PM Shehbaz, Pezeshkian, discuss ‘regional situation’ in meeting on UNGA sidelines

US and Iranian negotiators in New York are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to the ​talks said.

The strait has become the central bargaining chip in efforts to end the nearly seven-month US-Iran conflict, with Iran seeking relief from the US blockade that is choking its economy and Washington seeking free passage for ships on the global oil supply route now ‌blocked by Tehran.

The talks face a big obstacle as neither side wants to be the first to surrender its leverage, according to comments to Reuters by two Iranian sources, two regional officials and two Western diplomatic sources, but behind Iran’s stance is a recognition of the economic cost of prolonged confrontation.

A senior Iranian official said the most plausible way to end the impasse would be a phased arrangement, with Iran allowing navigation through Hormuz in return for the US lifting its economic blockade and Tehran potentially gaining access to frozen assets.

“One way forward would be to solve the crisis in stages. The first would be to end the blockade and reopen Hormuz,” he said on the sidelines of the UN General Assembly.

That would involve US ​President Donald Trump accepting another temporary fix, after an earlier understanding collapsed in July. So a central challenge facing the negotiators is not just to sketch out a deal but also to ensure any concessions are durable enough for both sides to trust, the sources said.

Trump has said ​he thinks the US and Iran could reach a deal after midterm elections to Congress on November 3. A senior European official said the Iranians “have a very long list of demands”.

A White House official said that while “Iran is desperate ⁠for a deal, President Trump holds all the cards and will make whatever decision is best for the United States.”

Trump, he said, remained “open to talking with Iran under the right circumstances” but had no need to negotiate, and the US was in a “very strong position” with control of the Strait of ​Hormuz and an Iranian economy that was “collapsing”.

The official said “crushing sanctions” and “one of the most successful blockades in history” have crippled Iran’s economy and left Iran completely broke. Trump was content to let the “inevitable Iranian collapse” play out rather than be “played” by Tehran, the official said.

Former US negotiator Dennis Ross said he saw only ​a 30% chance of an agreement being reached before the vote, but that both sides may have stronger reasons to make a deal before than after the midterms.

“The blockade is what’s really squeezing the Iranians. It’s strangling them,” Ross said.

A deal before the midterms could benefit Trump, as reopening Hormuz could ease tensions in the Gulf, contain oil prices and help bring down politically sensitive US gasoline prices.

Iran’s chances of gaining much-needed economic relief may be greater while Trump still has a greater political incentive to strike a bargain.

After the midterms, Ross said, Trump may face fewer constraints and be more willing to intensify pressure or consider military options.

The leverage that brought Washington and Tehran back to negotiations ​could also make compromise harder.

Washington controls the pressure that is hurting Tehran most, while Tehran controls access to a critical energy chokepoint. Neither side wants to surrender that leverage without extracting something tangible in return.

This means the midterms may be less a deadline for diplomacy than for preserving the conditions that make ​the diplomatic efforts possible. If Washington and Tehran cannot turn leverage into a deal before the midterms, the diplomatic window could narrow as the risk of escalation grows.

Even as it seeks a diplomatic off-ramp, Tehran is preparing for the possibility of renewed war with Washington, the Iranian official said, accusing the US of using the economic ‌blockade and threat of ⁠force as tools of coercion.

“Our fingers are on the trigger,” said the senior Iranian official. “The Americans know what they need to do but, because of their excessive demands, the chances of diplomacy resolving this are extremely low.”

Regional sources said Tehran was willing to drop a demand for payment of transit fees to use the Strait of Hormuz from the main agreement and put the demand in a side attachment instead, as ending the blockade had become the more urgent priority.

Gulf states have rejected the proposal for payment of transit fees. Any arrangement would be temporary, not a formal abandonment of Iran’s position, the regional sources said.

The US has tightened the economic vice on Iran, layering new sanctions on top of a blockade that has choked off Iran’s oil exports, an important source of hard currency.

