Iran is reviewing the latest U.S. ceasefire proposal, raising hopes of a truce extension and tempering oil prices as traders weigh the risk of renewed Middle East disruptions.

A US-Iran diplomatic breakthrough that oil markets assumed was within reach last week now looks less likely amid escalating rhetoric and military actions.

Iran is reviewing the latest U.S. ceasefire proposal, raising hopes of a truce extension and tempering oil prices as traders weigh the risk of renewed Middle East disruptions.