
Additional tension in the energy market was created by the announcement by the Iranian-backed Houthis that they had attacked the Saudi Aramco refinery in Jazan. The strike comes just days after Saudi Arabia signed a defense pact with Turkey and Pakistan amid growing instability in the region.
Another factor of uncertainty is the situation surrounding shipping in the United Arab Emirates. ADNOC said 15 of its vessels have been attacked while transiting the Strait of Hormuz since the conflict began.
Market analysts say any significant move towards free and safe shipping through the strait could put downward pressure on oil prices. Conversely, a breakdown in talks or new supply disruptions would put the geopolitical premium back into quotes and could quickly push prices higher.