Crude futures recover early losses ahead of the U.S. Independence Day holiday. Prices are hovering near pre-conflict levels with market focus on the resumption of flows through the Strait of Hormuz and U.S.-Iran talks. "While the U.S.-Iran process remains fragile and disputes over Hormuz administration and transit fees persist, we expect the MOU to hold and turn into a deal over the coming months as incentives to de-escalate outweigh the alternative for the U.S., Iran, and much of the Middle East region," Citi's Francesco Martoccia says in a note. Physical markets have weakened and inventories have drawn much less than expected, he adds. "We continue to recommend selling any summer rallies and forecast Brent reaching $60-$65/barrel by the turn of the year." WTI settles up 0.2% at $68.69 a barrel and Brent rises 0.3% to $71.80. (anthony.harrup@wsj.com)