This month, it targeted Iran’s remaining commercial airlines and support networks as part of a campaign to sever the economic lifelines sustaining the government and the powerful Revolutionary ​Guards. Trump warned that Iran’s economy could “rot” unless it reached a deal.

“Iran is ​not primarily focused on imposing tolls in Hormuz but on preserving ⁠its administrative control of the waterway,” he said. “Iran may be willing to defer the toll issue, but they are not going to give up administrative control of the strait.”

At the heart of the diplomacy in New York is a fundamental tension. Washington wants pressure to produce concessions, Tehran wants pressure removed before making them, and the Gulf states want the conflict resolved without allowing the region’s strategic waterways to become enduring bargaining chips.

During a separate meeting ​with Trump in New York, Gulf leaders sought clarity on Washington’s endgame beyond the midterms, including on whether the US would resume military action if Iran refused to return to negotiations.

They conveyed their collective rejection of any ​Iranian control of Hormuz, saying freedom of ⁠navigation must be restored and that the strategic waterway should not become a tool of coercion against Gulf states, regional sources said.

Yet alongside their warnings over Hormuz, Gulf leaders have pressed hard for de-escalation and a political process, reflecting the region’s determination to stay out of any further conflict between the US and Iran.

“It’s still not clear what Trump’s endgame is, or what the alternative to the pressure campaign would be,” said Ebtessam al-Ketbi, president of the Emirates Policy Centre think tank based in Abu Dhabi.

“The Iranians, by contrast, know what they want. They’re reshaping the regional landscape through Hormuz and Bab el-Mandeb with a clear objective while Washington has yet to ⁠define its roadmap,” she ​said, referring to the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden.

That uncertainty is also shaping Tehran’s calculations. Danny Citrinowicz, a regional analyst and former Israeli ​military intelligence officer, said the New York talks had not altered the basic positions of either side and that Iran was unlikely to retreat as long as it believed Trump wanted to avoid a wider escalation before the midterms.

“The blockade is hurting them, but rather than softening their position, it is likely to drive them to escalate because they believe that if they soften ​their position, they are dead,” said Alan Eyre, a former US negotiator on Iran.

A Western official familiar with the talks added: “It is all about opening the Strait of Hormuz. We’re all under pressure domestically and the Iranians know that.”

Saudi Aramco chief says disrupted oil operations can be restored ‘within days’

The chief executive of Saudi oil giant Aramco, Amin Nasser, told Nikkei Asia on Thursday that the company could restore disrupted oil operations within days and was seeking to build alternative export routes, as it faces increasing attacks from Yemen’s Houthi group.

According to Nikkei Asia, Aramco was studying “a fourth and a fifth route” for crude oil exports in addition to its three primary ones.

Six Houthi ballistic missiles launched at Taif, Yanbu intercepted: Saudi coalition

The Saudi-led coalition in conflict with Yemen’s Houthis said on Thursday that its forces intercepted six ballistic missiles fired by the group, thwarting attacks on the Saudi cities of Taif and Yanbu.

“Escalations and violations by the terrorist Houthi militia will be dealt with firmly,” said coalition spokesman Turki al-Maliki in a series of posts on X.

Greek security sources told ​Reuters that an air defence system operated by Greek military personnel in Saudi Arabia ​intercepted a ballistic missile and a drone in the wider Yanbu region.

“Both were shot down,” one of the sources said, adding ​that the Greek Patriot system launched two ​missiles but not giving details on the origin of the ‌drone ⁠and the ballistic missile.

A second source confirmed the information.

It was the fifth time the Greek-operated system had been used in combat since ​the US ​and Israel ⁠launched their war with Iran at the end of February, underscoring ​the widening military role of European ​allies ⁠in defending Gulf energy infrastructure.

Since 2021, Greece has deployed a US-made Patriot air defence battery operated ⁠by ​Greek personnel in Saudi ​Arabia, under an agreement to help protect the kingdom’s energy ​facilities.

