Oil prices steady as Saudi pipeline closure pressures supply

Brent crude slipped 1.1% to $107.61 a barrel, while benchmark U.S. crude fell 2% to $103.70 a barrel, marking the first weekly decline in oil prices as Saudi Arabia’s key pipeline shutdown adds strain to global supply. The shutdown follows attacks by Yemen’s Iran‑backed Houthi rebels on Saudi infrastructure and Red Sea shipping, including the seizure of islands in the Bab el‑Mandeb Strait, while Iran continues to target vessels in the Strait of Hormuz.

In the United States, the average gasoline price rose overnight to $4.37 per gallon, up from $4.22 a week earlier, according to AAA. Diesel, which had topped $6 a gallon on Friday, is now $6.31 per gallon, up from $5.94 a week prior.

U.S. futures edged higher on September 16 ahead of the Federal Reserve’s interest‑rate decision, with markets pricing in the first hike in more than three years. Fed Chair Kevin Warsh is seen as likely to raise rates after a recent speech warned that inflation remains well above the Fed’s 2% target. Higher rates could curb borrowing and ease price pressures.

A tweet from Tom Kloza noted that despite today’s slightly lower futures, pump prices are set to keep climbing as marketers chase wholesale spikes. The rate‑hike outlook puts Warsh at odds with President Donald Trump, who is pushing for cuts and has previously criticized former Chair Jerome Powell.

Equity futures rose modestly: the S&P 500 up 0.2%, the Dow Jones Industrial Average up 0.1% and the Nasdaq up 0.4%. Treasury yields climbed, with the 10‑year note at 5.00% on September 16 after briefly touching 5.04% earlier in the week, its highest level in years.

The Commerce Department’s August retail‑sales data follows a July dip of 0.6%, the biggest decline in over a year. Analysts surveyed by FactSet project a 0.9% increase for August.

European markets were higher: Britain’s FTSE 100 rose 0.6% to 10,723.77, France’s CAC 40 gained 0.4% to 8,123.78 and Germany’s DAX added 0.3% to 25,466.60. Asian markets also climbed. The U.S. dollar strengthened to 155.19 yen, while the euro slipped to $1.1535 from $1.1544.

Related coverage includes the impact of the Iran‑driven energy crisis on inflation, the ongoing conflict in the Strait of Hormuz, and recent spikes in Asia‑to‑U.S. container rates.