Iran foreign minister, Abbas Araqchi, says that Tehran expects to receive a US response today to its latest proposal surrounding the reopening of the Strait of Hormuz.That keeps the diplomatic door open somewhat, even after US president Trump publicly rejected Iran's original seven-day proposal over the weekend. Since then, the situation has become slightly more complicated.US and Iranian officials reportedly held separate talks with mediators on Monday, with further discussions expected to focus on an amended version of Tehran's initial proposal. That being said, Iran continues to tie the reopening of the Strait of Hormuz to specific conditions. That includes an end to hostilities, sanctions relief and the lifting of the US naval blockade.I don't think markets can completely write off the possibility of some hopeful progress just yet. But at the same time, the constant back and forth that we have been encountering for many months now makes it difficult to see a path for compromise. That especially with mixed messages from Washington, as Trump continues to talk of war but at the same time is said to be preparing the possibility of easing sanctions.And you can see that uncertainty playing out quite clearly in oil.Oil prices jumped by more than $4 at one stage on Monday after Trump's rejection of the Iranian proposal, only to give back most of those gains as hopes of further negotiations resurfaced. WTI crude ended the day lower and settled around $92.60 yesterday.Today, we're seeing another move higher in oil prices instead. WTI is moving up by nearly 2% to $94.60 as supply concerns remain firmly in focus. For oil traders, that leaves the next move to be fairly headline-driven in all likelihood.A US response that signals negotiations are moving forward could quickly revive hopes of a Hormuz reopening and take some geopolitical premium out of oil prices. However, another setback would leave the market confronting the same problem it has struggled with for months already.Oil flows may be showing some signs of improving. But at the end of the day, a return to normality for one of the world's most important energy routes remains a distant dream still. This article was written by Justin Low at investinglive.com.