Oil prices drop below $71 amid US-Iran diplomacy

July 02, 2026 (MLN): Oil prices declined on Thursday as easing fears over Middle East supply disruptions weighed on the market, with investors taking heart from signs of headway in indirect U.S.-Iran negotiations.

Currently, Brent crude futures is down, 2.96%, at $70.82 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $1.75, or 2.52%, to $67.79 per barrel by [09:18 am] PST.

Comments from President Donald Trump that talks with Tehran in Qatar were progressing well, catered to the fall.

Iran's denuclearization was said by Trump to be moving along smoothly, with the meetings described as very productive, according to CNBC.

Qatari mediators have been facilitating the indirect negotiations since Tuesday in Doha, where U.S. special envoy Steve Witkoff and Jared Kushner have engaged with Iranian officials without direct face-to-face contact.

The diplomatic engagement follows a weekend escalation that put a 60-day ceasefire between the two nations at risk, after Iran struck two commercial vessels and drew retaliatory U.S. strikes on targets within its territory.

Market sentiment has increasingly reflected expectations of de-escalation as the talks advance, with traders scaling back the risk premium tied to potential supply disruptions from the region.

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