West Texas Intermediate crude jumped after President Trump rejected an Iranian peace proposal, reviving fears of a prolonged US-Iran war. The move came as Saudi Arabia resumed overseas crude shipments from the Red Sea port of Yanbu, ending a 17-day export halt caused by a pipeline attack.
Crude oil prices rose at the start of the week after Trump rejected a peace deal proposal Iran tabled last week at the UN General Assembly. Brent crude traded at $107.24 per barrel, with West Texas Intermediate at $94.10, the latter also pressured by news that the US federal government may impose a temporary ban on diesel, a move that would force refiners to cut run rates and boost crude availability.
Trump weighs resuming Iran strikes
A fresh report on improving oil flows out of the Persian Gulf failed to offset war concerns. The Wall Street Journal reported over the weekend that Trump was considering resuming military strikes on Iran once the November midterms conclude, which would prolong the disruption to normal oil trade.
The US and Iran remain stuck on their conditions for peace. Iran has conditioned any deal, including the reopening of the Strait of Hormuz, on the US lifting its naval blockade and oil sanctions and unfreezing Iranian funds, while the US appears to believe economic pressure will eventually break Iran and has rejected lifting either measure. Unnamed government officials cited by the Wall Street Journal said the midterm outcome will also shape Trump's decisions on the war.
Saudi Arabia restores Yanbu exports
Saudi Arabia has resumed overseas crude shipments via the East-West Pipeline, Bloomberg reported Monday, ending a 17-day halt from Yanbu that had left some European customers facing zero allocations under term contracts next month. The Petroline, a 1,200-km artery linking the Eastern Province oilfields to Yanbu, had been handling roughly 4 million barrels per day, approximately 4% of global supply, after Riyadh rerouted exports there when the war disrupted Hormuz flows starting in March 2026. Drone strikes on September 11, attributed by Riyadh to Iraqi militia, damaged three pumping stations and forced a full shutdown.
Full capacity restoration could still take six to eight weeks, meaning the pipeline's 7 million bpd nameplate capacity remains out of reach for now. Saudi Aramco shares, meanwhile, slipped 0.77% to 25.62 SAR in Monday's session, suggesting the market had already partly priced in the pipeline's recovery.
Crude was up 3.76% at $95.88 per barrel in pre-market trade Monday, having touched a session high of $96.53 and approaching the $95.60–$97.73 resistance zone flagged by technical analysts. According to Iran International, US Energy Secretary Chris Wright said "over 20 million barrels of oil, more than pre-conflict levels, flowed out of the strait" on one recent day, with the current average now almost 13 million barrels a day.
Sources: Commodities Analysis & Opinion, Commodities & Futures News
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