Infrastructure Recovery and Strategic Responses Help Calm Conflict-Driven Market Fears.
Crude oil prices continued to retreat on Friday, September 18, 2026, extending losses for a third consecutive session as immediate concerns over Middle East supply disruptions began to ease.
Oil prices
As of 9.25am in Tokyo on Friday:
- Brent crude: Around $103.70 per barrel
- WTI crude: Around $100.90 per barrel
- Murban crude: Around $121 per barrel, down 1.95%
The decline comes after oil prices moved close to $110 a barrel earlier in the week.
The latest pullback in global energy markets has been supported by alternative logistical arrangements and the recovery of key infrastructure, helping to ease some of the supply concerns that have weighed on markets amid the ongoing US-Iran conflict.
Supply concerns eased considerably following reports that Saudi Arabia had started making additional crude cargoes available to Asian refiners through ship-to-ship transfers outside the Gulf, near Oman’s Sohar port.
The alternative shipping arrangement has helped reassure markets by providing another route for crude deliveries amid concerns over disruptions to traditional supply channels.
Saudi pipeline repairs progress
Concerns surrounding the attack that knocked Saudi Arabia’s East-West oil pipeline out of service have begun to ease amid signs that repair work is moving forward.
US Energy Secretary Chris Wright said the disruption was expected to last only “days”, suggesting the shutdown may be relatively short-lived rather than an extended interruption.
The East-West pipeline transports crude from Saudi Arabia’s main oil-producing areas in the east to the Red Sea port of Yanbu. The route is strategically important because it allows oil shipments to bypass the Strait of Hormuz.
Reports of progress on repairs helped ease concerns over potential supply disruptions, offering some relief to crude markets and contributing to improved sentiment on Wall Street.
Despite the easing of some immediate supply concerns, the broader energy outlook remains uncertain.
Commercial shipping through the Strait of Hormuz continues to face significant disruption, prompting producers and traders to rely on alternative arrangements to maintain the flow of Gulf crude to international markets.
Ship-to-ship transfers
Saudi Arabia has been exploring alternative methods to ensure crude supplies continue reaching key Asian customers following the attack on its East-West pipeline, which connects the country’s eastern oil-producing region with the Red Sea port of Yanbu.
Ship-to-ship transfers have emerged as one option to help maintain exports while traditional supply routes face disruption.
Saudi Aramco has offered additional supplies of Arab Medium and Arab Heavy crude for loading near Oman’s Sohar port as part of efforts to maintain deliveries to Asian customers.
Under the arrangement, crude carried by vessels travelling through the Gulf and the Strait of Hormuz can be transferred at sea to other tankers, which then transport the cargo to its final destination.
Reuters reported that Aramco has made at least two similar offers in recent weeks. However, the ship-to-ship strategy does not entirely bypass the Strait of Hormuz, as the crude must still be transported through the waterway before reaching the transfer point.
Analysts have also reported that some Gulf producers are using tankers, including vessels operating without active tracking signals, to move crude through the strait.
The alternative logistics are intended to limit disruption and reduce some of the transportation risks involved in maintaining Gulf oil supplies to key Asian markets.
