Oil tops $107 as Saudi pipeline outage deepens Hormuz supply fears

Highlights
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A US-contracted vessel carrying American personnel was struck near the Strait of Hormuz in an Iranian attack involving drones and a missile, according to reports, in the latest escalation threatening one of the world's most important energy and shipping corridors.
Sources cited by Fox News said the vessel was targeted by four Iranian drones and at least one missile. One projectile struck the ship, causing minor injuries, including smoke inhalation, according to initial reports.
Several personnel were reportedly treated for their injuries.
The incident has not yet been accompanied by a detailed public account from the US military. The number and type of weapons involved cannot be immediately confirmed.
The attack comes as the confrontation between Washington and Tehran increasingly spills into commercial shipping. Iran has repeatedly targeted vessels around the Strait of Hormuz, while US forces have carried out strikes against Iranian maritime and military targets and is imposing a naval blockade on Iran.
US forces have also struck Iranian oil tankers, while Iran has claimed attacks against multiple ships in and around the Gulf.
US President Donald Trump said Thursday that the United States is “hopefully toward the end” of its war with Iran, while claiming that Washington has been in direct contact with Tehran over a possible agreement.
Asked by reporters whether he had recently heard from the Iranian side, Trump said he had spoken with Iranian officials “directly”, according to reports published Thursday. He again said Iran was eager to reach a deal.
The comments represent the clearest recent indication from Trump that his administration sees a potential diplomatic pathway out of the nearly seven-month conflict — although there has been no announcement of a final agreement or ceasefire.
Israeli forces carried out fresh airstrikes and artillery attacks across southern Lebanon, according to Lebanon's state-run National News Agency, underscoring how fragile the June ceasefire between Israel and Hezbollah has become.
Recent attacks have hit areas around Nabatieh, including the Ali Al-Taher forest and the towns of Nabatieh Al-Fawqa and Kfar Tebnit, with multiple strikes reported in quick succession.
Israel has also carried out demolitions and other military operations in southern villages. Israel says its operations are aimed at Hezbollah military infrastructure and weapons activity.
On September 10, the Israeli military said it had destroyed a major underground Hezbollah complex at the Ali Al-Taher ridge, describing a roughly 2-km network containing weapons, command facilities and living quarters.
The operations followed renewed tensions after Hezbollah launched drone attacks toward Israel.
UN Secretary-General Antonio Guterres has called for urgent de-escalation across the Middle East, urging governments to return to diplomacy, protect civilians and humanitarian operations, and restore freedom of navigation amid the continuing Iran war and widening regional instability.
His appeal comes as the conflict is increasingly affecting the Gulf, the Strait of Hormuz, the Red Sea, Yemen, and Gaza creating overlapping security, humanitarian and energy crises.
The UN chief's appeal comes as commercial shipping through the Strait of Hormuz has fallen sharply. The disruption has therefore extended the consequences of the conflict well beyond the battlefield.
Iran has also imposed what it describes as new protocols for vessels using the waterway.
Guterres' call for freedom of navigation is significant because the issue is no longer simply about military vessels: commercial shipping, energy supplies, insurance costs and global trade are all being affected.
The United States reiterated its support for Yemen’s internationally recognised government and expressed solidarity with it against "Iran-backed Houthi aggression", the US Embassy in Yemen said on Wednesday.
The embassy said Chargé d’Affaires Jonathan Hop discussed the situation with Yemeni Foreign Minister Afrah al-Zouba and reaffirmed Washington’s backing for the government in Aden.
“The United States of America stands in solidarity with the Yemen government and its people against Iran-backed Houthi aggression,” the embassy said in a post on X.
Yemen’s government forces, meanwhile, said they have targeted Houthi positions and equipment near Mocha and carried out drone attacks in northern Marib.
UNICEF said at least nine children had been killed and more than 104,000 people displaced during two weeks of fighting in Yemen.
Oil prices fell after Saudi Arabia offered additional crude cargoes to Asian refiners through ship-to-ship transfers near Oman, easing fears that damage to a key Saudi pipeline would trigger a larger supply shock.
The move gives Riyadh a partial workaround — but does not remove the wider risk from conflict around the Strait of Hormuz and the Red Sea.
