Crude oil below $71 after Trump says Iran ties 'getting along very well'

Investors continued to track energy rates closely in early trade on Thursday as benchmark rates sank below $71 per barrel after US President Donald Trump's remarks the previous day that Washington and Tehran were "getting along very well" after America "hit them (Iran) very hard", according to foreign media reports.

Crude oil prices were last seen trading in the $70-71 per barrel range in early Asian trade on Thursday, with the commodity continuing to trade off recent war premiums as investors pin hopes on long-lasting peace.

Brent was trading down by 81 cents -- or 1.1 per cent -- at $70.8 a barrel at the last count, while West Texas Intermediate was quoting at $67.8 a barrel, down 1.2 per cent. Globally, investors are tracking updates on the latest US-Iran discussions amid growing hopes for a lasting truce, with benchmark crude oil rates now 44 per cent below a peak of around $126 a barrel during the West Asia conflict.

'Very good meetings, we'll see,' says Donald Trump after Qatar talks

The 47th Americna president suggested that negotiations between Washington and Tehran were moving in a positive direction. Expressing optimism about the ongoing diplomatic engagement. he asserted that Tehran's denuclearisation process was "moving along well".

"They've had very good meetings, and we'll see... I think they're (Iran is) fine," he reportedly said.

Teams from Washington and Tehran reportedly concluded two days of rigorous technical-level discussions in Doha on Wednesday, days after Trump claimed that Iran had requested a meeting. The latest round of talks took place roughly two weeks into both sides announcing an interim 14-point agreement.

On Monday, while announcing on social media that talks were due the next day, Trump did not disclose who would represent either side or what specific issues would be discussed.

US Vice President JD Vance reportedly said that the technical matter on the nuclear programme will be addressed later. “Obviously, we're worried about the nuclear issue, we're going to start talking about that," he told reporters.

Trump describes Doha meeting as encouraging

Describing the meetings in Qatar as encouraging, the US president stated that both sides had made encouraging progress during diplomatic engagements in Doha. He maintained that current negotiations focused on ensuring that Iran does not develop nuclear weapons.

When will the next round of talks be held?

Qatar took to social media to announce that the next meeting will take place after funeral processions for ​Iran's late Supreme Leader Ayatollah Ali Khamenei, who is due to be buried on July 9.

The Doha discussions ​produced "positive progress" on issues related to the memorandum that halted the war in June and were "building on the outcomes" of ⁠a summit in Switzerland, a Qatar foreign ministry spokesperson wrote on microblogging site X (formerly Twitter).

Strait of Hormuz remains central to talks

The interim arrangement is widely viewed as an uneasy pause after both sides reportedly agreed on June 28 to halt recent Gulf hostilities and restart diplomatic engagement.

Reports also said Wednesday's technical discussions centred on maintaining commercial navigation through the Strait of Hormuz while working towards a more durable ceasefire between Washington and Tehran. Talks were also seen as part of broader efforts to build on diplomatic contacts established after recent military confrontations.

The US and Iran signed the 14-point Memorandum of Understanding on June 17 aimed at ending four months of conflict. Under the interim arrangement, both sides agreed to cease hostilities and reopen the Strait of Hormuz -- a strategically important waterway that has been central to the West Asia conflict. Normally, the maritime route enables the transit of about one-fifth of global oil and gas supplies. Any disruption to the movement of commercial vessels in the region potentially impacts global energy prices and international trade.

The next meeting will take place after funeral processions for ​Iran's late Supreme Leader Ayatollah Ali Khamenei, who is due to be buried on July 9, Qatar's Foreign Ministry said.

The Doha discussions ​produced "positive progress" on issues related to the memorandum that halted the war in June and were "building on the outcomes" of ⁠a summit in Switzerland, the ministry spokesperson said in a post on X.