Aug. 11 (UPI) — The price of oil reached $90 per barrel Tuesday as Iran and President Donald Trump traded jabs about war reparations, decreasing hopes for a new peace deal.

The price dipped back down to $87 as of Tuesday morning.

West Texas Intermediate futures rose 19 cents to $82.32 per barrel around 8 a.m. EDT. Brent crude was up to $87.74.

Prices had dipped when Pakistan’s Defense Minister said the two warring countries were “close to some sort of arrangement.”

But on Monday, President Donald Trump posted on Truth Social demanding that Iran pay reparations, dimming hopes for peace. That caused a 3% spike.

The contradictory statements between Washington and Tehran also added to the fears Monday, as Trump said the United States has “100%” control of the Strait of Hormuz. Iranian Foreign Minister Abbas Araghchi said Sunday that the two sides were engaging, but not in person.

“The oil market remains very headline-driven, which leaves prices whipsawing. The latest bout of optimism is quickly fading,” ING strategists wrote in a Tuesday note, CNBC reported. “Current rhetoric suggests any potential deal is still some way off, meaning risks remain skewed to the upside for oil prices.”

Analysts at Deutsche Bank wrote in a research note that fears of higher inflation are coming from worries of a long standoff, The New York Times reported.

“That in turn led to mounting speculation about central bank rate hikes, with investors pricing in a more hawkish path for the months ahead,” the bank wrote.

The average gasoline price stayed at $4.11 a gallon Tuesday, a 38% increase since the start of the war with Iran.