Saudi Arabia Spent Months Trying to Bypass Hormuz. For Now, There's No Way Around It. — Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is down 0.8% at $99.82 a barrel.

--European benchmark gas is down 1.7% at 71.96 euros a megawatt-hour.

--Copper futures are up 0.7% at $14,762 a metric ton.

--Gold futures are down 0.3% at $4,369.90 a troy ounce.

TOP STORY:

Saudi Arabia Spent Months Trying to Bypass Hormuz. For Now, There's No Way Around It.

DUBAI-Saudi Arabia spent months rerouting oil across the desert to circumvent the Strait of Hormuz. Now, with its Red Sea bypass route disrupted by attacks, the world's oil kingpin is having to return to the waterway it was trying to avoid in the first place.

Saudi Aramco, the country's state-controlled oil giant, is loading more oil onto tankers in the Persian Gulf and then taking its chances sending them through the Strait of Hormuz. The company has told several of its customers in Asia-its most important oil market-to pick up shipments just outside the strait off the coast of Oman, people familiar with the matter said.

OTHER STORIES:

What Is Saudi Arabia's East-West Pipeline and Why Is It Rocking Oil Markets?

Saudi Arabia is running tests on a critical oil pipeline that was recently knocked out by drone strikes, a step toward restoring flows and reviving a major export route that bypasses the Strait of Hormuz.

The East-West pipeline is being tested for structural integrity and pressure, according to people familiar with the matter. If successful, crude exports from the Red Sea port of Yanbu could restart within a couple of days, they added.

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Brent Falls Below $100 a Barrel on U.S.-Iran Diplomacy Hopes

Oil prices reversed initial gains Tuesday after reports that Iran offered to reopen the Strait of Hormuz within seven days if the U.S. takes steps toward easing military pressure.

Brent crude futures fell 2.6% to $97.76 a barrel, while West Texas Intermediate declined 3.1% to $92.78 a barrel. Both benchmarks had climbed in early European trading before paring gains, with Brent earlier rising above $102 a barrel.

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Iran's President Gets Rare Opportunity to Make His Case to the World

When a small Iranian delegation, led by the country's president, travels to New York this week, its members will be free to attend the United Nations General Assembly-but not to go for a walk in Central Park or shop on Fifth Avenue without permission. Only a trip down the block from their Manhattan hotel to the U.N. building is allowed.

The U.S. has long imposed restrictions on Tehran's diplomats, but the circumstances of the Iranian delegation are particularly unusual this year as they visit an America their country is fighting in a nearly seven-month-old war.

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Comstock Shares Rise After Nevada Facility Ramps Up to Continuous Operation

Comstock shares rose after the company said its solar-panel recycling production system is now operating continuously at its Silver Springs, Nev., facility.

The stock was 5% higher, at $2.76, in morning trade, and is 25% lower in the past 12 months.

MARKET TALKS:

European Gas Prices Fall, but Mideast LNG Disruptions Limit Downside -- Market Talk

1423 GMT - European natural-gas prices fall in afternoon trading, but downward pressure is likely to be limited. "This is because, unlike the oil market, there are no alternative routes on the gas market through which the currently missing LNG from Qatar could be transported," says Norman Liebke from Commerzbank. "As long as the Strait of Hormuz remains officially closed, only a small portion of Qatari LNG is reaching the global market." The squeeze comes as European storage levels remain well below the five-year average ahead of the heating season. Meanwhile, the European Commission's Gas Coordination Group is due to discuss the market situation on Thursday. The benchmark Dutch TTF contract is down 2.5% at 71.44 euros a megawatt-hour. (giulia.petroni@wsj.com)

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Brent Remains Below $100 on Improved Supply Prospects -- Market Talk

1415 GMT - Oil prices continue to trade lower, with Brent crude below $100 a barrel on hopes for improved Gulf supply. The global oil benchmark is down 1% at $99.34 a barrel, while front-month WTI futures fall 1% to $94.80 a barrel. "The decline reflects market expectations of increased oil supply," says Giovanni Staunovo from UBS. "Time will tell whether those expectations prove overly optimistic." Meanwhile, Saudi Arabia's crude exports from the Red Sea port of Yanbu could restart within a couple of days as state-controlled Aramco runs tests on its East-West pipeline, The Wall Street Journal reported earlier on Tuesday. (giulia.petroni@wsj.com)

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U.S. Corn and Soybean Harvest Ahead of Last Year -- Market Talk

0954 ET - The USDA says the pace of early harvesting in the U.S. is exceeding that of this time last year, as well as the 5-year average pace. The government says corn is 13% harvested, while soybeans are 12% complete--with corn 3 points ahead of this time last year, while soybeans are 4 points ahead of last year's pace. Rainfall this week may slow down harvest progress, says Michael Cordonnier of Soybean and Corn Advisor in a note-- although the central plains should dry out later this week. Most-active corn is down 0.5%, soybeans drop 0.4%, and wheat is off 1%. (kirk.maltais@wsj.com)

