Iran Engages Saudi Arabia and Oman on Strait of Hormuz Security

Diplomatic Calls Signal a Shift in Tone

Iran is picking up the phone. On July 28, Foreign Minister Abbas Araghchi called his counterparts in Saudi Arabia and Oman - Faisal bin Farhan and Badr Al-Busaidi. The topic was the Strait of Hormuz.

Iran said the goal of the calls was to "establish stability in the region and eliminate the insecurity imposed on the Strait of Hormuz caused by the aggressive actions of the United States."

The calls took place on Tuesday, after a pause in U.S.-Iran hostilities that had come to a temporary halt the previous Friday. Up until then, the U.S. had been launching strikes against Iran for two weeks straight.

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The Pause Is Holding, but Not Quietly

The pause appeared to hold on Tuesday. On Monday, financial markets responded favorably, as stock indices climbed and crude oil costs dropped, encouraged by hopes for a durable peace deal.

Reuters reported on Tuesday that Oman, with backing from Gulf states, presented Iran with a governance plan for the strait that proposes optional charges rather than mandatory tariffs. Reuters notes that a comparable system operates in the Strait of Malacca, where vessels are requested by Indonesia, Malaysia, and Singapore to contribute to funding for navigation aids, environmental safeguards, and search-and-rescue efforts.

The Strait of Hormuz is a critical maritime choke point through which about 20% of the world's oil passes. Any disruption to shipping there can cause global energy prices to spike. Previous tensions between Iran and the U.S. have led to tanker seizures and mine-laying incidents, making the current diplomatic outreach particularly significant.

But the region is still full of activity. Saudi Arabia stated that it had stopped several drones that it said were likely fired by Iran-aligned militias in Iraq, aimed at the kingdom's oil infrastructure. Reuters also reported that Yemen's Houthi movement claimed responsibility for attacks on Saudi oil installations, though the identity of the perpetrators remains uncertain. Jordan's military likewise reported intercepting and bringing down a drone within its airspace during the night.

The current diplomatic outreach occurs against a backdrop of longstanding tensions over the strait. Previous standoffs have involved tanker seizures and mine-laying incidents that escalated global energy prices. Iran's calls to Saudi Arabia and Oman reflect a strategy to engage regional powers as a counterweight to U.S. pressure, while the Houthi and drone incidents underscore the persistent instability from Iran-aligned groups.

Separately, at a campaign rally in Michigan, Trump said: "You can't bribe them. You've got to beat them, and we'll beat the hell out of them. But we'll see how it turns out. Right now, there are very friendly negotiations going on."

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