Temporary Hormuz solution deferred as Iran-Arab summit falls through

Tehran, Iran – Another attempt to clinch a deal between Iran and Oman to restore some traffic to the Strait of Hormuz has been set back by a lack of regional consensus on the future of the waterway.

Officials from Iran, Iraq and the Gulf Cooperation Council (GCC) nations – minus objecting Bahrain – were scheduled to meet in Oman’s port city of Salalah on Monday to confer on new temporary routes in the Strait of Hormuz amid Tehran’s ongoing hot-and-cold war with the United States.

On Sunday night, the region’s officials announced the postponement of the meeting, without giving a new date. None of the stakeholders gave any indication that the postponement was directly linked to recent Houthi and Iraqi militia attacks on Saudi Arabia.

However, Iran’s Ministry of Foreign Affairs said Saudi objection was the reason for the postponement, without providing further details.

US media outlets Axios and CNN reported that Saudi Arabia had submitted amendments to the Iran-Oman proposal for Hormuz because it had concerns that the wording would establish a new status quo which would be unacceptable to Riyadh.

It comes days after Saudi Arabia shut down its critical East-West oil pipeline – the kingdom’s key route for energy exports – after drone attacks in the area originating from Iraq. US President Donald Trump said these attacks were likely conducted at Tehran’s behest.

Saudi Arabia has also faced repeated attacks by the Houthis, who took control of Yemen’s Red Sea coast over the weekend.

Hours after the Salalah meeting was postponed, the Saudi civil defence issued alerts for Abha, Khamis Mushait, Jazan and Najran in southern and western parts of the kingdom. The Houthis claimed to have fired dozens of ballistic missiles and drones at military facilities in Khamis Mushait, in retaliation for air strikes across Yemen, which it blames on Saudi Arabia.

Iran has said it will engage with the US on the future of the Strait of Hormuz and ending the war only if there are tangible moves to lift Washington’s naval blockade on the country and return to the June memorandum of understanding.

With continued disruptions to the passage of vessels through the strait, Iran has signalled that it intends to continue pursuing the bilateral agreement with Oman over Hormuz, which it said was finalised last month.

“In consultation with Oman, in the next step, we will make a decision on how to announce or register the agreement,” Ministry of Foreign Affairs spokesman Esmaeil Baghaei told reporters during a weekly news conference on Monday.

When the two countries initially advanced the bilateral deal, Trump threatened to bomb Oman if it “gets in the way” of US talks with Iran.

Ali Vaez, deputy director of the Middle East and North Africa programme at the Crisis Group, told Al Jazeera that Tehran wants to use its leverage over Hormuz for regional legitimacy – and ultimately to pressure the US.

“The broader the regional buy-in, the harder it becomes for the US to dismiss the arrangement as an Iranian diktat,” he told Al Jazeera.

GCC states, suffering from a sharp decrease in energy receipts, want ships moving and their economies insulated from a war they neither started nor can end. But Vaez said Washington is unlikely to lift the blockade on Iran even if the region blesses the arrangement between Muscat and Tehran.

“[The US] will find it much harder to sustain a policy that its own partners increasingly see as perpetuating the crisis,” Vaez said

The Omani-Iranian planned agreement envisions temporary entry and exit routes for commercial vessels in the strait, with Tehran repeatedly stating that this would not mean that the Strait of Hormuz has reopened.

Iran and Oman are the only two countries with territorial waters in the Strait of Hormuz. The proposed inbound corridor reportedly goes through Iranian waters, while the outbound corridor mostly passes through Omani waters, with small parts still in Iranian territory.

During Monday’s scheduled meeting, Iran and Oman were supposed to share precise maps and discuss the details of the routes with GCC members Saudi Arabia, the United Arab Emirates, Qatar and Kuwait, and Iraq, which is outside the bloc. The deal could reportedly include voluntary tolls to fund navigation, environmental protection and search-and-rescue operations.

Bahrain, which has borne the brunt of Iranian attacks since the US-Israel war on Iran started at the end of February, said it would not participate in the forum since it would amount to “appeasement”. The Tasnim news outlet, affiliated with Iran’s Islamic Revolutionary Guard Corps (IRGC), claimed Israel pushed Bahrain to refuse participation.

The latest diplomatic movement comes after days of explosive developments in Yemen, when the Houthis, officially known as Ansar Allah, essentially took control of the Bab al-Mandeb strait and the Red Sea after a lightning offensive against government forces.

Thomas Juneau, assistant professor in the Graduate School of Public and International Affairs at the University of Ottawa, said the Houthi advances represent a significant gain for Iran. Its Yemeni allies’ position in the Red Sea offers Iran an important new bargaining chip in future negotiations with the US.

“The Houthis are not a simple arm of Iranian foreign policy. They operate largely based on their own interests, and do not take and execute Iranian commands,” he told Al Jazeera. “But Houthi and Iranian interests are largely, if not always fully, aligned. They cooperate closely on the basis of those shared interests.”

Juneau sees the ability for Iran and the Houthis to potentially partially block traffic in the Strait of Hormuz and the Bab al-Mandeb – two of the world’s most crucial maritime bottlenecks – would give them tremendous influence over the global economy, and thus the US.

The Houthis are trying to seize the opportunity to “institutionalise the de facto reality of their veto on maritime traffic” in the southern Red Sea and replicate partial Iranian success in doing the same in the Strait of Hormuz, Juneau said.

Iran has stressed that their allies’ gains in the Red Sea cannot be separated from the Saudi-led blockade and attacks on Houthi areas in Yemen since 2015.

“We know very well that continued war between Islamic countries in the region only has one winner, and that winner is no one but the Zionist regime, which is after persisting tensions and conflict in our region and between Islamic countries,” Iranian spokesperson Baghaei said.