Crude Oil Prices Fall After US-Iran Talks in Doha Concludes | July 2, 2026

Crude oil prices fell in early trading on Thursday, July 2, 2026, after Qatar announced that the United States and Iran had made positive progress during indirect talks held in Doha, according to news reports.  

The discussions focused on maritime traffic through the Strait of Hormuz, a vital shipping route that handled nearly one-fifth of global oil supplies before the recent conflict. 

Brent crude futures declined 73 cents, or 1.02%, to US$70.84 per barrel, while US West Texas Intermediate (WTI) crude dropped 83 cents, or 1.21%, to US$67.75 per barrel. Both benchmarks had already fallen more than 1% in the previous session, reaching their lowest levels in four months. 

US-Iran Talks Ease Supply Concerns 

Negotiators from the United States and Iran spent two days in Doha discussing maritime security in the Strait of Hormuz and the possible unfreezing of Iranian funds. Qatar described the discussions as constructive, boosting hopes that tensions in the region could ease. 

Although tanker traffic has partially recovered, the two countries exchanged strikes last weekend after Iran attacked a cargo vessel. Iran has also reiterated its intention to impose shipping tolls from mid-August after an initial toll-free period expires, keeping geopolitical risks firmly on investors' radar. 

Higher OPEC+ Output Weighs on Oil Prices 

Market sentiment was also pressured by expectations that OPEC+ will approve another production increase when member countries meet this weekend. Sources indicated that the group is likely to raise output targets by around 188,000 barrels per day for August, matching the increases implemented in June and July. 

As crude exports continue to flow through the Strait of Hormuz and additional supplies enter the market, traders are increasingly concerned about the possibility of oversupply, limiting support for oil prices. 

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US Crude Inventories Continue to Decline 

Supporting the market to some extent, the US Energy Information Administration reported that crude oil inventories fell by 3.8 million barrels to 408.4 million barrels last week, the lowest level since September 2018. However, the decline was smaller than analysts' expectations of a 4.5 million-barrel draw, reducing its positive impact on prices. 

Conclusion 

Oil prices remain under pressure as improving diplomatic dialogue between the US and Iran eases immediate supply concerns, while expectations of higher OPEC+ production raise fears of oversupply. Market Participants are likely to closely monitor this weekend's OPEC+ meeting and further developments surrounding the Strait of Hormuz for fresh market direction. 

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