Gulf States Call Off Meeting With Iran as Houthis Launch New Attack on Saudi Arabia

The developments came as fighting across the region intensified and threats to major oil and shipping routes increased. The combination of stalled diplomacy, attacks on Saudi infrastructure and the Houthi advance along Yemen’s Red Sea coast has raised fresh concerns about energy supplies and the possibility of a wider regional conflict.

Diplomatic efforts to ease tensions around the Strait of Hormuz have suffered a setback after Oman postponed a planned meeting between Iran and Gulf states, while Yemen’s Houthi movement launched another reported attack against Saudi Arabia.

Oman’s foreign minister, Sayyid Badr Albusaidi, announced late Sunday that the meeting scheduled for Monday in Salalah had been postponed. He said the delay was intended to create better conditions for constructive dialogue and regional cooperation. Iranian officials separately said the postponement followed a request from some regional countries and was a joint decision between Tehran and Muscat.

The postponement came at a particularly sensitive moment, with Iran and the United States still locked in conflict and commercial shipping through the Strait of Hormuz facing serious disruption.

Why the Iran-Gulf Meeting Mattered

The proposed meeting was intended to bring Iran together with Gulf countries to discuss security and shipping arrangements around the Strait of Hormuz.

The waterway is one of the world’s most important energy corridors. Before the current conflict, a significant share of global oil shipments passed through the strait, making its security a major concern for energy-producing Gulf countries and international markets.

Oman had been attempting to facilitate dialogue between Tehran and its Gulf neighbours. Iranian officials had said the meeting could provide a basis for regional security cooperation and discussions about arrangements governing shipping through the strait.

However, the worsening security situation made diplomatic progress increasingly difficult.

Oman ultimately announced that the meeting would be postponed rather than proceeding as scheduled. The official explanation focused on creating suitable conditions for constructive dialogue, while Iranian reporting attributed the delay to requests from some regional countries.

The decision effectively removed an important diplomatic opportunity at a time when the region is experiencing simultaneous pressure on both the Gulf and Red Sea shipping routes.

Houthis Escalate Pressure on Saudi Arabia

At the same time, Yemen’s Iran-aligned Houthi movement continued attacks against Saudi Arabia.

The Houthis claimed that they had used missiles and drones against a Saudi military installation in the country’s south. Reuters reported that the group claimed an attack on a military base, while Saudi state media separately showed damage to homes and a mosque in Jazan province following a reported cross-border projectile attack.

The latest attacks follow a much larger wave of Houthi strikes earlier in September.

On September 8, the Houthis attacked several locations in southern Saudi Arabia, including Khamis Mushait, Abha, Najran and Jazan. Saudi authorities said 73 people were wounded, while fires were reported at oil-related facilities.

The escalation represents a significant change from the relative calm that followed the 2022 UN-brokered truce between Saudi Arabia and the Houthis.

Saudi Arabia Responds With Airstrikes

The attacks have also triggered a stronger Saudi military response.

Houthi military spokesman Yahya Saree claimed that Saudi aircraft had conducted dozens of strikes against targets in Yemen. Reuters reported that he said 54 Saudi airstrikes had taken place over a 12-hour period following the earlier Houthi attacks.

The competing claims demonstrate how quickly the conflict is developing into a cycle of attacks and retaliation.

Saudi Arabia supports Yemen’s internationally recognised government, while the Houthis control large parts of northern Yemen, including the capital, Sanaa.

The renewed fighting is therefore not simply a cross-border confrontation. It is also connected to Yemen’s long-running civil conflict and the wider confrontation involving Iran, the United States and their regional partners.

Yemen’s Red Sea Advance Raises New Concerns

Another major development has been the Houthi advance along Yemen’s Red Sea coastline.

Reuters reported that the Houthis had captured strategic positions including Perim Island near the Bab el-Mandeb Strait. Associated Press subsequently reported that the group had taken additional strategically important islands in the southern Red Sea.

The Bab el-Mandeb is another critical maritime chokepoint. It connects the Red Sea with the Gulf of Aden and is an important route for vessels travelling toward or away from the Suez Canal.

The Houthi advance therefore creates a second major pressure point for international shipping at a time when the Strait of Hormuz is already severely disrupted.

