A Top Pakistani Official Voiced Optimism Over a U.S.-Iran Deal. Oil Is Rising Anyway.

Oil is climbing on Tuesday even though a top Pakistani official voiced optimism over a deal between the U.S. and Iran.

Brent crude, the international benchmark, rose over 1% at 1:04 p.m. ET and clocked in at $88.62 per barrel, while West Texas Intermediate, the U.S. benchmark, rose 1.24% at the same time and stood at $83.15 a barrel.

Bloomberg News detailed that Pakistan's defense minister, Khawaja Asif, said "things are shaping up again in favor of a peace arrangement or a deal."

He went on to say that "signals in the last two to three days are that we are close to some sort of an arrangement" despite ongoing rhetoric from both sides. He did not provide further details.

President Donald Trump did not address any potential deals and said the U.S. would double down on economic pressure.

Speaking to Real America's Voice, Trump said the country's economy is in tatters. "They've got 300% inflation. Their currency has almost no value. They're not paying their soldiers. Their soldiers are leaving."

He went on to say that while military options are still on the table, he is leaning towards continuing down the current path: "Economically, they are a mess. They can't borrow money. We control their money, what they had, which is a lot. They had a lot, and we have total control of it. I'm their banker," Trump added.

On Monday he had also said the U.S. would seek compensations from Iran for war damages after Tehran made such a claim during the weekend.

On Sunday Trump also said his administration is "low-keying it," Trump told Axios on Sunday. "We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money."

Top U.S. officials had anticipated last week that a deal to reopen the key waterway was imminent. However, the announcement never came as Tehran rejected Washington was involved in talks and said it continued negotiating with Oman.

Over the weekend, Iran set out fresh conditions to reopen the waterway. The Supreme National Security Council's secretary, Mohammad Bagher Zolghadr, said conditions include an end of U.S. aggressive behavior, "including any threats to the country's national and religious sanctities."

A permanent end to the "war and aggression against Iran and its allies in Lebanon, Palestine, Yemen and Iraq" is another demand.

Apart from lifting the Naval blockade enforced by the US, Iran has also sought a withdrawal of the US naval and air forces from Iran's neighborhood. A full compensation package "for damages caused by two wars of aggression and imposition," lifting of "unjust and illegal" sanctions and unconditional release of Iranian assets "that were blocked and stolen" completed the terms set.