Oil prices dip 1% as Middle East tensions ease and Saudi supply rises
Brent and WTI fell about 1% on Thursday, staying above $100 per barrel, as new Saudi cargoes eased worries about supply disruptions from regional strikes.
On Thursday, oil benchmarks slipped roughly 1%, with Brent closing at $104.82 a barrel and U.S. WTI at $101.91, though both remained above the $100 mark. The decline followed reports that Saudi Arabia was increasing crude shipments to Asian refiners through ship-to-ship transfers off Oman’s Sohar port, offsetting supply worries from recent Saudi-Yemen border strikes. Traders also noted Saudi plans to bring half of the East-West pipeline back into operation after drone attacks damaged three pumping stations.
Earlier in the week, the pipeline’s shutdown had threatened up to 4% of global oil supply. Market strategist Christopher Tahir said the easing of disruption concerns tempered price losses, but tight physical markets and ongoing Red Sea shipping risks keep further declines limited. Meanwhile, diesel markets faced pressure from constrained supplies in the Middle East and Russia, pushing European and U.S. diesel futures to record highs.
Why it matters
Oil price movements affect global fuel costs and economic stability worldwide.
How this story developed
- Aug 23 Iran readies major fuel price hike amid US sanctions and war pressures
- Sep 9 Iran launched a missile strike on a Jordanian military base.
- Sep 9 US military says it destroyed five Iranian crude oil carriers following IRGC ballistic missile attacks on a US Navy warship.
- Sep 9 Brent futures rose above $100 a barrel on Wednesday, driven by escalating attacks in the Middle East that have tightened oil supplies.
- Sep 9 Iran said its forces also engaged two US vessels and eight oil tankers in the Strait of Hormuz.
- Sep 10 Brent crude rose above $105 per barrel.
- Sep 11 US Treasury prices slipped Friday, lifting the 10-year yield to roughly 4.97%, close to the 5% mark, as oil prices climbed and expectations of a Federal Reserve rate hike grew.
- Sep 11 Diesel fuel in the United States has risen past $6 per gallon, a sharp increase linked to recent military actions involving the U.S., Israel and Iran.
- Sep 11 Diesel prices crossed $6 per gallon for the first time.
- Sep 12 Iran announced attacks on ten vessels near the Strait of Hormuz.
- Sep 13 A ship was hit by a projectile while transiting the Strait of Hormuz, prompting crew evacuation after a fire broke out, according to UKMTO.
- Sep 14 Saudi Arabia temporarily closed its east‑west pipeline after a drone strike traced to Iraq, while an Iranian commercial vessel reported casualties nearby.
- Sep 14 Brent futures rose to $109.97, a three‑month peak, widening the price gap with regional benchmarks.
- Sep 17 The Federal Reserve lifted its policy rate by a quarter point, its first increase in three years.
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