Oil Prices Fall $1 as Saudi Pipeline Restarts

Oil prices extended their decline on Wednesday, September 23, 2026, as improving supply prospects in the Middle East and hopes for diplomatic talks between the United States and Iran weighed on market sentiment. The restart of Saudi Arabia‘s East-West oil pipeline, rising Iraqi exports and an increase in US crude inventories added to downward pressure on prices.

Brent crude futures fell $1.09, or 1.1%, to $98.16 a barrel, while US West Texas Intermediate (WTI) crude declined $1.50, or 1.67%, to $89.01 a barrel as of 0421 GMT, according to Reuters.

Both benchmarks recorded their sixth consecutive session of losses, reaching approximately two-week lows as traders assessed whether additional oil supplies and possible diplomatic progress could ease concerns about disruptions caused by the US-Iran war.

Oil Prices Decline for Six Consecutive Sessions

International oil benchmarks continued to lose ground as traders responded to signs of improving supply availability and the possibility of a diplomatic solution to the nearly seven-month conflict involving the United States and Iran.

Brent crude fell below $100 a barrel at Tuesday’s close for the first time since September 8, reflecting a shift in market expectations about global oil supplies.

The latest declines followed developments that could help restore some of the oil flows disrupted by the conflict. Saudi Arabia has restarted a critical pipeline, Iraq is increasing exports, and US industry data indicate that domestic crude inventories have risen.

These developments are influencing how traders assess the balance between available oil supplies and the risk of further disruptions.

Brent and WTI Crude Prices on September 23

The reported prices were recorded at 0421 GMT on September 23, 2026. Both contracts had declined for six consecutive sessions and were trading near two-week lows.

Saudi Arabia Restarts Its East-West Oil Pipeline

The restart of Saudi Arabia’s East-West Pipeline was one of the main developments influencing oil prices on Wednesday.

Saudi Arabia resumed operations on the pipeline to the Red Sea on Tuesday, according to three sources briefed on the matter and cited by Reuters.

The pipeline provides Saudi Arabia with an alternative route for transporting crude oil to the Red Sea when shipments through the Strait of Hormuz are disrupted.

Saudi Arabia had shut the pipeline on September 11 after drone attacks that the kingdom blamed on Iraqi militia. The shutdown halted crude loadings at the country’s Yanbu port.

The pipeline’s restart offers a potential improvement in the movement of Saudi oil, although the extent and durability of the recovery in exports remain important factors for market participants.

How the East-West Pipeline Helps Saudi Arabia Reroute Oil

The Strait of Hormuz is a critical route for international oil transportation. Disruptions to shipping through the waterway can affect the movement of crude from Saudi Arabia and other Gulf producers.

Since the US-Israeli war on Iran disrupted oil flows through the strait, Riyadh has been using the East-West Pipeline to reroute crude toward Yanbu on the Red Sea.

The pipeline has been carrying around 4 million barrels per day, equivalent to approximately 4% of global oil supply, according to the Reuters report.

By transporting oil toward the Red Sea, Saudi Arabia can reduce its reliance on shipments passing through the Strait of Hormuz.

The pipeline’s availability is therefore important for global supply expectations. A sustained recovery in its operations could help improve the movement of Saudi crude, while renewed disruptions could again constrain export options.

Saudi Arabia Offers More Oil to Asian Refiners

Saudi Arabia also offered additional oil barrels to Asian refiners on Tuesday, with cargoes available for lifting from locations outside the Strait of Hormuz, Reuters reported.

The move indicates that Saudi Arabia is seeking to maintain supplies to important customers despite continuing uncertainty surrounding Gulf shipping routes.

Asian refiners depend on reliable crude deliveries to maintain refinery operations and meet demand for petroleum products.

Additional cargo availability outside the Strait of Hormuz could give some buyers more flexibility in arranging supplies. However, the actual impact will depend on shipment volumes, delivery schedules and the continuation of operations along alternative routes.

Iraq Increases Oil Exports as Gulf Supply Improves

Iraq is also increasing its oil exports, adding another source of potential supply to the global market.

Iraqi Oil Minister Basim Mohammed said on Tuesday that the country was exporting more than 3 million barrels per day and expected to increase exports through Turkey to more than 600,000 barrels per day.

The expected increase through Turkey is significant because it provides an additional route for Iraqi crude exports beyond the country’s southern export facilities.

Higher Iraqi exports could help improve the availability of crude for international buyers, although the actual impact depends on how much additional oil reaches the market and whether those volumes can be sustained.

Iraqi Crude Exports Remain Below Pre-War Levels

Provisional shipping data indicate that Iraqi crude exports increased in August compared with July, but remained below the levels recorded before the war.

