Oil little changed as Qatar sees U.S.-Iran progress

Oil prices were little changed Thursday after Qatar said the U.S. and Iran made “positive progress” during indirect talks.

International benchmark Brent crude futures with September delivery added 23 cents to close at $71.80 per barrel. U.S. West Texas Intermediate futures with August delivery gained 11 cents to settle at $68.69.

Mediators from Qatar and Pakistan concluded separate meetings with U.S. and Iranian negotiators in Doha on Wednesday, said a spokesperson for Qatar’s foreign ministry on social media. “Positive progress” was made on issues related to the memorandum of understanding, the spokesperson said.

President Donald Trump told reporters earlier Wednesday that negotiations with Iran were going well. “They’ve had very good meetings and we’ll see,” Trump said.

Indirect talks between the U.S. and Iran began in Doha on Tuesday, with U.S. special envoy Steve Witkoff and Jared Kushner holding talks through Qatari mediators rather than meeting Iranian officials face-to-face.

The renewed diplomatic push follows a flare-up in hostilities over the weekend that threatened a 60-day ceasefire between the two countries. Iran attacked two commercial vessels, prompting retaliatory U.S. strikes on targets inside Iran.

Investors are increasingly pricing in the possibility that tensions could ease if negotiations continue to make progress, reducing concerns over potential disruptions to Middle Eastern oil supplies.

ING said the market remains optimistic that oil supplies from the Persian Gulf will normalize despite recent military flare-ups, helping explain why Brent has suffered its worst quarter since early 2020.

Shipping activity through the Strait of Hormuz also appears to be gradually recovering. ING estimates total tanker crossings at around 11 on Tuesday, below last week’s peak of 24, but noted inbound traffic has started to pick up, suggesting shipowners are becoming more confident about returning vessels to the Persian Gulf.