The Zhitong Finance App learned that, according to people familiar with the matter, a group of six Gulf countries is considering meeting with Iranian officials next week to discuss the future of the Strait of Hormuz. If it were to happen, it would be the first time a rally was held with the Islamic Republic of Iran since the outbreak of war more than six months ago.
According to a person who requested anonymity to discuss sensitive matters, Oman is seeking a meeting between the foreign ministers of GCC member countries and Iran on Monday local time in the southern Omani city of Salalah.
Another source said that the meeting has yet to confirm that the escalating hostilities between the Saudi-backed armed forces and the Iran-backed Houthis in Yemen may complicate the plan. The above sources said that even if the meeting takes place, it is still unclear whether all countries in the group, including Saudi Arabia, the United Arab Emirates, Qatar, and Oman, will attend.
The Ministry of Foreign Affairs of Oman did not immediately respond to requests for comment.
According to reports, the war between Iran and the US has reached some kind of impasse, and both sides are preparing for the war to continue for several months or more.
The Strait of Hormuz is critical to the global supply of oil, gas and other commodities. The strait was virtually blocked after the US and Israel began bombing Iran at the end of February. Washington is trying to force Tehran to re-allow ships to pass freely, putting pressure on the Islamic Republic with a naval blockade.
Although this military action is hitting Iran's economy — the riyal depreciates rapidly and inflation has accelerated to nearly 90% — Iran's leadership is sending a signal that they will not make concessions on the strait issue or return to negotiations until Trump lifts the blockade. Iran has made it clear that it will continue to retaliate against attacks by the US military against its ships and territory.
Oman and Iran — two countries on both sides of the strait — have been negotiating an agreement to regulate maritime shipping for weeks. Iran says an agreement is close to being reached. The agreement will give Tehran the right to decide which ships can sail into the Persian Gulf and may charge them a fee.
But the US is likely to reject this plan. Most members of the Gulf Cooperation Council also insist on the free passage of this waterway, but it is unclear whether countries are willing to accept an interim agreement to resume shipping.
Over the past two months, more ships have sailed through the Strait of Hormuz, but most have chosen to pass clandestinely at night, relying on US military protection and turning off transponders. These ships are frequently attacked by Iranian missiles and drones.
Saudi Arabia and the United Arab Emirates have tried to use pipelines to bypass this main route for a large portion of crude oil exports. But the actual blockade is still hurting both countries' economies and discouraging some investors and tourists from the region.
This week, Qatar announced its biggest fiscal deficit in nearly a decade in the second quarter. The Saudi Arabian economy contracted during the same period.