Many think the best diplomatic hope is talks by the so-called Quad nations - the United States, Saudi Arabia, the UAE and Egypt. This is a mechanism "to mediate between regional actors more so than it is the warring parties", says Chatham House's Soliman. But there are enormous obstacles to reaching an agreement.
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Gas prices have spiked and stock markets indexes tumbled after an Iranian official said his country would "set fire" to anyone trying to pass through the key Strait of Hormuz shipping route.
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