Iran says Gulf states requested postponement of Hormuz meeting

The delay brings more uncertainty to the situation around the Strait of Hormuz, which has already pushed crude to multi-month highs. Brent crude has been above $100 per barrel in recent sessions, and about a fifth of global oil and LNG shipments are still disrupted. Market participants had been expecting the Oman talks to be a possible move towards a temporary shipping corridor. As a result, a postponement, even if described as a procedural step, tends to strengthen rather than reduce the risk premium already embedded in crude prices. How the delay is presented is important. Iran says it was a joint decision with Oman, but other reports indicate tension among Gulf countries. For example, Bahrain said it would not attend, which suggests the diplomatic situation is more complicated than first indicated. The United States was not at the table and has indicated that any new talks should focus on Iran's nuclear program, not Hormuz access. Therefore, the market will probably see this as a sentiment delay rather than a solution, keeping the geopolitical premium unchanged for the new trading session.

The Monday meeting, which was intended to move forward a shipping agreement for the Strait of Hormuz, has been delayed. Iran and Oman say it is for consensus building, but unity among Gulf states appears less solid than advertised.

In summary:

• The postponement of the scheduled Monday meeting in Oman between Iran and Gulf Arab states was reported by Iran's Fars news agency, which cited an Iranian foreign ministry official.
• According to Fars, the delay was a joint decision by Tehran and Muscat, taken at the request of "certain regional countries."
• Separately, Oman's foreign minister said on social media that the meeting was delayed "in the interests of consensus."
• The discussions were intended to cover a potential temporary shipping corridor through the Strait of Hormuz. That waterway usually carries about a fifth of global oil and LNG shipments.
• Bahrain had already stated it would not participate until diplomatic relations with Iran are reestablished.
• The United States was not expected to participate, and officials reportedly wanted any future talks to concentrate on Iran's nuclear program instead of Hormuz access.

Iran announced that a meeting in Oman between Tehran and Gulf Arab states, originally set for Monday to discuss potential arrangements for the Strait of Hormuz, has been postponed. The postponement was reported by Iran's semi-official Fars news agency, which cited an Iranian foreign ministry official. It said the delay was a joint decision by Tehran and Muscat, taken at the request of "certain regional countries." Oman's Foreign Minister Badr Albusaidi posted a similar statement on social media, saying the meeting was being delayed "in the interests of consensus." He did not specify which countries had raised objections.

The meeting had been promoted as an opportunity to move forward an Omani-mediated framework. This framework aims to restore safer transit through the Strait of Hormuz, the narrow waterway between Iran and Oman. Normally, it carries nearly a fifth of global oil and LNG shipments. The waterway has been heavily disrupted since a US and Israeli campaign against Iran started in late February. Even after seven months of conflict, it remains a key pressure point for global energy markets. For months, Tehran has been in talks with Muscat over an agreement to regulate transit through the strait. The proposal includes allowing Iran to collect fees from passing ships, but Oman has opposed that idea. Instead, Oman prefers a voluntary payment model linked to navigational safety and environmental protection.

Even before the postponement, not all regional parties were in agreement. Over the weekend, Bahrain said it would not participate, citing that diplomatic ties with Iran have not been restored. The United States, which has been running a naval escort operation for tankers through the strait, was also not expected to participate. Officials reportedly told regional counterparts they would rather any renewed talks with Iran focus on its nuclear program instead of Hormuz access.

The postponement means the overall situation remains mostly unchanged: the waterway is running far below its normal capacity, the diplomatic efforts are proceeding irregularly, and the market continues to price significant risk into crude while waiting to see if Iran, Oman and the rest of the Gulf can agree on a feasible way ahead.