Oil fell Monday, as traders keep watch for a recovery in shipments from Saudi Arabia even after attacks by Iran-backed Houthis on Saudi Arabia with missiles and drones on Saturday.
Futures for international benchmark Brent crude for November delivery fell 1.66% to $102.15 a barrel. U.S. West Texas Intermediate futures for October dropped 1.83% to $98.46 per barrel.
"Middle East oil flows remain surprisingly strong despite the disruption to Saudi Arabia's East-West pipeline," according to JPMorgan analysts in a Sept. 18 note. The total oil flows averaged 17.1 million barrels per day in the past 10 days, 6.1 million bpd below the 2025 average, it added.
However, potential supply issues continue to present themselves. U.S. President Donald Trump said he is in a "deciding mode" and "very big things" are going to happen in the near future regarding the US-Iran war, in an interview with Fox News.
"My question is, if and when do I blow the entire nation up? They better behave," Trump added.
Daniel Takieddine, co-founder and CEO of Sky Links Capital Group, expects prices are likely to remain closely tied to the pace of export normalization and diplomatic progress. "Any setback or renewed deterioration in shipping conditions would tighten the physical market and restore upward pressure on prices," Takieddine added.