U.S. crude futures fall 1.15% to $67.79/bbl after U.S.-Iran talks conclude in Doha

U.S. crude futures fell 1.15% to $67.79 per barrel on Wednesday following the conclusion of U.S.-Iran talks in Doha, Qatar, as market participants awaited clarity on the outcome of the negotiations. The talks, led by U.S. special envoy Steve Witkoff and President Trump’s son-in-law Jared Kushner, were conducted indirectly with Iranian representatives through Qatari mediators. Despite Trump’s optimistic remarks that “denuclearization of Iran is moving along well,” the lack of concrete details from the discussions left investors cautious.

Brent crude futures also declined, settling at $71.57 per barrel, marking a 1.9% drop for the day and a 21% monthly decline—the largest since March 2020. The broader market remains sensitive to developments in the Strait of Hormuz, a critical energy chokepoint that has seen limited tanker traffic since early March due to ongoing tensions between the U.S. and Iran.

While the U.S. and Iran reached a 14-point memorandum of understanding on June 17 to pause hostilities, recent incidents—including Iranian fire on commercial ships and U.S. retaliatory strikes—have raised concerns about the truce. Analysts at ING noted that while there has been a slight increase in tanker traffic through the strait, confidence remains low in the resumption of normal operations.

The market is now focused on whether the tentative agreement will lead to a more permanent resolution and the reopening of the Strait of Hormuz to full commercial traffic. Until then, volatility is expected to persist, with oil prices likely to remain sensitive to geopolitical developments in the region.