WTI crude slips below $68.00 as progress in US-Iran peace talks weighs on prices.

WTI crude continues to trade lower below the $68.00 level as investors remain optimistic that diplomatic negotiations will bring an end to the conflict between the United States and Iran. Reports from Qatari mediators indicate that talks held in Doha this week have made meaningful progress, easing concerns over potential supply disruptions. Adding to the bearish pressure, Reuters reported that OPEC+ is considering raising output by 188,000 barrels per day in August, further improving the global supply outlook.

Crude oil prices continued to move lower on Thursday as signs of progress in diplomatic efforts between the United States and Iran reduced concerns about potential supply disruptions. West Texas Intermediate (WTI), the US benchmark crude grade, slipped below the $68.00 mark and was trading around $67.80 at the time of writing, its lowest level since the conflict began in February.

According to Qatar’s Foreign Ministry, indirect negotiations held in Doha earlier this week produced encouraging results. Officials stated that both sides made headway on matters related to the memorandum that ended hostilities in June and were building on discussions initiated during a recent summit in Switzerland.

Uncertainty Remains Despite Diplomatic Progress

While reports suggest the talks are moving in a constructive direction, key details remain limited. US President Donald Trump said the negotiations yielded progress regarding potential restrictions on Iran’s nuclear program, adding that efforts toward denuclearization were advancing positively. However, US Vice President JD Vance indicated that nuclear-related issues would likely be addressed in future discussions.

Meanwhile, Iran’s Deputy Foreign Minister Kazem Gharibabadi stated that both parties had agreed to establish a communication mechanism to monitor and report any violations of the existing memorandum of understanding.

A major source of uncertainty remains the Strait of Hormuz. Although shipping activity through the vital waterway has increased since the ceasefire, traffic levels remain well below pre-conflict norms, suggesting that full normalization has yet to occur.

On the supply side, oil prices also came under pressure after reports that the OPEC+ alliance is considering raising production quotas by 188,000 barrels per day in August. Expectations of additional supply entering the market have further weighed on crude prices, reinforcing the bearish sentiment driven by easing geopolitical risks.