Oil Falls for Third Day as Hormuz Flows Recover, US-Iran Talks Progress

Oil fell for a third straight session as traffic through the Strait of Hormuz recovered and optimism grew over progress in US-Iran talks.

On July 1, Bloomberg reported that West Texas Intermediate traded near $68 a barrel, while Brent settled below $72 a barrel in the previous session. Crude had already dropped about 3% over the prior two trading days and remained under pressure.

The US government said crude flows through the Strait of Hormuz exceeded 10 million barrels a day. That suggests Iran has limited ability to choke off global oil supply by blocking the waterway.

President Donald Trump said indirect negotiations between the US and Iran were making progress.

Qatar said the next round of talks would be held as soon as possible after funeral proceedings for Iran's supreme leader, Ali Khamenei, are completed. Iran's state media reported that the funeral will begin on July 4 and continue for several days.

Oil has kept falling even after posting its worst quarter since 2020. Despite recent military clashes between the US and Iran, crude shipments through the Strait of Hormuz have continued. The United Arab Emirates, in particular, has restored oil exports to prewar levels through tanker operations and pipelines.