Oil prices moved slightly higher on Wednesday as investors reacted to renewed uncertainty over Iran-US talks.
Concerns grew that the failure to reach a final peace agreement could prolong supply disruptions in the Middle East, a key global oil-producing region.
Brent and WTI Prices Edge Higher
Brent crude futures rose 14 cents, or 0.19%, to $73.09 per barrel at 0644 GMT.
US West Texas Intermediate crude also gained 11 cents, or 0.16%, reaching $69.61 per barrel.
The modest gains reflected caution in the market rather than a strong bullish move.
Strait of Hormuz Remains Uncertain
Vandana Hari, founder of Vanda Insights, said the reopening of the Strait of Hormuz remains uneven and difficult to assess.
She noted that the market may wait for clearer signs of lasting stability before oil prices return to a stronger bearish trend.
Without a new agreement between Washington and Tehran, traders are likely to remain cautious.
Iran-US Talks Face Fresh Obstacles
US President Donald Trump’s son-in-law Jared Kushner and envoy Steve Witkoff arrived in Doha on Tuesday for what the White House described as high-level talks.
However, Iran and Qatar said the US officials would meet with mediators rather than Iranian representatives directly.
Qatar said Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani was among those meeting with Witkoff and Kushner.
The indirect nature of the talks raised doubts about how quickly a final agreement could be reached.
Oil Prices Suffer Sharp Quarterly Losses
Despite Wednesday’s small rebound, oil prices recorded heavy losses in the second quarter.
Brent crude fell by around $45 per barrel during the quarter. That marked its largest quarterly decline since the 2008 global financial crisis.
US crude futures also dropped by around $31 per barrel. It was their biggest quarterly loss since 2020, when the COVID-19 pandemic severely weakened global demand.
The losses followed progress toward ending the Middle East conflict after prices surged sharply in March when hostilities began.
Analysts Cut 2026 Oil Price Forecasts
Analysts have lowered their 2026 oil price forecasts for the first time since the start of the Iran war, according to a Reuters poll.
The cuts followed five consecutive months of upward revisions.
The reopening of the Strait of Hormuz reduced fears that supply disruptions would continue for an extended period.
US Says Iran Will Not Control Hormuz Tolls
US Vice President JD Vance said Iran would not be allowed to charge tolls on ships passing through the Strait of Hormuz.
He said the situation would not end with Iran collecting payments from vessels using the critical waterway.
Tanker traffic through the strait has started to recover. Vance also claimed that oil flows have returned to levels seen before the war.
US Oil Inventories Decline Again
Meanwhile, US crude inventories fell again last week, according to market sources citing data from the American Petroleum Institute.
Gasoline stockpiles also declined.
Crude inventories dropped by 6.1 million barrels in the week ending June 26, according to the sources.
The official US oil inventory report from the Energy Information Administration is scheduled for release later on Wednesday.
Supply Risks Keep Oil Market Cautious
Oil traders remain focused on the outlook for Iran-US negotiations, shipping flows through the Strait of Hormuz, and US inventory data.
Although oil prices have fallen sharply from recent highs, any renewed disruption in the Middle East could keep supply concerns alive.
For now, the market appears to be waiting for stronger evidence of lasting peace and stable crude flows.
