Oil prices rose on Wednesday after uncertainty surrounding Iran-US negotiations renewed concerns about Middle East oil supplies. Investors remained cautious as diplomatic efforts failed to produce direct talks between Washington and Tehran.
Brent crude futures gained 33 cents, or 0.45%, to $73.28 per barrel. Meanwhile, US West Texas Intermediate crude rose 34 cents, or 0.49%, to $69.84 per barrel during early trading.
Market analysts said uncertainty over shipping routes and regional stability continued supporting oil prices. Consequently, traders remained focused on developments surrounding negotiations and energy exports.
Diplomatic Deadlock Raises Supply Concerns
Vandana Hari, founder of Vanda Insights, said the Strait of Hormuz had reopened unevenly. However, she noted that shipping conditions remained unpredictable and lacked full transparency.
Hari added that markets would likely wait for a clearer understanding between Washington and Tehran. Until then, traders may hesitate before expecting oil prices to resume their recent downward trend.
On Tuesday, US President Donald Trump’s envoy Steve Witkoff and adviser Jared Kushner arrived in Doha for high-level discussions. However, Iran and host nation Qatar said Iranian representatives would only engage through mediators instead of direct meetings.
Earlier Price Declines Followed Easing Regional Tensions
Brent crude recorded its largest quarterly decline since 2008 between the first and second quarters. During that period, prices fell by around $45 per barrel.
Similarly, US crude futures dropped by approximately $31 per barrel. That marked their biggest quarterly decline since 2020, when the COVID-19 pandemic severely weakened global fuel demand.
Those earlier losses followed signs of easing tensions in the Middle East. Nevertheless, the latest diplomatic setback revived concerns about potential supply disruptions, pushing oil prices higher once again.
