Oil prices recovered part of their earlier losses on Friday as investors continued to assess the risk of further supply disruptions across the Middle East.
The widening regional conflict remains a major concern for energy markets, particularly as key shipping routes and Saudi export infrastructure face growing pressure.
Brent and WTI Trade Mixed
As of 09:33 ET, benchmark Brent crude futures were down around 0.2% at $104.66 per barrel.
West Texas Intermediate crude futures, meanwhile, gained about 1.4% to trade near $103.30 per barrel.
The mixed performance reflected uncertainty over whether additional supply disruptions could tighten the global oil market.
Saudi Aramco Halts Some European Crude Deliveries
Saudi Aramco has reportedly informed at least two European refining customers that they will not receive crude oil next month.
The decision follows an attack on Saudi Arabia’s main pipeline connecting oil-producing regions with the Red Sea.
European buyers generally receive Saudi crude through long-term contracts that guarantee regular monthly deliveries.
According to Bloomberg News, the suspension is expected to affect all European customers receiving these supplies.
Saudi Pipeline Damage Raises Supply Concerns
The latest development comes as fighting between Saudi Arabia and Iran-backed Houthi forces in Yemen continues to intensify.
Recent Houthi advances in western Yemen have increased concerns over the security of the Bab el-Mandeb Strait.
The waterway connects the Red Sea with the Gulf of Aden and represents one of the world’s most important energy shipping routes.
Along with the Strait of Hormuz, Bab el-Mandeb plays a critical role in Saudi Arabia’s ability to move crude oil into global markets.
Saudi Arabia Seeks to Restore East-West Pipeline
Markets are also watching efforts to restore operations at Saudi Arabia’s East-West Pipeline.
The pipeline was damaged by drone attacks last week and normally carries crude oil toward Yanbu on the Red Sea coast.
Saudi Arabia is reportedly aiming to restore around half of the pipeline’s capacity within several days.
That would represent a quicker recovery than earlier estimates, which suggested that full restoration could take several weeks.
Any recovery in pipeline flows could reduce pressure on Saudi export volumes and ease some concerns in the oil market.
Saudi Aramco Expands Alternative Export Routes
Saudi Arabia has also been offering additional crude supplies to Asian refiners through ship-to-ship transfers near Oman’s Sohar port.
This provides another route for moving Saudi oil to international customers while traditional export channels remain under pressure.
The additional cargoes have helped ease concerns that disruptions to Saudi infrastructure could lead to a much larger reduction in global crude supply.
China Pushes for Strait of Hormuz Reopening
China has also stepped up diplomatic efforts as tensions continue across the region.
Chinese Foreign Minister Wang Yi has called on the United States and Iran to show restraint and work toward reopening the Strait of Hormuz.
Iranian Foreign Minister Abbas Araghchi has also held discussions with Chinese and Pakistani officials.
Deutsche Bank analysts said China’s diplomatic involvement has increased hopes that current oil supply disruptions could eventually ease.
Strait of Hormuz Risks Remain High
Despite these developments, uncertainty remains elevated.
Iran’s Revolutionary Guards Navy said on Friday that a Togo-flagged tanker had been hit while attempting what Iranian authorities described as an unauthorized passage through the Strait of Hormuz.
The incident reinforced concerns over the security of vessels operating in one of the world’s most important oil transit routes.
Any further disruption in Hormuz could have a significant impact on global crude flows and energy prices.
Trump Weighs Next Move on Iran
Geopolitical uncertainty also remains high as U.S. President Donald Trump considers whether to resume large-scale military action against Iran.
Trump is expected to meet leaders from Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman during the upcoming United Nations General Assembly in New York.
Markets will closely monitor those discussions for any signs of de-escalation.
For now, oil prices remain highly sensitive to developments involving Saudi infrastructure, the Strait of Hormuz and the broader Middle East conflict.
