Oil Prices Surge on Saudi Pipeline Halt, but Gains Lost Amid Diplomatic Progress

Oil prices surged on Monday after Saudi Arabia's East-West pipeline was halted, but some gains were lost as US President Donald Trump posted comments suggesting progress in resolving conflicts with Iran and Russia. Brent crude rose by 1% to settle below $106 a barrel, while West Texas Intermediate (WTI) was around $101.

The halt of the Saudi pipeline, which has a capacity to carry about 7 million barrels per day, initially caused oil prices to jump as much as 5%. However, traders unwound long positions after Trump's comments, with the US leader stating that Iran wants to make a deal and that Kyiv and Moscow have agreed not to strike energy targets.

Saudi Aramco did not comment on how long the pipeline would be out of service, with conflicting signals emerging over when it will reopen. US Energy Secretary Chris Wright expects the pipeline to be up and running 'very soon', but two regional officials told The Associated Press that it will be down for several weeks.