Bahrain

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.

What comes next?

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

Temporary entry and exit

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.

How does Yemen fit in this picture?

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.

US military says it struck the five Iranian tankers after IRGC targeted a US warship twice in two days.

The United States has claimed attacks on five Iranian oil tankers in the Gulf of Oman and near Kharg Island after accusing Iran of launching ballistic missiles at a US warship twice in two days.

Iran responded to the attacks on Tuesday by firing missiles at US forces stationed at the Al Azraq base in Jordan. Amman said its air defences intercepted and destroyed 18 of 20 Iranian missiles, while the rest fell in open areas.

The exchange of fire comes amid escalating tensions in the Gulf, six months into the US and Israel’s war on Iran, with Tehran maintaining the closure of the Strait of Hormuz and Washington imposing a naval blockade on Iranian ports.

The hostilities briefly drove oil prices to $99.46 earlier on Tuesday.

In a statement, the US Central Command said Iran’s Islamic Revolutionary Guard Corps (IRGC) had targeted a US warship twice over the past two days. The warship “successfully evaded the attempted Iranian attacks” and “no American personnel were harmed”, it said.

The Central Command said it retaliated by destroying the Iranian oil carriers, M/T Kaviz, M/T Charminar, M/T Horizon 1, and M/T Riesco in the Gulf of Oman as well as M/T Derya near Kharg Island.

“American forces directed the crews to abandon ship before the vessels were struck and rendered inoperable,” the Central Command added.

Iran’s IRIB state broadcaster confirmed the attack near Kharg Island in the Gulf, which handled some 90 percent of Iran’s oil exports before the war. It reported that the crew was evacuated and said a second tanker was hit near the southern port of Jask on the Gulf of Oman.

The IRGC also said “several” Iranian commercial ships were hit, and said it retaliated by subjecting Al Azraq base in Jordan to “fierce missile strikes”. It claimed hangars used by US fighter jets were destroyed in the ballistic missile attacks.

It went on to claim ballistic missile attacks on the US Navy DDG-119 and DDG-53 destroyers, saying “significant damage was caused to these vessels”.

The IRGC also threatened to target oil tankers in Kuwaiti and Bahraini ports, warning crews there to evacuate immediately.

“We warn all the crews of oil tankers in the Kuwaiti and Bahraini ports… to immediately abandon their vessels, whether at anchor or at the ports, because they will be targeted,” it said.

Jordan’s Armed Forces, meanwhile, said its air defences engaged 20 ballistic missiles, “successfully intercepting and destroying 18 of them”. Two missiles “fell in unpopulated areas,” it said in a statement.

The attacks did not cause any casualties and specialised teams “have begun securing the locations where debris and shrapnel fell,” it added.

Earlier, the chief of staff of Iran’s Armed Forces, Ali Abdollahi, had warned that Tehran would strike US military installations across the region if Iranian tankers were targeted.

“The US aggressor army has given Iranian oil tankers an evacuation warning to hit them, so I announce that any attack on Iranian oil tankers will result in the targeting of US bases in the region by the armed forces of the Islamic Republic of Iran,” Abdollahi said on state TV.

US Secretary of State Marco Rubio, however, said Washington would continue to strike Iranian ships.

“Iran continues to try to hit US naval ships, and for every time they do that or try to do that, they’re going to lose tankers,” Rubio told reporters on a visit to Colombia.

US says its forces ‘successfully’ completed a wave of strikes against Iranian targets, accusing the IRGC of attempted attacks on shipping and US service members.

Six months into the war on Iran, the largest US oil companies have posted their biggest profits since 2022, selling less oil at far higher prices. But the conflict is also putting their longstanding Gulf investments at risk, exposing the industry’s uneasy balance between wartime gains and mounting geopolitical vulnerability for investors worldwide.

Since the war began on February 28, Brent crude has risen about 22 percent, from $72 to $88 a barrel.

The Strait of Hormuz – through which one-fifth of the world’s oil and natural gas was shipped before the war – remains largely closed to commercial traffic, though Iran and Oman agreed last week on a temporary maritime route. Iran says the strait will not fully reopen until the United States fulfils its commitments under a lapsed interim peace deal, leaving longer-term security and management arrangements unresolved.

In the absence of a lasting resolution, the disruption is likely to continue supporting higher energy prices and creating windfalls for producers, despite placing energy companies’ regional assets and future projects at greater risk.

Rahul Choudhary, vice president of Upstream Research at Rystad Energy, an independent energy research company, said the conflict has already reduced the amount of oil and gas US energy firms are drawing from the Gulf region.

