Crude markets rebound on geopolitical uncertainty
Oil prices moved modestly higher on Wednesday as investors assessed the risk that stalled negotiations between Iran and the United States could delay a lasting agreement, raising concerns about future crude supplies from the Middle East.
Brent crude futures gained 14 cents, or 0.19%, to $73.09 a barrel by 06:44 GMT, while US West Texas Intermediate (WTI) crude rose 11 cents, or 0.16%, to $69.61 a barrel.
Strait of Hormuz remains a key market focus
According to Vandana Hari, founder of Vanda Insights, shipping conditions through the Strait of Hormuz continue to improve but remain uncertain.
“Hormuz continues to reopen but it’s patchy, unpredictable, and not fully transparent,” she said.
“Unless there is a fresh understanding between Washington and Tehran, the market may wait and watch for sustained peace and quiet before crude resumes bearish momentum.”
Diplomatic efforts continued on Tuesday as White House envoy Steve Witkoff and Jared Kushner, son-in-law of US President Donald Trump, travelled to Doha for what the White House described as “high level” talks.
However, officials from Iran and host nation Qatar said Iranian representatives would meet with mediators rather than directly with US officials. Qatar also confirmed that Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani met with Witkoff and Kushner.
Oil market continues to recover from historic losses
Brent crude recorded a decline of around $45 per barrel during the second quarter, marking its steepest quarterly fall since the global financial crisis in 2008.
US crude futures also posted their biggest quarterly loss since 2020, falling by approximately $31 per barrel after easing geopolitical tensions reversed the sharp rally seen earlier this year.
A Reuters survey published on Tuesday showed analysts lowered their 2026 oil price forecasts for the first time since the Iran conflict began, as improving conditions in the Strait of Hormuz reduced concerns over prolonged supply disruptions.
Inventory data offers additional support
US Vice President JD Vance said Iran would not be allowed to impose charges on vessels passing through the Strait of Hormuz.
“This is not going to end in a place where the Iranians are collecting tolls on ships going through the Strait of Hormuz,” he said during an interview on The Michael Knowles Show.
Vance also stated that oil shipments through the waterway have returned to levels seen before the conflict.
Meanwhile, market sources citing data from the American Petroleum Institute said US crude oil inventories fell by 6.1 million barrels during the week ended 26 June, while gasoline inventories also declined.
Investors are now awaiting official inventory figures from the US Energy Information Administration, scheduled for release later on Wednesday.