US-Iran war: Oil prices declined for a third straight session as crude shipments through the Strait of Hormuz increased and indirect negotiations between the US and Iran showed signs of progress.
Brent crude for September delivery traded near $71 a barrel after falling more than 3% over the previous two sessions, while West Texas Intermediate hovered around $68 a barrel.
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Oil shipments through the strategically important Strait of Hormuz have climbed to more than 10 million barrels per day, highlighting Iran’s diminishing capacity to disrupt maritime traffic, US official was quoted as saying by Bloomberg. Meanwhile, US President Donald Trump welcomed the progress made in ongoing negotiations.
Qatar said the next round of talks would be scheduled at the earliest opportunity after the funeral ceremonies for Iran’s former Supreme Leader Ali Khamenei, who was killed in an air strike at the onset of the conflict. Iranian state media reported that the ceremonies are set to begin on July 4 and continue for several days.
Oil prices have continued to decline following their steepest quarterly drop since 2020, as crude shipments through the Strait of Hormuz — a vital route linking Persian Gulf producers with global markets — remained uninterrupted despite weekend hostilities involving exchanges of strikes. Although overall supply remains somewhat constrained, the United Arab Emirates has restored exports to pre-conflict levels through alternative logistics, while major US crude benchmarks have slipped to discounts amid weakening demand for American oil.
Ahead of talks in Qatar, Iran reaffirmed its resolve to maintain control over shipping through the Strait of Hormuz, highlighting key sticking points — including its nuclear programme and the conflict in Lebanon — that continue to complicate negotiations during the 60-day ceasefire period. Meanwhile, US President Donald Trump reiterated on Wednesday that Iran must not be allowed to acquire a nuclear weapon, speaking to reporters in Virginia.
(With inputs from Bloomberg)
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