US oil prices rebound as investors assess prospects for a Middle East peace deal

TOKYO, May 7 (Reuters) - U.S. ​crude futures ⁠rose about $1 in ​early trade on Thursday, rebounding from the previous day's losses, ​as ‌investors assessed prospects for a Middle East peace ⁠deal.

U.S. West Texas Intermediate crude ⁠futures gained 80 cents, or ​0.8%, to $95.88 a barrel as of 2223 GMT after climbing as high as $96.33 earlier in the ​session.

The ‌benchmark contract slid about 7% on Wednesday on optimism about a possible end to the war in the Middle East, with reports ​the United States and Iran were nearing ‌an initial peace deal.

A source from mediator Pakistan and another source briefed on ‌the mediation said an agreement was close on a one-page memorandum that would formally end the ​conflict.

Iran said on Wednesday it was reviewing a U.S. ‌peace proposal that sources said would formally end the war while leaving unresolved the key U.S. demands ⁠that Iran ⁠suspend its nuclear program and ‌reopen the Strait of Hormuz.

An Iranian foreign ministry spokesperson cited ​by ​Iran's ISNA news agency said Tehran ‌would convey its response. U.S. President Donald Trump said he believed Iran wanted an agreement. (Reporting by Yuka Obayashi; Editing by Cynthia Osterman)