Earlier, Saudi Arabia’s Civil Defence said the danger had passed in Makkah, Taif, and the northwestern region of Tabuk, following earlier emergency warnings for those areas, as well as Jeddah and Yanbu.

In separate all-clear notices, the agency urged residents to continue following its instructions and to avoid gathering or filming.

Makkah, Taif and Jeddah are in western Saudi Arabia. Yanbu is a Red Sea port city farther north, while Tabuk is in the kingdom’s northwest.

The Civil Defence had issued warnings through the national early warning platform about a “potential danger.” The notices did not specify the threat or report casualties or damage.

Saudi Arabia has faced a series of missile and drone attacks attributed to the Houthis in recent days.

Iran may expand war to Indian Ocean if US attacks again: supreme leader’s adviser

Iran may expand the Middle East war to the Indian Ocean if the US or Israel attacks again, said an adviser to Supreme Leader Ayatollah Mojtaba Khamenei.

“We do not know what is going on in the minds of (US President) Trump and (Israeli Premier) Netanyahu,” Safavi said.

He said Iranian forces had prepared for the worst-case scenarios in the event of further US or Israeli attacks on the country’s facilities or national interests. In that event, he warned, the scope of the conflict would widen.

“Now that the war has spread from the Gulf and the Strait of Hormuz to the Red Sea, it is possible that, in the next stage of a potential war with the US, this front could expand further, to the Indian Ocean or elsewhere,” he said.

Iran misreading US political system by waiting for midterms: Rubio

Iran is misreading the US political system if it believes the November midterm elections could restrict President Donald Trump’s ability to act against Tehran, Secretary of State Marco Rubio said Wednesday.

“I think the Iranians are under this illusion that Democrats are going to win in November, and the president will no longer be able to do things against them,” Rubio told reporters in New York on the sidelines of the UN General Assembly.

Rubio said Tehran appeared not to understand the division of powers in the US, arguing that while Congress plays an important role, the president retains extensive authority over national security matters.

“When it comes to the national security of our country, when it comes to the imposition of both sanctions and the use of military force, the president has extraordinary powers,” he said, pointing to Trump’s constitutional role as commander-in-chief.

His remarks came one day after Trump said he believed Washington would reach an agreement with Iran following the Nov. 3 midterm elections.

“I believe we’ll make a deal right after the election because it doesn’t make sense for them not to,” Trump told the UN General Assembly on Tuesday, claiming Iranian leaders were waiting to see how his Republican Party performed in the vote.

Rubio said the outcome of the elections would not change Trump’s approach, describing Iran’s nuclear program as a national security issue rather than a matter of domestic politics.

“For him, the Iranian issue is not a political issue,” he said.

Rubio argued that US presidents and most countries had agreed for nearly five decades that Iran must not acquire a nuclear weapon but had repeatedly failed to take sufficient action.

Trump, he said, was prepared to act despite the associated costs because the consequences of failing to prevent a nuclear-armed Iran would be “substantially higher,” particularly for future generations.

Iran cancels all flights to United Arab Emirates

All flights operated by Iranian airlines to the United Arab Emirates have been cancelled since midnight, the Iranian Students News Agency (ISNA) reported Thursday, citing a spokesman for Iran’s Civil Aviation Organisation.

It also reported that a Tehran-Dushanbe flight was forced to return to Imam Khomeini International Airport in Tehran after Turkmenistan did not grant permission for Iranian airlines to fly through its airspace.

The spokesman said the flight was unable to land at its destination because Turkmenistan had not issued permission for Iranian airlines to cross its airspace, forcing it to return to Tehran.

Iran has seen inaction, not neutrality from some countries during war: Pezeshkian

Iranian President Masoud Pezeshkian told European Council President Antonio Costa on Wednesday that inaction, rather than neutrality, was seen from some countries during the recent war, calling on European states to reconsider their approach and maintain greater independence, according to IRNA.