Saudi Arabia's offer of loadings through ship-to-ship transfers off Sohar, Oman, followed drone attacks that damaged the kingdom’s East-West pipeline to the Red Sea, according to people familiar with the arrangements.
The additional supply is intended for Asian refiners and is designed to blunt the effect of the pipeline disruption. Brent crude settled down $2.92, or 2.7%, at $105.83 a barrel on Wednesday. WTI fell $3.40, or 3.2%, to $102.43. A smaller-than-expected draw in US crude inventories added to downward pressure on prices.
In early Asian trading on Thursday (Sept. 17, 2026 at 9.17 am Beijing time) WTI Crude fell by another 1.20% to $101.2, while Brent Crude dropped 1.43% to $104.3. Murban Crude was slightly up by 0.04% to $123.8, though prices remain significantly above levels seen before the latest regional escalation.
A war-damaged residential building collapsed in Gaza City early Wednesday, killing at least 21 people and injuring 45 others, according to Gaza's Civil Defence, as rescuers searched the rubble for survivors and bodies.
The six-storey Al Saada building in the Tal Al Hawa area of western Gaza City had been damaged by Israeli strikes earlier in the war. Gaza Civil Defence said the structure had been struck multiple times, including in 2024 and March 2025, and had previously been considered unsafe.
More than 100 displaced Palestinians were staying in the building, according to reports, including families who had nowhere else to go.
The collapse also affected nearby homes and tents. Civil Defence said its teams eventually recovered the bodies of 21 people and transported 45 injured people to hospitals.
The death toll includes children. Reports have differed on the exact number, with Palestinian sources cited by international media putting the number of children among the dead at between eight and 12.
The rescue operation was severely hampered by a lack of heavy machinery.
Civil Defence teams, residents and volunteers searched through tonnes of shattered concrete, at times digging by hand to reach people believed to be trapped underneath.
Egyptian President Abdel Fattah al-Sisi rejected any plans for Palestinian displacement, hours after Israel's defence minister said the army would "finish the job" in Gaza and remove Palestinians.
During a visit by Palestinian president Mahmoud Abbas, Sisi "reiterated Egypt's firm stance against the displacement of the Palestinian people or any attempt to annihilate the Palestinian cause".
Abbas praised Egypt's "steadfast positions", Palestinian news agency WAFA reported. Egypt shares the only land border with the Gaza Strip that is not controlled by Israel, and has since 2023 rejected plans to displace the territory's more than two million people into the Sinai Peninsula.
Israel's defence minister said Wednesday it was only a matter of time before the country resumes full-scale war in Gaza and moves to force out its two million Palestinians.
Israel Katz, who is known for outspoken remarks, was responding to criticism from another right-wing contender ahead of October 27 elections.
Katz said 70 percent of Gaza had already been emptied of its population in the Israeli offensive launched after the October 7, 2023 attack by Hamas.
A US military task force is working to enhance intelligence sharing and planning assistance for Saudi forces, a US official said late on Tuesday, as the kingdom faces attacks from Yemen's Iran-backed Houthi fighters.
US Central Command "has a task force in place for enhancing intelligence sharing and planning support with Saudi forces," the official said on condition of anonymity, adding that the military command "maintains a strong security alliance with our Saudi partners in confronting regional challenges."
US Vice President JD Vance has warned that the widening Iran conflict could trigger a major energy crisis as disruptions spread across both of the Middle East's critical maritime chokepoints — the Strait of Hormuz and Bab Al Mandab.
The warning has become more consequential in recent days as Iran's pressure on shipping around Hormuz has coincided with a rapid Houthi advance along Yemen's Red Sea coast.
The Houthis said on Wednesday that Saudi Arabian jets had carried out 40 airstrikes over the past day targeting western Yemen, where the Iran-backed group recently made substantial gains along the Red Sea coast.
"Saudi warplanes launched 40 airstrikes using F15 aircraft that took off from Khamis Mushait Airbase, targeting the provinces of Taiz, Marib, and Hodeidah over the past 24 hours," the Houthi's military spokesman said Yahya Saree said in a statement on social media.
Gaza authorities said Wednesday that 12 children were among the 21 people killed when an apartment building collapsed due to damage sustained in earlier Israeli strikes.
The six-storey building, which had four apartments per floor, crumbled overnight onto nearby homes and tents in the Tal al-Hawa area of Gaza City, according to the civil defence agency, which works as a rescue service under Hamas authority.
