Oil Prices Hold Steady as Saudi Pipeline Repairs Gain Momentum

Oil prices held their ground on Thursday after Saudi Arabia announced plans to restore half of its damaged East-West pipeline's capacity within days and full operations in six weeks. Brent crude traded near $106 a barrel, while West Texas Intermediate was above $102. The damage to the pipeline had boosted oil prices following attacks last week.

The US-Iran conflict has driven up global oil demand, with surging costs fanning inflationary pressures. This prompted the Federal Reserve to raise interest rates on Wednesday and signal further tightening. Crude has rallied by about three-quarters this year due to reduced Middle East flows.

A key workaround for shipments going via the Strait of Hormuz is emerging as the East-West pipeline, which carries oil across Saudi Arabia to its Red Sea coast. Estimates vary for volumes going through Hormuz, with US Energy Secretary Chris Wright stating 18 million barrels were transported in one day and a seven-day average of 11 million barrels per day.

President Donald Trump is set to meet with Persian Gulf leaders next Tuesday in New York to discuss the conflict's next steps. He predicted the war would end 'very soon', adding 'we could have a deal any time we want'. The US Congress has also passed legislation granting Trump new powers to impose tariffs on countries buying Russian petroleum products.