Gulf Arab nations have delayed a pivotal meeting with Iran regarding the management of the Strait of Hormuz, as consensus among the parties remains elusive. This setback undermines regional efforts to de-escalate hostilities along the vital maritime artery. The ministerial-level gathering, originally scheduled for Monday in Oman, was intended to have Iran and Oman discuss an interim agreement to regulate shipping traffic through the strait. Since the U.S. and Israel launched military strikes against Iran in February, Tehran has tightened its grip on vessel transits, transforming the strait into a primary theater of conflict.

Oil prices ticked higher upon the announcement of the postponement. Omani Foreign Minister Badr Albusaidi stated that the regional meeting, set to take place in Salalah, has been deferred to foster consensus. In a post on X, he expressed ongoing commitment to dialogue and enduring cooperation for regional stability, without divulging further specifics. This gathering would have marked the first collective meeting between the foreign ministers of the six Gulf Cooperation Council (GCC) nations—Saudi Arabia, the UAE, Kuwait, Qatar, Oman, and Bahrain—and their Iranian counterpart in nearly two years, with Iraq also planning to participate. However, Bahrain, which holds the GCC presidency and has been among the hardest-hit Gulf states by Iranian retaliatory attacks, announced on Saturday that it would not attend.

The postponement unfolds amid a simmering crisis for Saudi Arabia. On Thursday, a drone assault by Iranian-backed Shiite militias from Iraq forced Riyadh to shut down a key pipeline traversing from its oil-rich eastern province to the western coast. Since Iran restricted transits through the Strait of Hormuz, this pipeline has become a lifeline for Saudi crude exports. Additionally, Iranian-backed Houthi rebels in Yemen launched multiple missile and drone strikes on southern Saudi energy infrastructure last week, as Yemen's decade-long civil war reignites. The Houthis have advanced southward along Yemen's Red Sea coast, repelling Saudi-backed government forces and strengthening their grip on the Bab el-Mandeb Strait, another critical chokepoint for global shipping.

Mohammad Ali Beik, a senior Iranian foreign ministry official, stated that the meeting was deferred at the request of regional states, as quoted by Iranian media. He added that Iran is in close consultation with Oman to select a suitable time for the necessary arrangements. The meeting was initiated by Oman, with both Muscat and Tehran hoping to secure regional backing for their interim accord on managing shipping through the strait. Under the proposed deal, vessels would transit Iranian waters when entering and primarily use Omani waters when exiting. Negotiations on this accord have spanned weeks, but diplomats had cautioned that a full reopening of the strait—which handled one-fifth of global oil and gas shipments before the war—would also require a U.S.-Iran agreement. Iranian officials have warned that shipping security cannot be guaranteed while Washington maintains a naval blockade on Iranian ports.

In Asian trading on Monday, international benchmark Brent crude surged 3.5% to break above $108 per barrel on the news of the postponed talks, before paring some gains. The earlier attacks on Saudi infrastructure had already pushed oil past $100 last week, reaching a five-month high, as markets grew wary of regional energy supply disruptions. The interim strait accord, designed to remain in force until Iran and its Gulf neighbors settle the waterway's long-term status, was widely viewed as a viable path to ease U.S.-Iranian confrontation there. Parties had initially hoped the Iran-Oman agreement would build on a short-term memorandum of understanding signed between Washington and Tehran in June. That MoU aimed to establish a 60-day ceasefire, progressively reopen the strait, and advance negotiations toward a war-ending framework, including provisions on Iran's nuclear program. However, both Tehran and Washington have traded accusations of violating the deal—partly due to disagreements over vessel passage rules, Iran's key bargaining chip—sparking successive rounds of tit-for-tat attacks.

The U.S. has signaled to mediators that it will not return to the MoU, insisting instead on a more comprehensive agreement encompassing nuclear issues. Meanwhile, Iran maintains that it will only fully reopen the strait—even with the Oman deal in place—if the U.S. meets all its demands, including lifting the blockade on Iranian ports, restoring waivers for crude sales, and unfreezing some of Iran's overseas assets. Despite President Trump's assertions that the strait remains open, Gulf energy exports are now severely restricted, and goods are unable to flow through the waterway for imports.