Oil prices extended losses for a third consecutive session on Thursday after Qatar said Iran and the United States had made progress in indirect talks aimed at reducing tensions over the Strait of Hormuz, a vital global shipping route.
Brent crude fell 77 cents, or 1.1%, to $70.80 a barrel at 0256 GMT, while U.S. West Texas Intermediate slipped 84 cents, or 1.2%, to $67.74 a barrel. Both benchmarks also dropped more than 1% in the previous session, touching their lowest levels in four months.
A spokesperson for Qatar’s Foreign Ministry said on X that the discussions showed “positive progress” on issues tied to the agreement that ended the conflict in June. However, there was no sign of any breakthrough toward a lasting peace deal.
Qatar & Pakistan mediators concluded separate meetings with the US & Iranian negotiators in Doha today, with positive progress made on issues related to the Islamabad Memorandum of Understanding, building on the outcomes of the Lake Lucerne Summit. The parties agreed to continue…
— د. ماجد محمد الأنصاري Dr. Majed Al Ansari (@majedalansari) July 1, 2026
Market sentiment remained subdued, with analysts pointing to expectations of oversupply. Steady crude flows through the Strait of Hormuz are also intensifying competition among suppliers and weighing on prices.
OPEC+ producers are expected to discuss a possible increase in output targets when they meet on Sunday, according to sources familiar with the matter.
Sentiment was further pressured after UBS lowered its Brent crude price forecasts, citing improved oil shipping flows following the U.S.-Iran understanding. The bank cut its forecast for the September quarter by $25 and for the December quarter by $10.
UBS now expects Brent to average $80 per barrel in the second half of the year and $75 in 2027, although it warned that price risks remain tilted to the upside due to uneven tanker movements.
Qatar’s Foreign Ministry also said the next round of Iran-U.S. talks is expected after July 9, following funeral proceedings for Iran’s late Supreme Leader Ayatollah Ali Khamenei.
