Iranian President Masoud Pezeshkian is set to lead a delegation to the United Nations General Assembly in New York, scheduled for September 22 to 28, amid ongoing tensions and diplomatic efforts concerning the broader Middle East conflict. Pezeshkian is expected to address the assembly on international developments, with a particular emphasis on Iran's conflicts with the United States and Israel, and to engage in talks with several world leaders on the sidelines of the event.
The presence of the Iranian delegation at the UN has briefly boosted market sentiment, leading to rising stocks, easing oil prices, and a sharp decline in global bond yields. However, U.S. President Donald Trump has maintained a hardline stance, warning that failure to reach a deal with Tehran could lead to devastating consequences for Iran. Speaking on Fox News, Trump characterized the options as either “wiping Iran out” or allowing its economy to “rot” unless both sides agree to terms.
Meanwhile, Iran’s military has raised alarms about a potential large-scale strike being prepared by the United States and its allies, promising “painful” retaliatory actions across the Middle East. The Khatam al-Anbia Central Headquarters warned that any regional countries supporting such an attack would be considered active participants in the conflict and targeted accordingly.
On another front complicating diplomatic prospects is the ongoing conflict involving Iran-backed Houthi militants and Saudi Arabia. The U.S. State Department issued a security update over the weekend, cautioning American citizens about heightened risks of escalation, including possible flight cancellations and airspace restrictions. This advisory followed Houthi claims of missile and drone attacks on Riyadh on Saturday, prompting the first air-raid alert in the Saudi capital since the conflict intensified in July. Saudi forces intercepted a ballistic missile and reported no casualties or damage, with coalition spokesperson Major-General Turki al-Maliki stating that several attacks were thwarted by Saudi air defenses.
Despite the recent escalation, oil prices have retreated somewhat in response to expectations of increased energy shipments from Saudi Arabia. Nonetheless, analysts at Eurasia Group warn that oil prices are likely to remain elevated, forecasting Brent crude to trade between $90 and $110 per barrel through the end of the year. The firm noted that even with U.S. efforts to ensure oil flows through the Strait of Hormuz, Iran’s use of military proxies and attacks on tankers will continue to exert pressure on shipping routes and the global energy market.
Tehran has insisted it will not reopen the Strait of Hormuz unless the United States fulfills terms outlined in a June memorandum, which includes lifting the naval blockade of Iranian ports, easing sanctions, unfreezing Iranian assets, and ending U.S. military threats. Iranian parliament speaker Mohammad Bagher Ghalibaf emphasized on Sunday that Iran must continue both fighting and negotiating to push back its adversaries, indicating diplomacy will follow only once Iran holds a battlefield advantage.