This combination has increased concerns that global energy markets could face prolonged supply problems.

Saudi Oil Pipeline Adds to Energy Concerns

The security situation became even more serious after Saudi Arabia shut a key east-west oil pipeline following drone attacks.

The approximately 1,200-kilometre pipeline is strategically important because it allows Saudi crude to move from the country’s eastern oil-producing region toward the Red Sea, providing an alternative export route that avoids the Strait of Hormuz.

Reuters reported that the pipeline remained closed over the weekend after suffering damage in Friday’s drone strikes. The disruption threatened Saudi Arabia’s ability to maintain oil exports if repairs were prolonged.

The pipeline can transport millions of barrels of oil per day, making any extended shutdown potentially significant for international markets.

Reuters reporting cited traders and Saudi oil buyers who estimated that Saudi Arabia had enough crude stored around the Red Sea port of Yanbu to maintain exports for roughly five to seven days if the pipeline remained out of operation.

That estimate explains why markets reacted quickly to the news.

Oil Prices Rise Above $108

Energy markets immediately reflected the growing concerns.

Brent crude moved above $108 a barrel as traders assessed the impact of the Saudi pipeline shutdown and renewed attacks across the region. The possibility of disruptions affecting Saudi Arabia, one of the world’s largest oil exporters, has increased anxiety about global supplies.

The threat is not limited to Saudi production.

The Strait of Hormuz remains a major concern, while the Houthi advance around Bab el-Mandeb threatens another route used for international energy and commercial shipping.

If both corridors remain heavily restricted, countries that depend on Middle Eastern energy exports could face higher transportation and fuel costs.

Higher oil prices could also feed into inflation, increasing pressure on central banks and consumers worldwide.

The United States Faces a Difficult Choice

The developments also present a difficult strategic decision for Washington.

The United States has longstanding security ties with Saudi Arabia and other Gulf countries, but direct involvement against the Houthis could potentially open another military front.

Reuters reported that Saudi Crown Prince Mohammed bin Salman spoke with US President Donald Trump about military assistance against the Houthis. According to sources cited by Reuters, the United States offered intelligence support for the time being rather than committing directly to military action.

Trump has also indicated that he wants the broader conflict with Iran to end, while the administration faces political considerations ahead of the US midterm elections.

Any expanded American involvement could therefore carry significant military and political consequences.

Humanitarian Crisis Deepens in Yemen

Beyond oil and geopolitics, the renewed fighting is creating an increasingly serious humanitarian emergency.

The United Nations’ International Organization for Migration reported that approximately 85,818 people had been displaced by the fighting as of September 13. More than 82,000 of those people had reportedly been forced from their homes since the beginning of September as the Houthi offensive intensified.

Thousands of Yemenis have also been fleeing toward Djibouti across the Red Sea.

The rapid displacement comes after years of humanitarian suffering in Yemen, where millions have already faced food insecurity, economic hardship and limited access to essential services.

The renewed offensive threatens to reverse the relative reduction in large-scale fighting that followed the 2022 truce.

What Happens Next?

The immediate question is whether the postponed Iran-Gulf meeting can eventually take place.

Oman has signalled that it remains committed to dialogue, but the security environment makes negotiations considerably more difficult.

The postponement does not necessarily mean diplomacy has ended. Instead, it highlights the challenge facing Gulf governments that must simultaneously protect their infrastructure, maintain energy exports and manage relations with Iran.

Meanwhile, the Houthi campaign in Yemen could continue putting pressure on Saudi Arabia and international shipping.

If attacks on Saudi oil infrastructure continue, or if the Bab el-Mandeb and Strait of Hormuz remain restricted, the economic consequences could become increasingly significant.

For global markets, the next few days will be particularly important. Investors will be watching the condition of Saudi oil infrastructure, developments around the two maritime chokepoints and any indication that diplomatic channels between Iran and Gulf states can reopen.

For the region, however, the stakes are even higher.

The postponement of the Oman meeting and renewed Houthi attacks demonstrate how quickly diplomatic opportunities can disappear when military tensions escalate. Until a political pathway emerges, Gulf states remain caught between the need to engage diplomatically with Iran and the immediate challenge of protecting their territory, energy infrastructure and trade routes.

