Oil prices pulled back on Thursday after Saudi Arabia reaffirmed that its east-west pipeline, damaged in an attack by Iran-backed Houthi forces, would be restored sooner than initially feared, according to Ship & Bunker. The pipeline normally carries 7 million barrels per day of crude.
According to Ship & Bunker, Goldman Sachs estimated that repairs could take up to eight weeks, though the bank noted they could also be finished “very soon.” Analysts had warned that an extended outage risked removing as much as 4 percent of global oil supply from the market.
As of 1603 GMT, Brent crude fell $2.67, or 2.5 percent, to $103.13 per barrel, while West Texas Intermediate dropped $1.61, or 1.6 percent, to $100.82 per barrel, Ship & Bunker reported.
Faster Fixes and Alternative Loadings
U.S. Energy Secretary Chris Wright indicated on Thursday that the Saudi pipeline could return to service within days rather than weeks, Ship & Bunker reported. In the meantime, the kingdom has kept crude flowing by increasing loadings off Oman, according to the outlet.
Diplomatic Signals Amid Ongoing Threats
Ship & Bunker reported that a covert meeting between officials from President Donald Trump’s administration and the Houthis led to a pledge from the group not to target U.S. or Israeli vessels. Trump also said Thursday that Iranian officials had reached out to negotiate, stating, “hopefully we are towards the end of the war… I have a big decision coming up: Do I want to go in and annihilate them [the Iranian regime] or do I not?”
However, the report notes that a senior Iranian official had rejected talks a day earlier unless all of Iran’s conditions were met. On Thursday, Iranian official Mohammad Baqer Zolqadr vowed that Iran would keep the Strait of Hormuz closed until Trump and Israeli Prime Minister Benjamin Netanyahu are removed from power, according to Ship & Bunker.
Christopher Tahir, senior market strategist at trading platform Exness, told Ship & Bunker, “Oil prices extended the previous session’s losses on Thursday as concerns over Middle East supply disruptions eased to some extent.”
Does This Matter to You?
The situation described in this report touches on crude supply routes and price volatility tied to Middle East infrastructure and the Strait of Hormuz, a corridor central to global oil and bunker fuel logistics. Fluctuations in Brent and WTI prices, as reported by Ship & Bunker, can influence bunker fuel costs and market sentiment across shipping operations. Continued threats to close Hormuz, as stated by Iranian officials, may also affect routing decisions and risk assessments for vessels transiting the region. The source material does not provide further detail on direct operational impacts, so any additional implications beyond pricing and transit risk remain unclear.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
