The Strait of Hormuz is a vital channel that handled around one-fifth of global oil shipments before the conflict. Credit: sandsun/Shutterstock.com.

Oil prices declined for a third consecutive day on Thursday 2 July as indirect negotiations between the US and Iran concluded in Doha, Qatar, without progress towards a lasting peace agreement.

By 07:58 GMT, Brent crude futures had dropped by $0.66, or 0.92%, to $70.91 a barrel (bbl), reported Reuters.

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Meanwhile, US West Texas Intermediate (WTI) crude declined by $0.59, or 0.86%, to $67.99/bbl.

Both benchmarks fell by more than 1% in the previous trading session.

The talks, which took place in the Qatari capital, focused on issues related to the Strait of Hormuz, a vital channel that handled around one-fifth of global oil shipments before the conflict.

A spokesperson from Qatar’s Foreign Ministry described the discussions as having made “positive progress” on elements tied to the memorandum that led to a temporary halt in hostilities in June.

However, no new agreement on a permanent resolution was reached.

Sources familiar with the discussions stated that negotiators from both countries held talks over two days, reported Reuters.

The talks addressed maritime traffic and the possibility of unfreezing Iranian assets, topics that formed part of an interim arrangement announced two weeks earlier.

Despite some resumption of shipping through the strait under this deal, the situation remains uncertain.

Last weekend, the US and Iran exchanged strikes after an Iranian attack on a cargo vessel.

In addition, oil-producing countries in the OPEC+ group may consider raising output targets at their meeting on Sunday.

Qatar’s Foreign Ministry said that further talks between US and Iranian negotiators are expected to resume after 9 July.

Iranian officials have indicated plans to seek international recognition of their control over the Strait of Hormuz, with an intention to begin imposing shipping tolls after a toll-free period ends in mid-August, as specified by the initial agreement.