Oil prices climb as Iran-US deadlock rekindles supply fears

International benchmark Brent crude gained 33 cents to trade at $73.28 per barrel, while US West Texas Intermediate (WTI) crude rose 34 cents to $69.84 per

Global oil prices edged higher on Wednesday as uncertainty surrounding negotiations between the United States and Iran renewed concerns over potential supply disruptions in the Middle East.

International benchmark Brent crude gained 33 cents to trade at $73.28 per barrel, while US West Texas Intermediate (WTI) crude rose 34 cents to $69.84 per barrel in early trading.

Market sentiment was affected after high-level diplomatic efforts in Doha failed to produce direct talks between American and Iranian officials. The US delegation, led by senior envoy Steve Witkoff and presidential adviser Jared Kushner, met Qatari mediators instead, while Tehran maintained that no direct negotiations with US representatives had been scheduled.

Analysts said the reopening of the Strait of Hormuz has improved oil shipments, but uncertainty over the future of Iran-US relations continues to keep traders cautious. They noted that a lasting agreement between Washington and Tehran is necessary before markets regain confidence and prices stabilise.

Despite the latest gains, oil prices remain significantly below the highs recorded earlier this year after easing tensions in the Middle East reduced fears of prolonged supply disruptions. Industry analysts have also lowered their oil price forecasts for 2026 as shipping through the Strait of Hormuz gradually returns to normal.

Meanwhile, US Vice President JD Vance reiterated that Washington would not allow Iran to impose transit charges on vessels passing through the Strait of Hormuz, adding that oil flows through the key shipping route have recovered to pre-conflict levels.

Supporting oil prices further, industry data indicated another decline in US crude inventories last week. According to figures cited from the American Petroleum Institute, crude stockpiles fell by 6.1 million barrels during the week ending June 26, while gasoline inventories also declined. Investors are now awaiting official inventory data from the US Energy Information Administration for further direction on market trends.