The vast majority of buildings in Gaza have been damaged or destroyed by Israeli strikes throughout the war with Hamas, according to the United Nations.
Yemeni government forces clashed with Houthi fighters near the Saudi border, with AFP footage showing soldiers in armoured vehicles and trucks pushing across desert terrain under the crackle of machine-gun fire.
The Houthis also released footage on Wednesday of the fighting in the Al-Jawf area, as well as a video purporting to show the downing of a fighter jet belonging to Saudi Arabia, the group's longtime foe and the Yemeni government's main backer.
"The First Division Emergency Forces are advancing on the Al-Labanat front and, God willing, will reach Houthi positions," Waleed Al-Mahajeri, operations commander of the government's Fifth Brigade, told an embedded AFP journalist on Tuesday.
He went on to claim that the "Houthi militias are retreating and fleeing across all fronts".
Saudi Arabia on Wednesday condemned the targeting of Mecca as a "cowardly terrorist attack" after Yemen's Houthis denied launching a drone at the holy city.
The Gulf kingdom "reaffirms its legitimate right to take all necessary measures to defend the security of the two holy mosques, the pilgrims, and the entire Saudi territory, its citizens, and its residents," the foreign ministry said in a statement.
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Sweden said Wednesday it had expelled an Iranian embassy employee and summoned the country's ambassador, accusing Tehran of making threats against Jewish and Israeli interests in Sweden.
"We know that Iran, over a long period of time, has conducted activities that threaten security in and against Sweden, targeting both individuals who oppose the Iranian regime and various Jewish and Israeli interests in our country. This has, among other things, been done by making use of criminal networks," Justice Minister Gunnar Strommer said in a statement to AFP.
Arab League Secretary General Nabil Fahmy condemned on Wednesday an alleged attempted attack by Yemen's Houthis targeting Mecca in Saudi Arabia.
"Compromising the security of Mecca and the sanctity of Islamic holy sites is a matter of extreme gravity," he said in a statement, applauding the Saudi air force's thwarting of the attack.
He warned that escalating Houthi attacks on Saudi territory "threaten the region's security and stability".
Yemen's Houthis on Wednesday said they targeted an Aramco facility in the Red Sea port city of Yanbu as well as an air base in southern Saudi Arabia in response to Saudi airstrikes.
Military spokesman Yahya Saree said Saudi Arabia had launched more than 450 air strikes this week, and that in response, the Iran-backed group "targeted the Aramco facility in Yanbu with dozens of ballistic missiles and drones" causing fires, as well as "the Khamis Mushait air base".
Iranian authorities committed crimes against humanity in the crackdown on 2022 protests that left hundreds dead, Amnesty International said Wednesday, adding Tehran's suppression of new demonstrations this year bore the "same hallmarks" but on an even wider scale.
The crackdown in 2022 amounted to "crimes against humanity" including murder, torture, rape and enforced disappearance, Amnesty said in a report marking four years since those protests, warning that the authorities' actions against rallies earlier this year were "on an even deadlier and more staggering scale".
Oil above $100 a barrel is spilling from global energy markets onto the streets, triggering protests, transport strikes, shortages and growing pressure on governments from Asia to Europe and Latin America.
As the Iran war squeezes energy supplies and threatens key shipping routes, households and businesses are being hit by higher transport and electricity costs. The impact is particularly severe in developing economies heavily dependent on imported energy.
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The United States is facing a shortfall in ammunition as a result of its war against Iran, the Defence Department’s inspector general confirmed Monday, contrasting with President Donald Trump’s assertions of full stocks.
In a first-of-its-kind mandatory report to Congress, the inspector said that between February 28 and June 30, Operation Epic Fury (OEF) had an estimated cost of $33.4 billion, including $22.3 billion spent on expended munitions.
“The munitions expenditure on OEF has resulted in strategic inventory shortfalls and revealed industrial base bottlenecks for munitions resupply,” the report said.
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Lebanese President Joseph Aoun told AFP in an exclusive interview he wants to reach a security agreement with Israel once it withdraws from the south, and is determined to disarm Hezbollah without resorting to confrontation.
