Iran-Gulf Meeting Postponed Amid Fears of Global Energy Shortage

The Middle East diplomatic efforts have hit a roadblock after the postponement of a meeting between Iran and other Gulf powers, sparking concerns over global energy supplies.

Oil prices jumped more than 3% on Monday following attacks by Houthi rebels in Saudi Arabia that forced the closure of its key east-west pipeline. The pipeline is used to transport oil from the world's largest exporter and its shutdown raises fears of a shortage of up to 4% of global supply.

The Iran-Gulf meeting was postponed 'in the interests of consensus', according to Oman's foreign minister, Sayyid Badr Albusaidi. Iranian officials had said they would attend the gathering with Gulf Arab states to present an agreement with Oman on governing shipping routes through the Strait of Hormuz.

The postponement comes as tensions in the region escalate following a quiet August in which flows of Middle East oil had trickled back up. Iran's Foreign Minister Abbas Araqchi said despite any agreement, Iran would not reopen the strait until the United States satisfies Tehran's demands.