Oil prices declined on Monday as investors monitored a rebound in shipments from Saudi Arabia, even amid escalating tensions in the Middle East due to ongoing attacks by Yemeni Houthis, while the US and Iran continue to be at an impasse. Brent crude futures declined by 81 cents, equivalent to 0.78%, reaching $103.06 a barrel at 0031, following a 0.91% decrease on Friday. US West Texas Intermediate crude was at $99.41 a barrel, down 89 cents, or 0.89%, following a 1.58% loss in the previous session. Yemen’s Iran-backed Houthis announced an assault on “sensitive” locations in the Saudi capital of Riyadh on Saturday, utilising missiles and drones, in addition to targeting an Aramco facility in the Red Sea city of Yanbu, which serves as a crucial oil export hub.
The assaults by the Houthis on Saudi Aramco’s East-West pipeline have led the state energy company to boost exports through the Strait of Hormuz in the coming month, following a suspension of certain shipments via Yanbu. That allowed exports from the OPEC leader to rebound to slightly more than 4 million barrels per day in September, following a decline to 2.4 million barrels per day in August, which marked the lowest level since at least 2013, based on preliminary data from analytics firm Kpler.
“Middle East oil flows remain surprisingly strong despite the disruption to Saudi Arabia’s East-West pipeline,” JPMorgan analysts said in a September 18 note, adding that the total oil flows averaged 17.1 million bpd in the past 10 days, just 6.1 million bpd below the 2025 average. “The most notable pivot has come from Saudi Arabia,” the analysts said, as satellite data indicated Saudi oil moving through the Strait of Hormuz averaged 2.9 million bpd over the past six days, up from just 700,000 bpd in August. China has requested Iran’s assistance in controlling the Houthis, following a plea from Saudi Arabia to Beijing in the wake of the attacks, as reported by three Iranian sources with knowledge of the situation.
On Sunday, Iran and the United States engaged in a fresh round of threats amidst an ongoing stalemate. President Donald Trump expressed a willingness to meet with Iranian President Masoud Pezeshkian, who is anticipated to be in New York this week for the United Nations General Assembly. Iran has articulated its prerequisites to intermediaries for resuming discussions intended to conclude the conflict with the US, as reported by Al Jazeera, citing Iran’s security chief, Mohsen Rezaei, in an interview on Saturday.
