Oil falls as easing Middle East tensions send Brent to its worst quarter since 2020
Commercial cargo ships and crude oil tankers are anchored in the Gulf of Oman off the coast of Muscat, Oman, on June 21, 2026, as they prepare to transit the critical Strait of Hormuz.
Shady Alassar | Anatolia | Getty Images
Oil prices fell on Wednesday as investors weighed signs of progress in indirect talks between Washington and Tehran and eased concerns about possible disruptions to crude oil supplies in the Middle East.
USA West Texas Central Crude oil futures fell 1.33% to $67.67 per barrel, while the global indicator Brent crude oil It fell 1.12% to $70.77.
Brent fell nearly 40% this quarter, marking its worst quarterly performance since 2020, according to LSEG data.
The drop came after US President Donald Trump told reporters that talks with Iran in Qatar were “going well”.
“The process of denuclearizing Iran is progressing well,” Trump said. “They had very good meetings and we’ll see.”
Indirect negotiations between the United States and Iran began in Doha on Tuesday, with U.S. special envoy Steve Witkoff and Jared Kushner meeting with Iranian officials through Qatari mediators rather than meeting face to face.
The renewed diplomatic push comes after hostilities flared over the weekend, threatening a 60-day ceasefire between the two countries. Iran’s attack on two merchant ships led to US retaliatory strikes on targets inside Iran.
Investors are increasingly pricing in the possibility that tensions will ease if negotiations continue to make progress, easing concerns about possible disruptions to Middle East oil supplies.
ING noted that the market remains optimistic that oil supplies from the Persian Gulf will normalize despite recent military crises, helping to explain why Brent is experiencing its worst quarter since the beginning of 2020.
Shipping activity in the Strait of Hormuz also appears to be gradually recovering. ING forecast the total number of tanker crossings on Tuesday would be around 11, below last week’s peak of 24, but suggested incoming traffic was starting to pick up and shipowners were becoming more confident about sending their ships back to the Persian Gulf.
