Oil prices rose amid the situation in the Strait of Hormuz
Global oil prices rose on Wednesday, July 1, due to investor concerns about a possible breakdown in negotiations between the U.S. and Iran. Market participants fear that a lack of agreement could lead to prolonged disruptions in oil supplies from the Middle East.
As of this morning, Brent crude futures rose 33 cents (0.45%) to $73.28 per barrel, while U.S. WTI crude rose by 34 cents (0.49%) to $69.84 per barrel.
Vandana Hari, founder of the analytical firm Vanda Insights, noted that shipping through the Strait of Hormuz is gradually resuming, but the process remains unstable.
“Traffic through the Strait of Hormuz continues to resume, but the process is uneven, unpredictable, and not entirely transparent… Unless a new understanding is reached between Washington and Tehran, the market will likely wait and hope for lasting peace and stability before oil prices begin to fall again,” Hari emphasized.
Jared Kushner and Special Envoy Steve Witkoff arrived in Doha for the talks. The White House described them as “high-level” negotiations.
At the same time, Iran and Qatar stated that contacts would take place through intermediaries rather than in the form of direct negotiations.
Analysts note that in the second quarter of 2026, oil prices experienced one of the sharpest declines in recent years.
Brent fell by about $45 per barrel, marking the largest quarterly drop since 2008, while WTI lost about $31 per barrel, posting its worst quarterly performance since 2020, when global demand plummeted due to the pandemic.
The price decline followed an easing of tensions in the Middle East, which reversed the previous sharp rise in prices.
In addition, for the first time since the start of the war between Iran and Israel, analysts lowered their oil price forecast for 2026, as the resumption of shipping through the Strait of Hormuz eased concerns about long-term supply disruptions.
U.S. Vice President J.D. Vance stated that Washington will not allow Iran to impose any fees on ships passing through the Strait of Hormuz.
“The situation will not reach the point where the Iranians will impose tolls on ships passing through the Strait of Hormuz,” Vance emphasized.
According to him, oil shipments through the strait have already returned to pre-war levels.
According to preliminary data from the American Petroleum Institute (API), U.S. crude oil inventories fell by 6.1 million barrels during the week ending June 26. Gasoline inventories also declined, further supporting global oil prices.
Official data from the U.S. Energy Information Administration (EIA) on oil inventories are scheduled to be released later on Wednesday.
This was reported by Reuters.
As a reminder, oil prices on global markets on Tuesday, June 30, fell to nearly the same level as at the start of the war in Iran. Investors are anticipating possible talks between the U.S. and Iran in Doha, while fearing a breakdown of the fragile ceasefire in the region.
The day before, global oil prices plummeted, falling to their lowest levels since the start of the large-scale armed conflict in the Middle East involving the U.S., Israel, and Iran.
Qatar has begun preparing its tanker infrastructure and plans to restore liquefied natural gas (LNG) production to normal levels within a few weeks.
Fertilizer exports through the Strait of Hormuz have risen to pre-war levels, according to Bloomberg.
Global oil prices fell sharply on Thursday, June 19, amid reports of an agreement between the U.S. and Iran. Brent futures fell to $77.96 per barrel, while WTI futures dropped to $74.96, their lowest levels since late February.
