Shibbir Ahmed, New York — Iran has said the strategically vital Strait of Hormuz will remain closed despite efforts to revive regional diplomacy, as a planned meeting between Iran and Gulf states was postponed and concerns over global energy supplies continued to grow.

Iranian Foreign Minister Abbas Araghchi said an agreement reached with Oman over arrangements for maritime traffic through the strait would not mean the waterway would be reopened. Tehran has linked any reopening to the United States returning to commitments made under an earlier peace understanding.

The planned meeting in Oman, which was expected to bring together Iran, Iraq and Gulf Arab states to discuss navigation through the Strait of Hormuz, was postponed on Monday. Oman’s Foreign Minister Badr Albusaidi said the delay was intended to allow more time to build consensus among the participating countries.

The diplomatic setback comes as tensions around the region’s major energy routes continue to rise. Shipping traffic through Hormuz has fallen sharply, with only a small number of commodity vessels recorded passing through the waterway over the weekend, well below the recent daily average.

The Strait of Hormuz is one of the world’s most important energy chokepoints, carrying a significant share of global crude oil and liquefied natural gas supplies. Disruption to the route has already contributed to a sharp increase in oil prices, with Brent crude rising above $107 a barrel on Monday.

Iran has also warned vessels that violate its maritime protocols. Its Strait Authority issued an updated list of 77 vessels accused of violating Iranian rules and warned that sanctioned ships could face penalties including fines, detention or confiscation.

The stalled diplomacy has increased fears that the disruption could persist, putting further pressure on global energy markets, shipping costs and economies dependent on Gulf oil and gas.

Shibbir Ahmed, NEW YORK — Iran-aligned Houthi forces have seized the strategic Mayun Island at the southern entrance to the Red Sea, tightening their grip around the Bab el-Mandeb Strait and raising fresh concerns over global shipping and energy supplies.

The Houthis also took control of Yemen’s Red Sea port city of Mokha on Thursday and have advanced along the coast toward strategic islands, according to Reuters and the Associated Press. The developments represent the group’s most significant territorial gains since a 2022 truce largely halted Yemen’s civil war.

Mayun Island, also known as Perim, sits in the Bab el-Mandeb Strait, a critical maritime chokepoint connecting the Red Sea with the Gulf of Aden. About 12% of global goods normally pass through the waterway, making any prolonged disruption a potential threat to international trade.

The latest Houthi advance comes as shipping through the nearby Strait of Hormuz has already been severely disrupted by the wider Middle East conflict. Saudi Arabia has increasingly relied on the Red Sea route to move oil after traffic through Hormuz became heavily restricted.

The potential loss of secure access to both major maritime corridors has heightened concerns among energy traders and shipping companies. Reuters reported that Saudi crude production fell to about 6 million barrels per day in August, its lowest level in more than three decades, partly because of disruptions linked to attacks on shipping around the Bab el-Mandeb.

Oil markets have responded sharply to the growing risks. Brent crude rose above $100 a barrel this week, while U.S. West Texas Intermediate crude also crossed the $100 threshold as traders assessed the possibility of further supply disruptions.

Saudi Arabia has responded to the Houthi advance with military action. A Houthi-controlled broadcaster reported that Saudi forces carried out airstrikes on the airport in Mokha after the port city fell to the group. There were no immediate reports of casualties or significant damage.

The escalation has also raised fears of a renewed wider conflict inside Yemen. More than 46,000 people have fled their homes since the latest fighting began, according to the U.N. migration agency, while Yemen’s internationally recognized government has indicated that it intends to launch a counteroffensive to recover territory captured by the Houthis.

For international shipping, the main concern is whether the Houthis will use their new positions to further restrict commercial traffic through the Bab el-Mandeb. Shipping through the waterway had already fallen substantially after Houthi attacks on commercial vessels beginning in late 2023, prompting many shipping companies to reroute vessels around Africa.

With both the Bab el-Mandeb and Strait of Hormuz facing serious security challenges, businesses are preparing for potentially higher transportation and energy costs. Any prolonged disruption could affect oil prices, shipping rates and the movement of goods between Asia, the Middle East and Europe.

