Middle East Daily

Key arguments

• Saudi Arabia is reportedly seeking to restore about half of East-West pipeline capacity within days and full operations within six weeks; the route is an alternative to Hormuz, where flows remain well below normal and estimates vary (US officials: ~11mb/d seven-day average).
• The Fed unanimously raised rates 25bp, its first hike since 2023, and lifted its median end-2026 policy-rate projection to 4.1% from 3.8%; Chair Kevin Warsh said inflation remains broad-based.
• Gold rebounded as much as 1.3% to near USD 4,320/oz after three declines, supported by easing Treasury yields, but persistent inflation and elevated yields likely cap upside.
• Most GCC central banks raised policy rates 25bp in lockstep with the Fed (SAMA repo 4.50%, UAE overnight deposit base 3.90%, Bahrain and Oman 4.50%, Qatar +25bp across deposit, lending and repo); Kuwait kept rates unchanged due to its currency-basket peg.

Corresponding source evidence

1. 1 17 September 2026 Middle East Daily 17 September 2026 COMMODITIES / ENERGY Oil holds near USD106/b as Saudi pipeline recovery eases supply concerns. · September 2026
2. Oil held onto a sharp decline, with Brent near USD 106/b after falling 2.7% yesterday and WTI above USD 102/b, as prospects for a recovery in Saudi export capacity eased immediate supply concerns.
3. The pipeline has become an important alternative to the Strait of Hormuz, where flows remain well below normal and estimates vary considerably, with US officials putting the seven-day average at around 11mb/d.