Diplomatic efforts to ease tensions around the Strait of Hormuz have suffered a setback after Oman postponed a planned meeting between Iran and Gulf states, while Yemen’s Houthi movement launched another reported attack against Saudi Arabia.

The developments came as fighting across the region intensified and threats to major oil and shipping routes increased. The combination of stalled diplomacy, attacks on Saudi infrastructure and the Houthi advance along Yemen’s Red Sea coast has raised fresh concerns about energy supplies and the possibility of a wider regional conflict.

Oman’s foreign minister, Sayyid Badr Albusaidi, announced late Sunday that the meeting scheduled for Monday in Salalah had been postponed. He said the delay was intended to create better conditions for constructive dialogue and regional cooperation. Iranian officials separately said the postponement followed a request from some regional countries and was a joint decision between Tehran and Muscat.

The postponement came at a particularly sensitive moment, with Iran and the United States still locked in conflict and commercial shipping through the Strait of Hormuz facing serious disruption.

Why the Iran-Gulf Meeting Mattered

The proposed meeting was intended to bring Iran together with Gulf countries to discuss security and shipping arrangements around the Strait of Hormuz.

The waterway is one of the world’s most important energy corridors. Before the current conflict, a significant share of global oil shipments passed through the strait, making its security a major concern for energy-producing Gulf countries and international markets.

Oman had been attempting to facilitate dialogue between Tehran and its Gulf neighbours. Iranian officials had said the meeting could provide a basis for regional security cooperation and discussions about arrangements governing shipping through the strait.

However, the worsening security situation made diplomatic progress increasingly difficult.

Oman ultimately announced that the meeting would be postponed rather than proceeding as scheduled. The official explanation focused on creating suitable conditions for constructive dialogue, while Iranian reporting attributed the delay to requests from some regional countries.

The decision effectively removed an important diplomatic opportunity at a time when the region is experiencing simultaneous pressure on both the Gulf and Red Sea shipping routes.

Houthis Escalate Pressure on Saudi Arabia

At the same time, Yemen’s Iran-aligned Houthi movement continued attacks against Saudi Arabia.

The Houthis claimed that they had used missiles and drones against a Saudi military installation in the country’s south. Reuters reported that the group claimed an attack on a military base, while Saudi state media separately showed damage to homes and a mosque in Jazan province following a reported cross-border projectile attack.

The latest attacks follow a much larger wave of Houthi strikes earlier in September.

On September 8, the Houthis attacked several locations in southern Saudi Arabia, including Khamis Mushait, Abha, Najran and Jazan. Saudi authorities said 73 people were wounded, while fires were reported at oil-related facilities.

The escalation represents a significant change from the relative calm that followed the 2022 UN-brokered truce between Saudi Arabia and the Houthis.

Saudi Arabia Responds With Airstrikes

The attacks have also triggered a stronger Saudi military response.

Houthi military spokesman Yahya Saree claimed that Saudi aircraft had conducted dozens of strikes against targets in Yemen. Reuters reported that he said 54 Saudi airstrikes had taken place over a 12-hour period following the earlier Houthi attacks.

The competing claims demonstrate how quickly the conflict is developing into a cycle of attacks and retaliation.

Saudi Arabia supports Yemen’s internationally recognised government, while the Houthis control large parts of northern Yemen, including the capital, Sanaa.

The renewed fighting is therefore not simply a cross-border confrontation. It is also connected to Yemen’s long-running civil conflict and the wider confrontation involving Iran, the United States and their regional partners.

Yemen’s Red Sea Advance Raises New Concerns

Another major development has been the Houthi advance along Yemen’s Red Sea coastline.

Reuters reported that the Houthis had captured strategic positions including Perim Island near the Bab el-Mandeb Strait. Associated Press subsequently reported that the group had taken additional strategically important islands in the southern Red Sea.

The Bab el-Mandeb is another critical maritime chokepoint. It connects the Red Sea with the Gulf of Aden and is an important route for vessels travelling toward or away from the Suez Canal.

The Houthi advance therefore creates a second major pressure point for international shipping at a time when the Strait of Hormuz is already severely disrupted.

