Oil prices dropped on Thursday, July 2, 2026, down for a third consecutive day, after Qatar said the United States and Iran had made progress in indirect talks focused on the Strait of Hormuz.
The Qatar Foreign Ministry said in a statement that the discussions produced “positive progress” on issues related to the memorandum that halted the war in June.
There was, however, no sign that the two sides had made headway towards a lasting peace.
The ministry added that the next meeting between Iran and U.S. negotiators will take place after funeral processions for Iran’s late Supreme Leader Ayatollah Ali Khamenei on July 9.
Brent futures lost 77 cents or 1.1% to $70.80 a barrel by 0256 GMT, while U.S. West Texas Intermediate crude fell 84 cents or 1.2% to $67.74 a barrel.
Stock market investors lose N2.39trn after one-day rally
Both benchmarks also fell more than 1% in the previous session, hitting their lowest levels in four months.
Haitong Futures said in a note that as the strait, which handled one-fifth of global oil supply before the Middle East war, stays open and crude oil flows out, there are growing expectations of oversupply and competition for market share is pushing prices down.
Sources also told Reuters on Wednesday that OPEC+ oil-producing countries will likely agree to a further hike in their output targets from August when they meet on Sunday.
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