Oil Declines After Saudi Pipeline Restart; Dollar Reverses Early Strength

North American traders saw a mixed U.S. dollar upon arrival. The currency had surged broadly during the European session but later surrendered most of those gains. It remained above the pound, Canadian and Australian dollars, below the yen, franc and kiwi, and nearly flat versus the euro.

Crude oil took center stage. Saudi Arabia resumed operations on its East–West pipeline, which transports crude to Yanbu on the Red Sea. Shipments from Yanbu might restart later Tuesday, but the pipeline is running at a diminished capacity for now. The resumption alleviated some short-term supply worries and contributed to lower oil prices.

Discussions about revived U.S.–Iran diplomacy at the UN General Assembly also emerged. According to a Reuters report quoting a senior Iranian official, the Strait of Hormuz could be reopened in seven days provided the U.S. reduces military pressure and ends the blockade of Iranian ports. Later updates from the news feed indicated Iranian sources disagreed with that timeline. Traders are currently weighing the pipeline restart, as the diplomatic situation stays vague.

Equity markets are pointing upward.

• Dow Jones futures: up 203.12 points
• S&P 500 futures: up 10 points
• Nasdaq 100 futures: up 27.5 points

European equity markets are largely in positive territory according to the latest data:

• Germany’s DAX: 25,704.40, climbing 0.51%
• France’s CAC 40: 8,176.74, climbing 0.46%
• UK’s FTSE 100: 10,751.33, climbing 0.11%
• Spain’s IBEX 35: 19,879.99, climbing 0.79%
• Italy’s FTSE MIB: 52,236.79, declining 0.26%

Crude oil declined while metals showed a mixed performance.

Brent crude traded at $98.68, a decline of 1.65%, and WTI stood at $93.60, off by 2.28%, based on the data. Attention turns to whether Saudi Arabia can boost pipeline flows and restart Yanbu deliveries as anticipated. The restart supports supply, though traders await actual barrels in transit.

Gold fetched $4,319.87, slipping 0.52%, while silver was at $65.49, declining 0.74%. Copper reached $6.8410, rising 1.16%, and Bitcoin stood at $86,043, dipping 0.63%.

Earlier data showed U.S. Treasury yields falling, with the 2-year at 4.732%, the 5-year at 4.8037%, the 10-year at 4.9306% and the 30-year at 5.2644%. Declining oil and yields could aid sentiment, but the movements in currencies and commodities remain mixed. This underscores the need to let price action in each market set the direction.

Geopolitics and the day’s schedule

This week, the UN General Assembly brings geopolitical stories to the forefront. President Donald Trump and Ukrainian President Volodymyr Zelensky are scheduled to meet, with energy infrastructure attacks likely to be discussed. The planned Trump–Xi meeting in Washington later this week will also highlight trade and Taiwan. A news headline can swiftly shift markets, but a concrete deal would have greater significance.

Here are the events from the provided calendar, with Eastern Time times:

• At 8:15 a.m., the ADP weekly employment change is released; prior was 16.3K.
• President Trump speaks at 9:55 a.m.
• At 10:00 a.m., Eurozone consumer confidence is reported (forecast −16, prior −16) and the Richmond manufacturing index (forecast 2, prior 4).
• New York Fed President John Williams speaks at 10:05 a.m.
• Fed Vice Chair Philip Jefferson speaks at 10:20 a.m.
• Richmond Fed President Tom Barkin speaks at 1:00 p.m.

Following last week’s rate decision, the Fed officials’ remarks merit attention. Their comments could influence Treasury yields and the dollar’s direction.