Oil falls over 1% as markets await outcome of Iran-US talks, US stocks data 

By Seher Dareen and Mohi Narayan

LONDON, July 1 (Reuters) - Oil prices fell much than 1% connected Wednesday arsenic talks betwixt Iran and the U.S. aimed astatine reaching a last ‌agreement to extremity their warfare continued and the marketplace awaited information from the U.S. regarding ‌stock draws.

Brent futures fell $1.14, oregon 1.6%, to $71.81 a tube astatine 0859 GMT, portion U.S. West Texas Intermediate crude was down $1.11, ​or 1.6%, to $68.39 a barrel.

"Stuttering talks betwixt the U.S. and Iran are raising concerns of caller proviso disruptions. On the different hand, investors are assured that immoderate issues are hindering negotiations volition beryllium resolved soon," said PVM Associates expert Tamas Varga.

"All successful all, the downside bias is intact, hard information successful the signifier of ‌stock depletion oregon the re-closure of ⁠the strait mightiness change the prevailing mood."

Indirect method talks betwixt the United States and Iran are nether mode successful Doha with Qatar and Pakistan serving arsenic ⁠mediators, a root with nonstop cognition of the discussions told Reuters connected Wednesday.

U.S. President Donald Trump's son-in-law Jared Kushner and envoy Steve Witkoff arrived successful Doha for what the White House described arsenic "high level" talks connected Tuesday. ​But ​Iran and big Qatar said they would conscionable with ​mediators alternatively than the Iranians themselves.

Brent fell ‌by astir $45 a tube successful the 2nd 4th of this year, its largest quarterly nonaccomplishment since the planetary fiscal situation successful 2008. U.S. crude futures, meanwhile, fell by astir $31, their largest quarterly nonaccomplishment since 2020, erstwhile the COVID-19 pandemic crushed planetary lipid demand.

The declines followed advancement toward ending the Middle East conflict, aft crisp gains successful March triggered by the outbreak successful hostilities.

Following 5 consecutive monthly increases, analysts person ‌cut their 2026 lipid terms forecasts for the archetypal ​time since the Iran warfare began, arsenic the reopening of ​the Strait of Hormuz eased concerns implicit prolonged ​supply disruptions, a Reuters canvass showed.

Tanker postulation done the captious waterway has started ‌to recover, with U.S. Vice President JD ​Vance claiming that lipid flows ​through the strait had been restored to pre-war levels.

Meanwhile, markets are awaiting authoritative U.S. lipid banal information from the Energy Information Administration, which volition beryllium released astatine 10:30 a.m. EDT (1430 GMT) ​on Wednesday. U.S. crude lipid inventories ‌fell again past week, marketplace sources said, citing information from the American Petroleum Institute ​released connected Tuesday. [API/S]

(Reporting by Mohi Narayan successful New Delhi and Georgina McCartney successful Houston; ​Editing by Shri Navaratnam, Kevin Buckland and Joe Bavier)