After a month of quiet in August when flows of Middle East oil trickled back up, the past two weeks have seen a steady escalation in the war that the United States and Israel launched six months ago. No talks to end the war have been held since an interim agreement in June collapsed after a few weeks.
In a rare diplomatic initiative, Iranian officials say they will be attending a meeting on Monday with Gulf Arab states in Oman to present an agreement they say has been reached with Oman governing future shipping routes through the strait.
But few details have been released. Oman has not publicly announced the meeting or confirmed any agreement, and most Gulf states have remained silent. Iraq said it would send a delegation. Bahrain said it would not meet with any Iranians.
A senior Iranian official told Reuters on Saturday the meeting would discuss Hormuz and other issues, but would probably not yield a signed agreement to reopen the strait.
In an interview with London-based pan-Arab news outlet Al-Arabi Al-Jadeed, Iran's Foreign Minister Abbas Araqchi said despite any agreement with Oman, Iran would not reopen the strait until the United States satisfies Tehran's demands.
The attacks on Saudi Arabia and the Houthi advances in Yemen pose a new dilemma for Washington, which wants to support its Saudi allies and protect shipping but is wary of joining war on another front.
The Houthis, mountain fighters who captured Yemen's capital in 2014, have been battling a Saudi-led coalition for more than a decade but had mostly kept out of the wider Middle East war until recent weeks. Their advance along the Red Sea coast is part of the biggest eruption of fighting in Yemen for years.
The United States bombed the Houthis for two months in 2025, but Trump halted that campaign after announcing the group had lifted a threat to attack Red Sea shipping.
Three sources told Reuters that Saudi Arabia's de facto leader, Crown Prince Mohammed bin Salman, phoned Trump on Thursday asking for military aid to fight the Houthis, but was offered only intelligence support for now.
Trump acknowledged on Saturday that he had spoken to the crown prince, and said the Houthis had also phoned the U.S. administration, asking Washington to keep out of the Yemen war.
Hormuz vessel hit and Saudi pipeline damaged
In the latest incidents in the Gulf, the British maritime security agency UKMTO said on Sunday that a vessel had been struck by a projectile as it moved through the Strait of Hormuz, causing a fire and forcing the crew to be evacuated. Iran, for its part, said one person was killed and four crew wounded aboard an Iranian commercial vessel struck off its coast.
In Saudi Arabia, state media released video of damage to homes and a mosque from the purported latest cross-border attack by the Houthis, in Jazan province in the south. The Houthis claimed separately to have struck a Saudi military base in a neighbouring province.
Southern Saudi cities have experienced regular alerts since last week, culminating in drone strikes on Friday that knocked out the 1,200-km (745-mile) east-west pipeline across the Arabian Peninsula that has served as the main route for global supplies of Middle East oil bypassing the Strait of Hormuz.
That same day, the Houthis captured Perim Island, which lies in the middle of the Bab El-Mandeb, the "Gate of Tears" strait that controls the mouth of the Red Sea.
Prices, inventories and possible supply fallout
Oil prices surged above $100 last week for the first time since July. The politically sensitive retail price of diesel fuel in the United States rose on Sunday to another all-time high above $6.20 a gallon.
Traders and Saudi oil buyers told Reuters on Sunday that Riyadh has enough oil stored at its Red Sea port of Yanbu to maintain exports for just five to seven days if the pipeline struck on Friday remains shut.
After that, as much as 4% of global oil supply could be jeopardised, on top of the millions of barrels a day already lost to the disruption to traffic through the Strait of Hormuz.
Saudi Arabia has not given full details of the extent of damage to the pipeline or said how long it will remain offline. Sources that spoke to Reuters have given conflicting estimates for the time needed to fix it, ranging from days to weeks. Satellite images have shown huge columns of smoke from locations along the pipeline.
New strikes in Gulf and Saudi Arabia raise oil supply fears
ADEN/DUBAI, Sept 13 (Reuters) - New strikes on Saudi Arabia and on ships in the Gulf tested nerves in the Middle East on Sunday, after an attack on a Saudi oil pipeline and an advance by Yemen's Houthis threatened to worsen the wartime disruption to global energy supplies.
Oil traders were expecting prices to rise again when markets reopen on Monday, following the weekend developments that jeopardise supplies from the world's biggest exporter, Saudi Arabia.
XLE•