The figures are provisional estimates from ship-tracking firms Vortexa and Kpler, as reported by Reuters. The different estimates reflect the separate data assessments of the two companies.

Although August exports were higher than July’s levels, the comparison with February shows that Iraqi crude shipments had not fully returned to their pre-war levels.

US Crude Inventories Rise, Adding Pressure to Oil Prices

US crude inventories also contributed to the decline in oil prices.

Industry data showed that US crude stocks increased by 1.8 million barrels in the week ending September 18, according to the Reuters report.

Analysts polled by Reuters had expected inventories to decline, making the reported increase a development that could add to concerns about near-term supply availability.

Rising inventories can weigh on oil prices when traders interpret them as a sign that supply is more readily available than expected. However, one weekly inventory report does not by itself establish a longer-term market trend.

The official weekly inventory figures from the US Energy Information Administration were scheduled for release at 10:30 a.m. Eastern Time, or 1430 GMT, on September 23.

US-Iran Talks Raise Hopes for a Diplomatic Solution

Hopes for a diplomatic solution to the US-Iran war also weighed on oil prices.

US President Donald Trump warned on Tuesday that he could “annihilate” Iran, while also saying that his envoys Steve Witkoff and Jared Kushner had held productive talks with mediators of Iran aimed at ending the conflict.

Trump said he believed there was significant momentum toward reaching a deal.

The mixed signals from Washington reflect the uncertainty surrounding the diplomatic process. While the president continued to use forceful rhetoric, his comments about discussions with mediators encouraged traders to consider the possibility of an agreement.

However, the reported discussions do not establish that a peace agreement has been reached or that oil shipments through disrupted routes have fully recovered.

Why Diplomacy Matters for Global Oil Supply

The US-Iran conflict has disrupted oil flows from Saudi Arabia and other Gulf producers through the Strait of Hormuz, according to the Reuters report.

Because the region is important to international oil transportation, the prospect of a diplomatic agreement can influence expectations about future supply availability.

If negotiations lead to a durable reduction in disruptions, shipping conditions could improve and some of the uncertainty affecting oil markets could ease.

On the other hand, continued conflict or renewed attacks on energy infrastructure could limit the recovery in supplies and reverse some of the recent price declines.

For traders, the key question is whether diplomatic progress will translate into practical improvements in oil production, transportation and exports.

Oil Market Sentiment Shifts as Supply Risks Ease

Tim Waterer, chief analyst at KCM Trade, said the market was feeling more constructive about the global oil supply outlook than it had been a few weeks earlier.

He also pointed to the meeting of US and Iranian delegations in New York as a source of hope for traders, despite continued tough rhetoric from Washington.

Waterer’s comments highlight the role of expectations in oil markets. Prices can respond not only to current production and shipments but also to traders’ assessments of how geopolitical developments might affect future supplies.

The combination of the Saudi pipeline restart, increased Iraqi exports, higher US crude inventories and hopes for diplomatic progress has contributed to the recent downward movement in benchmark prices.

What Could Influence Oil Prices in the Coming Days?

Several developments will remain important for Oil Market participants as they assess whether the recent decline will continue.

• Saudi pipeline operations: Continued operation of the East-West Pipeline will influence expectations about Saudi export availability.
• Strait of Hormuz shipping: Developments affecting tanker movements through the waterway will remain central to Gulf supply risks.
• US-Iran diplomacy: Progress or setbacks in negotiations could change expectations about future oil flows.
• Iraqi exports: Actual shipment volumes, including exports through Turkey, will help determine how much additional crude reaches international markets.
• US crude inventories: Official inventory data will provide further information about domestic supply conditions.
• Asian refinery demand: Purchasing activity and access to alternative cargoes will influence competition for available crude.

These factors will help determine whether the recent supply improvements are sustained or whether renewed geopolitical disruptions put upward pressure on prices again.

Oil Price Outlook: Supply Recovery and Geopolitical Uncertainty

Oil prices fell for a sixth consecutive session on September 23 as traders responded to signs of improving supply availability and the possibility of diplomatic progress between the United States and Iran.

Saudi Arabia’s East-West Pipeline restart, rising Iraqi exports and an increase in US crude inventories have contributed to a more comfortable near-term supply outlook.

At the same time, the conflict continues to create uncertainty around Gulf oil transportation, particularly through the Strait of Hormuz. The reported US-Iran discussions have raised hopes for a diplomatic solution, but no final agreement was established in the supplied reporting.

The market’s next moves will depend on whether additional oil supplies reach buyers consistently, whether diplomatic efforts make progress and how upcoming inventory data affect expectations.

For now, the decline in Brent and WTI reflects a market responding to the possibility of improved supply conditions while remaining exposed to the risk of further disruption.