NEW YORK: Oil prices fell roughly two per cent on Wednesday to their lowest levels since February as optimism over US-Iran talks allayed supply concerns after US President Donald Trump said meetings in Qatar had gone well.

Brent futures were down $1.69, or 2.3pc, to $71.26 a barrel at 1:41pm ET (1741 GMT). US West Texas Intermediate crude was down $1.31, or 1.88pc, at $68.19 a barrel. Both benchmarks were at their lowest levels in more than four months.

“The negotiations that are currently taking place in Qatar are perceived as being positive (and) that has allowed prices to drift further,” Saxo Bank analyst Ole Hansen said.

“There is a chance that we could see even lower prices.” Trump said on Wednesday the US was getting along very well with Iran and that recent meetings in Qatar went well. The US and Iran held technical talks in Doha as they seek to agree on the flow of shipping through the Strait of Hormuz and secure a lasting ceasefire, a source with direct knowledge of the talks and an Iranian official said.

The US and Iran have sparred publicly over the meaning of the interim pact, exchanging military strikes over the past week. “There’s more optimism as more oil goes through the Strait of Hormuz,” said Phil Flynn, senior analyst for Price Futures Group.

“The market is signalling that once we get past this, the gloves are going to come off and we’re going to probably produce more oil in the world than we ever have.”

Tanker traffic through the strait has started to recover, with US Vice President JD Vance saying oil flows through the waterway had returned to pre-war levels, without citing figures.

Published in Dawn, July 2nd, 2026