Meeting on the sidelines of the 81st United Nations General Assembly in New York, Pezeshkian said European countries deprived themselves of a role in international developments by aligning with hostile US actions.

He criticised Europe’s approach to the snapback mechanism and the 2015 Iran nuclear deal, saying European governments’ positions reduced their ability to influence international developments. He also referred to comments by the NATO secretary general about European countries’ assistance to the United States during the war and called for a reassessment of European policies.

Pezeshkian said regional security should be the responsibility of countries in the region, stressing that Western intervention has adversely affected security beyond the region.

Costa called for a European role in addressing regional issues, while Pezeshkian said Europe’s alignment with Washington had limited its ability to play such a role.

In a separate message carried by ISNA and Al Mayadeen, Pezeshkian said that Tehran used its appearance at the UN General Assembly to defend Iran’s position and respond to US policies, revealing that he moved away from his prepared remarks after hearing US President Donald Trump’s speech.

“We had prepared a text in advance for the UN General Assembly, but after listening to Trump’s speech, we departed from the prepared text to express the realities being imposed by the United States,” Pezeshkian said.

He accused Washington of acting “in violation of laws and humanitarian frameworks,” adding that it does “nothing but use force and commit acts against humanity.”

He also rejected attempts to pressure Iran, saying, “They cannot eliminate Iran. Iran is a country deeply rooted in history, and despite all the pressure they exert, our people remain steadfast.”

“We tried to express the realities that America imposes on our nation and the world.”

Iranian FM spokesperson rebukes Canadian PM for calling ‘annihilation’ threat ‘language of war’

Iranian foreign ministry spokesperson Esmaeil Baghaei on Thursday criticised Canadian Prime Minister Mark Carney for “reframing a threat to ‘annihilate’ Iran as merely ‘speaking the language of war’”.

Baghaei on X said that “Mark Carney must understand that time is too ruthless to let the shelter of illusion and hypocrisy endure forever.” He has added that “those who sought refuge in the long shadow of American bullying” would eventually learn that “averting their eyes from reality and bartering away their dignity and self-respect buys no salvation.”

He also stated that “they will see that the nation they once conspired with empires to crush was the solitary guardian of a sacred flame” which “kept a torch burning” against coercion, “a torch that, if allowed to die, would leave humanity with nothing but the cold embrace of naked force, burying the civilised and humane altars of reason beneath the brutal logic of might.”

US Treasury Secretary questions how Iran’s UN delegation will get home as sanctions disrupt flights

US Treasury Secretary Scott Bessent said on Wednesday that he wondered how the Iranian delegation to the UN General Assembly in New York would return home as American sanctions continued to squeeze the country’s international airline operations.

“In terms of Operation Economic Outcast, we are squeezing the Iranians like they’ve never seen today,” he said.

He said the campaign was affecting Iran’s international air links, claiming that more than 80% to 90% of external flights from Iran had been shut down.

Bessent also warned financial institutions, companies and other businesses supporting Iran that Washington would target their operations and bank accounts.

“We have made it very clear around the world, whether it’s the financiers, the people who are doing business, the people who are supplying the Iranians, we know who you are, you know who you are,” he said.

He described the US strategy as a combination of military action, a naval blockade and financial pressure.

“So we had six weeks of kinetic activity. We have the blockade. And now we have an effort never seen before in terms of constricting and cutting off the financial oxygen to them,” he said.

He said Washington’s pressure campaign could continue for weeks or months, adding that the US was seeking one of three possible outcomes: divisions within the Iranian leadership, an uprising by the Iranian population, or an agreement under which Tehran would comply with its commitments.

Bessent also said the US had attempted to reach an agreement with Iran earlier in the year but accused Tehran of subsequently escalating attacks in the Strait of Hormuz.

“If there is a deal, I guarantee you they’re going to stick with it,” he said.

