A Turkish diplomatic source said representatives from Azerbaijan, Bahrain, Egypt, Jordan, Kuwait, Pakistan, Qatar, Syria, Turkey and the United Arab Emirates would attend.

The meeting comes amid limited signs of de-escalation nearly three weeks into the U.S.-Israeli war with Iran, which has disrupted the region and affected global energy supplies. The conflict has heightened concerns over broader instability across the Middle East.

Hakan Fidan is expected to stress the need for a negotiated and peaceful resolution, warning that a prolonged conflict could inflict lasting damage on ties between regional countries, the Turkish source said. He is also expected to visit additional countries following the Riyadh talks.

Turkey, a member of the NATO and a neighbour of Iran, had sought to mediate between Tehran and United States before the war began. Ankara has since condemned U.S. and Israeli strikes on Iran as violations of international law, while also criticising Iranian attacks on Gulf states as unacceptable.

The Riyadh meeting is expected to focus on coordinated diplomatic efforts to contain the conflict and mitigate its economic and security repercussions across the region.

The restriction, imposed last week and expected to remain in place until at least the end of March, aims to prevent domestic shortages in China, the world’s largest oil importer, according to market sources.

The move curtails exports that were valued at about $22 billion last year.War disruptions amplify supply strainEven before the export curbs, Asian refiners were seeking alternative crude supplies as the conflict in the Middle East disrupted flows from the Gulf.

Several refineries in the region, a key supplier of fuel to Asia, have shut operations as shipping through the Strait of Hormuz was halted.

The combined impact has intensified competition for available cargoes, leaving import-dependent economies exposed to supply shocks.

Australia, Bangladesh and the Philippines, which rely heavily on Chinese refined fuel exports, are expected to face immediate challenges in meeting demand.

China accounted for roughly one-third of Australia’s jet fuel imports last year and about half of supplies to Bangladesh and the Philippines in 2024.

China ranks as Asia’s fourth-largest exporter of refined, or “clean,” fuels after South Korea, India and Singapore, and plays a pivotal role as a swing supplier when regional demand fluctuates.

Analysts say the sudden halt in exports leaves limited room for other suppliers to compensate. “The remaining Asian exporters simply do not have the spare volumes to replicate China’s role as the region’s swing supplier,” Kpler analyst Zameer Yusof said.

Benchmark refining margins in Singapore, known as “cracks,” are expected to continue rising as markets adjust through higher-priced replacement cargoes or reduced demand.

Fuel prices across Asia have climbed sharply. Diesel derivatives rose to $150 per barrel on March 17, while jet fuel swaps reached $163 per barrel, up from about $92 before the war, according to LSEG data.

Gasoline traded at $139.80 per barrel on Monday, compared with $79.30 on February 27.The tightening market is already affecting downstream sectors. Vietnam has warned airlines to prepare for potential flight cuts from April due to fuel shortages linked to export restrictions.

China’s Foreign Ministry said on Monday that military action in the Middle East should cease and that Beijing is willing to work with other countries to ensure energy security.

The escalation comes in the third week of the U.S.-Israeli conflict with Iran, which has left at least 2,000 people dead and disrupted critical energy flows through the Strait of Hormuz.

Gulf targets hitIranian strikes hit oil and transport infrastructure in the UAE, where a drone struck a facility in Fujairah for a second consecutive day and debris from an intercepted missile fell in Abu Dhabi, killing one person, authorities said.

Rockets and drones also targeted the U.S. embassy in Baghdad in what Iraqi security sources described as the most intense such assault since the conflict began, though U.S. officials said no injuries were reported.Iran’s attacks have also extended to other Gulf states, including Qatar, Saudi Arabia, Bahrain and Kuwait, signalling a broader regional response.

Trump remarks and intelligence warnings.Trump said the scope of Iran’s retaliation had come as a surprise. “They weren’t supposed to go after all these other countries in the Middle East.

Nobody expected that. We were shocked,” he said.However, U.S. officials and sources familiar with intelligence assessments said the president had been warned before the conflict that strikes on Iran could provoke retaliatory attacks against Gulf allies, particularly if Tehran perceived them as supporting U.S. operations.

There was no pause in hostilities, with Iran launching overnight missile strikes on Israel, demonstrating continued long-range strike capability despite sustained bombardment.

Israel said it carried out a fresh wave of strikes on targets in Tehran and positions linked to Hezbollah in Beirut, and signalled plans for several more weeks of military operations.

Energy and market impactThe widening conflict has kept the Strait of Hormuz largely constrained, as U.S. allies declined to join efforts to secure the waterway.

The disruption has raised concerns over energy supplies, pushed up oil prices and intensified fears of inflation globally.

The currency has come under strain amid rising geopolitical tensions that have disrupted energy markets, particularly around the Strait of Hormuz, a key transit route for crude supplies.

Higher oil import costs typically weigh on the rupee by widening India’s trade deficit and increasing dollar outflows.

Dealers said sustained demand for the U.S. dollar from importers, especially oil companies, has kept the rupee under pressure. Concerns over global inflation and tighter financial conditions have also supported the dollar, limiting gains in emerging market currencies.

