Oil prices edged higher in early trading on Wednesday after reports that Iran would not hold direct talks with U.S. envoys, adding fresh uncertainty to the interim ceasefire reached after the four-month-long conflict between the two countries.
Brent crude futures rose 50 cents (0.69%) to US$73.45 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 63 cents (0.91%) to US$70.13 a barrel.
The market reacted after U.S. President Donald Trump’s son-in-law Jared Kushner and Special Envoy Steve Witkoff arrived in Doha for what the White House described as high-level negotiations.
However, Iranian and Qatari officials indicated that Iran would not hold direct meetings with the U.S. delegation and would instead communicate through mediators. Qatar confirmed that Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani met separately with Witkoff and Kushner.
Oil prices have fallen sharply in recent months following progress toward ending hostilities in the Middle East. Brent crude declined by approximately US$45 per barrel during the first half of the year, marking its steepest quarterly drop since the 2008 global financial crisis. U.S. crude futures also recorded their largest quarterly decline since 2020, when the COVID-19 pandemic severely reduced global fuel demand.
A Reuters survey published on Tuesday showed that analysts have lowered their oil price forecasts for 2026 for the first time since the Iran conflict began, reflecting expectations of improved global supply following the reopening of the Strait of Hormuz.
U.S. Vice President JD Vance also stated that Iran would not be permitted to impose tolls on ships transiting the strategic waterway, adding that oil shipments through the Strait of Hormuz had largely returned to pre-war levels.
Meanwhile, market sentiment was further supported by reports that U.S. crude oil inventories fell by 6.1 million barrels during the week ending June 26, according to data released by the American Petroleum Institute (API).
Investors are now awaiting official inventory figures from the U.S. Energy Information Administration (EIA), which are expected to provide further indications of supply conditions in the world’s largest oil-consuming nation.
Source: Reuters
