Oil Prices Today, July 1, 2026: Oil Prices Rise to $73.2 as Iran Rejects Face to Face Talks with U.S. In Fresh Middle East Setback

Mumbai, July 1: Crude oil prices moved higher on Wednesday after Iran ruled out direct talks with U.S. envoys, undermining hopes of a diplomatic breakthrough and renewing concerns over oil supplies from the Middle East despite an interim ceasefire. 

Brent crude futures rose 0.3% to $73.2 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.3%, to $69.7 a barrel. The gains partially reversed the steep declines seen over the past week as geopolitical tensions had briefly eased.  

Iran Refuses Direct Talks 

The latest uptick came after Iran said it would not meet directly with U.S. envoys in Qatar, opting instead for indirect discussions through mediators. The development cast fresh doubt over the durability of the interim ceasefire that halted months of conflict between the two sides. 

Both benchmarks ticked up after US-Iran diplomacy faced a fresh setback with Iran refusing face to face talks. Source: oilprice.com

U.S. President Donald Trump’s son-in-law Jared Kushner and special envoy Steve Witkoff arrived in Doha for what the White House described as high-level discussions, but Qatari officials confirmed they would engage separately with the U.S. delegation and Iranian representatives rather than facilitate face-to-face talks.  

Hormuz Shipping Improves, But Risks Persist 

Despite the diplomatic setback, tanker traffic through the Strait of Hormuz—one of the world’s most critical oil transit routes—has continued to recover after disruptions caused by the conflict. 

The reopening of the strategic waterway has eased immediate fears of prolonged supply disruptions. U.S. Vice President JD Vance said oil flows through the strait had largely returned to pre-war levels and reiterated that Washington would oppose any attempt by Iran to levy tolls on vessels using the route.  

Analysts Trim Oil Price Forecasts 

The recent recovery in shipping activity has prompted analysts to lower their average oil price forecasts for 2026 for the first time since the Iran conflict began. The revisions come after five consecutive months of upward forecast changes, reflecting expectations that global supplies will remain relatively stable if the Strait of Hormuz stays open. 

Both Brent and WTI benchmarks posted their sharpest quarterly declines since 2020 during the April-June period as fears of an extended supply shock faded following the ceasefire agreement.  

Inventory Data in Focus 

Supporting crude prices, industry data from the American Petroleum Institute (API) showed U.S. crude inventories fell by 6.1 million barrels in the week ended June 26. Gasoline stockpiles also declined, pointing to healthy fuel demand in the world’s largest oil consumer. 

Markets are now awaiting official inventory data from the U.S. Energy Information Administration (EIA) later on Wednesday for confirmation of the drawdown. A larger-than-expected decline could provide further support to oil prices, while any upside surprise in inventories may cap the recent rebound. 

Source

•  rates from oilprice.com