Speaking ahead of his departure to France on Wednesday, President Joseph Aoun said Lebanon wanted a new force, European or otherwise, to prevent a security vacuum after UN peacekeepers leave south Lebanon when their mandate expires at the end of the year.
He called on the United States, European Union and Arab countries to support Lebanon's military as it deploys across the south.
In Paris, Aoun will attend a meeting hosted by President Emmanuel Macron and attended by King Abdullah II of Jordan to build international support for Lebanese troops as they deploy across the country.
"What matters is that there is no vacuum," Aoun told AFP on Tuesday. He added that any new force for Lebanon's south, part of which is occupied by Israel, would be "temporary until the (Lebanese) army can deploy".
"Whatever the nature of this force, that poses no problem for me: European, non-European, American, another United Nations force, Asian, or even a mix of European, Arab and Asian forces," Aoun said.
"The best and most optimal option remains extending UNIFIL's mandate," he added.
Pakistan's Prime Minister Shehbaz Sharif condemned on Wednesday "in the strongest possible terms the dastardly and heinous" attack on Mecca, which a Saudi-led coalition blamed on Yemen's Houthis.
"The people of Pakistan are saddened and perturbed by this outrageous act," he said on X. The Houthis have denied attacking Islam's holy city.
Britain's annual inflation rate climbed in line with analysts' expectations in August, official data showed Wednesday, as the Middle East war drove up fuel prices.
The Consumer Prices Index rose 3.1 percent in the 12 months to August, up from 2.9 percent the previous month, the Office for National Statistics said.
Higher inflation adds pressure on Prime Minister Andy Burnham and his finance minister John Healey to ease the cost of living for households ahead of the Labour government's budget update next month.
The Bank of England is forecast to maintain its benchmark interest rate at 3.75 percent on Thursday as the UK economy struggles for growth.
Yemen's Houthis on Wednesday said they shot down a Saudi fighter jet, claiming a locally made munition was used to target the warplane.
"The Yemeni Armed Forces, with Allah's aid and grace, succeeded in shooting down a Saudi F15 fighter jet while it was carrying out hostile operations in support of its military mobilisations in the airspace of Marib province," Houthi military spokesman Yahya Saree said on social media, while accusing Saudi Arabia of launching 450 strikes.
He said the jet had been targeted "using a locally made air-to-air missile".
The spokesman also dismissed Saudi claims that the Houthis had targeted the holy city of Mecca this week.
"Our operations target its oil facilities and military bases, which are far removed from the sacred sites," he said.
Oil prices fell in early Asian trading on Wednesday after an unexpected build in US crude inventories, while investors assessed supply risks.
Brent crude futures fell 93 cents, or 0.86 percent, to US$107.82 a barrel at 00:28 GMT, while US West Texas Intermediate crude futures were down 97 cents, or 0.92 percent, at US$104.86 a barrel.
Both benchmarks settled more than US$3 higher on Tuesday, reaching their highest levels since 19th May.
The Saudi-led coalition battling Yemen's Houthis accused the rebels on Wednesday of targeting Islam's holy city Mecca, sparking outrage across the Muslim world and deepening the conflict roiling the region.
Fresh fighting between the Iran-backed Houthis and Saudi-backed Yemeni government has dragged in Riyadh, with the Houthis declaring a maritime blockade on the kingdom and targeting its ships in the Red Sea.
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The United States embassy on Tuesday issued an advisory to "reconsider travel" to Saudi Arabia after Riyadh issued alerts in Mecca and other areas amid Houthi attacks.
The advisory warns of the "risk of Iranian drone and missle targeting of American interests, armed conflict, terrorism, exit bans and local laws regarding social media activity," adding "Do Not Travel to the Yemen border due to threat of terrorism."
Iran’s crude exports have effectively disappeared from the international market as a US naval blockade, tighter sanctions and months of attacks have disrupted the country’s ability to move oil through the Gulf of Oman and into global markets.
TankerTrackers.com said not a single barrel of Iranian crude crossed the US Navy blockade line between the Gulf of Oman and Arabian Sea during the previous 60 days, citing the vessel-tracking data cited by the service.
Reuters separately reported that a US-enforced blockade on Iran-related shipping had halted Iranian crude exports since it was reimposed in mid-July.
A Houthi official rejected Wednesday the Saudi-led coalition's report that it had shot down a drone from the rebels heading towards Mecca, the holiest city in Islam.
