US, Iran at Standstill over Hormuz Strait as UAE Quits OPEC
US, Iran at Standstill over Hormuz Strait as UAE Quits OPEC

WASHINGTON — Efforts to end the Middle East war appeared at a standstill on Tuesday, with the US considering Tehran's latest offer to unblock the Strait of Hormuz, and Iran saying Washington could no longer dictate terms. Iran has blockaded the waterway — a vital conduit for oil and gas shipments — since the start of the US-Israeli offensive two months ago, sending shockwaves through the global economy.

CNN reported that US President Donald Trump was unlikely to accept Iran's proposal to restore traffic in the strait, as Qatar warned of the possibility of a "frozen conflict" if a definitive resolution is not found. "We do not want to see a return to hostilities in the region anytime soon. We do not want to see a frozen conflict that ends up being thawed every time there is a political reason," Qatari foreign ministry spokesman Majed al-Ansari said at a press conference, calling for a "sustainable" peace.

Diplomatic Stalemate

While a ceasefire has held so far, diplomacy aimed at permanently ending the war has proven inconclusive. Trump met with top security advisors on Monday to discuss the Iranian proposal after Tehran passed "written messages" to Washington via Pakistan spelling out its red lines, including on nuclear issues and Hormuz, Iran's Fars news agency reported.

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The plan would reportedly see Tehran ease its chokehold on the strait and Washington lift its retaliatory blockade on Iranian ports while broader negotiations continue, including over the thorny question of Iran's nuclear program. But CNN, citing two sources familiar with the matter, said Trump had signaled at Monday's meeting that he was reluctant to take Hormuz off the table without resolving the nuclear question, though it was unclear what his next steps would be.

Iran's Stance

Iranian defence ministry spokesman Reza Talaei-Nik said on Tuesday that Washington "must abandon its illegal and irrational demands." "The United States is no longer in a position to dictate its policy to independent nations," he said, according to state TV.

US President Trump said on Tuesday, without offering further context, that Iran "informed us that they are in a 'State of Collapse.'" He made the comment on social media as his administration discusses an Iranian proposal for both countries to drop restrictions on the Strait of Hormuz but delay talks on the Islamic Republic's nuclear program. "They want us to open the Hormuz Strait as soon as possible, as they try to figure out their leadership situation (Which I believe they will be able to do!)," Trump added in a Truth Social post.

UAE Quits OPEC

The United Arab Emirates said on Tuesday it was quitting OPEC and OPEC+, dealing a heavy blow to the oil exporting groups and their de facto leader, Saudi Arabia, at a time when the Iran war has caused a historic energy shock and unsettled the global economy. The loss of the UAE, a longstanding OPEC member, could create disarray and weaken the group, which has usually sought to show a united front despite internal disagreements over a range of issues from geopolitics to production quotas.

UAE Energy Minister Suhail Mohamed al-Mazrouei told Reuters the decision was made after a careful look at the regional power's energy strategies. Asked whether the UAE had consulted with Saudi Arabia, he said the UAE had not raised the issue with any other country. "This is a policy decision. It has been done after a careful look at current and future policies related to level of production," said the energy minister.

OPEC Gulf producers have already been struggling to ship exports through the Strait of Hormuz, a chokepoint between Iran and Oman through which a fifth of the world's crude oil and liquefied natural gas normally passes, because of Iranian threats and attacks against vessels. Mazrouei said the move would not have a huge impact on the market because of the situation in the strait.

But the UAE exit from OPEC represents a win for US President Donald Trump, who has accused the organization of "ripping off the rest of the world" by inflating oil prices. Trump has also linked US military support for the Gulf with oil prices, saying that while the US defends OPEC members, they "exploit this by imposing high oil prices."

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UAE Criticism of Arab Allies

The move came after the UAE, a regional business hub and one of Washington's most important allies, criticized fellow Arab states for not doing enough to protect it from numerous Iranian attacks during the war. Anwar Gargash, the diplomatic adviser for the UAE president, criticized the Arab and Gulf response to the Iranian attacks in a session at the Gulf Influencers Forum on Monday. "The Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position has been the weakest historically," Gargash said. "I expect this weak stance from the Arab League and I am not surprised by it, but I haven't expected it from the (Gulf) Cooperation Council and I am surprised by it," he said.

The UAE joined OPEC first through its emirate of Abu Dhabi in 1967, and later when the UAE became its own country in 1971.

GCC Summit in Jeddah

Saudi Arabia has long been considered a heavyweight of OPEC, an oil cartel based in Vienna that has seen some of its market power wane as the United States increased its production of crude oil in recent years. Saudi Arabia welcomed leaders and officials from across the Gulf on Tuesday to discuss the ongoing crisis in the region triggered by the US-Israeli war against Iran.

Saudi Crown Prince and Prime Minister Mohammed bin Salman chaired the GCC Consultative Summit in Jeddah on Tuesday. Leaders and heads of delegations of the Gulf Cooperation Council (GCC) member states attended the summit. The summit discussed a number of topics and issues related to the current regional and international developments along with the coordination of efforts to address them, in light of the regional tensions. The summit examined ongoing diplomatic efforts, most notably Pakistani mediation between the United States and Iran, aimed at defusing the crisis and opening negotiating channels that would contribute to de-escalation.

The summit emphasized the importance of unifying the Gulf position and strengthening joint coordination among the GCC states, in order to support the collective security system and protect economic gains. The Gulf leaders who attended the summit include Emir of Qatar Sheikh Tamim bin Hamad Al Thani, King of Bahrain Hamad bin Isa Al Khalifa, Crown Prince of Kuwait Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah, and Deputy Prime Minister and Minister of Foreign Affairs of the United Arab Emirates Sheikh Abdullah bin Zayed Al Nahyan. Saudi Minister of Foreign Affairs Prince Faisal bin Farhan bin Abdullah also attended the summit.