WS Investor
22 Sep 2026, 14:30
Brent Crude Falls 1.1% as Saudi Pipeline Restarts and Hormuz Reopening Hopes Pressure Prices
Brent crude futures fell 1.14% to around $99.20 a barrel Tuesday, extending recent weakness as improving Middle East supply prospects reduced some of the geopolitical risk premium in oil prices.
The biggest pressure came from Saudi Arabia’s East-West Pipeline. The kingdom has restarted operations after the route was shut following drone attacks, and exports from the Red Sea port of Yanbu could resume. The pipeline had been used to reroute roughly 4 million barrels per day around the Strait of Hormuz, making its restart an important development for regional supply. (Reuters)
Oil prices also weakened after Iran signaled that the Strait of Hormuz could reopen within seven days if the U.S. eases military pressure and lifts its blockade on Iranian ports. The possibility of renewed diplomacy has reduced fears of a prolonged disruption through one of the world’s most important oil transit routes. (Reuters)
At the same time, physical supply flows appear to be adapting. Middle Eastern exporters have increasingly used alternative routes and storage hubs, while Saudi shipments have remained stronger than initially feared.
Still, downside risks are not one-sided. Shipping traffic through Hormuz remains far below pre-conflict levels, and continued regional fighting means oil could remain volatile even if supply conditions improve further.
Brent crude futures fell 1.14% to around $99.20 a barrel Tuesday, extending recent weakness as improving Middle East supply prospects reduced some of the geopolitical risk premium in oil prices.
The biggest pressure came from Saudi Arabia’s East-West Pipeline. The kingdom has restarted operations after the route was shut following drone attacks, and exports from the Red Sea port of Yanbu could resume. The pipeline had been used to reroute roughly 4 million barrels per day around the Strait of Hormuz, making its restart an important development for regional supply. (Reuters)
Oil prices also weakened after Iran signaled that the Strait of Hormuz could reopen within seven days if the U.S. eases military pressure and lifts its blockade on Iranian ports. The possibility of renewed diplomacy has reduced fears of a prolonged disruption through one of the world’s most important oil transit routes. (Reuters)
At the same time, physical supply flows appear to be adapting. Middle Eastern exporters have increasingly used alternative routes and storage hubs, while Saudi shipments have remained stronger than initially feared.
Still, downside risks are not one-sided. Shipping traffic through Hormuz remains far below pre-conflict levels, and continued regional fighting means oil could remain volatile even if supply conditions improve further.
