{
  "id": 6797790,
  "title": "Crude Oil buckles early and grinds back on talk of a Hormuz arrangement",
  "url": "https://urgent.news/2026/09/11/crude-oil-buckles-early-and-grinds-back-on-talk-of-a-hormuz",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-11T20:19:56.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/crude-oil-buckles-early-and-grinds-back-on-talk-of-a-hormuz-arrangement-202609112019"
  },
  "original_language": "en",
  "account": "Traders observed crude oil prices falling early on Friday, before recovering. The Financial Times reported that officials from Gulf foreign ministers would meet their Iranian counterpart in Salalah, Oman to negotiate a temporary arrangement for shipping through the Strait of Hormuz. The meeting was scheduled for Monday. Preliminary vessel tracking data showed seven ships traversed the strait on September 10, down from eleven the previous day. Before the war began on February 28, the waterway accommodated around 125 cargo vessels daily, accounting for about a fifth of the world's seaborne crude oil and liquefied natural gas (LNG). However, the waterway has since been less congested, with Gulf producers shipping cargoes out to waiting tankers instead of sailing fully loaded ships through the strait. This workaround has kept exports afloat, but it has increased costs along the way. This added expense is incorporated into the freight charges, rather than the price of the oil itself, which is now moving again. Saudi Arabia's August production dropped by around 1.9 million barrels a day, while Houthi strikes hit Saudi energy sites this week. American inventories decreased by an additional 300,000 barrels in the week ending September 4. The August Consumer Price Index (CPI) rose by 0.4% month-over-month and held steady at 3.4% year-over-year, both aligning with expectations. Gasoline prices increased by 3.9%, contributing more than a third of the monthly rise, while fuel costs rose by 28% year-over-year and diesel by 52%. These figures reflect the impact of the energy shock on the American economy. The last inflation print before the Federal Reserve's decision showed higher energy costs. Core CPI rose by 0.3% month-over-month, slightly above the 0.2% consensus, and cooled to 2.4% year-over-year. The International Energy Agency (IEA) reported on Friday that global demand for oil in 2026 would decline by a further 940,000 barrels a day, bringing the annual decline to 2.5 million barrels. The report also indicated that global supply would fall by 5.7 million barrels a day this year, reaching 100.7 million barrels. However, over 10 million barrels a day of Gulf output remains offline as of August. Production is currently at 100.1 million barrels a day, down 1.6 million barrels from the previous month. The IEA projects a rebound of 8 million barrels a day next year, a recovery that will also traverse the same strait. Global stocks have fallen by 507 million barrels since the war began, an average daily draw of 2.8 million barrels, with August alone accounting for 95 million barrels. The agency anticipates Gulf recovery in 2027. The balance has been borne by tanks, which can only empty once. The Federal Open Market Committee (FOMC) will convene on September 15 and 16, with the statement, press conference, and updated Summary of Economic Projections (SEP) released on the second day. Gulf ministers will meet in Salalah the day before the FOMC meeting. Rate futures suggest a 70% chance of a quarter-point increase on September 16, equivalent to the first move out of the target range unchanged since January (3.50% to 3.75%). Such a rate hike would not reopen the strait. The IEA's monthly report also trimmed 2026 demand by an additional 940,000 barrels a day, reducing the full-year decline to 2.5 million barrels. The same report showed supply decreasing by 5.7 million barrels a day in 2024, bringing the total to 100.7 million barrels. More than 10 million barrels a day of Gulf output remains offline as of August. Production stands at 100.1 million barrels a day, down 1.6 million barrels from the previous month. The IEA projects a 8 million barrels a day rebound next year, a recovery that will also pass through the same strait. Inventories have offset the difference. Global stocks have decreased by 507 million barrels since the war began, with an average daily draw of 2.8 million barrels. August alone saw a 95 million barrel draw. The agency estimates Gulf recovery in 2027. The Federal Reserve's decision will be made on September 15 and 16, with the statement, press conference, and updated Summary of Economic Projections (SEP) issued on the second day. Gulf ministers will meet in Salalah on September 14, the day before the FOMC meeting. Rate futures indicate a 70% probability of a quarter-point increase on September 16, a near 57% chance in a prediction market, and a 49% prediction market outlook. Brent, another major oil benchmark, is priced above $100.00. The June memorandum between Washington and Tehran established a corridor along the Omani coast. Iran labeled this southern route as a breach of the memorandum and attacked ships using it, leading to the collapse of the interim deal. It is possible that Monday's meeting will result in a corridor that ships will actually utilize. Two such corridors have been announced since June.",
  "summary": "West Texas Intermediate (WTI) trades near $97.00, about 3.4% lower and on track for its first down session in five.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "Fortune",
        "title": "Oil prices dive on signs of Hormuz diplomacy while Saudi Arabia is left hanging in fight against an Iranian ally threatening crude’s other chokepoint",
        "url": "https://urgent.news/2026/09/11/oil-prices-dive-on-signs-of-hormuz-diplomacy-while-saudi-arabia-is",
        "published": "2026-09-11T19:07:07.000Z"
      },
      {
        "outlet": "CNBC World",
        "title": "Saudi Arabia shut down East-West crude oil pipeline after multiple attacks",
        "url": "https://urgent.news/2026/09/11/saudi-arabia-shut-down-east-west-crude-oil-pipeline-after-multiple",
        "published": "2026-09-11T19:59:09.000Z"
      },
      {
        "outlet": "The Economic Times - Top News",
        "title": "Indian rupee weakens to 95.55 amid rising crude oil prices and Strait of Hormuz tensions",
        "url": "https://urgent.news/2026/09/12/indian-rupee-weakens-to-95-55-amid-rising-crude-oil-prices-and-strait",
        "published": "2026-09-12T02:45:59.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}