“Overall we expect US companies’ share of gas supplies [from the region] to fall by around 40 percent this year compared to last year [and] the share of oil supplies to drop by 30-35 percent,” he told Al Jazeera.

While higher commodity prices have helped offset the immediate financial impact, Choudhary said prolonged disruption is likely to delay major projects and weigh on the future growth plans of US oil and gas companies with a presence in the region.

Who has profited?

The surge in the oil price since early March, when Iran first closed the Strait of Hormuz, has delivered a windfall for oil companies, but gains have been tempered by challenges in the Gulf.

Chevron has limited exposure to Arab Gulf supply disruptions, with the region accounting for just 5 percent of its total global output. The group reported its highest quarterly profit in six years of $12bn in adjusted earnings on July 31.

ExxonMobil, by contrast, has been far more exposed to disruption in the Middle East, with the closure of the Strait of Hormuz and Iranian attacks on US-linked infrastructure in the region affecting its operations in Qatar and the United Arab Emirates (UAE), which together account for 20 percent of its global equity upstream supply, according to Choudhary.

“We already saw in H1 [the first half of] 2026, the company’s upstream earnings dropped by around $1.3bn compared to H1 2025, due to lower upstream volumes from the Middle East. However, the shortfall was covered well by higher commodity prices,” Choudhary said.

The contrast highlights a broader divide between those US energy companies which have benefitted from tighter global supply – and the corresponding rise in the oil price – and those with assets, partnerships or operations in the Gulf at greater risk of disruption caused by recent attacks on energy facilities.

Where are US energy companies exposed in the Gulf?

The Gulf’s energy sector is dominated by state-owned giants such as Saudi Aramco, Abu Dhabi National Oil Company (ADNOC) and QatarEnergy.

Although these national oil and gas companies retain control over the region’s reserves and core infrastructure, US energy firms have carved out strategic positions across the region.

US companies generate revenue through stakes in production assets, joint ventures, production agreements, refining and petrochemical projects, as well as through long-term contracts to provide equipment, engineering and operational expertise.

ExxonMobil has some of the largest US commercial interests in the Gulf.

The company has been a major partner in Qatar’s LNG sector for decades, holding stakes in several QatarEnergy LNG joint ventures linked to the expansion of the North Field. The field is the Qatari section of the North Field-South Pars structure, the world’s largest natural gas field, which Qatar shares with Iran, where it is known as South Pars. ExxonMobil also holds an interest in the UAE’s Upper Zakum offshore oilfield alongside ADNOC.

Similarly, ConocoPhillips joined the North Field East (NFE) and North Field South (NFS) expansion projects with QatarEnergy in 2022 to increase export capacity at Ras Laffan.

The US group, Occidental Petroleum, has become one of the largest foreign producers in Oman, operating the Mukhaizna heavy oilfield, the country’s biggest producing oilfield. It also holds interests in UAE gas and pipeline projects.

Chevron maintains a smaller but strategically important Gulf footprint. Through Saudi Arabian Chevron, the company operates oil assets in the Saudi-Kuwait Partitioned Zone, including the Wafra field. In July, it said it was exploring potential routes to move Iraqi crude to Mediterranean export terminals, which could reduce reliance on the Strait of Hormuz.

Where have attacks on energy facilities taken place?

According to the Armed Conflict Location and Event Data (ACLED), a US-registered independent conflict monitor, Iran and Iran-backed groups in the region have carried out at least 172 attacks on nonmilitary infrastructure across the six Gulf Cooperation Council (GCC) countries since the US and Israel launched their war on February 28.

Energy infrastructure has been hit hardest, with oil and gas facilities, along with power plants and desalination plants, accounting for nearly half (48 percent) of all strikes on nonmilitary targets.

The UAE, Kuwait and Bahrain have suffered the highest number of successful strikes, with the majority aimed at oil and gas facilities.

Among the sites that have been struck are Kuwait’s Mina Abdullah and Mina al-Ahmadi refineries, the Bahrain Petroleum Company oil refinery, and ADNOC’s al-Ruwais Industrial City and the Habshan gas complex.

There have also been several strikes on Saudi Aramco facilities, most recently a drone strike on July 27 on the Abqaiq processing complex, one of the most critical nodes in Saudi Arabia’s oil infrastructure, processing more than seven million barrels of oil per day.

