BRENT crude fell for a third straight session, settling at US$104.82 a barrel, as expectations of improved Middle East energy flows eased concerns over supply disruptions despite the conflict remaining unresolved.
Saudi Arabia is targeting the restoration of around half the capacity of its East-West pipeline within days, with full operations expected to resume within about six weeks.
The 1,200-kilometre pipeline is a critical alternative route for Saudi oil exports when shipments through the Strait of Hormuz are disrupted. Three pumping stations were damaged in a recent attack.
In the meantime, Saudi Arabia is rerouting some crude exports through the Strait of Hormuz, with shuttle vessels carrying oil through the waterway before transferring it to tankers waiting outside the strait.
Oil prices also came under pressure after reports that China had privately urged Iran to help rein in Yemen’s Houthis following an appeal from Riyadh, as the Iran-aligned group intensified attacks on Saudi energy infrastructure.
The developments have raised hopes that diplomatic efforts could help contain the conflict and restore energy flows, although risks remain around both the Strait of Hormuz and the Red Sea.
US President Donald Trump, meanwhile, said he was weighing whether to resume attacks on Iran ahead of a meeting with Gulf leaders in New York next week.
The oil market remains highly sensitive to developments around the two waterways, with prolonged disruption threatening to constrain Middle East energy supplies further.
Meanwhile, the US dollar remained firm near a seven-week high after the Federal Reserve raised interest rates by 25 basis points on Wednesday to a range of 3.75%-4%, its first increase in more than three years.
The unanimous decision came as the US Fed signalled further tightening, with 16 of its 18 policymakers projecting at least one more rate increase by the end of 2026. Fed Chair Kevin Warsh said inflation remained too high.
Trump has called for US interest rates to be cut to 1% or lower, arguing that the United States should have cheaper borrowing costs despite the Fed’s decision to tighten monetary policy.
The Bank of England was expected to keep rates unchanged, while the Bank of Japan was scheduled to decide on monetary policy on Friday.
The US dollar was quoted at around RM4.0966 against the ringgit on Friday, down 0.04% from the previous session, according to the figures provided.
The ringgit has weakened about 0.94% against the US dollar over the past month but remains up about 2.62% over the past 12 months. - September 18 2026
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