ISLAMABAD: Oil prices fell for a third straight session on Thursday, dropping nearly two percent to a four-month low as concerns over potential supply disruptions through the Strait of Hormuz eased after mediator Pakistan announced “positive progress” in indirect negotiations between the United States and Iran in Doha.
Brent crude futures were down $1.24, or 1.73 percent, at $70.33 a barrel by 1157 GMT. US West Texas Intermediate (WTI) crude fell $1.38, or 2.01 percent, to $67.20 a barrel, its lowest level since late February.
The decline came as Pakistan-led diplomatic efforts to consolidate a ceasefire between Washington and Tehran appeared to advance, reducing fears of disruption to one of the world’s most important oil shipping routes.
Pakistan, Qatar report progress
Pakistan’s Foreign Office spokesperson, Tahir Andrabi, said Pakistani and Qatari mediators had concluded separate meetings with the US and Iranian delegations in Doha, building on the outcomes of last month’s Lake Lucerne Summit and advancing implementation of the Islamabad Memorandum of Understanding (MoU).
“The parties have agreed to continue discussions over the coming period, with the next meeting to be scheduled at the earliest possible time following the funeral processions of Iran’s former Supreme Leader,” Andrabi said in a post on X.
PR No. 160/2026
Qatari and Pakistani Mediatiors Meetings with the US and Iranian Negotiations in Doha Today
🔗⬇️ pic.twitter.com/BXTW9RgiLY
— Ministry of Foreign Affairs – Pakistan (@ForeignOfficePk) July 2, 2026
Qatar’s Foreign Ministry also reported progress in the negotiations.
Foreign Ministry spokesperson Majed Al Ansari said Pakistani and Qatari mediators had concluded separate meetings with US and Iranian negotiators, making “positive progress” on issues related to the Islamabad MoU while building on understandings reached at the Lake Lucerne Summit.
He said both sides had reaffirmed their commitment to continue negotiations, with the next round expected after the July 9 funeral processions for Iran’s late Supreme Leader, Ayatollah Ali Khamenei.
Qatar & Pakistan mediators concluded separate meetings with the US & Iranian negotiators in Doha today, with positive progress made on issues related to the Islamabad Memorandum of Understanding, building on the outcomes of the Lake Lucerne Summit. The parties agreed to continue…
— د. ماجد محمد الأنصاري Dr. Majed Al Ansari (@majedalansari) July 1, 2026
The progress in diplomacy helped calm markets after weeks of concern that renewed tensions could disrupt traffic through the Strait of Hormuz, a critical route for global energy supplies.
According to shipping data, at least five supertankers carrying around 10 million barrels of crude loaded had exited the strait.
Building on Islamabad MoU framework
The Islamabad Memorandum of Understanding, brokered by Pakistan and Qatar, established a 60-day ceasefire, called for the reopening of the Strait of Hormuz and set out a roadmap toward a comprehensive agreement covering Iran’s nuclear programme, sanctions relief and regional security.
The diplomatic process suffered an early setback after clashes in and around the Strait of Hormuz, but Wednesday’s talks suggested both sides remain committed to implementing the agreement through continued mediation.
Iran’s Deputy Foreign Minister Kazem Gharibabadi, who headed Tehran’s delegation, said the talks had concluded positively and that both sides had agreed to establish a communication channel by Thursday to report and document alleged violations of the memorandum.
He said the negotiations also addressed the release of frozen Iranian assets, adding that officials reviewed the use of an initial $6 billion and agreed that essential goods for Iran would be purchased under the arrangement.
Pakistan intensifies diplomatic efforts
Meanwhile, Pakistan’s Foreign Office (FO) spokesperson Tahir Andrabi said that Islamabad has intensified its diplomatic engagement with key regional and international stakeholders to facilitate the implementation of the Islamabad MoU between the US and Iran.
Addressing a weekly briefing on Thursday, spokesperson Tahir Andrabi said Pakistan and Qatar engaged with the relevant parties in Doha yesterday and held separate meetings with the US and Iran negotiators in Doha.
“I would like to highlight three specific points about these Doha talks. One, there was positive progress made on issues related to the different aspects of the Islamabad MOU, building on the Lake Lucerne summit. Two parties agreed to continue discussion over the coming period,” he said.
He added Pakistan will continue to play a facilitative and mediatory role in the negotiation process, along with our Qatari partners.
Andrabi further said Deputy Prime Minister and Foreign Minister Ishakq Dar remained engaged with the foreign ministers and senior leaders of Saudi Arabia, China, Bahrain, Iran, the United Kingdom and the European Union.
Pakistan PM Sharif to visit Iran, Turkiye
Tahir Andrabi announced that Prime Minister Shehbaz Sharif will visit Iran and Turkiye from July 3 to July 5 to strengthen bilateral ties.
“Prime Minister Mohammad Shahbaz Sharif will travel to Iran first to participate in the ceremony of the late Supreme Leader, Ayatollah Ali Khamenei,” he added.
PM Sharif will then visit Istanbul at the invitation of Turkiye’s President Recep Tayyip Erdogan, Andrabi said.
He added that the premier will “hold discussions on the entire gamut of bilateral relations with a special focus on giving impetus to bilateral trade and investment cooperation between the two brotherly countries”.
“The leadership meeting will also reflect on issues concerning regional peace and security.”
The prime minister will also address a business conference hosted by Pakistan to “spotlight Pakistan’s trade and investment potential in priority areas, including SEZs (special economic zones), energy, trade, IT and privatisation sectors”, Andrabi said.
He noted that the conference would bring together leading Turkish businessmen and investors alongside senior officials, dignitaries and other distinguished participants from the business community.
Pakistan, Saudi Arabia hail positive progress
Foreign Ministers of Pakistan and Saudi have expressed satisfaction on the positive progress made during the indirect negotiations between the United States and Iran in Doha.
During a telephone conversation between the Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar and Foreign Minister Prince Faisal bin Farhan Al Saud, the two leaders discussed the regional situation especially the recent round of mediation in Doha, according to Foreign Office on Thursday.
“They expressed satisfaction on the positive progress made during this negotiation and hoped that the discussions would continue in near future,” it said.
Prince Faisal appreciated Pakistan’s efforts and steadfast commitment to the implementation of the Islamabad MoU and its continued role in advancing dialogue and promoting lasting peace in the region.
Trump sees progress
US President Donald Trump also struck an optimistic tone, saying diplomacy was moving forward despite recent exchanges of fire between the two sides.
“As far as things are going, the denuclearisation of Iran is moving along well,” Trump told reporters before departing Washington.
“We hit them very hard… but we’re getting along very well.”
