The oil market rose on Wednesday morning amid concerns that breakdowns in discussions between Iran and the United States for a final agreement to end their war may extend supply disruptions in the key Middle East producing region.
Brent futures gained 33 cents or 0.45 per cent to trade at $73.28 a barrel, while the US West Texas Intermediate (WTI) crude climbed 34 cents or 0.49 per cent to $69.84 a barrel.
US officials arrived in Qatar for talks on the Iran war, but will meet with mediators, not Iranian negotiators. The lack of direct talks further complicates efforts to find a lasting end to the conflict and fully reopen the Strait of Hormuz.
The representatives, which include 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.
The Wall Street Journal reported that while hardline military officials are pushing for full control of Hormuz, Iranian civilian leaders like President Masoud Pezeshkian are aiming to get access to billions in frozen assets, indicating different priorities.
Brent fell by around $45 a barrel between the first and second quarters of this year, its largest quarterly loss since 2008 during the financial crisis in the US. Crude futures meanwhile fell by around $31, their largest quarterly loss since 2020, when the COVID-19 pandemic crushed global oil demand.
The declines followed progress toward ending the Middle East conflict, pulling back from the sharp gains triggered earlier by the hostilities.
Analysts have cut their 2026 oil price forecasts after five straight monthly increases, as the reopening of the Strait of Hormuz eased concerns over prolonged supply disruptions.
Tanker traffic through the critical waterway has started to recover, with US Vice President JD Vance claiming that oil flows through the strait had been restored to pre-war levels.
The American Petroleum Institute (API) estimated that crude oil inventories in the US fell by 6.072 million barrels in the week ending June 26. In the week prior, US crude oil inventories fell by 765,000 barrels.
Official oil stock data from the US Energy Information Administration (EIA)will be released later on Wednesday.