Yemeni government forces stop Houthi attack near key southern provinces

The Yemeni government’s armed forces thwarted an attack and infiltration attempts by the Houthis aiming to reach positions near the road linking the southern and southwestern provinces of Aden, Taiz and Lahj, the Ministry of Defence has said in a statement, Al Jazeera reported.

According to the official spokesperson of the Yemeni armed forces, “clashes ensued”, which forced “the attackers to retreat” and inflicted heavy losses in lives and equipment.

Read: Iran says it conveyed conditions for reviving diplomacy with US through Qatar

“We affirm that our armed forces stationed on those fronts have regained the initiative, are highly prepared, and continue to repel attacks and infiltration attempts,” the spokesperson has said.

Shipping traffic via Strait of Hormuz stays lower than 10-day average, data shows

Ten commodity vessels transited the Strait of Hormuz on Wednesday, up from seven a day earlier and below the 10-day moving average of about 17, preliminary shipping data showed on Thursday.

Nine vessels entered the strait, including Supramax ships carrying metals, grain and other dry bulk cargoes, as well as an empty very large gas carrier. One Supramax carrying fertiliser exited, according to the data, as of 0923 PKT on Thursday.

The figures exclude any vessels that might have crossed the strait with their transponders turned off to avoid detection.

Before the US-Israeli war on Iran started on February 28, the strait typically handled about 125 large, commercial vessels a day, including tankers, gas carriers, bulkers and container vessels, accounting for some 20% of the world’s daily crude oil and liquefied natural gas supply.

Read more: US president open to making a deal with Iran: Rubio

Iran and the US remain far apart on how to end the war, but diplomacy must continue, a senior Iranian official told Reuters on Wednesday, after Iran’s president told the United Nations General Assembly that Tehran would never surrender to US pressure.

The senior Iranian official, speaking on the condition of anonymity, said Tehran was reviewing Washington’s response to its peace proposals, which prioritise lifting a US naval blockade on Iranian ports and reopening the Strait of Hormuz.

In the Bab el-Mandeb Strait, 27 commodity vessels transited the waterway on Wednesday, up from 24 the day before and compared with an average of 26 ships using the strait over the past 10 days.

EU’s Costa urges Iran to resume cooperation with IAEA

European Council President Antonio Costa said on Wednesday he spoke with Iran’s President Masoud Pezeshkian and urged Iran to resume its cooperation with the International Atomic Energy Agency.

Costa also called for an end to Iran’s strikes against its neighbours and the full restoration of freedom of navigation in the Strait of Hormuz.

Trump should press Xi to stop support for Iran, Democratic senator says

US Democratic Senator Jeanne Shaheen said on Wednesday President Donald Trump should press Chinese President Xi Jinping at a summit this week over China’s support for Iran, saying that Chinese firms were helping Tehran economically and militarily.

In a Senate speech, Shaheen cited reports that Iran obtained high-resolution satellite imagery of a base in Jordan from Chinese entities before launching a missile attack that killed three American soldiers and wounded four others.

She noted that about 90% of Iran’s oil exports go to China and provided it with “billions of dollars of revenue” and a “critical economic lifeline.”

Shaheen said Chinese and Hong Kong companies had also supplied components used in Iranian ballistic missiles and drones

She urged Trump to “use his leverage” with Xi to stop Chinese firms from providing satellite imagery, missile and drone parts and access to markets for sanctioned Iranian oil.

“If we want to bring this war to an end, we need to cut off the outside support that allows Iran to keep fighting, and that starts with China,” she said.

Shaheen said the administration should enforce sanctions against Chinese entities helping Iran, “and if China doesn’t stop, Congress should impose additional consequences.”

She said Trump should also consider using authorities in recently enacted Russian sanctions legislation against Chinese purchasers of Russian energy, arguing that China was “the top funder of the war in Ukraine, as well as being one of the top funders of the war in Iran.”