- Oil prices steadied with Brent near $103 and WTI below $100 after recent declines
- Saudi Arabia issued air-raid alerts amid attacks affecting Red Sea and Strait of Hormuz
- US President Trump may meet Iranian President at UN, signaling diplomatic efforts
Oil prices steadied on Monday as traders balanced persistent risks to Middle East supplies against renewed diplomatic efforts aimed at ending the US-Iran war.
Brent crude traded around $104 a barrel, while West Texas Intermediate remained below $100 after falling for three consecutive sessions. Brent was last around $103.06, while WTI was near $99.41, as markets reacted to signs that Saudi oil exports were beginning to recover.
At the weekend, Saudi Arabia issued air-raid alerts for Riyadh and warnings in Red Sea hubs including Yanbu. The attacks have added another layer of uncertainty for oil traders already watching disruptions around the Strait of Hormuz and the Red Sea.
Diplomacy, meanwhile, is emerging as an important variable for crude prices. US President Donald Trump said he would “probably” be open to meeting Iranian President Masoud Pezeshkian on the sidelines of the United Nations General Assembly in New York this week. Trump is also expected to meet Gulf leaders. Qatar, which has been involved in mediation efforts, said messages were being exchanged between Washington and Tehran.
Traders are closely watching Saudi Arabia's efforts to restore its East-West pipeline, which was damaged in attacks earlier this month. Saudi Aramco has told at least two European refining customers that they will receive no Saudi crude next month under long-term contracts, forcing buyers to seek replacement supplies.
Saudi exports have nevertheless started to recover, with Reuters reporting that shipments rose above 4 million barrels a day in September, compared with 2.4 million barrels a day in August. Shipments through the Strait of Hormuz have also increased as Saudi Arabia adjusts its export routes.
Beyond the Middle East, a Ukrainian drone barrage hit the Moscow Oil Refinery, adding to concerns around already-tight fuel markets, particularly diesel.
ALSO READ: Strait Of Hormuz To Stay Closed Until US Fulfils June Deal Pledges: Iran's Ghalibaf
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