Gulf states have postponed a crunch meeting with Iran on managing the Strait of Hormuz due to a lack of consensus, setting back regional efforts to de-escalate hostilities over the vital waterway. The foreign ministers' meeting had been scheduled for Monday in Oman, where Iran and its Arab neighbours were expected to discuss a deal to temporarily manage shipping through the strait. However, Bahrain, which holds the rotating GCC presidency and has been hardest hit by Iran's retaliatory attacks, said it would not participate. The postponement also comes as Saudi Arabia faces a brewing crisis after a drone attack from Iraq forced it to close a vital oil pipeline. Brent crude rose over 3.5% to above $108 a barrel following the delay. Mohammad Ali Bek, a senior official at Iran's foreign ministry, stated the meeting was postponed at the request of regional countries. Oman and Iran had hoped the Omani initiative would secure regional backing for their temporary agreement to manage shipping, under which vessels enter through Iranian waters and exit mostly through Omani territory. However, diplomats cautioned that for the strait -- through which a fifth of the world's oil and gas passed before the war -- to fully reopen, the US and Iran must also reach a deal. Iranian officials have warned that as long as the US maintains its naval blockade on the republic's ports, shipping security will not be guaranteed.

Renewed concerns over supplies from the region caused prices to surge past $100 last week to their highest level since May following Houthi attacks on Saudi infrastructure. The rebels have advanced south along Yemen's Red Sea coast, pushing back Yemeni forces aligned to the government and supported by Saudi Arabia, to strengthen their grip on the Bab al-Mandeb Strait. An interim deal on the strait, intended to last until Iran and its Gulf neighbours agree on the future status of the waterway, remains pending.