Middle East Diplomacy Hits Roadblock Amid Fears Over Oil Supply

The Middle East diplomatic efforts have hit a roadblock as tensions escalate over oil supply fears. A planned meeting between Iran and Gulf states was postponed due to concerns over global oil supplies. The Houthis in Yemen launched a new attack on Saudi Arabia, hitting key military targets and further jeopardizing global oil supplies.

The attack on the Saudi airbase in Khamis Mushait came after the Houthis seized an island in the Red Sea and knocked out Saudi Arabia's east-west pipeline, which is a main route for Middle East oil. The closure of the pipeline could cut off as much as 4% of global oil supply unless it is reopened within days.

The tensions have led to a surge in oil prices, with crude oil prices rising over 3% on Monday and diesel prices hitting an all-time high above $6.23 a gallon in the US.