Iran-Gulf Talks Delayed as Oil Risks Mount

Middle East diplomacy has hit a snag following the postponement of Monday’s meeting between Iran and Gulf states. Omani Foreign Minister Badr Busaidi cited efforts to reach a consensus as the reason for the delay. Tehran had been set to present an agreement with Muscat on navigation through the Strait of Hormuz. A new date has not yet been set.

Oil prices rose on Monday. Saudi Arabia has kept its 1,200-km East-West oil pipeline closed after it was damaged in a drone attack. The pipeline is the main route allowing Saudi crude to bypass the Strait of Hormuz. Stocks at the Red Sea port of Yanbu are expected to sustain exports for five to seven days, after which around 4% of global oil supplies could be at risk. Repairs could take days or weeks.

In the Strait of Hormuz, a projectile struck a vessel, causing a fire and forcing the crew to evacuate. Iran reported that one person was killed and three sailors injured aboard one of its merchant ships.

Tehran refuses to reopen the waterway until Washington meets its demands. Despite this, Donald Trump expects the war to end before the end of this year.

Meanwhile, the Houthis continue their attacks on Saudi Arabia and, after seizing Perim Island, claim to have struck a Saudi military base. Crown Prince Mohammed bin Salman has asked the United States for military assistance, but Washington has so far declined direct military action, instead providing intelligence and targeting support.

(Reuters, bak)