(Bloomberg) — Oil edged higher as traders parsed discordant signals on the prospects of a US-Iran peace deal.

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West Texas Intermediate rose roughly 1% to trade above $93 a barrel after adding 5.5% in the previous session. Brent was around $96. Prices climbed Tuesday on headlines from Iranian news agencies that cast doubt on progress in the talks, as well as an AFP report that Hezbollah won’t accept a partial ceasefire with Israel. A truce in Lebanon had been cited by Iranian officials as a condition for a broader peace agreement.

The barrage of price-supportive headlines reversed early session losses that were triggered by de-escalatory comments from Washington. President Donald Trump said a memorandum of understanding with Iran to reopen the Strait of Hormuz could happen over the next week, according to ABC News, which cited a telephone conversation with Trump. Washington still had “to get a few more points” before a deal, ABC reported he said.

The primary focus for the oil market remains the Strait of Hormuz, which handled about one-fifth of global oil and liquefied natural gas flows in peacetime. Visible commercial traffic through the waterway remains constrained as the renewed strains in US-Iran diplomacy add to shipping uncertainty.

The lack of clarity over the potential extension of the current ceasefire — and the future of flows through the Strait of Hormuz — has buffeted oil prices, which fell last month on optimism that a deal could be reached.

Adding to the confusion, Trump and Israeli Prime Minister Benjamin Netanyahu earlier offered differing accounts of a call about the fighting in Lebanon. A US-brokered ceasefire between Tel Aviv and Iran-backed Hezbollah should be extended from Beirut to include the entirety of Lebanese territories, with more negotiations taking place on Tuesday and Wednesday, the Lebanese presidency said in a post.

Price volatility has forced dealers to scale back their risk exposure, pushing open interest in the global benchmark to the lowest since August.

“Clients are tired,” Goldman Sachs Group Inc. Co-Head of Global Commodities Research Daan Struyven told Bloomberg TV. “It’s a challenging trading environment with headlines moving prices up and down. Positioning in oil markets is significantly more limited than at the start.”