Oil prices fell in June as traders focused on the prospect of upcoming talks between the U.S. and Iran in Doha:
International benchmark Brent crude futures for August delivery dipped to $72.92 per barrel, marking a roughly 21% decline in June, its largest monthly drop since March 2020:
U.S. West Texas Intermediate futures for August delivery fell 1.8% to $69.50:
U.S. President Donald Trump stated that talks would occur in Qatar's capital, although a spokesperson for Iran's Foreign Ministry denied this:
This mixed messaging highlights the fragility of an interim peace deal reached between the U.S. and Iran earlier this month:
The two countries struck a 14-point memorandum of understanding on June 17 to pause fighting that had severely disrupted global oil flows:
“Situation can change very quickly”
Energy analysts note that the pace of the sell-off in the oil market has been more aggressive than expected:
“The price action in recent weeks reflects a market treating this temporary ceasefire between the U.S. and Iran as a permanent deal, which is clearly not the case,” strategists at ING said:
