Oil prices experienced an uptick on Wednesday due to renewed concerns that the failure of talks between Iran and the United States to reach a final agreement could extend supply interruptions in the vital Middle Eastern oil-producing region.
Brent crude futures increased by 33 cents, or 0.45%, reaching $73.28 per barrel at 0339 GMT. Similarly, US West Texas Intermediate (WTI) crude rose by 34 cents, or 0.49%, to $69.84 per barrel.
Despite some reopening, the Strait of Hormuz remains only partially accessible. Vandana Hari, founder of oil market analysis firm Vanda Insights, described the recovery as “patchy, unpredictable, and lacking full transparency.” She added that without a renewed understanding between Washington and Tehran, the market is likely to remain cautious, awaiting a period of sustained stability before prices might decline again.
In a significant development, US President Donald Trump’s son-in-law Jared Kushner and envoy Steve Witkoff arrived in Doha on Tuesday for what the White House termed “high-level” discussions. However, Iran and Qatar indicated that meetings would be held with mediators rather than direct talks with Iranian representatives. Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani was among those who engaged with Kushner and Witkoff.
Brent crude has suffered a sharp decline, dropping approximately $45 per barrel between the first and second quarters of this year, marking its largest quarterly loss since the 2008 financial crisis. US crude futures fell by about $31, their biggest quarterly drop since 2020 when the COVID-19 pandemic severely impacted global oil demand. These declines followed earlier gains driven by progress toward resolving the Middle East conflict.
Analysts have revised their 2026 oil price forecasts downward for the first time since the conflict began, after five consecutive months of increases, as the reopening of the Strait of Hormuz has alleviated fears of extended supply disruptions, a recent poll.
US Vice President JD Vance asserted that Iran would be prevented from imposing tolls on passage through the strait. Tanker traffic through this critical waterway has begun to recover, with Vance stating that oil flows have returned to levels seen before the conflict.
Meanwhile, US crude oil inventories decreased by 6.1 million barrels in the week ending June 26, alongside a reduction in gasoline stocks, based on data from the American Petroleum Institute. Official inventory figures from the US Energy Information Administration are expected later on Wednesday.
