Daijiworld Media Network – London
London, Jul 1: Oil prices climbed in early trading on Wednesday after Iran declined to hold direct talks with US envoys, raising concerns over the stability of the interim ceasefire between the two countries and renewed uncertainty over global crude supplies.
Brent crude futures rose 50 cents, or 0.69 per cent, to $73.45 a barrel, while US West Texas Intermediate (WTI) crude gained 63 cents, or 0.91 per cent, to $70.13 a barrel.
The gains came after US 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" discussions. However, Iran and host nation Qatar said the Iranian delegation would not meet the US officials directly and would instead engage through mediators.
Qatar confirmed that Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani met with Witkoff and Kushner during the discussions.
Oil prices had fallen sharply over recent months following signs of easing tensions in West Asia. Brent crude recorded its steepest quarterly decline since the 2008 global financial crisis, while US crude futures posted their biggest quarterly drop since the COVID-19 pandemic in 2020.
Analysts have also lowered their oil price forecasts for 2026 for the first time since the Iran conflict began, citing the reopening of the Strait of Hormuz and reduced fears of prolonged supply disruptions.
US Vice President JD Vance said Iran would not be allowed to impose tolls on ships passing through the strategic Strait of Hormuz, adding that oil shipments through the waterway had returned to pre-war levels.
Supporting prices further, industry data released by the American Petroleum Institute indicated that US crude oil inventories fell by 6.1 million barrels during the week ending June 26. Gasoline stockpiles also declined, signalling firm fuel demand.
Markets are now awaiting official inventory data from the US Energy Information Administration, due later on Wednesday, for further direction on crude prices.