Oil prices extended their sharpest decline in more than six weeks as expectations of a partial restart of Saudi Arabia’s damaged East-West pipeline eased immediate concerns about global crude availability. West Texas Intermediate fell toward $102 a barrel after losing 3.2% in the previous session, while Brent settled below $106, reversing part of the steep rally that had pushed crude prices sharply higher earlier in September.

Saudi Pipeline Repair Changes the Supply Equation

The East-West pipeline has become particularly important because it provides Saudi Arabia with an alternative route to transport crude from the Persian Gulf to the Red Sea, reducing dependence on the Strait of Hormuz. The infrastructure was damaged in attacks last week, disrupting a critical outlet at a time when Middle Eastern oil flows were already under pressure. Saudi Arabia is now seeking to restore approximately half of the pipeline’s capacity within days, with full operations potentially returning in roughly six weeks, according to people familiar with the situation.

The timing of the repair effort matters because Saudi export inventories at the Red Sea port of Yanbu were reported to provide only several days of coverage if the pipeline remained offline. Earlier estimates indicated that the outage could threaten as much as 4% of global oil supply if flows could not be restored quickly, underscoring why the prospect of even a partial restart has had an immediate effect on prices.

Hormuz Flows Offer Another Source of Relief

Market pressure has also eased as crude and refined-product traffic through the Strait of Hormuz has shown signs of recovery. U.S. Energy Secretary Chris Wright said approximately 18 million barrels of crude and products moved through the waterway earlier in the week, while the seven-day average stood at around 11 million barrels a day. Greater traffic through the strategic chokepoint reduces the likelihood of an immediate supply shortfall, although the route remains exposed to geopolitical and security risks.

For energy markets, the combination of higher Hormuz flows and a potential Saudi pipeline restart changes the balance between physical supply fears and geopolitical risk. Oil had rallied by roughly three-quarters this year as disruptions linked to the Middle East conflict constrained regional supplies, leaving prices particularly sensitive to any evidence that disrupted barrels could return to the market.

Why the Next Few Weeks Matter for Global Markets

The immediate focus will be on whether Saudi Arabia can meet its timetable for restoring pipeline capacity and whether shipping through Hormuz remains stable. A successful partial restart could continue reducing the geopolitical premium embedded in crude prices, while renewed attacks on Saudi infrastructure or another deterioration in regional shipping could quickly reverse that move.

For investors and policymakers, the broader issue extends beyond oil itself. Sustained energy prices above recent levels can feed into transportation and production costs and complicate the inflation outlook, while a prolonged supply disruption could affect fuel prices, corporate margins and global growth expectations. The market is therefore likely to remain highly responsive to physical supply data, Saudi export flows and developments around Hormuz in the weeks ahead.