Wednesday 16 September 2026 07:30 UTC
Saudi Pipeline Damage Tightens Oil Supply as War Costs Rise
In the 24 hours ending 16 September at 07:30 UTC, Saudi pipeline damage tightened oil supplies and raised fuel costs.
Saudi Arabia suspended oil loading at Yanbu after severe damage to its East-West pipeline. The country also cancelled September cargoes for some European refiners. The disruption could cut exports by 2.5 million barrels daily for six weeks. More oil may now pass through the already restricted Strait of Hormuz.
Brent crude rose 1.6% to $107.39 a barrel. US crude gained 2.1% to $103.51. Libyan pipeline closures also halted production at two oil fields.
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US gasoline rose 16 cents in one week to $4.319 a gallon. Diesel jumped nearly 32 cents to $6.285. Rising transport costs added further pressure on consumers and inflation.
Daytime tanker crossings through the Strait of Hormuz began under US and Gulf protection. Earlier protected crossings mainly took place at night. The US military has now redirected 103 vessels during its blockade.
Cyberattacks hit at least two foreign tankers crossing the Strait of Gibraltar toward America. The attacks damaged their operational and computer systems. US investigators boarded the vessels, but the attackers remain unknown.
The first five months of the Iran war cost America $38 billion. A budget assessment said the conflict could add 0.5 percentage points to inflation by early 2027.
The same assessment listed two US tanker aircraft and one F-35A fighter as battle losses. The US military has publicly confirmed only one tanker loss. It has not confirmed losing an F-35 in combat.
Fighting continued between Houthi forces and Saudi-backed forces in southern Yemen. Yemeni government forces were struggling to stop the Houthi advance. Their chances of retaking the Red Sea port of Mokha appeared low.
Saudi-led airstrikes hit Houthi-controlled sites in Taizz and Marib. America has rejected Saudi requests for direct military action against the Houthis. Washington has limited its support to intelligence assistance.
Volodymyr Zelensky, Ukraine’s president, rejected an informal halt to attacks on energy infrastructure. He said Ukraine would continue striking Russian energy sites while Russian attacks continued. The Kremlin supported a halt and sought relief from Russian energy sanctions.
The US House advanced a major Russian sanctions bill by a 214–211 vote. The Senate had already supported moving the legislation forward.
Markets widely expected the Federal Reserve to raise interest rates in September. Most major banks expected another increase before the end of 2026. A sale of 20-year US government debt produced a high 5.420% yield.
An August outage at the Federal Reserve affected more than its public website. It also disrupted internal systems and the main channel for bank lending. The cause remained unclear.
Scott Bessent, the US Treasury secretary, planned talks with Chinese official He Lifeng. Their discussions were expected to cover Iranian financial links. The United Arab Emirates also signalled possible action against Iranian financing.
Abbas Araghchi, Iran’s foreign minister, was due to visit China for talks on 16 September. Oman and America also discussed reducing regional tensions and maintaining diplomatic engagement.
US agents arrested a 21-year-old Pennsylvania man over an alleged ISIS-inspired attack plan. Prosecutors accused him of seeking a weapon and studying explosives instructions. A search recovered a semiautomatic rifle.
The inquiry into infant deaths at Lucy Letby’s hospital found major failures to protect babies. It concluded that the hospital could have prevented some deaths. Britain now plans cameras around infant beds in neonatal units.
Troy Meink, the US Air Force secretary, confirmed American orbital defence systems can protect US forces. The disclosure came during growing tensions with China and Russia.
Artificial intelligence leaders remained divided over new safety rules. Nvidia chief Jensen Huang opposed new laws, while OpenAI said it could slow advanced development. Maria Ressa, a Nobel Peace Prize winner, urged rapid regulation of increasingly autonomous systems.