Oil Falls Below $71 as US-Iran Talks Improve and Strait of Hormuz Shipping Recovers
Global oil prices fell below $71 per barrel as markets reacted to ongoing Strait of Hormuz developments and reports of “positive progress” in US-Iran negotiations held in Doha.
Brent crude dropped about 1.13% to $70.76, marking a third consecutive day of decline as shipping through the strategic waterway increased and Gulf exports recovered.
A spokesperson for Qatar’s Foreign Ministry said the United States and Iran had made “positive progress” in talks aimed at reviving a nuclear agreement and reopening the Strait of Hormuz. US officials also signalled cautious optimism about diplomatic progress.
However, tensions remain. Iran’s military command warned it would respond forcefully to vessels deviating from approved routes in the strait, raising concerns about renewed disruption to global shipping.
Despite these warnings, Gulf producers have increased exports. Saudi Arabia has boosted shipments through the strait, while the UAE has significantly raised output, with exports reaching their highest levels in years. Overall flows through the waterway have recovered to over 10 million barrels per day, though still below pre-war levels of 18–19 million.
The rebound follows a partial easing of disruptions that began after conflict escalated earlier this year, when attacks and restrictions severely reduced tanker traffic and drove oil prices above $100 per barrel.
Negotiations between Washington and Tehran are expected to continue after a pause linked to official mourning events in Iran, with both sides still working toward a broader agreement covering sanctions relief, security arrangements, and maritime stability.
