Iran's top diplomat has ruled out direct negotiations with the United States for the time being, leaving a much-anticipated agreement with Oman on the Strait of Hormuz in limbo.

Iranian Foreign Minister Abbas Araghchi — who previously stated that a pact to create a temporary shipping lane through the critical energy chokepoint was "very close" — on Sunday accused Washington of violating a brief interim peace deal reached in June.

"As long as the American violation of the Memorandum of Understanding continues and the US does not make amends for its violations, there is no possibility of resuming negotiations," Araghchi said in remarks broadcast on state television.

On Saturday, Tehran escalated its stance by reviving an extensive list of conditions for Washington before it would agree to a full reopening of Hormuz — a signal that any near-term relief for global oil and gas shipments may remain out of reach.

The Strait of Hormuz has emerged as a central front in the conflict that the United States and Israel launched against Iran in late February, and it remains uncertain how Washington will react to any prospective agreement. Under normal conditions, the waterway carries roughly a fifth of global oil consumption, making any prolonged disruption a test for energy markets already navigating supply uncertainty. President Donald Trump has for months insisted on the restoration of open navigation through the waterway, repeatedly warning of new military action against Iran if it fails to comply.

Violence Persists as Diplomacy Stalls

With a Hormuz pact still elusive, instability across the Middle East showed no sign of abating on Sunday. Iran-backed Houthi rebels in Yemen claimed responsibility for a strike on Saudi Aramco's Jizan oil refinery inside the kingdom. Saudi authorities had earlier confirmed a fire at the facility.

The previous day, US Vice President JD Vance indicated that negotiators had made recent progress, though he stopped short of predicting a satisfactory outcome. The key question, he said, is whether Iran can "give the things that are necessary for us to be happy, for us to feel like we've gotten what we need out of this particular engagement," in an interview with Fox News.

Related: Vance Says US in 'Middle of the Game' in Iran Conflict

Washington has repeatedly asserted that it is party to discussions on managing Hormuz — a claim Iran disputes. "Some intermediary countries are trying to re-establish the ground for negotiations," Araghchi was quoted as saying on Sunday. "At present, we are not negotiating with the US — the exchange of messages is taking place through intermediaries." Oman's role as intermediary continues a pattern the sultanate has played in prior Western-Iranian diplomacy, leveraging its longstanding ties with both Tehran and Washington.

Oman, whose territorial waters also encompass parts of the strait, reported that its discussions with Iran were advancing in "a positive and constructive atmosphere." In a post on X, Omani authorities urged a cessation of activities in the strait to allow diplomatic efforts to proceed.

Iran's Demands

In addition to compensation, Tehran's conditions include the lifting of the US naval blockade on Iranian ports, the withdrawal of American military forces from areas surrounding Iran, the removal of sanctions, and the release of frozen assets, according to Mohammad Bagher Zolghadr, a hardline figure who leads the Supreme National Security Council. The breadth of the demands — touching on military posture, sanctions architecture, and financial assets accumulated over years of confrontation — underscores how far apart the two sides remain on the core issues that preceded the current conflict.

Shipping traffic through the chokepoint has been mostly cut off since the war began, though some vessels have continued transporting cargo under a shuttle program backed by US military assistance.

Oil prices fluctuated between gains and losses throughout last week, with Brent crude ultimately settling above $83 a barrel as market participants weighed the likelihood of a deal that could unlock the return of millions of barrels of supply from the Persian Gulf.

Red Sea Tensions Intensify

Tensions have escalated in the southern Red Sea in recent weeks after Houthi rebels in Yemen declared a blockade on Saudi Arabia's ports — a critical alternative export channel for the kingdom's oil.

The Houthis said Sunday they had targeted the Jizan refinery with a drone, citing Saudi operations in Yemeni airspace. Saudi Arabia's energy ministry reported that the fire at the site had been extinguished without injuries but provided no details about the cause. Saudi Aramco was not immediately available for comment.

The blaze marks at least the second fire at the Aramco complex in the past month. Satellite imagery in late July captured a fire at a storage tank within the 400,000 barrel-per-day facility following a prior Houthi claim of attack.

Iranian Leadership Dynamics

Any potential Hormuz agreement will require the approval of Supreme Leader Mojtaba Khamenei, who has not appeared in public since the conflict began. Khamenei said Sunday that he had met with President Masoud Pezeshkian — whose backing of a ceasefire arrangement with the US has drawn criticism from Iranian hardliners. The internal tension between Pezeshkian's pragmatic posture and hardline resistance adds another layer of uncertainty to any deal's prospects. According to a post on X, the two leaders discussed the war and the economy.

Months of fighting have resulted in thousands of deaths, predominantly in Iran, and are reshaping security alliances across the broader region.

Regional Defense Pact

On Friday, Turkey, Saudi Arabia, and Pakistan signed a trilateral defense agreement under which each nation commits to a joint military response against any external threat directed at any one of them. The pact represents a broader strategic partnership among the three countries rather than a replacement for existing agreements, according to people familiar with the matter. The arrangement reflects an emerging effort among major Muslim-majority states to build collective security frameworks alongside — rather than solely through — US-led regional structures.

Related: Turkey, Saudi Arabia and Pakistan Sign Joint Defense Agreement

Turkish Foreign Minister Hakan Fidan said late Saturday that the agreement could be expanded to incorporate additional regional states, including Egypt.

Related: Turkey Says Mecca Defense Pact Could Be Widened to Include Egypt