Oil markets opened higher on Monday as a planned meeting between Iran and other Persian Gulf states to discuss shipping routes through the Strait of Hormuz was postponed, while a drone strike that damaged a key Saudi Arabian pipeline added to fears of supply disruptions.
Oman’s foreign minister, Sayyid Badr Albusaidi, announced on Sunday that the gathering had been delayed “in the interests of consensus.” Iranian officials said the postponement came at the request of some regional countries, with Tehran and Muscat jointly deciding to reschedule. Iran’s foreign ministry will coordinate with Oman to set a new date.
Meanwhile, Saudi Arabia’s 1,200‑km east‑west pipeline, the main bypass of the Strait, was shut after drone attacks on Friday. The closure has left the kingdom’s Yanbu port holding enough oil for only five to seven days, according to traders, and could threaten up to 4 % of global supply if the line remains offline.
In the Strait itself, a vessel struck a projectile, causing a fire and crew evacuation, while an Iranian commercial ship reported one fatality and four injuries after being hit off its coast. The incident has further heightened concerns over the safety of the world’s most critical oil transit corridor.
Oil prices climbed above $100 a barrel last week for the first time since July, and U.S. diesel prices hit a new all‑time high, reflecting the ripple effects of Middle East tensions on global energy markets.
Iran’s Foreign Minister Abbas Araqchi warned that Tehran would not reopen the strait until the United States met its demands, underscoring the geopolitical stakes that underpin the region’s oil flows.
With the meeting postponed and supply lines threatened, market watchers will be watching Saudi Arabia’s pipeline repairs and the next diplomatic engagement for any sign of a de‑escalation in the region.
