- Brent and WTI futures rise in early trading.
- Iran will meet with mediators instead of US officials.
- US crude oil inventories fell by 6.1 million barrels last week.
Oil prices rose in early trading Wednesday as investors responded to news that Iran will not meet with U.S. envoys, putting additional strain on the provisional ceasefire agreed between the two in the four-month war.
Brent futures rose 50 cents or 0.69% to $73.45 a barrel by 1208 GMT, while U.S. West Texas Intermediate (WTI) crude rose 63 cents, or 0.91%, to $70.13 a barrel.
US President Donald Trump’s son-in-law Jared Kushner and envoy Steve Witkoff arrived in Doha for what the White House described as “high-level” talks on Tuesday, but Iran and host Qatar said they would meet with mediators, rather than the Iranians themselves.
Qatar said Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani was among those with Witkoff and Kushner.
Brent fell about $45 a barrel between the first and second quarters of this year, its biggest quarterly loss since 2008 during the financial crisis. Meanwhile, US crude futures fell around $31, their biggest quarterly loss since 2020, when the Covid-19 pandemic crushed global oil demand.
The declines followed progress toward ending the Middle East conflict, moving away from the strong gains previously caused by “hostilities.”
Analysts have cut their 2026 oil price forecasts for the first time since the Iran war began, after five consecutive monthly increases, as the reopening of the Strait of Hormuz eased concerns about prolonged supply disruptions, a Reuters The survey showed on Tuesday.
US Vice President JD Vance said Iran would be prevented from charging tolls across the strait, telling The Michael Knowles Show: “This is not going to end up in a place where the Iranians are charging tolls on ships going through the Strait of Hormuz.”
Tanker traffic through the critical waterway has begun to recover, and Vance says oil flows through the strait have been restored to pre-war levels.
Meanwhile, U.S. crude oil inventories fell again last week, while gasoline inventories also declined, market sources said, citing American Petroleum Institute data released Tuesday.
Crude stocks fell 6.1 million barrels in the week ending June 26, the sources said on condition of anonymity.
Markets expect official data on US oil stocks from the Energy Information Administration to be released at 10:30 a.m. EDT on Wednesday.