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Bank of America Raises Brent Price Estimates -- Market Talk

0946 ET - Bank of America raises its Brent price estimates citing the "exceptionally large supply disruption," that has reduced crude and refined-product availability. "Continued skirmishes into year-end are now our most likely scenario," Francisco Blanch of BofA Global Research says in a note. "Although alternative routes and escorted Hormuz shipments have mitigated some of the shortfall, damaged infrastructure and rising geopolitical tensions make rapid normalization unlikely." BofA expects Brent to average $95 a barrel in 2H26, up from the previous estimate of $83 a barrel, and raises its estimate for 2027 to $80 from $75 a barrel.(anthony.harrup@wsj.com)

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Crude Extends Losses on Hopes for U.S.-Iran Talks -- Market Talk

0916 ET - Reports of a conditional Iranian offer to reopen the Strait of Hormuz has oil falling for a fifth consecutive session, with Brent trading under $100 a barrel. The decline reflects optimism for a return to U.S.-Iran talks, although "we remain stuck in the gray state represented by a formula of neither peace nor war," says Samer Hasn of XS.com in a note. "Unless we see a serious return to negotiations between Iran and the United States involving mutual concessions, escalation prospects may remain extremely high, potentially keeping crude prices elevated for an extended period." Most active WTI is down 2% at $90.50 a barrel and Brent falls 1.4% to $98.95 a barrel. (anthony.harrup@wsj.com)

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U.S. Diesel Sets Fresh Record on Tightening Supply -- Market Talk

1052 GMT - U.S. diesel prices continue to reach new highs, hitting a fresh record Tuesday as curtailed Russian exports and prolonged disruptions to crude flows in the Strait of Hormuz squeeze global supplies. The national average price of diesel rose to a record of $6.527 a gallon, according to the American Automobile Association, up sharply from $3.688 a gallon a year ago. According to a Bloomberg report, Russia is set to extend a ban on most diesel exports that was introduced earlier this year due to continued Ukrainian attacks on its refineries. "The diesel market is likely to face a challenging winter if the situation in the Middle East does not ease and Russia's ban on diesel exports remains in place for even longer," says Carsten Fritsch from Commerzbank. (giulia.petroni@wsj.com)

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Brent Falls Below $100 a Barrel on Hormuz Diplomacy Hopes -- Market Talk

1013 GMT - Brent crude falls below $100 a barrel on hopes for a diplomatic push to end the U.S.-Iran war. The global oil benchmark is down 1.2% to $99.11 a barrel, while the U.S. oil gauge WTI is down 2.7% to $93.20 a barrel after Japan's Kyodo News reported that Iran has proposed to reopen the Strait of Hormuz within seven days if the American blockade is lifted. "The report triggered fresh selling, as traders read it as a fresh de-escalation signal ahead of this week's U.N. General Assembly," says Kaynat Chainwala from Kotak Securities. "Until a concrete outcome emerges from this week's meetings, crude's risk premium looks vulnerable to further unwinding, though stalled talks could just as quickly reverse the move." (giulia.petroni@wsj.com)

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European Energy Stocks Gain After Oil Prices Rise -- Market Talk

0743 GMT - European energy stocks post slight gains in early morning trade as oil prices halt their decline. Risks to shipping through the Strait of Hormuz remain elevated. A tanker entering the strait was struck by a projectile on Monday, according to U.K. Maritime Trade Operations. However, there remains some optimism that diplomatic efforts at the United Nations this week will help end the U.S. conflict with Iran. Brent crude futures are 1.3% higher at $101.64 a barrel, while West Texas Intermediate gains 1.3% to $97.00 a barrel. In London, Shell rises 0.8% while BP gains 0.5%. France's TotalEnergies and Norway's Equinor are around 1% higher, and Italy's Eni is up 0.8%. Spain's Repsol rises 0.6%.(adam.whittaker@wsj.com)

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Copper Strengthens on Supply Concerns, Tech-Stock Rally -- Market Talk

0719 GMT - Copper prices rise above the $14,700-a-metric-ton mark, supported by a tight supply outlook and a rebound in tech stocks. "With the dollar having had little influence on recent price action, we see the near-term path for copper as increasingly momentum-led," analysts at Sucden Financial say. The market could test the $14,750 a ton area again, a level that may offer fresh resistance following the earlier reversal, according to the firm. A sustained move above it would signal stronger upward momentum, while renewed selling pressure could prompt traders to lock in gains after the recent rebound. In early European trading, three-month copper futures on the LME rise 0.5% to $14,743 a ton. (giulia.petroni@wsj.com)

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September 22, 2026 10:48 ET (14:48 GMT)