Oil prices moved higher in early trading on Wednesday after Iran announced it would not hold direct talks with US representatives, raising fresh concerns over the future of the fragile ceasefire between the two countries.

International benchmark Brent crude gained 33 cents, or 0.45 percent, to trade at $73.28 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude rose 34 cents, or 0.49 percent, to $69.84 per barrel. UAE Murban crude was trading at $69.10 per barrel.

The price increase came after uncertainty surrounding diplomatic efforts between Washington and Tehran. Reports said US President Donald Trump's son-in-law Jared Kushner and special envoy Steve Witkoff arrived in Doha on Tuesday for high-level discussions.

However, Iran and host nation Qatar clarified that the US delegation would not meet Iranian officials directly. Instead, any communication would take place through mediators. Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani also held talks with the American delegation.

Market analysts said easing tensions in the Middle East and the reopening of the Strait of Hormuz have reduced fears of major disruptions to global oil supplies. As a result, several forecasts for oil prices in 2026 have been revised lower.

US Vice President JD Vance said Iran would not be allowed to charge tolls on ships passing through the Strait of Hormuz, adding that oil shipments through the strategic waterway have returned to pre-conflict levels.

Meanwhile, data from the American Petroleum Institute showed US crude oil inventories fell by 6.1 million barrels in the week ending June 26, while gasoline stocks also declined. Investors are now awaiting official inventory figures from the US Energy Information Administration, due later on Wednesday.