Crude oil fell below $95.50 a barrel on Monday, extending losses into a fourth consecutive session after reports that US President Trump had decided, for now, against bombing Yemen and signaled openness to diplomacy with Iran. Trump was said to have rejected Saudi Arabia’s calls for strikes against the Houthis and indicated he would probably be willing to meet Iranian President Masoud Pezeshkian during this week’s UN General Assembly in New York.
At the same time, Middle Eastern crude exports have remained resilient despite Saudi Arabia’s decision to shut its East–West pipeline following recent attacks. Over the past six days, Saudi Arabia has shipped about 2.9 million barrels per day through the Strait of Hormuz. Satellite imagery over the weekend showed supertankers with a combined capacity of 14 million barrels berthed at Saudi export terminals in the Gulf—the largest tanker presence recorded since at least June. Nonetheless, overall traffic through the Strait of Hormuz has continued to decline.
