Oil Holds Steady With Focus Turning to Iran Talks, OPEC+ Plans
Oil steadied after US President Donald Trump said his maximum pressure campaign on Iran will continue.
West Texas Intermediate was close to $65 after adding 0.9% Wednesday, while Brent traded near $68. Trump said he’s “not giving up” on the strategy that includes targeting Tehran’s petrodollars, after earlier comments appeared to undermine the approach. He also flagged talks with the Iranian side next week.
President Donald Trump says he is “not giving up” a maximum pressure campaign on Iran despite saying earlier China can now continue to purchase oil from Iran.
Oil capped the biggest two-day decline since 2022 at the start of the week after Israel and Iran agreed to a truce, easing concerns over potential disruptions to energy supplies from the Middle East. Trump said the conflict was effectively “over” following the US bombing of Iranian nuclear sites.
The market will now likely switch its attention to an OPEC+ meeting planned for July 6 that will decide on production policy for August. Russia is open to another output hike if the alliance deems an increase to be necessary, according to a person familiar with the matter.
“Markets appear to assess that geopolitical risks have subsided significantly, though the path forward still could be rocky,” said Francesco Martoccia, an analyst at Citigroup Inc. “The fundamental bearish backdrop for oil, especially post 3Q ’25, could come back into focus even as OPEC+ sets up to meet in early July to decide on how much oil to bring back in August.”
At a news conference on Wednesday, Trump indicated that US financial penalties are doing little to stop China from buying Iran’s supplies.
“If they’re going to sell oil, they’re going to sell oil,” Trump said. “China is going to want to buy oil. They can buy it from us. They can buy it from other people.”
US government data, meanwhile, showed crude inventories dropped for the fifth straight week, shrinking by 5.84 million barrels to an 11-year seasonal low. Stockpiles at the storage hub at Cushing, Oklahoma, also declined, slipping for a third week to the lowest level since February.
Brent for August settlement gained 0.2% to $67.80 a barrel at 8:38 a.m. in New York.
WTI for August delivery climbed to $65.10 a barrel.
Source : Bloomberg
