Oil prices steadied after a four-day decline that erased nearly 8% from crude prices, as traders weighed improving supply flows through the Strait of Hormuz against ongoing geopolitical risks in the Middle East.
Brent crude held around $100 a barrel, while West Texas Intermediate remained below $96 after both benchmarks fell to their lowest levels since early September. Brent settled at $100.34 on Monday, down 3.4%, while WTI fell 4.5% to $95.78.
A key factor behind the recent pullback has been signs of a recovery in Saudi oil exports. Satellite tracking data showed Saudi Arabia loaded around 14 million barrels onto seven very large crude carriers at Ras Tanura over the weekend, indicating that the kingdom is shifting more exports back towards the Persian Gulf and the Strait of Hormuz after its East-West pipeline was disrupted.
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Oil flows through Hormuz have also improved. Saudi shipments through the strait have risen sharply from August levels, helping ease some of the immediate concerns over a prolonged supply disruption.
US President Donald Trump is due to address the United Nations General Assembly in New York on Tuesday and has indicated he could meet Iranian President Masoud Pezeshkian on the sidelines. Markets are watching for any signs of progress towards ending the US-Iran war.
The decline comes after a steep rally in crude this year. Oil remains more than 60% higher in 2026, with the conflict disrupting energy flows through Hormuz and the Russia-Ukraine war affecting energy infrastructure. Refined products have seen even sharper moves, with US retail diesel prices recently reaching a record above $6.50 a gallon.
Supply risks, however, have not disappeared. In Libya, production at the Sharara oilfield has fallen by more than half after a pipeline to the Zawiya export terminal was shut by an armed group. Output is currently around 127,000 barrels per day, according to people familiar with the matter.
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