US-Iran talks impact oil prices.

Photo: Collected

​News Desk: Oil prices fell for the third consecutive day following Qatar’s announcement of progress in indirect talks between Iran and the United States regarding the Strait of Hormuz issue. On Thursday (July 2), oil prices in the international market dropped by nearly 1 percent. Source: Geo News.

​In the global market, Brent crude oil prices fell by 77 cents (1.1 percent) to settle at $70.80 per barrel. At the same time, US West Texas Intermediate (WTI) crude oil prices decreased by 84 cents (1.2 percent) to stand at $67.74.

​The previous day, prices for both types of oil had also dropped by more than 1 percent, reaching their lowest levels in the last four months.

​On Thursday, a spokesperson for Qatar's Ministry of Foreign Affairs stated on the social media platform X that "positive progress" had been made in discussions regarding the memorandum of understanding reached in June to halt hostilities.

​However, no major breakthrough toward establishing a permanent peace has been observed between the two sides yet.

​According to analysts, oil supplies continue to flow as the Strait of Hormuz remains open. This has sparked fears of oversupply in the market and is driving down prices due to increased competition.

​On the other hand, it is anticipated that OPEC+ countries, in their upcoming meeting this Sunday, might agree to further increase production targets starting from August.

​Investment firm UBS stated that it lowered its Brent oil price forecast due to the Iran-US understandings and the increase in oil transit through the Strait of Hormuz.

​They slashed the price per barrel by $25 for the September quarter and by $10 for the December quarter. However, they believe that the risk of prices rising again in the long term still remains.