Oil prices rose in early Wednesday trading following reports that Iran would not meet with envoys of U.S. President Donald Trump in Qatar, increasing pressure on the temporary ceasefire agreed upon by the two sides in the four-month-long conflict.
Brent crude futures climbed 50 cents, or 0.69%, to $73.45 per barrel as of 12:08 GMT, while U.S. West Texas Intermediate (WTI) crude rose 63 cents, or 0.91%, to $70.13 per barrel.
Jared Kushner, President Trump’s son-in-law, and special envoy Steve Witkoff arrived in Doha on Tuesday for what the White House described as “high-level” talks. However, both Iran and host nation Qatar stated that Iranian officials would meet only with mediators and not directly with the American delegation.
Qatar said that Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani was among those who met with Witkoff and Kushner.
Brent crude prices fell by nearly $45 per barrel between the first and second quarters of this year, marking the largest quarterly decline since the 2008 global financial crisis. Meanwhile, U.S. crude futures dropped by approximately $31 per barrel, their steepest quarterly loss since 2020, when the COVID-19 pandemic caused a collapse in global oil demand.
These declines followed progress toward ending the conflict in the Middle East, which erased much of the sharp price gains triggered by earlier hostilities.
A Reuters survey showed that analysts lowered their 2026 oil price forecasts for the first time since the outbreak of the war with Iran, following five consecutive monthly increases. The reopening of the Strait of Hormuz helped ease concerns about prolonged supply disruptions.
U.S. Vice President J. D. Vance said Iran would not be allowed to impose transit fees on vessels passing through the strait.
“The Iranians are not going to end up collecting fees from ships passing through the Strait of Hormuz,” Vance said in a television interview.
Shipping traffic through the critical waterway has begun to recover. Vance stated that oil flows through the strait have returned to pre-war levels, although he did not provide specific figures.
Meanwhile, market sources citing data from the American Petroleum Institute reported that U.S. crude oil and gasoline inventories declined again last week.
According to the sources, who requested anonymity, U.S. crude stockpiles fell by 6.1 million barrels in the week ending June 26.
Markets are now awaiting official U.S. inventory data from the U.S. Energy Information Administration, which is scheduled to be released later on Wednesday.
Reuters
