The crisis began in late February when the U.S. and Israel launched airstrikes against Iran after Tehran closed the Strait of Hormuz to international shipping, citing new sanctions. The strait is a critical chokepoint for global oil shipments, and its closure has driven up energy prices worldwide.
No Explanation for Halt
"The US may have devised other scenarios for the coming days, but the current situation is not what they desire," said military spokesman Mohammad Akraminia on state television. "If the Americans insist on continuing the war and airstrikes, the geography of the war will expand."
Diplomatic Efforts and Oil Market Reaction
The pause occurred as a meeting over the weekend between Iranian and Omani diplomats signaled a new effort to sort out the vital matter of shipping through Hormuz - a key global choke point at the center of the conflict initiated by the U.S. and Israel in late February.
When pressed on NBC's *Meet the Press* Sunday about whether Trump had chosen not to escalate, UN Ambassador Mike Waltz replied, "wouldn't go that far at all." He added, "The president is keeping all options on the table. "What the president is doing right now, as we've seen all along, is giving the talks some space"." Waltz described the discussions as "ongoing, they're happening at every level," including technical issues and "the highest level" of the Iranian and U.S. leadership, without elaborating.
Get the market news that matters in a five-minute read with Market Briefs, our free daily newsletter
With Hormuz traffic nearly halted, conflicts between Houthi fighters in Yemen and Saudi forces have raised concerns about a second vital waterway: the Bab el‑Mandeb strait, which lies in the southern part of the Red Sea.
On Saturday, the Houthi group, which receives support from Iran, stated that it launched missiles and drones at Saudi Aramco‑linked facilities in the coastal cities of Jizan and Yanbu. Neither the Saudi government nor Aramco immediately confirmed the attack. Saudi authorities issued brief emergency alerts, then said the threat was over. Later, a Saudi‑led coalition struck Houthi military positions, according to Yemen TV, a channel linked to the internationally recognized government.
Escalation in the Red Sea
This Red Sea escalation compounds the severe pressure on regional energy flows from the near‑total halt of Hormuz traffic, which previously carried a fifth of global crude supplies.
Friday saw the Saudi‑led coalition hit the port that is the usual launching point for Houthi Red Sea maritime attacks. Additionally, the Houthis announced a blockade of Saudi ports and assaulted three Saudi‑linked oil tankers in the Red Sea.
Should Saudi Arabia lose access to its Red Sea export pathways - which carry millions of barrels per day as an alternative route, especially from Yanbu - for a prolonged period, oil prices would likely increase.
Trump, increasingly frustrated with Iran for declining to reopen Hormuz, said late Friday that the U.S. is "locked and loaded" for major strikes on Iran. He said he had not yet decided whether to proceed, after telling Axios days earlier he was considering a "massive attack."
According to The New York Times, the president and his team chose to postpone any escalation of strikes for the time being, in part due to concerns about depleting already low inventories of Patriot anti‑missile interceptors and other regional air defense systems. Waltz denied that claim on Sunday, insisting the U.S. military has all necessary resources to carry out its campaign.
White House spokesperson Steven Cheung issued a statement saying Trump "prefers a diplomatic solution, but he continues to retain all options if Iran continues terrorist activities in the Strait of Hormuz or against allies." He added it would be "wise for Iran to work toward a negotiated deal."
Talks with Oman
Deputy foreign ministers from Iran and Oman met in Tehran over the weekend to discuss supervising navigation through the Strait of Hormuz, according to Iranian Foreign Ministry spokesman Esmail Baghaei on Telegram. He said, "The talks were constructive and some progress was made," without providing details. Baghaei noted that technical and political talks continued and that conditions for transit in the waterway had not changed.
Join Market Briefs, our free daily newsletter, for a quick daily rundown of the markets
