Dubai – Business News Report|| Oil prices rose approximately 1.5% during Tuesday trading sessions on September 22, 2026, recovering part of the losses incurred over the previous four days. Investors are closely monitoring geopolitical developments in the Middle East, particularly potential talks between the United States and Iran at the UN General Assembly this week.
Market Recovery and Diplomatic Hopes
The rebound follows a sharp decline on Monday, where crude ended trading down more than 3.5%, marking the fourth consecutive session of losses. By 05:43 GMT, standard Brent crude for November 2026 delivery rose 1.49% to $101.84 per barrel. Meanwhile, US West Texas Intermediate crude for October 2026 increased by 1.50% to reach $97.22 per barrel, according to real-time data from Washington-based Energy Platform.
Analyst Views on Short-Term Volatility
Tim Water, chief market analyst at KCM Trade, described the rise in WTI and the strong opening in Brent as a typical short-covering rally following recent declines rather than a fundamental shift. He noted that traders reducing risk exposure are reacting to unfolding diplomatic events. Water added that prices will likely remain range-bound and sensitive to headlines until clear progress or setbacks occur in US-Iran negotiations.
Escalating Regional Tensions and Supply Shifts
Tensions escalated after Iran-backed Houthis claimed attacks on Riyadh and an Aramco facility in Yanbu, aiming to isolate Saudi forces from the Red Sea coast. China reportedly urged Tehran privately to help curb Houthi attacks following Saudi appeals. Consequently, Aramco increased exports via the Strait of Hormuz after suspending some shipments through its East-West pipeline due to attacks.
Supply Data and Libyan Production Cuts
Data showed Aramco loaded approximately 14 million barrels of crude onto seven supertankers in the Gulf on Sunday. Saxo Bank analysts stated supply concerns are receding as Hormuz shipments hit a six-month high and Saudi Arabia works to restore its pipeline. Separately, armed groups closed Valve No. 7 on Libya’s Zawiya pipeline on Monday, cutting production at the Sharara field by roughly 200,000 barrels daily to between 100,000 and 105,000 barrels.
This story was produced in the newsroom from the disclosed sources named above.
