Middle East diplomacy hit a setback on Sunday as Oman postponed a planned regional meeting with Iran, while Saudi Arabia shut down a key pipeline and Houthi forces advanced near a second critical oil corridor, deepening concerns over global energy supplies.
Oil Prices Surge, Asian Markets Slide
Dow futures fell 40 points, or 0.08%, to 52,962, while S&P 500 futures lost 36.50 points, or 0.47%, to 7,690.75, as oil supply concerns weighed on sentiment as of 9:45 p.m. ET.
Nasdaq 100 futures slipped 376.75 points, or 1.27%, to 29,307.50, weighed down by a mix of AI sector jitters, surging oil prices, and caution ahead of the Federal Reserve meeting this week.
In commodities, WTI crude oil rose 2.68% to $102.70 per barrel, while Brent crude advanced 3.25% to $107.70 per barrel. Natural gas futures were up 1.87% to $2.884 per MMBtu.
Meanwhile, the U.S. dollar index, which tracks the greenback against a basket of currencies, stood at $99.179, up 0.09%.
Asian markets traded higher, with South Korea’s KOSPI down 3.33% to 6,679.87, while Japan’s Nikkei 225 was down 1.15% to 63,274.01.
Oman Postpones Regional Meeting
Oman’s Foreign Minister Badr Albusaidi said late Sunday that the planned regional meeting in Salalah had been postponed “in the interests of consensus,” adding that Muscat remains “committed to fostering dialogue that supports stability and lasting cooperation” in the region.
Iran’s Fars news agency, citing a foreign ministry official, reported that the meeting was postponed at the request of several regional countries in a joint decision by Tehran and Muscat, and that Iran would coordinate with Oman on a new date, Reuters reported.
The postponement comes as Iran and Oman work toward an agreement on jointly managing the Strait of Hormuz, giving both countries greater control over the strategic shipping route.
Saudi Arabia’s Pipeline Shutdown Adds To The Pressure
Saudi Arabia has shut down its pipeline that served as the main route for Middle East oil to bypass the Strait of Hormuz, with traders telling Reuters that Riyadh has only five to seven days of stored oil at its Red Sea port of Yanbu if the pipeline remains offline.
The outage comes as Houthi forces reached Perim Island in the Bab el-Mandeb Strait, threatening Saudi Arabia’s fallback export route after the Iran conflict effectively closed Hormuz.
Crown Prince Mohammed bin Salman reportedly asked President Donald Trump for military help against the Houthis, though Trump offered intelligence support rather than direct strikes, according to Reuters.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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