Iranian officials and representatives from several Gulf Arab states are scheduled to meet on Monday in Oman to discuss ways to manage the escalating conflict in the region amid stalled U.S.-Iran diplomatic efforts. The discussions come as Iran continues to maintain an effective blockade of the Strait of Hormuz, a critical maritime chokepoint for Gulf oil exports, exacerbating tensions and affecting global energy markets.
Recent weeks have seen ongoing exchanges of attacks between Iran and Gulf countries, with no significant progress in U.S.-Iran negotiations aimed at reopening the Strait. Last week, the price of Brent crude briefly climbed to around $110 per barrel, its highest level in months, before falling back to about $105. On Sunday, a vessel in the Strait of Hormuz was struck by a projectile, resulting in a fire onboard, according to the United Kingdom Maritime Trade Operations, a British navy-run monitoring group. Iranian state media reported that an Iranian commercial ship was attacked as well, causing one fatality and injuring four others.
The conflict has expanded to Yemen, where Houthi militants, backed by Iran, recently seized control of the strategic port of Mokha and Perim Island in the Bab al-Mandab Strait from the Saudi-supported Yemeni government. The Houthis have also conducted missile and drone attacks targeting Saudi energy infrastructure and attempted to disrupt Saudi shipping routes. Saudi Arabia was compelled to shut down its East-West pipeline on Friday following a drone attack originating from Iraq, a country that harbors Iran-supported militias. Saudi officials reported injuries and infrastructure damage from recent projectiles targeting southern regions, underscoring the widening scope of hostilities.
Oman, which shares a border with Iran along the Strait of Hormuz, has played a mediating role between Washington and Tehran and is set to host the upcoming talks. Iranian Foreign Ministry spokesman Esmaeil Baghaei indicated the meetings would address joint efforts to reopen the waterway, potentially involving fees levied for transit, a practice not previously in place. However, Iran has demanded the lifting of U.S. sanctions and the return of frozen Iranian assets as conditions for ending the blockade, demands that the U.S. has dismissed without corresponding Iranian curbs to its nuclear activities.
Bahrain has announced it will not participate in the dialogue, citing ongoing Iranian attacks that have targeted the kingdom’s infrastructure and civilian assets. In contrast, other Gulf states have shown some willingness to engage; for example, the Crown Prince of the United Arab Emirates, Khaled bin Mohammed Al Nahyan, met with Iranian President Masoud Pezeshkian on the sidelines of the BRICS summit in India last weekend, marking the first public interaction between senior officials from the two nations since hostilities intensified.
The conflict remains unresolved, with both Iran and the United States stuck in what analysts describe as a state of “no war, no peace.” Although Iranian officials have indicated a possible return to the cease-fire agreement that briefly halted fighting in June, they have issued new demands that the U.S. has so far rejected. U.S. President Donald Trump has stated that he came close to launching a significant military strike against Iran but abstained partly due to concerns raised by Gulf allies over the consequences of a wider war.