Breakdown in US-Iran talks casts doubt over peace process
A traditional dhow is seen at sea on June 29, 2026 in Doha, Qatar, with skyscrapers rising on the Doha Corniche in the background.
Nurfoto | Nurfoto | Getty Images
Oil prices fell slightly on Wednesday and concerns about the peace process increased after Iran said it would not meet US delegates for talks in Qatar.
International comparison Brent crude oil Futures for September delivery were trading down 0.3% at $72.72 a barrel around 9:28 a.m. (4:28 a.m. ET). The contract fell nearly 21% last month, marking its biggest monthly decline since March 2020.
WE West Texas Intermediate Futures for August delivery fell 0.5% to $69.17, erasing earlier gains. The contract fell more than 20% in June, reflecting its worst monthly performance since late 2021.
The moves come after Iranian officials said Tehran and Washington still needed to resolve the terms of an interim peace deal signed last month before they could address more difficult issues, such as the possible limits of its nuclear program. Reuters reported.
Brent crude futures and WTI futures for the last three months.
President Donald Trump’s son-in-law Jared Kushner and US special envoy Steve Witkoff arrived in Doha on Tuesday, but a Qatari government spokesman said they would meet with mediators, not the Iranians directly.
The United States and Iran signed a 14-article memorandum of understanding on June 17 to stop conflicts that disrupt the global oil flow in the strategically vital Strait of Hormuz.
The Strait of Hormuz, located between Oman and Iran in the Persian Gulf, is one of the world’s most critical energy transit points. The narrow waterway typically handles about 20% of the world’s oil traffic.
Strait of Hormuz traffic
ING strategists Warren Patterson and Ewa Manthey in question The oil market continues to be optimistic that supply will recover in the Middle East, despite the recent flare-ups between the US and Iran.
Tanker ship movements in the strategically vital Strait of Hormuz still appear to be limited, a research note published on Wednesday said.
Liberian-flagged container ship MSC Reef is seen docking at a pier at Khor Fakkan Container Terminal, the only natural deep-sea port in the region and one of the major container ports in the Emirate of Sharjah, along the Gulf of Oman on June 28, 2026.
– | Afp | Getty Images
“Undoubtedly, there has been a slight increase in incoming tanker traffic, indicating that shipowners are increasingly confident about moving their ships to the Persian Gulf,” Patterson and Manthey wrote. he said.
“If this trend accelerates, it becomes a clear headwind and potentially a direct challenge to our view that oil prices should rise from current levels,” they added.
