Brent tops $72 on Middle East optimism

July 03, 2026 (MLN): Oil prices traded modestly higher during Asian trading on Friday, as investors cautiously welcomed diplomatic efforts aimed at easing tensions between the United States and Iran ahead of the extended U.S. Independence Day holiday weekend.

Currently, Brent crude futures is up, 2.05%, at $72.28 per barrel, according to data by Mettis Global. 

West Texas Intermediate (WTI) crude futures is up by $0.35, or 0.51%, to $69.04 per barrel by [09:50 am] PST.

Despite the slight rebound, crude benchmarks remained near their lowest levels since before the U.S.-Israel conflict involving Iran escalated earlier this year.

On a weekly basis, Brent crude was little changed with a marginal 0.02% decline, while U.S. West Texas Intermediate (WTI) was up 0.12%, marking one of the calmest trading weeks for oil in several months, according to CNBC.

Market sentiment remained balanced between optimism over ongoing peace initiatives and uncertainty over whether the fragile diplomatic progress would translate into lasting stability across the region.

Supply concerns also continued to ease as energy shipments through the Strait of Hormuz resumed.

The strategic waterway, which normally handles around one-fifth of global oil and liquefied natural gas trade, has seen improving traffic following recent developments.

Showing the recovery in regional exports, Kuwait increased crude oil production to 1.65m barrels per day (bpd) in June, up sharply from 580,000 bpd in May, according to a Reuters report citing a source familiar with the matter.

The increase came after the interim peace understanding between the United States and Iran encouraged higher exports from the OPEC producer.

Meanwhile, shipping activity also strengthened, with at least five supertankers transporting a combined 10m barrels of Saudi crude passing through the Strait of Hormuz.

Saudi Aramco also reportedly shifted to spot pricing for some Asian cargoes to accelerate sales, according to trade sources and shipping data.

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