This combination has increased concerns that global energy markets could face prolonged supply problems.

Saudi Oil Pipeline Adds to Energy Concerns

The security situation became even more serious after Saudi Arabia shut a key east-west oil pipeline following drone attacks.

The approximately 1,200-kilometre pipeline is strategically important because it allows Saudi crude to move from the country’s eastern oil-producing region toward the Red Sea, providing an alternative export route that avoids the Strait of Hormuz.

Reuters reported that the pipeline remained closed over the weekend after suffering damage in Friday’s drone strikes. The disruption threatened Saudi Arabia’s ability to maintain oil exports if repairs were prolonged.

The pipeline can transport millions of barrels of oil per day, making any extended shutdown potentially significant for international markets.

Reuters reporting cited traders and Saudi oil buyers who estimated that Saudi Arabia had enough crude stored around the Red Sea port of Yanbu to maintain exports for roughly five to seven days if the pipeline remained out of operation.

That estimate explains why markets reacted quickly to the news.

Oil Prices Rise Above $108

Energy markets immediately reflected the growing concerns.

Brent crude moved above $108 a barrel as traders assessed the impact of the Saudi pipeline shutdown and renewed attacks across the region. The possibility of disruptions affecting Saudi Arabia, one of the world’s largest oil exporters, has increased anxiety about global supplies.

The threat is not limited to Saudi production.

The Strait of Hormuz remains a major concern, while the Houthi advance around Bab el-Mandeb threatens another route used for international energy and commercial shipping.

If both corridors remain heavily restricted, countries that depend on Middle Eastern energy exports could face higher transportation and fuel costs.

Higher oil prices could also feed into inflation, increasing pressure on central banks and consumers worldwide.

The United States Faces a Difficult Choice

The developments also present a difficult strategic decision for Washington.

The United States has longstanding security ties with Saudi Arabia and other Gulf countries, but direct involvement against the Houthis could potentially open another military front.

Reuters reported that Saudi Crown Prince Mohammed bin Salman spoke with US President Donald Trump about military assistance against the Houthis. According to sources cited by Reuters, the United States offered intelligence support for the time being rather than committing directly to military action.

Trump has also indicated that he wants the broader conflict with Iran to end, while the administration faces political considerations ahead of the US midterm elections.

Any expanded American involvement could therefore carry significant military and political consequences.

Humanitarian Crisis Deepens in Yemen

Beyond oil and geopolitics, the renewed fighting is creating an increasingly serious humanitarian emergency.

The United Nations’ International Organization for Migration reported that approximately 85,818 people had been displaced by the fighting as of September 13. More than 82,000 of those people had reportedly been forced from their homes since the beginning of September as the Houthi offensive intensified.

Thousands of Yemenis have also been fleeing toward Djibouti across the Red Sea.

The rapid displacement comes after years of humanitarian suffering in Yemen, where millions have already faced food insecurity, economic hardship and limited access to essential services.

The renewed offensive threatens to reverse the relative reduction in large-scale fighting that followed the 2022 truce.

What Happens Next?

The immediate question is whether the postponed Iran-Gulf meeting can eventually take place.

Oman has signalled that it remains committed to dialogue, but the security environment makes negotiations considerably more difficult.

The postponement does not necessarily mean diplomacy has ended. Instead, it highlights the challenge facing Gulf governments that must simultaneously protect their infrastructure, maintain energy exports and manage relations with Iran.

Meanwhile, the Houthi campaign in Yemen could continue putting pressure on Saudi Arabia and international shipping.

If attacks on Saudi oil infrastructure continue, or if the Bab el-Mandeb and Strait of Hormuz remain restricted, the economic consequences could become increasingly significant.

For global markets, the next few days will be particularly important. Investors will be watching the condition of Saudi oil infrastructure, developments around the two maritime chokepoints and any indication that diplomatic channels between Iran and Gulf states can reopen.

For the region, however, the stakes are even higher.

The postponement of the Oman meeting and renewed Houthi attacks demonstrate how quickly diplomatic opportunities can disappear when military tensions escalate. Until a political pathway emerges, Gulf states remain caught between the need to engage diplomatically with Iran and the immediate challenge of protecting their territory, energy infrastructure and trade routes.

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