Oil Pulls Back as U.S. Envoys Arrive in Doha for Iran Talks

WTI crude slipped Tuesday after U.S. negotiators Jared Kushner and Steve Witkoff reached Doha for talks with Iran. Qatar, the mediator, said the U.S. and Iranian officials would not meet directly. Traffic through the Strait of Hormuz has increased since Iran's attack on ships, reports show. The market is trimming the supply-disruption premium that built up during the escalation.

The arrival of senior envoys signals the situation has cooled. Key issues remain unresolved. Iran and Oman want to charge fees for passage through the strait. The U.S., European Union and Gulf countries oppose that. Iran also wants its frozen assets back; Qatar said no funds have been transferred. The nuclear program and the Hezbollah standoff add two more layers. Independent trader Vladimir said there is little chance of a near-term deal. Traders are betting oil will continue to flow through the Strait of Hormuz.

Friday's selloff brought WTI back to the same war-gap zone tested in early March, as covered in WTI Tests $70 War Gap, Analyst Eyes $80 Summer Range. The current test is a similar stress point. Vladimir placed immediate WTI support at $70.50 to $71.00. A break below $70.50 opens the path to $66.50–$67.00. The RSI is close to the oversold territory. That leaves room for further downside momentum in the near term.

Brent oil held above its own support at $72.00 to $72.50. A successful test of that zone would open the way to $67.00–$67.50. On the upside, Brent needs to clear $75.00 to build momentum toward $77.00–$77.50.