World crude oil prices recorded a slight increase in Tuesday's trading session as investors took a wait-and-see attitude. Market participants' main focus is now on the expected implementation of the latest round of diplomatic talks between the United States (US) and Iran scheduled to take place in Doha, Qatar.
Brent crude oil futures for August contract rose 0.2% to $73.26 per barrel, while the US benchmark West Texas Intermediate (WTI) also rose 0.44% to trade at $71.06 per barrel. Despite this small increase, both energy commodity contracts remain on track for their worst monthly losses for June with a drastic fall of 20%.
This price movement projection was triggered by US President Donald Trump's statement claiming that Tehran had requested a formal meeting in Doha after the two sides were involved in a missile attack incident over the weekend. However, the Iranian Foreign Ministry denied the allegations and insisted that no bilateral meeting had been arranged with the White House delegation.
To ease the communication tussle, US special envoys Jared Kushner and Steve Witkoff reportedly arrived in Qatar on Tuesday. The host Qatari government confirmed that the US delegation would only hold closed-door meetings with international trade mediators, rather than face-to-face meetings with the Iranian technical delegation.
The series of contradictory statements demonstrates the fragility of the 14-point draft memorandum of understanding (MoU) signed on June 17 to reopen the commercial route through the Strait of Hormuz. Strategists have warned that the current oil market is too optimistic about the temporary ceasefire as a permanent solution, while the risks to the logistics chain in the strait, which controls 20% of the world's oil supply, could change at any time.