Market participants pointed to uncertainty stemming from escalating conflict in the Middle East as a key driver behind risk aversion, prompting investors to shift toward safe-haven assets.

Traders said the Reserve Bank of India was likely present in the foreign exchange market to smooth volatility, helping the rupee avoid sharper losses. The central bank typically intervenes to curb excessive fluctuations rather than defend specific levels.

Analysts expect the rupee to remain sensitive to oil price movements and global risk sentiment in the near term, with any further escalation in geopolitical tensions likely to add to downward pressure.

The conflict between the United States, Israel and Iran has entered its third week, with the Strait of Hormuz — a corridor for roughly one-fifth of global oil and liquefied natural gas flows effectively constrained by Iranian drones and naval mines.

Several U.S. partners, including Germany, Spain and Italy, said they had no immediate plans to send warships to secure the passage, citing legal and political constraints.

German Chancellor Friedrich Merz said Berlin lacked a mandate from the United Nations, the European Union or NATO, and added that Germany had not been consulted prior to the launch of military operations.

Trump, speaking in Washington, said some countries had expressed willingness to assist but criticised others for what he described as a lack of enthusiasm despite long-standing U.S. support.

The disruption in the Strait of Hormuz has heightened fears of supply shocks and inflationary pressure, as energy markets react to restricted flows through one of the world’s most critical maritime chokepoints.Iran has targeted oil infrastructure across the Gulf, including facilities in the United Arab Emirates.

Drone strikes hit an oil facility in Fujairah for a second consecutive day, while operations at key sites, including the Shah gas field in Abu Dhabi, were suspended.

Airspace closures and temporary halts at major hubs, including Dubai’s international airport, underscored the wider economic and logistical impact.

There was no pause in hostilities, with Israel saying it struck Iranian infrastructure in Tehran and positions linked to Hezbollah in Beirut. Israeli officials have indicated plans for at least three more weeks of military operations.

Iran launched overnight strikes on Israel, demonstrating continued long-range capabilities, while warning it would target energy assets in any country facilitating attacks on its territory.

Tehran has also accused the UAE of serving as a launch point for recent U.S. strikes on Kharg Island, a major Iranian oil export hub, signalling a potential widening of the conflict’s geographic scope.

Members of the party’s Middle East crisis economic response task force said the measures aim to stabilise domestic energy supply and prices as shipments of oil and gas to South Korea have been disrupted by the regional conflict affecting the vital maritime corridor.

According to data from the Korea International Trade Association, South Korea depends heavily on energy imports, sourcing about 70% of its crude oil and roughly 20% of its liquefied natural gas (LNG) from the Middle East.

Democratic Party lawmaker Ahn Do-geol said the government would prioritise managing LNG supplies by increasing electricity production from coal and nuclear facilities while scaling back reliance on LNG-fired power generation.

Limits that capped coal power output at 80% of installed capacity will be lifted starting Monday, Ahn said. Maintenance work at six nuclear reactors will also be completed earlier than scheduled to raise the utilisation rate of nuclear plants from the high-60% range to about 80%.

The government on Friday introduced a price ceiling on gasoline of 1,724 won ($1.15) per litre, with adjustments planned every two weeks to reflect changes in global oil markets.

Ahn said gasoline and diesel prices had already declined since the cap was introduced, falling by 58 won and 77 won per litre respectively as of Sunday.

Officials said a supplementary budget would be drafted by the end of the month and submitted to parliament to cushion the economic impact of higher energy costs.

Democratic Party leader Jung Chung-rae said the party would fast-track approval of the budget within 10 days after it is submitted. The proposed spending package is expected to include compensation for refiners linked to the fuel price cap, energy vouchers for households, logistics support for exporters and expanded investment in renewable energy.

The Budget Ministry said no specific date had yet been set for the supplementary budget but that preparations were underway.

Authorities are also considering designating the Yeosu Petrochemical Complex as a special industrial crisis response zone as part of efforts to support industries affected by the energy disruption.

In an interview published Sunday by the Financial Times, Trump said the timing of the meeting could shift depending on progress in restoring navigation through the key oil transit route.

“We’d like to know before (the summit),” Trump said, adding that “we may delay,” without specifying how long a postponement might last.

The Strait of Hormuz, which connects Gulf energy producers to global markets, has come under heightened strain during the conflict with Iran, raising concerns about disruptions to international oil shipments.

Washington has sought diplomatic and security cooperation from major powers to ensure the passage remains open as tensions across the Middle East escalate.

Trump’s remarks suggest the United States is looking to China to play a role in stabilizing the situation. Beijing maintains significant economic ties with Iran and is a major importer of Gulf energy supplies that pass through the strait.

The proposed summit in Beijing had been expected to focus on trade and geopolitical issues between the two powers, but Trump indicated that progress on the maritime corridor could influence whether the meeting proceeds on schedule.

The emirate serves as a strategic outlet for exports of Murban crude, with shipments of around 1 million barrels per day flowing through the facility. That volume accounts for roughly 1% of global oil demand, making Fujairah one of the most important energy transit points outside the Strait of Hormuz.

