As of 3:47 a.m. GMT, Brent crude futures were down 19 cents, or 0.2%, to $105.64 a barrel.
U.S. West Texas Intermediate crude futures fell 33 cents, or 0.3%, to $102.10 a barrel. Both contracts had lost about $3 the previous day.
"Concerns over supply tightness eased slightly following news that Saudi Arabia would ship cargo via Oman," said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, a division of Nissan Securities. “Expectations of progress toward easing tensions in the Middle East ahead of US-China summit next week are also capping price gains.”
At the same time, some analysts believe the additional volumes will only partially offset lost supply from Saudi Arabia's Red Sea port, which is limiting further declines in oil prices.
"However, under the bear case scenario currently prevailing, with attacks and incidents in Hormuz and the Red Sea continuing, prices could spike towards $120/bbl levels before potentially normalizing back towards $100/bbl," said Suvro Sarkar, head of energy research at DBS Bank.
Oil markets amid the U.S.-Iran conflict
As previously reported, U.S. President Donald Trump said on July 22, 2026, that every time Iran attacked a vessel in the Strait of Hormuz, the United States would destroy a bridge or power plant in response.
Overnight into July 23, U.S. forces carried out their 12th consecutive night of strikes on Iran.
On July 23, oil prices rose to their highest level in more than six weeks as tensions escalated in the Red Sea and the United States struck Iran again.
On July 30, oil prices fell despite fresh escalation in the Middle East.
On Aug. 10, oil prices rose amid uncertainty over whether the Strait of Hormuz would reopen.
On Aug. 17, tensions between the United States and Iran again shifted oil prices.
Oil prices dipped slightly on Aug. 21, despite the possibility of a second consecutive weekly gain, as the deadlocked U.S.-Iran conflict continued to disrupt supply from a key Middle Eastern oil-producing region.
On Aug. 27, oil prices continued to decline, responding to expectations that talks between Iran and Oman would help reopen the Strait of Hormuz.
On Sept. 14, an attack halted a Saudi pipeline, putting part of global supply at risk.