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Global crude oil futures fell on Tuesday, pulling Brent below the psychological $100-per-barrel threshold as the restart of Saudi Arabia’s East-West Pipeline and recovering Gulf tanker transits improved regional supply availability.

International benchmark Brent crude fell $1.09, or 1.09%, to settle at $99.25 a barrel. Expiring US West Texas Intermediate (WTI) October crude declined $1.19, or 1.24%, to finish at $94.99 a barrel.

Both contracts rebounded from session lows of over $2 a barrel after US political commentary tempered expectations for an immediate diplomatic breakthrough at the United Nations.

Selling pressure accelerated after Saudi Arabia resumed operations on its critical East-West Pipeline, preparing to restart export loadings at the Red Sea port of Yanbu following a shutdown triggered by drone strikes on 13 September. Physical relief was compounded by expanding waterborne volumes through the Persian Gulf, where Saudi crude transits through the Strait of Hormuz averaged 2.9 million barrels per day over the past week, compared to roughly 700,000 bpd in August.

Sentiment softened further after Iranian officials at the UN General Assembly stated Tehran could reopen the Strait of Hormuz within seven days if Washington eases military and economic pressure. However, steeper losses were checked after US President Donald Trump dampened expectations for a swift resolution, delaying prospects for a peace framework until after the November US midterm elections and threatening intensified military action if talks fail.

Downside was also limited by persistent tightness across refined products. Record diesel prices across Europe and the US—strained by protracted export deficits from Russia, Saudi Arabia, and the UAE—continue to support refining margins, maintaining a firm floor under downstream petrochemical feedstock values despite easing upstream crude benchmarks.

Written by: Aiman Haikal