Oil Prices Brent Holds Near $72 and WTI Near $68.66 as Markets Watch Middle East Diplomacy
Key Points
Brent crude fell 0.83% to $70.57 as Hormuz shipping flows kept recovering steadily.
WTI crude dropped to $68.11, its lowest level since late February 2026.
Hormuz daily oil flows now exceed 10 million barrels amid easing tensions.
Qatar peace talks face delays due to Iran's former leader's funeral on July 4.
Oil prices stayed under pressure on Thursday, July 2, 2026. Brent crude opened at $71.13 per barrel before slipping 0.83% to $70.57. WTI crude opened at $68.11, its lowest level since February 27. Both benchmarks fell as shipping through the Strait of Hormuz kept recovering. Traders also weighed progress in indirect US-Iran talks held in Doha, Qatar, this week.
Strait of Hormuz Flows Keep Pressuring Oil Prices
Daily crude flows through the Strait of Hormuz now exceed 10 million barrels. The UAE restored oil exports to more than 3.9 million barrels per day. Saudi Arabia also ramped up shipments to Asia. This surge has created a market surplus, pushing oil prices to levels last seen before the conflict began.
US Stockpiles Fall Despite Global Surplus
US domestic oil stockpiles fell to their lowest level since March 2025. That marks twelve consecutive weeks of inventory drawdowns. This divergence shows domestic demand staying firm even as global supply expands. Traders are watching whether falling US inventories eventually offset the broader oversupply pressuring oil prices lower.
Diplomatic Progress Adds Uncertainty to Oil Prices
President Trump said negotiations with Iran were progressing well after mediators from Qatar and Pakistan met separately with both sides in Doha. Iranian oil exports jumped above 40 million barrels following the lifting of a US naval blockade. Record Russian shipments have also added to the global seaborne inventory buildup.
Khamenei Funeral Delays Next Round of Talks
Upcoming peace talks in Qatar now face delays. Iran’s former Supreme Leader Ali Khamenei’s funeral begins on July 4, pushing back scheduled negotiations. Tehran continues to insist on maintaining maritime administrative control over the Strait of Hormuz, a sticking point that keeps geopolitical risk embedded in oil prices.
Key numbers behind Thursday’s oil prices:
- Brent crude: $70.57 per barrel, down 0.83% on the day
- WTI crude: $68.11 per barrel, lowest since February 27, 2026
- Hormuz daily flows: more than 10 million barrels
- US oil stockpiles: lowest level since March 2025
Brent crude’s 52-week high reached $120.88 on April 30, 2026, while its 52-week low touched $58.66 on December 16, 2025. That range shows how sharply Middle East tensions have swung oil prices over the past year. Energy stocks including ExxonMobil, Chevron, and Shell remain sensitive to these ongoing developments.
Final Thoughts
Oil prices continue to reflect a tug-of-war between recovering Middle East supply and lingering geopolitical risk. The delayed Qatar talks following Khamenei’s funeral could reintroduce volatility into an otherwise softening market. Investors watching Brent and WTI should track both Hormuz shipping data and US-Iran negotiation updates closely in the coming days.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice
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