New Delhi, July 2 -- DOHA - The war premium that drove Brent crude above $126 a barrel in April has now erased itself almost completely. On Thursday, Brent futures settled near $70.82, their lowest since February 27 - the day before the United States and Israel launched military strikes on Iran and locked the Strait of Hormuz into months of disruption that reshaped global energy flows.

The catalyst was a statement from Qatar. Doha, which has been serving as the diplomatic conduit between Washington and Tehran, announced on Wednesday that US and Iranian officials had made "positive progress" in indirect talks aimed at resolving disputes over their memorandum of understanding. Donald Trump offered a characteristically optimistic gloss, tel...