Oil steadied after plunging 7% in the previous session, as the US and Iran weighed a fresh proposal to end the war in the Middle East.

West Texas Intermediate traded near $96 barrel, while Brent closed above $101. The two sides were circling around a new proposal, with Washington suggesting a one-page memorandum of understanding that will potentially lead to the gradual reopening of the Strait of Hormuz, a person familiar with the matter said. Iran is expected to respond via mediator Pakistan in the coming days.