Diplomatic efforts in the Middle East suffered a setback with the postponement of a planned meeting between Iran and Gulf Arab states, amid escalating attacks targeting the region’s critical oil transit routes. The meeting, initially scheduled for Monday, was delayed as officials cited the need for greater consensus among participants.
Oman’s foreign minister, Sayyid Badr Albusaidi, announced the postponement, noting it was made “in the interests of consensus.” Iranian authorities had confirmed their intention to attend the meeting, which aimed to formalize an agreement on regulating shipping through the Strait of Hormuz, a strategic maritime chokepoint responsible for transporting approximately one-fifth of the world’s oil prior to the ongoing conflict in the region.
Iranian state media attributed the delay to requests from multiple regional countries and said Tehran and Muscat would coordinate to reschedule the talks. The postponement follows Saudi Arabia’s decision to shut down its 1,200-kilometer east-west pipeline that bypasses the Strait of Hormuz, after it suffered damage in a recent attack. The pipeline closure has raised significant concerns about global energy supplies.
The Strait of Hormuz itself remains a highly volatile area. The British maritime security agency UKMTO reported that a commercial vessel was hit by a projectile while transiting the Strait on Sunday, causing a fire and forcing crew evacuation. Iranian officials confirmed one fatality and four injuries on an Iranian commercial ship attacked near its coast. Ship tracking data indicated a sharp decline in vessel crossings through the strait, with only a single-digit number recorded over the weekend, compared to a 10-day average of 14.
Saudi Arabia’s pipeline shutdown risks reducing the kingdom’s oil export capacity, with traders and buyers estimating that stored oil reserves at the Red Sea port of Yanbu could sustain exports for only five to seven days if the pipeline remains offline. This poses a potential impact on up to 4% of global oil supply on top of ongoing disruptions linked to strait-related issues.
In a recent interview, Iran’s Foreign Minister Abbas Araqchi stated that Iran would not agree to reopen the strait until the United States meets its demands, indicating continued geopolitical tensions.
Meanwhile, hostilities have intensified along Saudi Arabia’s southern border. Iranian-backed Houthi rebels in Yemen claimed responsibility for missile attacks on Saudi territory, including damage to homes and a mosque in Jazan province. The Houthis also reported striking a Saudi military base after capturing Perrin Island in the Bab el-Mandeb strait, a strategic passage at the southern end of the Red Sea. This advancement marks a significant escalation in Yemen's five-year conflict, complicating regional security.
The escalation presents challenges for the United States, which seeks to support its Gulf allies while avoiding further entanglement in Yemen’s conflict. Reports indicate that Saudi Crown Prince Mohammed bin Salman requested U.S. military assistance against the Houthis, but was offered intelligence support rather than direct intervention. The Houthis themselves reportedly reached out to the U.S. administration, urging Washington to refrain from deeper involvement.
The recent developments have triggered a sharp rise in oil prices, with prices jumping over 3% on Monday, building on last week’s surge above $100 per barrel, the highest since July. In the United States, retail diesel prices reached record highs above $6.20 per gallon, reflecting the broader impact of regional tensions on global energy markets.