Oil prices rose on Wednesday as uncertainty over Iran-US negotiations renewed concerns about crude supplies from the Middle East. Investors feared stalled diplomatic efforts could prolong regional supply disruptions. The gains reflected growing caution in global energy markets.
Brent crude futures rose 33 cents, or 0.45%, to $73.28 a barrel, while US West Texas Intermediate crude gained 34 cents, or 0.49%, to $69.84. Market analysts said uncertainty surrounding talks between Washington and Tehran continued to support prices. They noted that traders remained focused on geopolitical risks affecting oil supplies.
Vandana Hari, founder of Vanda Insights, said shipping through the Strait of Hormuz had resumed but remained uneven and unpredictable. She added that oil prices were unlikely to resume a sustained decline without a fresh understanding between the United States and Iran. Market participants are closely monitoring developments in Doha for signs of diplomatic progress.
US envoy Steve Witkoff and President Donald Trump’s son-in-law Jared Kushner arrived in Doha on Tuesday for high-level discussions. However, Iran and host Qatar said mediators would conduct separate indirect talks instead of direct negotiations. The latest diplomatic uncertainty followed sharp declines in oil prices during the second quarter as regional tensions eased.
Meanwhile, the American Petroleum Institute reported another decline in US crude inventories last week. Crude stockpiles reportedly fell by 6.1 million barrels, while gasoline inventories also decreased. Investors are now awaiting official inventory data from the US Energy Information Administration for further direction.