People walk along the Corniche area in Doha, Qatar, June 29, 2026. The United States and Iran are scheduled to hold high-level talks in Doha, according to media reports.
Nurphoto Nurphoto Getty Images
Oil prices ended a month marked by sharp declines on Tuesday, as energy market participants kept an eye on the possibility of new talks between the US and Iran in Qatar.
An international benchmark Brent crude Futures for August delivery were marked down at $72.92 per barrel. The contract fell nearly 21% in June, its biggest monthly decline since March 2020.
In the US West Texas Intermediate Futures for August delivery fell 1.8% to $69.50 on Tuesday. With Tuesday’s decline, the benchmark fell more than 20% in June, its worst monthly performance dating back to late 2021.
The moves come as oil traders monitor the prospects of US-Iran talks in Doha. Still, both benchmarks are up for the year as the US war with Iran cuts production and distribution.
US President Donald Trump on Monday said talks between the two countries would take place in the Qatari capital on Tuesday, saying Tehran had “requested a meeting” following an exchange of strikes over the weekend.
A spokesman for Iran’s Ministry of Foreign Affairs on Monday reportedly denied that talks were scheduled for the next few days. They added that the visit of the Iranian technical team this week was not related to the US officials visiting the country.
US special envoys Jared Kushner and Steve Witkoff arrived in Doha on Tuesday. A Qatari government spokesman said they would meet with mediators, not directly with the Iranians.
The mixed messages seem to underscore the fragility of the interim peace deal reached by the US and Iran earlier this month.
The two countries signed a 14-point cooperation agreement on June 17 to end the conflict that has severely disrupted global oil flows in the crucial Strait of Hormuz.
Located in the gap between Oman and Iran, the Strait of Hormuz is seen as one of the world’s most important energy bottlenecks. A small waterway usually carries about 20% of the world’s oil volume.
‘The situation can change very quickly’
Energy analysts said they were surprised by the selloff in the oil market, noting that it was more intense than many expected.
“The price action in recent weeks shows the market treating this temporary agreement between the US and Iran as a permanent agreement. This is not true, and as we have seen in the last four months, the situation can change very quickly,” said ING strategists in a research note published on Monday.
“It took long enough to agree on a temporary ceasefire. Reaching a permanent agreement that addresses the nuclear issue within 60 days would be very promising. Of course, there is always the possibility of the ceasefire being extended, which would kick the can down the road,” they added.