Nasser Khdour, Middle East assistant research manager at ACLED, said: “Oil and gas facilities, power plants and water desalination plants are likely to remain key targets for Iran because disruption to these sectors can increase economic pressure on Gulf states, while disruption to global energy supplies increases prices and pressure on the US during periods of escalation.”

In March, a drone attack close to the Saudi Aramco-ExxonMobil SAMREF refinery in Yanbu disrupted oil loading at the city’s Red Sea port. While the attack had only minimal operational impact, it highlighted the vulnerability of US-linked energy assets in the region.

Qatar’s Ras Laffan Industrial City, the world’s largest LNG export hub, which hosts major joint ventures between QatarEnergy, ExxonMobil and ConocoPhillips, also came under repeated attack in March, at one point forcing the plant to halt production entirely. In June, an explosion as a result of a “technical malfunction” on Qatar’s Barzan gas project, where ExxonMobil holds a stake, killed at least 13 people.

“In terms of gas assets being impacted, major blows have been [dealt to] companies [that are] part of LNG projects in Qatar: ExxonMobil and ConocoPhillips,” Choudhary said.

He added that ExxonMobil’s share of LNG supply from Qatar is expected to fall significantly this year to about four million tonnes compared with 13 million tonnes last year, while ConocoPhillips has also experienced reduced volumes to one million tonnes this year compared with 2.5 million tonnes last year.

The attacks on Qatar’s LNG infrastructure could have longer-term consequences. Damage to LNG trains at Ras Laffan could take years to repair, according to QatarEnergy, while delays to Qatar’s North Field expansion projects could push back planned supply growth.

“The attack on LNG trains 4 and 6 at Rasgas damaged roughly 13 million tonnes of capacity, which will take anywhere between three to five years to come back online with a total repair cost estimate of around $3bn,” said Choudhary.

He added that the second most impacted gas project has been the Shah gas project in the UAE, in which Occidental Petroleum has a 40-percent stake and where drone attacks in March caused a fire at the gas plant that halted operations.

The conflict has also affected ExxonMobil’s oil interests in the UAE, Choudhary said. Production from Upper Zakum, where ExxonMobil has a 28 percent stake, was reduced between March and May when export routes were disrupted, limiting the ability to move offshore crude.

Beyond the UAE, the most significant impact on US companies’ oilfield operations played out in Iraq. A drone attack hit the Sarsang oilfield in March, followed by an explosion at one of its storage facilities in April, together causing damage to the field.

Looking ahead, Choudhary said higher prices could support cash flows, but prolonged conflict risks could threaten future growth. ExxonMobil’s $10bn Upper Zakum and Qatar LNG expansions could face delays, while ConocoPhillips remains exposed through investments in higher-risk markets, including its planned 42-percent stake in BP’s Kirkuk operations in Iraq.

“For companies like Chevron and Occidental Petroleum, whose presence are in less volatile countries like Israel and Oman respectively, the impact of escalations will not be as severe, as we have not seen significant disruption in these countries,” said Choudhary.

US oilfield service companies in the Gulf

Oilfield service giants, including US firms SLB (formerly Schlumberger), Halliburton and Baker Hughes, provide drilling technologies, equipment and operational expertise across the Gulf, supporting Saudi Aramco, ADNOC and QatarEnergy.

For oilfield service companies, the outlook is mixed, according to Chinmayi Teggi, energy research analyst at Rystad Energy, a research group. While higher oil prices and energy security concerns could lift demand over time, near-term margins remain under pressure from higher logistical costs, supply-chain disruptions and delayed projects.

“For the Big Three (SLB, Baker Hughes and Halliburton), the conflict continues to weigh on regional revenues,” Teggi told Al Jazeera, adding that second-quarter Middle East revenues were down 8-10 percent compared with the previous year across the three companies, while higher oil prices meant revenues were higher in other geographies.

However, a recovery in suspended operations and production could help drive growth into 2027.

For US companies, therefore, the Gulf remains both an opportunity and a risk.

“The impact on US companies will depend on the extent of exposure and countries in which these companies are present,” Choudhary said.

Their investments have secured US access to some of the world’s most important oil and LNG projects, but the conflict has exposed the risk of operating in a region where energy infrastructure has become increasingly vulnerable to geopolitical conflict.

US President Donald Trump has repeatedly warned Iran against restricting access to the Strait of Hormuz, arguing that the waterway must remain open to global commerce.

But for companies with billions of dollars invested across the Gulf, the challenge isn’t just about keeping shipments moving – it is ensuring the infrastructure remains secure, they say.

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