The latest developments have therefore transformed the Houthi advance from a regional military development into a growing concern for global trade and energy markets.

Shibbir Ahmed, New York — Oil prices remained above $100 a barrel on Friday, putting both major benchmarks on track for their strongest weekly gains in months as escalating violence in the Middle East disrupted key shipping routes and heightened concerns over global supplies.

Brent crude futures rose earlier in the session to above $108 a barrel before giving back some of those gains. U.S. West Texas Intermediate crude also traded above $100, after both benchmarks jumped more than 6% on Thursday.

Brent was last trading around $104 a barrel, while WTI fell below the $100 mark later in the session. Despite the pullback, both contracts remained sharply higher for the week. Reuters reported that Brent and WTI were on track for weekly gains of more than 8%.

The latest price moves have been driven largely by growing risks to oil shipments through the Strait of Hormuz and the Red Sea, two critical routes for global energy supplies. Increased attacks on tankers and other shipping have raised concerns that disruptions could persist.

Iran-aligned Houthi forces also seized Yemen’s port of Mocha, according to reports, adding to concerns about shipping through the Bab al-Mandeb Strait and the wider Red Sea region. At the same time, traffic through the Strait of Hormuz remains heavily restricted.

The Strait of Hormuz is one of the world’s most important oil transit routes. Oil flows through the waterway have fallen sharply from levels seen before the latest escalation in fighting, putting additional pressure on already tight global supplies.

Supply concerns have also been reinforced by disruptions to energy infrastructure in the region. Reuters reported that Saudi Arabia’s crude production fell to about 6 million barrels per day in August, its lowest level in roughly three decades, following attacks on energy facilities.

The disruption is also being felt in fuel markets. U.S. diesel prices have climbed to record levels, increasing costs for transportation, agriculture and other industries. Higher energy prices are also raising concerns about renewed inflationary pressure around the world.

Oil prices had already risen sharply in recent weeks as the conflict involving the United States and Iran intensified. Brent crude crossed the $100 threshold on Wednesday for the first time since July, and Thursday’s rally pushed both Brent and WTI above $100.

Markets remain focused on whether diplomatic efforts can restore safe passage through key shipping routes. Any sustained improvement in shipping conditions could ease some of the recent price pressure, while further attacks or prolonged restrictions could keep oil prices elevated.

For now, traders remain cautious as the conflict continues to threaten one of the world’s most important energy supply corridors.

Shibbir Ahmed, NEW YORK — Oil prices climbed above $100 a barrel on Wednesday as escalating tensions between the United States and Iran raised fresh concerns about disruptions to global energy supplies and shipping through the strategically vital Strait of Hormuz.

Brent crude, the international benchmark, rose above the $100 mark as investors reacted to the widening confrontation in the Middle East. The surge reflects growing fears that continued military escalation could threaten oil flows through the Strait of Hormuz, a critical route for global energy shipments.

The latest increase came amid heightened tensions following U.S. military action involving Iranian oil tankers and Iran’s subsequent missile attacks toward a U.S.-used military facility in Jordan.

The Strait of Hormuz has become a central focus of the crisis. A prolonged disruption in the waterway could have significant consequences for global oil markets because a substantial share of the world’s petroleum shipments passes through the narrow strategic corridor.

Higher crude prices are also raising concerns about renewed inflationary pressure. A sustained increase in energy costs could push up prices for gasoline, transportation and other goods, potentially complicating efforts by central banks to control inflation.

Financial markets have responded cautiously to the escalation. Investors are closely watching developments between Washington and Tehran for signs that the conflict could expand further or threaten critical energy infrastructure and shipping routes. The rise above $100 a barrel represents a major psychological threshold for global energy markets and underscores the economic risks posed by the widening U.S.-Iran confrontation.

Analysts say oil prices could remain volatile as long as uncertainty persists over the security of shipping through the Strait of Hormuz and the possibility of further military escalation in the region.