Fujairah’s location on the Gulf of Oman allows crude shipments to bypass the narrow Strait of Hormuz, a chokepoint for global energy supplies that has become increasingly sensitive amid the ongoing regional conflict.

Industry participants closely monitor the emirate because it provides one of the few alternative export routes in the region should shipping through the strait face disruption.

Abu Dhabi National Oil Company, which operates major energy infrastructure in the emirate, did not immediately respond to a Reuters request for comment on the incident or the status of facilities.

Bloomberg News earlier reported that oil loading operations in Fujairah had resumed following the disruption.

The brief halt in activity underscored the vulnerability of energy infrastructure across the Gulf as regional tensions escalate and drone and missile attacks target key supply hubs.

Trump said U.S. strikes had already “totally demolished” much of the island’s infrastructure and signaled the possibility of additional attacks, telling NBC News on Saturday that Washington could “hit it a few more times just for fun.”

The remarks marked a sharp escalation from earlier statements by the administration that had framed operations as limited to military facilities on the island.

Kharg Island is Iran’s primary oil export terminal and a critical node in global energy markets. Any prolonged disruption to its facilities risks tightening global crude supply at a time when energy prices are already climbing sharply due to the conflict.

The fighting has heightened concerns over the security of the Strait of Hormuz, the narrow maritime corridor through which roughly a fifth of the world’s oil supply passes. Tehran has long maintained the capability to disrupt shipping in the waterway, a scenario that analysts say could amplify volatility in global energy markets.

Trump called on countries that rely on oil shipments through the strait to take a more active role in securing it. In a social media post on Saturday, he said nations receiving oil through the passage “must take care of that passage,” adding that the United States would coordinate with them to ensure maritime transit remained secure.

The push for allied naval deployments comes as oil markets face what industry observers have described as the largest disruption to global supply flows in modern history, according to recent market assessments cited by Reuters.

The war launched on Feb. 28 by Trump and Israeli Prime Minister Benjamin Netanyahu has expanded beyond direct strikes on Iranian targets. Missile and drone attacks continued across the region on Sunday, underscoring the conflict’s widening geographic scope.

Saudi Arabia said its air defenses intercepted and destroyed 10 drones over Riyadh and eastern regions of the kingdom, according to the Saudi defense ministry. Iran’s Revolutionary Guards denied involvement in the attacks, the semi-official Fars news agency reported.

A separate drone strike disrupted a major energy hub in the United Arab Emirates on Saturday, while Washington advised American citizens to leave Iraq amid rising security risks.

Despite signs that Tehran may be open to negotiations, prospects for a diplomatic resolution remain uncertain. Trump said Iran appeared willing to consider a deal to end the conflict but added that “the terms aren’t good enough yet.

”At the same time, three sources told Reuters that the U.S. administration had rejected attempts by Middle Eastern allies to initiate talks, a move that has complicated diplomatic efforts to halt the fighting.

More than 2,000 people have been killed since the conflict began, most of them in Iran, according to figures reported by governments and state media. In one of the latest incidents, an airstrike struck a refrigerator and heater factory in the central Iranian city of Isfahan, killing at least 15 people, the Fars news agency reported.

The move comes as roughly 20% of global LNG supply remains offline after the conflict forced the shutdown of facilities operated by QatarEnergy, significantly disrupting energy exports from the Middle East.

JERA handles about 35 million metric tons of LNG annually, with around 27 million tons consumed domestically in Japan, according to Global Chief Executive Yukio Kani.

About 5% of the company’s shipments pass through the strategically vital Strait of Hormuz, a major energy transit corridor.Kani told reporters on the sidelines of the Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo that the company is holding talks with suppliers with whom it already maintains long-term contracts to explore additional procurement options.

While there is currently no immediate shortage of LNG, Kani said the company is planning for possible prolonged disruption.“It is still possible that things could settle down within a few weeks. However, it would be far too optimistic to base our planning on that assumption,” he said.

Regional LNG prices have fluctuated sharply since the disruption. The average LNG price for April delivery into Northeast Asia was estimated at $19.50 per million British thermal units, down from $22.50 per mmBtu a week earlier, which had marked the highest level since mid-January 2023.

Energy security concerns have also resurfaced among global buyers as geopolitical tensions escalate in the Middle East.Steven Read, president of Global Coal Sales Group, which markets coal produced by U.S. mining company Signal Peak Energy, said the market had already begun to react to the heightened uncertainty.

“We’ve already seen customers coming in wanting to talk about options,” Read told Reuters on the sidelines of the conference, noting renewed interest from buyers considering additional cargoes.

If the disruption deepens and shipping through the Strait of Hormuz remains constrained, Japan may need to consider broader measures to maintain energy supply, Kani said.

These could include working with the Japanese government to encourage energy conservation and restarting dormant power stations, including coal-fired plants.At the same forum, U.S. LNG exporter Venture Global LNG said the current volatility in energy markets was likely temporary.

Chief Executive Mike Sabel said the company viewed the current price fluctuations as short-term turbulence despite the geopolitical tensions affecting supply.

“We’re tremendously optimistic about the middle- and long-term strength of the market, equity in the market, supply coming online. We expect long-term, very stable liquefaction prices,” Sabel said.