"The claims about targeting Mecca are a worn-out lie that has been used before and no longer fools anyone," Hazem al-Assad from the Houthis' politburo wrote on X.
Oil prices remained above $100 a barrel on Wednesday as traders weighed tightening physical supplies, disruptions to Saudi export routes and uncertainty over when normal shipping through the Strait of Hormuz can resume.
Brent crude was around $107.84 a barrel and U.S. West Texas Intermediate at $104.89 in Asian trading at 9:47 a.m. Tokyo time on Sept. 16, according to Gra. Both benchmarks had reached their highest settlement levels since May 19.
The latest rally has been driven by more than the risk of a prolonged Hormuz disruption. Saudi Arabia has halted oil loadings at its Yanbu port after damage to the East-West pipeline, removing an important route for moving crude to the Red Sea without using Hormuz. Saudi Arabia has been cancelling some crude cargoes to European customers as the disruption continues.
The Strait of Hormuz remains the biggest source of uncertainty. Only four commodity vessels crossed the waterway on Monday, compared with a pre-war average of about 125 daily transits, according to Kpler data cited by Reuters. The strait normally carries roughly one-fifth of global crude and LNG supplies.
US inventories of crude oil, gasoline and distillates all rose last week, according to data from the American Petroleum Institute, as the market weighs a prolonged US-Iran war and severe disruptions to Middle East oil shipping.
API said crude inventories increased by 7.1 million barrels in the week ended Sept. 11, while gasoline stocks rose 1.5 million barrels and distillates gained 1.6 million barrels. The figures are preliminary industry estimates ahead of the more closely watched Energy Information Administration report. The API says its weekly data are widely used by oil traders and companies.
The build in U.S. stocks comes as global oil markets face an unusual supply shock. Oil prices have climbed above $100 a barrel, with Brent reaching about $107.90 and WTI above $104.95 amid escalating Middle East disruptions, as as of 9.47am Tokyo on Wednesday (Sept. 16, 2026).
The Saudi-led coalition battling Yemen's Houthis said Wednesday it had shot down a drone from the rebels heading towards Mecca, the holiest city in Islam.
"The Royal Saudi Air Defense Forces intercepted and destroyed a hostile drone launched by the Terrorist Houthi Militia before it entered the Prohibited Airspace Area of the Holy City of 'Makkah Al-Mukarramah'", read a statement, using another name for Mecca, posted on X by the coalition's spokesman Turki al-Maliki.
The US military is facing munitions shortfalls and bottlenecks in replenishing its weapons stocks after the war with Iran, according to a Pentagon inspector general. The report contrasts with President Donald Trump’s repeated claims that US supplies are “virtually unlimited.”
The watchdog said the Defence Department spent more than $22 billion on munitions between February and June, resulting in “strategic inventory shortfalls” and revealing bottlenecks in the industrial base that supplies weapons.
US military bases across the Middle East sustained damage during the war with Iran, with aircraft, weapons and other military equipment hit in Iranian attacks, according to an inspector general’s report covering operations through June 30. The report documented damage or destruction at US around the region. It also estimated $184 million in damage to US diplomatic facilities, most of it in Iraq.
Among the military assets damaged were F-15E fighter jets, KC-135 aerial refueling tankers and MQ-9 drones. The heavy use of US weapons during the conflict also contributed to shortages of some munitions, the report said.
The conflict began Feb. 28 with US-Israeli strikes on Iran and has stretched toward seven months. At least 18 US service members have been killed and hundreds wounded, according to US officials.
The 2026 UN Global Risk Report shows that large-scale war is now seen as the world's greatest vulnerability, while concerns about AI & political risks are rising rapidly. Respondents point to one clear solution: stronger international cooperation.
As of Sept. 15, US forces have redirected 103 commercial vessels to ensure compliance.
Day 200: Houthi attacks injure Saudi civilians
Day 199: Trump says 'open' to engaging with Iran
Day 198: Saudi pipeline attack, Yemen crisis add to regional tensions
Day 197: Saudi Arabia shuts pipeline after attacks as Houthis seize Yemen's Red Sea coast
Day 196: Iranian strikes hit US aircraft in Jordan
Day 195: Iran Guards say target unmanned US sea drone in Hormuz