U.S.-Iran technical talks continue as strikes pressure Middle East oil outlook

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US-Iran talks on Middle East oil

Highlights

U.S. continues 'technical talks' with Iran, maintaining a diplomatic channel despite renewed airstrikes and Trump declaring the ceasefire 'over' at the NATO summit.
U.S. military launches new strikes on Iran and Treasury withdraws an oil waiver, escalating tensions over Iran's actions in the Strait of Hormuz and impacting sanctions policy.
Brent crude futures for September fall to $76.3 per barrel and U.S. WTI crude trades at $71.87, as heightened Middle East tensions weigh on oil prices.

Diplomatic channel stays open amid ceasefire strain

As reported by CNBC, citing MS Now, a U.S. official says Washington will continue “technical talks” with Iran and remains committed to seeking a solution to the conflict despite the recent exchange of airstrikes.

The official says President Donald Trump has made his position clear and describes Iran’s attacks on commercial vessels as “acts of terrorism.” The same official tells MS Now that the memorandum of understanding between the two countries is performance-based, and that Iran’s actions amount to “failed performance at an unacceptable level,” while adding that talks with Tehran will continue.

Those remarks follow Trump’s comments at the NATO summit in Ankara, Turkey, where he says the ceasefire with Iran is “over.” On his way back from the summit, Trump also says Iran has called to make a deal to halt the escalating hostilities, but questions whether Tehran is worthy of an agreement and whether it would honor one.

Oil trade and regional security remain in focus

Iranian officials accuse the U.S. of violating the MOU, citing breaches related to “Iranian adjustments” in the Strait of Hormuz, persistent threats of further strikes and the reinstatement of oil sanctions.

The U.S. military conducts renewed offensive strikes against Iran in retaliation for attacks on three commercial vessels transiting the Strait of Hormuz. The U.S. Treasury Department subsequently withdraws a waiver that had allowed Iran to sell its oil, tying the confrontation more directly to energy flows and sanctions policy.

Oil prices are marginally lower on Thursday evening despite the heightened tensions. Brent crude futures for September delivery ease to $76.3 per barrel, while U.S. West Texas Intermediate crude futures trade at $71.87.

In our earlier article on elevated WTI prices amid renewed U.S.–Iran tensions, we explained how a rising geopolitical risk premium was supporting crude on worries about potential disruptions near the Strait of Hormuz. We also noted that mixed U.S. inventory signals were adding to volatility even without a confirmed interruption in oil flows.

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