Gulf states weigh first talks with Iran on Strait of Hormuz

Gulf governments are weighing the possibility of holding formal discussions with Iranian officials regarding the management and reopening of the Strait of Hormuz, according to people briefed on the effort who requested anonymity. Oman has taken a central role in the diplomatic push, attempting to assemble foreign ministers from the six-nation Gulf Cooperation Council alongside Iranian representatives in the southern Omani city of Salalah.

Confirming the diplomatic preparations, Tehran's Foreign Ministry spokesman Esmail Baghaei stated on Telegram that preparations are underway for a session with Gulf neighbors to review outcomes from recent Tehran-Muscat discussions over Hormuz, noting that Iran and Iraq are among the participants, as reported by Briefs. Yet the meeting remains tentative. It remains unclear whether all GCC member states—including Saudi Arabia, the United Arab Emirates, Qatar, and Oman—will participate, as mounting hostilities involving Saudi-backed forces and the Houthis complicate the broader regional framework.

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The diplomatic overture comes as the Middle East conflict enters a severe new phase. Since the United States and Israel launched bombing campaigns against Iran, the Strait of Hormuz has been effectively shut, with Washington maintaining a naval blockade to pressure Tehran into reopening the passage. Bloomberg reported that both sides are preparing for a protracted conflict, with neither willing to make immediate concessions. While more vessels have navigated Hormuz in recent weeks, they mostly travel under the cover of night with U.S. Military protection and transponders switched off, regularly encountering Iranian missiles and drones.

The economic toll on the region is mounting. Tehran faces intense domestic pressure as U.S. Operations squeeze the economy, pushing inflation close to ninety percent and sending the rial sliding. Conversely, regional economies are also feeling the strain. Qatar recently reported its largest quarterly fiscal deficit in nearly a decade, while Saudi Arabia's economy shrank during the same period. In the United States, average diesel prices crossed the six-dollar-per-gallon threshold, fueling concerns over broader inflation.

Shipping Chokepoint	Geographic Location	Key Vulnerability & Recent Status
Strait of Hormuz	Between Iran and the Arabian Peninsula	Effectively shut since late February due to U.S.-Israeli strikes, a U.S. Naval blockade, and Iranian missile and drone activity.
Bab el-Mandeb Strait	Between Yemen and the Horn of Africa	Seized by Iran-backed Houthi forces during a rapid military offensive, threatening global trade and alternative oil transit routes.

Simultaneously, the security architecture underpinning alternative trade routes has crumbled. Yemen's Iran-backed Houthi militia seized Perim Island, also known as Mayyun Island, located in the middle of the Red Sea waterway, according to local government officials and eyewitnesses cited by Euronews. Additional reports confirmed that the group captured the town of Dhubab and the coastal village of Murad in an eighteen-hour blitz, placing all of Yemen's Red Sea coast under Houthi control. Senior Director at the Soufan Center Caroline Rose warned that the takeover creates a severe chokehold, forcing shipping operators to consider costlier alternatives such as navigating around the Cape of Good Hope rather than utilizing the Suez Canal.

The dual crises across the Strait of Hormuz and the Bab el-Mandeb have compounded energy security fears. As detailed by USA Today, Saudi Arabia and the United Arab Emirates had previously relied on pipelines bypassing Hormuz to export crude through Red Sea terminals. However, Houthi advances and ongoing drone and missile attacks into southwestern Saudi Arabia have placed those vital bypass routes at risk. Senior equity trader for CIBC Private Wealth Rebecca Babin noted that markets had initially found workarounds by diverting barrels through the Red Sea, but the latest escalation puts that relief valve in jeopardy.

Regional tensions have also triggered direct military exchanges. Al Jazeera reported that Houthi forces launched multiple missile attacks on Yemeni government strongholds in Hadramout and Marib, resulting in significant casualties among government soldiers. Meanwhile, Saudi Arabia launched airstrikes targeting the airport in Mokha, and Houthi projectiles struck Saudi Arabia's southern Najran province, wounding civilians including a young child. GCC Secretary-General Jasem Mohamed Albudaiwi denounced the strikes in the strongest terms, calling them terrorist attacks that violate international humanitarian law.

Iran has signaled full diplomatic backing for its regional allies. In a statement carried by the state-run IRNA news agency, Iran's foreign ministry called for an end to Saudi Arabia's blockade of Yemen and the immediate resumption of talks, while Mohammad Mokhber, an adviser to Iranian leadership, congratulated the Houthis on their victory.

What to Watch Next

• Whether foreign ministers from the GCC and Iran finalize arrangements for their tentative meeting in Salalah.
• Potential decisions by the European Union regarding the expansion of Operation Aspides to counter land-based Houthi positions.
• Further movements in international crude and diesel benchmarks as energy markets digest the closure of dual Middle Eastern shipping corridors.