Iran said Sunday that a deal with Oman to reopen the Strait of Hormuz remains contingent on US compensation and other demands, even as attacks on energy infrastructure across the region threaten to deepen a crisis that's already choked off a fifth of global oil and gas shipments. The agreement defining new shipping lanes is in its "final stages," Iranian Foreign Minister Abbas Araghchi told state media, but won't take effect until Washington meets conditions including compensation for what Tehran calls "widespread attacks" and an end to sanctions.
The comments highlighted the fragile state of diplomacy around one of the world's most critical energy chokepoints. A US official told Reuters Friday that a deal was close, with Washington prepared to lift its blockade of Iranian ports once Tehran allows commercial shipping to resume without impediments. But Iranian officials listed a far broader set of demands: ending US threats, stopping what they called aggression against Iran and its Lebanese, Palestinian, Yemeni, and Iraqi allies, lifting sanctions, and freeing Iranian assets. Mohammad Baqer Zolqadr, secretary of Iran's top national security body, confirmed those conditions publicly.
The Shipping Crisis
The Strait of Hormuz carried a fifth of global oil and liquefied natural gas shipments before Iran blocked it in response to US and Israeli attacks. The closure has disrupted global energy markets and forced shippers to seek alternative routes. Under the proposed agreement, Iran would control ships entering the Gulf through the strait—a framework that shippers told Reuters isn't easily workable. The US official, speaking anonymously, said American actions would be tied directly to Iran's implementation of its commitments, pointing to delicate sequencing in any final deal.
Iran and the United States aren't engaged in direct talks. Araghchi said Tehran won't start them as long as Washington breaches an interim deal signed in June. Messages are being exchanged through intermediaries. The United States began air strikes on Iran in late February, saying it aimed to prevent the Islamic republic from acquiring nuclear weapons or threatening the region with missiles or proxies. It agreed to a ceasefire with Iran in June, but reimposed a blockade on Iranian shipping in the Gulf in July—a move Tehran said violated the truce that had already broken down.
Attacks Spread Across the Region
The United Arab Emirates said Saturday that Iran had attacked a ship affiliated with its state oil company. There was no immediate comment from Iran. Iranian strikes on Strait of Hormuz shipping have been coupled with increased attacks by its Yemen-based allies, the Houthis, who've targeted ships at another oil chokepoint between the Red Sea and Gulf of Aden. The Houthis declared a naval blockade against Saudi Arabia in the Red Sea last month in response to what they called a Saudi siege on them in Yemen—an allegation Riyadh denies. Saudi Arabia backs Yemen's internationally recognized government.
The Houthis said they attacked Saudi Aramco's Jazan refinery on Sunday, two days after the kingdom signed a defense pact with Turkey and Pakistan in response to growing regional instability from the US-Israeli war on Shi'ite Iran. The Saudi energy ministry said a fire broke out at the refinery but was later extinguished with no injuries. Authorities were dealing with the incident, the ministry said, without giving a cause. Houthi military spokesperson Yahya Saree posted on X that they'd used a drone to target the refinery. The Houthis had struck Aramco sites before in Jazan, which processes 400,000 barrels of crude oil per day in southwestern Saudi Arabia, and Yanbu on the Red Sea.
New Alliances, Uncertain Responses
The Houthis also carried out strikes on the Yemeni Red Sea port of Mocha, according to three sources in the Aden-based government. It wasn't clear whether or how Pakistan or Turkey would join in any Saudi response to the latest attacks. Turkish Foreign Minister Hakan Fidan said the new alliance wasn't directed against Iran or any other country, but rather served as a general pledge to support security. The allies would decide through consultations what degree, form, and format of support they'd ask for in the event of an attack, he said.
Why This Matters:
The Strait of Hormuz crisis has already disrupted a fifth of global energy supplies, with consequences felt in fuel prices and supply chains worldwide. But the conflict is expanding beyond the strait itself—attacks on Saudi infrastructure, Emirati shipping, and Yemeni ports show how quickly regional tensions can cascade into broader instability. The gap between a near-complete shipping agreement and its implementation reveals the deeper obstacles: Iran's demand for compensation and sanctions relief, Washington's insistence on sequenced commitments, and the absence of direct talks between the two countries. Meanwhile, the Houthis' blockade of Saudi Arabia and strikes on oil facilities threaten to pull Turkey and Pakistan into a widening confrontation. The formation of new defense pacts suggests that diplomacy around the strait is only one piece of a regional crisis that's still escalating, with civilian populations and global markets bearing the cost of each new attack.