Oil Prices Edge Higher as Gulf Production Rises and US‑Iran Peace Talks Advance

On 3 July 2026, Brent crude rose 0.24 % to $72.10 a barrel and U.S. WTI rose 0.20 % to $68.83, marking a modest gain ahead of the U.S. Independence Day weekend. Traders showed “cautious optimism” about recent U.S.–Iran diplomatic efforts, waiting for concrete evidence that a peace deal will hold, according to market analyst Tim Waterer.

Production in the Persian Gulf rebounded, with Kuwait’s output jumping to about 1.65 million barrels per day in June from 580 000 bpd in May. At least five Saudi super‑tankers carrying roughly 10 million barrels of crude passed the Strait of Hormuz as shipping through the canal was partially restored under the latest U.S.–Iran agreements. Saudi Aramco shifted to spot‑price sales to accelerate deliveries to Asian buyers, and the futures curve moved into contango, indicating higher prices for longer‑dated contracts.

The market’s modest weekly movement reflects the balance of improving supply flows against the lingering uncertainty of regional tensions.