Global oil prices edged lower on Monday, October 12, 2026, as Brent crude fell 0.35% to $104.30 a barrel, while West Texas Intermediate (WTI), the US benchmark, declined 0.58% to $91.32.
The modest losses followed a week of sharp price swings, with both benchmarks rallying strongly before surrendering some gains as market participants reassessed supply conditions and geopolitical developments.
Improved oil loadings through the Strait of Hormuz and continued operations on Saudi Arabia’s East-West pipeline have helped ease concerns about disruptions to crude exports from the region.
However, uncertainty over diplomatic efforts involving US and Iran continues to support the spike in oil prices, as traders remain alert to the possibility of renewed supply disruptions.
Strait of Hormuz Crisis
The continued crisis in the Strait of Hormuz, a critical route for global oil shipments has greatly influenced crude prices.
Meanwhile, Saudi Arabia’s East-West pipeline alternative route for transporting crude to export terminals on the Red Sea, reducing the kingdom’s reliance on shipments through the Strait of Hormuz as raised hopes in the global oil market.
The latest price movement reflects the competing forces shaping the oil market since mid-September, as improving physical supply has eased some concerns while geopolitical uncertainty continues to sustain a risk premium.
Traders are expected to monitor export volumes from the Gulf region and developments in mediated US-Iran talks for further indications of the direction of prices.
Despite Monday’s decline, Brent remained above $104 a barrel, while WTI traded above $91, keeping both benchmarks elevated amid continuing uncertainty over the outlook for Middle East supplies.
