Oman postpones the meeting originally scheduled for the 14th with Iran and other countries; the US warns: Don't expect a breakthrough in the Strait of Hormuz

Diplomatic efforts surrounding the navigation of the Strait of Hormuz have suffered a major setback, prompting a strong reaction from the energy market.

According to Xinhua News Agency, Omani Foreign Minister Badr announced on the 13th that a regional meeting originally scheduled for the 14th in Salalah, southern Oman, has been postponed, citing the need for all parties to seek further consensus. Iranian Foreign Ministry spokesperson Baghaei previously stated that Iran and Oman had initially planned to inform Gulf countries of the consultation results between the two regarding the Strait of Hormuz navigation issue at the meeting.

Meanwhile, U.S. Energy Secretary Chris Wright poured cold water on the market in Vienna. On Sunday, he stated, "Counting on a mutually agreed deal with Iran at present is clearly not a wise move," and warned oil traders not to expect a breakthrough on the Strait of Hormuz issue.

The news of the postponed meeting, coupled with the closure of a Saudi oil pipeline, drove Brent crude oil futures and WTI crude oil futures up by more than $3 during the day, while European natural gas futures rose by 3.8%.

Saudi Arabia proposes amendments, Gulf Cooperation Council faces internal disagreements

According to media reports, a Gulf state official posted on platform X that Saudi Arabia has submitted amendments to the Strait of Hormuz proposal made by Oman and Iran. Saudi Arabia is concerned that the wording in the proposal could actually establish a new status quo in the Strait of Hormuz, which neither Saudi Arabia nor other Gulf Cooperation Council member states could accept.

This disagreement directly reveals the underlying reason for the meeting's postponement. Despite intensive consultations between Iran and Oman and a rare meeting between senior officials from Tehran and Abu Dhabi, Gulf states have yet to reach consensus on the detailed wording of the agreement framework. Omani Foreign Minister Badr said Oman will continue to work to promote dialogue and support regional stability and lasting cooperation.

U.S. Energy Secretary: Market should not expect a breakthrough

Wright made the above remarks during the International Atomic Energy Agency's annual conference in Vienna. He stated that, given the blockage in the Strait of Hormuz, the market still needs to rely on alternative transportation plans, which he estimates can currently deliver 10 million barrels of oil and petroleum products per day.

Wright also noted, "Global oil supply is tighter than we would like, but it is not excessively tight." He also sent a tough signal on the Iran nuclear issue, stating that Tehran's nuclear program "will come to an end one way or another."

Energy markets rally in response

Following the announcement of the postponed meeting, the energy market responded swiftly. Brent crude oil futures and WTI crude oil futures both rose by more than $3 during the day, European natural gas futures climbed by 3.8%, and the closure of the Saudi oil pipeline added further pressure to market sentiment.

Wright's remarks have reinforced market expectations that normal navigation in the Strait of Hormuz is unlikely in the short term. With alternative transportation under strain and diplomatic negotiations uncertain, concerns over tight energy supplies are expected to continue supporting oil prices.