Iran and Gulf states postpone talks on shipping through the Strait of Hormuz.
Saudi Arabia keeps its key east-west oil pipeline shut after Friday’s drone strikes.
Fresh vessel and Houthi attacks add to concerns over Middle East oil and shipping routes.
Diplomatic efforts to manage tensions around the Strait of Hormuz suffered a setback on Monday after a planned meeting between Iran and Persian Gulf states was postponed, while fresh attacks near the region’s two most important oil transit routes added to concerns over global energy supplies.
The postponement came as oil prices jumped when markets reopened, following Saudi Arabia’s decision to keep a key 1,200-km (745-mile) east-west pipeline closed through the weekend after it was damaged in drone strikes on Friday. The pipeline has served as the main route for Middle Eastern oil to bypass the Strait of Hormuz, while shipping through the strait itself has continued to face security risks.
Oman’s Foreign Minister Sayyid Badr Albusaidi announced late Sunday that the regional meeting scheduled for Monday had been postponed “in the interests of consensus”. Iranian officials had said Tehran would attend the meeting with Gulf Arab states to present an agreement reached with Oman on governing shipping routes through the Strait of Hormuz.
Iran’s Fars news agency, citing an Iranian foreign ministry official, said the meeting was postponed at the request of some regional countries in a decision jointly taken by Tehran and Muscat. The official said Iran would coordinate with Oman to determine a suitable date for the meeting.
The delay came shortly after Saudi Arabia shut down, at least for now, its east-west pipeline, further reducing alternatives to the Strait of Hormuz for transporting oil from the region.
Saudi Pipeline Shutdown Threatens Further Supply Losses
According to Reuters, traders and Saudi oil buyers said on Sunday that Riyadh has enough oil stored at its Red Sea port of Yanbu to maintain exports for only five to seven days if the pipeline damaged on Friday remains shut.
Saudi Arabia has not provided full details of the damage or said how long the pipeline will remain offline. Sources who spoke to Reuters gave conflicting estimates for the time needed to repair it, ranging from days to weeks. Satellite images have shown huge columns of smoke from locations along the pipeline.
If the pipeline remains shut, as much as 4% of global oil supply could be jeopardised. That would come on top of the millions of barrels a day already lost because of disruption to traffic through the Strait of Hormuz.
Oil prices surged above $100 a barrel last week for the first time since July. In the United States, the politically sensitive retail price of diesel rose on Sunday to another all-time high above $6.20 a gallon.
New Attack Reported in Strait of Hormuz
The security risks around the Strait of Hormuz remained high over the weekend. The British maritime security agency UKMTO said on Sunday that a vessel was struck by a projectile while travelling through the strait. The attack caused a fire and forced the crew to evacuate.
Iran separately said one person was killed and four crew members were wounded aboard an Iranian commercial vessel that was struck off its coast.
The latest increase in violence linked to the war launched by the United States and Israel six months ago follows a quieter August, when Middle Eastern oil flows had begun to recover.
Iranian Foreign Minister Abbas Araqchi told the London-based pan-Arab news outlet Al-Arabi Al-Jadeed that an agreement with Oman would not by itself result in the reopening of the strait. He said Iran would not reopen the waterway until the United States satisfied Tehran’s demands.
The United States has so far failed to achieve the objectives President Donald Trump set out when he launched “Operation Epic Fury” in February. Those objectives were to end Iran’s nuclear programme, prevent Iran from being able to attack its neighbours and create conditions for its people to topple their rulers.
During a weekend trip to Ireland, which included attending the Irish Open golf tournament, Trump reiterated that he expected the Iran war to end this year. He said it could happen just after the US midterm elections in November, after which he said the price of gasoline would “drop like a rock”.
Houthi Attacks Add Pressure On Saudi Arabia
The security concerns also extended to the Red Sea. In southern Saudi Arabia, state media released video showing damage to homes and a mosque following the latest purported cross-border attack by Yemen’s Iran-aligned Houthi rebels in Jazan province.
The Houthis separately claimed to have struck a Saudi military base in a neighbouring province following their capture of Perim Island in the Bab El-Mandeb, the “Gate of Tears” strait that controls the mouth of the Red Sea.
Reuters reported that the Houthi advance along Yemen’s Red Sea coast is part of the biggest eruption of fighting in Yemen for years. Their advance and attacks on Saudi Arabia have created a new dilemma for Washington, which wants to support its Saudi allies and protect shipping while remaining wary of joining a war on another front.
The Houthi attacks have also left Gulf states facing a difficult choice between accepting growing economic pain and engaging with Iran.
The United States bombed the Houthis for two months in 2025, but Trump halted the campaign after announcing that the group had lifted its threat to attack Red Sea shipping.
Three sources told Reuters that Saudi Arabia’s de facto leader, Crown Prince Mohammed bin Salman, called Trump on Thursday to request military aid to fight the Houthis. The sources said Washington had offered intelligence support for now.
Trump acknowledged on Saturday that he had spoken with the crown prince. He also said the Houthis had contacted the US administration and asked Washington to stay out of the Yemen war.
