Asian Stocks Mixed, Oil Declines as Supply Disruption Concerns Ease

By Megan Cheah

Oil prices declined early Monday as supply disruption concerns continued to ease, while Asia-Pacific equities were largely mixed in early trade.

Crude extended its retreat from recent highs above $100 a barrel, with front-month West Texas Intermediate futures dipping below that key psychological threshold.

Initial concerns over extended disruptions to crude oil pipeline flows from Saudi Arabia seem to be easing, said ANZ Research analysts, citing reports that Riyadh expects the East-West pipeline to resume roughly half its capacity within days.

The 750-mile pipeline, a crucial artery that allows Saudi crude to bypass the Strait of Hormuz amid the ongoing Middle East conflict, was shut down following drone strikes earlier this month.

Markets also remain focused on the longer-term fallout from the attacks by Yemen's Houthi militant group on Saudi Arabia. Such attacks underscore persistent risks of future supply interruptions, according to the ANZ analysts, who noted that an escalating regional conflict could further constrain Persian Gulf oil exports.

In an interview with Fox News on Sunday, President Trump said he is in a "deciding mode" regarding the U.S.-Iran conflict, and warned that "big things" could occur in the "not-so-distant future."

"My question is, if and when do I blow the entire nation up? They better behave," Trump said, while adding that he would "probably be open" to meeting Iranian President Masoud Pezeshkian during the United Nations General Assembly in New York this week.

Front-month WTI crude-oil futures were down 2.3% at $97.99 a barrel, while Brent was 2.3% lower at $101.48 a barrel, according to ICE data.

Asia-Pacific equities were mixed. South Korea's Kospi rose 1.2%, while Australia's S&P/ASX 200 index slipped 0.1%. China's Shanghai Composite Index added 0.2% and Hong Kong's Hang Seng Index was flat. Japanese financial markets are closed from Monday through Wednesday for a public holiday.

Investors will closely watch a coming meeting in Washington on Thursday between Trump and Chinese leader Xi Jinping for clues on the future trajectory of U.S.-China relations, MUFG strategists said.

While the leaders are expected to reaffirm high-level dialogue and achieve incremental progress on trade communications, the summit is expected to yield limited breakthroughs regarding technology controls, MUFG added.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

September 20, 2026 21:47 ET (01:47 GMT)