Oil prices fell after Iran said it would not meet with U.S. delegates for talks in Qatar.
- Brent crude futures dropped roughly 21% in June, marking its largest monthly decline since March 2020.
- The U.S. and Iran struck a 14-point memorandum of understanding on June 17 to pause fighting that had disrupted global oil flows through the Strait of Hormuz.
Oil prices fell Wednesday after President Donald Trump said U.S. talks with Iran in Qatar are going well.
Brent crude futures, the international benchmark, fell 1.9% to close at $71.57 per barrel. The contract dropped roughly 21% last month, marking its largest monthly decline since March 2020.
U.S. West Texas Intermediate futures lost 1.3% to settle at $68.58. The contract dropped more than 20% in June, reflecting its worst monthly performance since late 2021.
"As far as things are going, the denuclearization of Iran is moving along well," Trump told reporters.
Trump's son-in-law Jared Kushner and U.S. special envoy Steve Witkoff arrived in Doha, Qatar on Tuesday for indirect talks with Iran.
The talks in Qatar come after renewed fighting between the U.S. and Iran over the weekend jeopardized a 60-day truce between the two countries.
Strait of Hormuz traffic
The oil market continues to take an optimistic view on a supply recovery in the Middle East despite recent flare-ups between the U.S. and Iran.
ING strategists noted that tanker vessel movements in the strategically vital Strait of Hormuz still appear limited.
"Admittedly, there has been a slight pickup in inbound tanker traffic, suggesting that shipowners are becoming increasingly confident about moving vessels into the Persian Gulf," they added.
