No Hormuz Deal Expected from Oman Meeting, Iranian Official Says
A senior Iranian official said the upcoming Oman‑hosted talks with Gulf states are unlikely to produce a signed agreement on the Strait of Hormuz, keeping regional oil‑transit risks elevated.
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How This Affects the Exchange
Sector Effect
Negative · Do not buy
Oil & Gas sector faces heightened risk from unresolved Hormuz dispute, suggesting a Don't buy bias.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- Oil & GasNegatively affected
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Sectors: Oil & Gas — Negative · Do not buy. PSX tickers: MEBL, MCB, UBL, HBL, BAHL, FABL. Oil & Gas sector faces heightened risk from unresolved Hormuz dispute, suggesting a Don't buy bias.
Full Story
Open on Business Recorder## Background
Iran and several Gulf states are scheduled to meet in Oman on Monday to discuss the Strait of Hormuz and broader regional issues. The meeting was initiated by Oman, which controls the northern bank of the waterway, and is seen as a platform for dialogue rather than a venue for finalising a deal.
## Expectations
According to an unnamed senior Iranian official, participants should not anticipate a signed agreement on the Hormuz transit regime. Iran continues to seek permission to levy fees on vessels passing through the strait, a proposal that Oman has consistently rejected.
## Regional Participation
Oman has not officially confirmed the meeting, and other Gulf countries have remained largely silent. Bahrain explicitly stated it will not attend any Hormuz‑related talks with Iran.
## Market Implications
The Strait of Hormuz remains a critical chokepoint for global oil supplies, accounting for roughly one‑fifth of worldwide oil flow before the February escalation between the United States, Israel, and Iran. Recent skirmishes in the strait and heightened tensions near the Bab el‑Mandeb have already pushed crude prices higher.
## Outlook
With no agreement in sight, the risk of further disruptions to oil shipments through Hormuz persists, sustaining upward pressure on global oil prices and adding geopolitical risk to energy markets.