US-Iran talks advance in Doha as Trump hails progress and oil prices slide

US President Donald Trump said that indirect talks with Iran in Qatar were "making progress", offering a tentative sign that diplomacy was holding after recent exchanges of fire threatened efforts to end the Middle East war.

Iran's Deputy Foreign Minister Kazem Gharibabadi, who led Tehran's delegation, later said the talks had concluded and that the sides had agreed to establish a communication channel by Thursday to report and record violations of their initial memorandum of understanding.

Iran had insisted there would be no direct negotiations in Doha on the deal, which aims to end the war that began with US-Israeli strikes on Iran in late February.

"As far as things are going, the denuclearisation of Iran is moving along well," Trump told reporters before boarding Air Force One.

US President Donald Trump said late on Wednesday that indirect talks with Iran in Qatar were making progress, a tentative sign that diplomacy was holding after recent exchanges of fire threatened efforts to end the Middle East war.

Iran's Deputy Foreign Minister Kazem Gharibabadi, who led Tehran's delegation, later said the talks had concluded and that the sides had agreed to establish a communication channel by Thursday to report and record violations of their initial memorandum of understanding.

Iran had insisted there would be no direct negotiations in Doha on the deal, which aims to end the war that began with US-Israeli strikes on Iran in late February.

"As far as things are going, the denuclearisation of Iran is moving along well," Trump told reporters before boarding Air Force One. "We hit them very hard... but we're getting along very well."

The Qatar discussions, held at a lower level and focused on implementing the memorandum, were meant to "build on the progress made at the Lake Lucerne Summit," a diplomat told AFP on condition of anonymity.

Tehran denied Trump's earlier claim that the talks would be direct, with foreign ministry spokesman Esmaeil Baqaei saying Iran had "no plans for negotiations with the American side at any level over the coming days."

Gharibabadi said the discussions also covered frozen Iranian assets, whose release Tehran has demanded as part of any settlement.

He said officials reviewed the use of part of an initial $6 billion and agreed that goods needed by Iran would be purchased and made available.

US envoys Jared Kushner and Steve Witkoff were not taking part in the technical talks, the diplomat said, after meeting Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani on Tuesday.

Total US production of crude oil and petroleum products increased by 254,000 barrels per day in April to a record 21.84 million barrels per day, according to government data. Crude oil production alone rose by 216,000 barrels per day to 13.93 million barrels per day.

Year-over-year, total production surged by 1.01 million barrels per day or 4.9%. Since the 2008 financial crisis, total US petroleum output has quadrupled. Over the same period, crude oil production has soared +250%.

Global oil prices extended their decline on Thursday morning (July 2, 2026, 8:12 am Tokyo time) as easing geopolitical tensions in the Middle East and the gradual reopening of shipping through the Strait of Hormuz continued to ease concerns over supply disruptions.

According to OilPrice.com, West Texas Intermediate (WTI) crude fell 58 cents, or 0.85%, to $68.00 per barrel.

Murban crude, the benchmark for Middle Eastern exports, posted the steepest decline, tumbling $3.37, or 4.88%, to $65.64 per barrel.

Trading Economics reported that Brent crude — the international benchmark — dropped $1.78, or 2.45%, to $71.162 per barrel as of 8.30am Tokyo.

Commercial shipping through the strategically vital Strait of Hormuz is gradually recovering, but traffic remains significantly below normal levels following the recent US-Iran conflict.

According to MarineTraffic vessel-tracking data, 34 ships transited the strait on Tuesday, marking a modest improvement from the near-standstill seen during the height of hostilities. Even so, the figure remains well below the pre-conflict average of roughly 100 daily crossings, underscoring the lingering caution among shipping companies, insurers and energy traders.

The Strait of Hormuz's reopening became one of the central provisions of the US-Iran Memorandum of Understanding (MOU) signed on June 17, which committed both sides to the immediate resumption of commercial navigation through the waterway as part of broader confidence-building measures aimed at de-escalating tensions.

While traffic is steadily recovering, the latest shipping data suggests the maritime corridor has yet to return to business as usual, highlighting continued concerns over regional security despite ongoing negotiations between Washington and Tehran.

Iranian Deputy Foreign Minister Kazem Gharibabadi announced on Wednesday the conclusion of talks in Doha on implementing the memorandum of understanding between Tehran and Washington on ending the Middle East war, state media reported.

The participants agreed that "a communication channel would be established by tomorrow" (Thursday) to report and record violations of the memorandum, the IRNA state news agency quoted Gharibabadi as saying.

Iran's disappointed World Cup squad returned to a much warmer welcome at Tehran airport on Wednesday than they experienced on arrival in the US for their three group games.

"Iran, Iran!" a crowd of several hundred children, their parents and devoted fans chanted in unison.

Some waved the Iranian national flag while others sported bracelets with the national colours or wore the jersey of "Team Melli" as they feted the squad who had gone so close to reaching the knockout stages for the first time.

They finished third in the group, having drawn all three of their matches, but missed out as one of the eight best third-placed sides on goal difference. 

Day 124: Iran says Qatar talks with US on war MoU concluded

Day 123: Iran says US blockade stopped oil exports completely

Day 122: IRGC Navy spokesperson Akbarzadeh dies in car 'mishap'

Day 121: Iran warns against attacks from regional territory

Day 120: US–Iran ceasefire under strain as drones target Bahrain

Day 119: Lebanon, Israel, US sign trilateral deal in Washington

Day 118: Oil price spikes after IRGC strike on ship in Hormuz

Day 117: Iran-Gulf reconciliation talks expected in Saudi Arabia