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Iran, Oman Hold Hormuz Talks As US Pauses Airstrikes For Second Day

Tyler Durden's Photo
by Tyler Durden
Authored...

The US military paused its air campaign against Iran for a second consecutive night after nearly two weeks of tit-for-tat strikes. US strikes were aimed at degrading Tehran's one-way attack drone and missile capabilities around the Strait of Hormuz, while Iran hit US bases in the region.

The pause offers the clearest signal yet that a diplomatic off-ramp may be emerging, with Iranian and Omani officials reporting progress in talks to reopen the critical waterway.

Iranian Foreign Ministry spokesman Esmail Baghaei said in a Telegram post that he met with the Omani deputy foreign minister and held talks on Friday and Saturday about restoring safe transit for commercial vessels through the Strait of Hormuz.

Baghaei said the officials exchanged views on principles and operational mechanisms for managing safe maritime navigation through the strait.

"The talks were constructive, and some progress was made," he added, noting that technical and political consultations remain ongoing. The Omani delegation left Tehran on Saturday evening.

The talks coincided with the US military's two-day pause in strikes and came as Brent crude futures surged into triple-digit territory and the national average for regular gasoline jumped above the politically sensitive $4-a-gallon mark.

JPMorgan's head of Global Commodities Research and Strategy, Natasha Kaneva, told clients last week that Brent prices at this level could increase pressure on Washington to reopen diplomatic channels.

Meanwhile, Iranian Army spokesman Mohammad Akraminia appeared on state television on Sunday and warned the US that any further strikes would widen the conflict.

"I believe that if the Americans once again fall for the Zionists' deception, or move in line with them, and insist on continuing the war, particularly through air strikes, geographically this will expand further," Akraminia warned.

Akraminia said the conflict has already expanded to the Bab al-Mandab Strait on the southern Red Sea, referencing the recent Houthi attacks on tankers.

"The scope of our operations now encompasses the entire region, from US bases in Jordan to the countries along the Persian Gulf," he said.

Earlier, United Kingdom Maritime Trade Operations reported an incident in the southern Red Sea after a "tanker witnessed a splash from an unknown projectile in proximity to the vessel." Details are scant at the moment.

Next week, Israeli Prime Minister Benjamin Netanyahu will travel to Washington, DC to meet with President Trump at the White House on Tuesday.

Latest overnight headlines, courtesy of Bloomberg:

US-Iran Strike Pause

  • The US paused its nearly two-week run of nightly strikes on Iran for a second consecutive night as of Sunday morning.
  • According to the Telegraph, Trump paused plans to escalate the war after being warned the US is running low on missiles; the pause also allows time for negotiations with Iran.
  • Iran's army spokesman said Iran has also paused its retaliatory operations in response to the US halt. Still, he warned that if the US carries out ground operations, American vulnerability would increase.
  • Netanyahu said he will discuss the Iran situation with Trump.

Diplomacy & Negotiations

  • Trump said Friday the US was "locked and loaded" for major new strikes but had not yet decided whether to proceed while talks with Iran were ongoing; he said Iran would "love to make a deal" but it's not time yet.
  • Trump leaned toward diplomacy on Friday, referencing negotiations with Iranian officials six times during a 38-minute Oval Office appearance, while leaving open the possibility of military escalation.
  • Iranian and Omani deputy foreign ministers held talks in Tehran on Friday and Saturday on managing safe maritime navigation through the Strait of Hormuz, with some progress reported.
  • China urged Iran and the US to return to the ceasefire agreement, with Foreign Minister Wang Yi expressing deep concern over renewed escalation in the Middle East.

Regional Spillover

  • Iran-backed Houthis claimed to have fired missiles and drones at Saudi Aramco facilities in Jizan and Yanbu on Saturday; Saudi authorities briefly issued emergency warnings before saying the danger had passed, with no immediate confirmation from the Saudi government or Aramco.
  • A UK Navy report on Sunday noted a projectile fell near a tanker in the southern Red Sea; the vessel and crew were reported safe.
  • An LPG tanker with 28 Indian crew members was attacked in Iranian territorial waters on Friday; India's embassy confirmed the crew are safe.

Background & Context

  • The US had gradually expanded the scope of its strikes over two weeks, hitting bridges and infrastructure deeper inside Iran, after a brief ceasefire in June collapsed over a battle for control of the Strait of Hormuz.
  • Billionaire investor Ray Dalio warned that the war's outcome hinges on the Strait of Hormuz, calling a decisive clash imminent.

Previous US-Iran Wrap

Regional Risks

Energy Market

Rewiring Gulf Energy Supply Chains

 

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