TLDR
- Brent crude dropped ~2% to $102.53 and WTI fell ~1.8% to $100.04 on Friday
- Markets calmed after reports Saudi Arabia may restore half its East-West pipeline capacity within days
- Saudi Arabia is offering extra crude to Asian refiners via ship-to-ship transfers off Oman
- Iran’s Revolutionary Guards struck a Togo-flagged tanker in the Strait of Hormuz on Thursday
- Diplomatic activity is rising ahead of UN General Assembly meetings next week
Oil prices fell for a third straight day on Friday as hopes that Saudi Arabia could partially restore disrupted supplies calmed some market fears, even as Middle East fighting continued.
Brent crude futures dropped around 2.2% to $102.53 a barrel by mid-morning GMT. West Texas Intermediate fell 1.8% to $100.04 a barrel.
Brent is on track for its first weekly loss in three weeks, down around 2% for the week.
Saudi Arabia Works to Restore Pipeline Capacity
Earlier this week, prices had climbed close to four-month highs. That came after reports that crude loadings at Saudi Arabia’s Yanbu export hub on the Red Sea had been suspended following drone attacks on the East-West pipeline.
Saudi Arabia has since been working to bring back roughly half the pipeline’s capacity within days, according to media reports. The pipeline normally moves crude west to Yanbu for export.
‼️Saudi Arabia is racing to restore a critical oil pipeline:
Saudi Arabia plans to restore roughly half of the East-West pipeline’s capacity within days, after drone attacks forced the key export route to shut down.
The pipeline can carry up to 7 million barrels per day, with… pic.twitter.com/oOfZmxhyKL
— Global Markets Investor (@GlobalMktObserv) September 17, 2026
Riyadh has also been offering extra crude cargoes to Asian refiners through ship-to-ship transfers off Oman’s port of Sohar, giving buyers an alternative route and easing some supply concerns.
“Recent efforts to restore Saudi export capacity have reduced some of the immediate supply anxiety,” said Priyanka Sachdeva, head of market insights at Phillip Nova.
Despite the pullback, both Brent and WTI remain above $100 a barrel. Markets are still waiting for clear evidence that physical oil flows have improved.
“The key question is whether physical flows can normalise and what could be the timeline. If we see a sustained improvement in Hormuz traffic, some of the geopolitical premium can unwind further,” Sachdeva added.
Conflict and Diplomacy Both in Focus
Fighting has not stopped. Saudi Arabia and Yemen’s Iran-backed Houthis exchanged fresh strikes across their border on Thursday.
Iran’s Revolutionary Guards Navy also said a Togo-flagged tanker was struck while attempting what it called an “illegal passage” through the Strait of Hormuz on Thursday. Iranian state media reported this early Friday.
The Strait of Hormuz remains a pressure point. It is one of the world’s most important oil shipping routes.
On the diplomatic side, President Trump told Axios he is nearing a decision on whether to resume large-scale military action against Iran.
Trump is set to meet leaders from Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait and Oman next week on the sidelines of the UN General Assembly in New York.
China has also stepped up its diplomatic role. Chinese Foreign Minister Wang Yi urged both Washington and Tehran to exercise restraint and reopen the Strait of Hormuz.
Iranian Foreign Minister Abbas Araghchi held separate consultations with Chinese and Pakistani officials.
The US and Iran have held no peace talks since an interim agreement reached in June fell apart within weeks.
Analysts say oil prices will stay elevated until there is clear evidence of improved flows through the region.
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