Despite Trump's claims, the latest Iranian proposal for peace seems unfeasible: File Image/Pixabay

Although oil prices as of 19:33 GMT on Tuesday eased somewhat due to U.S. president Donald Trump pausing a planned military strike on Iran following appeals from Persian Gulf allies, Brent at around $110 per barrel was still well above its $70 level from before the war began.

West Texas Intermediate slipped toward $103 per barrel on Tuesday.

Volatility remained sky-high, with Trump telling media on Tuesday the U.S. might have to give Iran “another big hit” if it doesn’t agree to a peace deal that includes abandoning its nuclear ambitions within the next “two or three days, maybe Friday, Saturday, Sunday, something, maybe early next week.”

Given Iran’s latest demand for peace, delivered Tuesday, analysts braced for a resumption of further hostilities.

The Islamic Republic News Agency reported, “The Iranian proposal to end the war includes the country’s insistence on its right to uranium enrichment and peaceful nuclear activities, an end to conflicts across all fronts including Lebanon, the lifting of the US naval blockade, the release of Iranian assets, compensation by the United States for damage caused during the latest war to support reconstruction efforts, the removal of all unilateral sanctions and UN Security Council resolutions, and the withdrawal of US forces from areas surrounding the Islamic Republic.”

Further frustrating analysts and investors was ongoing claims and denials: Iran’s Tasnim news agency reported that the U.S. had agreed to waive the Islamic republic’s oil sanctions during the negotiation period; however, an anonymous U.S. official later told Reuters that Washington had not agreed to such a demand.

Meanwhile, ING said oil markets "are continuing to price in persistent supply disruptions in the Middle East," and while some shipping through the Strait of Hormuz has resumed, the flow is still well below normal levels and could deteriorate quickly.

As for the impact of the war on oil consumers, Patrick De Haan, head of petroleum analysis at GasBuddy, calculated that between March 1 and May 12, Americans collectively spent about $28 billion more on gasoline.

De Haan said, “At the current rate Americans are spending more on gasoline due to the Iran war, the daily savings from suspending the federal gas tax of 18.4c/gal would be erased in just 2 hours and 49 minutes if it was implemented today.”