West Texas Intermediate (WTI) crude oil prices continued their downward trend on Thursday, dropping below the $68.00 mark to trade at $67.80, the lowest level since the war began in February [1]. This decline followed reports from Qatari mediators indicating 'positive progress' in indirect peace talks between the US and Iran, which took place in Doha on Tuesday [1]. Qatar’s Foreign Ministry spokesperson stated that the two countries made advances on issues related to the memorandum that ended hostilities in June and are building on outcomes from a previous summit in Switzerland [1].
While the specifics of the peace talks remain unclear, US President Donald Trump commented that there was progress regarding potential limits to Iran’s nuclear program and that 'denuclearization of the country is moving along well.' However, US Vice President JD Vance noted that the nuclear issue would be addressed at a later stage [1]. Iran’s Deputy Foreign Minister, Kazem Gharibabadi, confirmed that the parties agreed to establish a 'communication channel' to report breaches in the memorandum of understanding [1].
The status of the critical Strait of Hormuz remains uncertain, though traffic through the corridor has increased significantly, fueling investor optimism. Despite this improvement, the current traffic is still well below the pre-conflict level of 160 ships crossing the waterway [1].
Additionally, Reuters reported that OPEC+ is planning to increase its supply quotas by 188,000 barrels per day in August, which is also contributing to the downward pressure on crude oil prices [1].
CONCLUSION
WTI crude oil prices have fallen sharply amid signs of progress in US-Iran peace talks and news of an upcoming OPEC+ supply increase. The combination of easing geopolitical tensions and higher expected supply is weighing on market sentiment, resulting in a significant price decline.