If it's charging initially then the fusible link is intact. Sounds more like a faulty clutch pulley or alternator brushes.
Hopefully the oil light is caused by the voltage drop as it happens at the same time. Jeeps are very sensitive to low voltage, all sorts of strange electrical issues...
Not a huge issue to weld up but what you see on the outside is 10% of what's inside when you cut it open, so keep that in mind when talking prices.
This was Jeeps first non chassis car so the whole thing is structural.
Have a Google, there must be someone near you who makes custom cables, that price is insane!
As an example, in the UK I use Speedy cables for all sorts of industrial replacement cables & the cost is nowhere near what you have been quoted.
What does the oil look like? pink, brown or milky? Is the level ok? Getting a transmission shop to look at it and check the line pressure would be a good start.
The diesel torque converter is different, reuse your old one of get an uprated one. I drool over the heavy duty ones available in America but shipping and import tax is insane, if I could get my hands on one I could chip it for loads more power.
It drives me nuts, I can get rubbish from China shipped for virtually nothing but parts from America are so expensive nobody bothers, guess it's the same for you.
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