A method for reducing the level of elemental sulfur from sulfur-containing hydrocarbon streams as well as reducing the level of total sulfur in such streams. Preferred hydrocarbon streams include fuel streams such as naphtha streams that are transported through a pipeline. The sulfur-containing hydrocarbon stream is contacted with a mixture of water, a caustic, a surfactant, at least one metal sulfide, and optionally an aromatic mercaptan. This results in an aqueous phase and a hydrocarbon phase containing reduced levels of both elemental sulfur and total sulfur.