Iran declined to meet with US envoys Jared Kushner and Steve Witkoff in Doha on Tuesday, June 30. As a result, oil prices rose as hopes for a quick ceasefire in the prolonged conflict faded significantly.
Instead of Iranian representatives, Qatar’s prime minister held talks with the Americans in the Qatari capital. Iranian Foreign Ministry representatives emphasized that mine-clearing in the Strait of Hormuz is already covered by the June memorandum of understanding. Therefore, the process requires no outside intervention, Al Jazeera reports.
Why Tehran Is in No Hurry to Go to Doha
Alex Vatanka, a senior fellow at the Middle East Institute, explained that Iranian Foreign Minister Abbas Araghchi and Parliament Speaker Mohammad Bagher Ghalibaf fear that a visit to Doha could backfire on them at home. Both politicians want to wait for tangible steps to be taken under the June memorandum signed on June 17.
“Tehran is asking: Where is the actual implementation of the memorandum? Why are Iranian assets still frozen? Why does Israel remain in Lebanon?” Alex Vatanka said.
Ghalibaf stated that Tehran would not discuss a final agreement until Washington fulfilled all the terms of the memorandum. These include unfreezing Iranian assets and ending the escalation in Lebanon. The memorandum was signed on June 17, but Iran claims the US has not yet fulfilled its obligations.
Oil Market Rises Amid Persistent Risks
On Tuesday, Brent crude rose to $74.75 per barrel, but by Wednesday morning, prices had corrected to $73.29 as market participants closely monitored Iran’s negotiations with American envoys. A week earlier, Brent had declined slightly after supertanker transit through the Strait of Hormuz resumed.
US Vice President J.D. Vance noted that tanker traffic in the Strait of Hormuz has returned to pre-war levels. He said Iran would not be able to collect tolls for passage through the strait.
“The situation will not end with Iran collecting duties from ships passing through the Strait of Hormuz,” J.D. Vance clarified.
US oil inventories fell by 6.1 million barrels last week. In May, the International Energy Agency warned that the global market would remain in deficit until the third quarter of 2026.
Brent fell by approximately $45 per barrel between the first and second quarters, marking its strongest quarterly correction since 2008. WTI fell by approximately $31 over the same period, its largest drop since 2020. Both benchmark crudes reversed course after tensions in the region eased following the latest escalation, giving back the earlier price gains triggered by the Iranian strike.
