Iranian President Masoud Pezeshkian will lead his country's delegation to the UN General Assembly in New York this week, a trip that has lifted market sentiment on hopes for a diplomatic end to the war with the U.S. and Israel. President Trump has warned Tehran he could destroy its economy or eliminate its leadership without a deal, while Iran's military says it expects a new large-scale strike and has threatened painful retaliation.
Pezeshkian will address the UN General Assembly on Tuesday and present Iran's position on the conflict, according to the country's semi-official Tasnim news agency, with talks on the sidelines running through the assembly's Sept. 22-26 and 28 sessions. The visit has renewed hopes for a negotiated end to the war, and stocks rose, oil prices eased and global bond yields fell sharply on Monday as a result.
Trump threatens Iran's economy and leadership
Trump has said he is open to meeting Pezeshkian during the assembly. But he has also threatened to destroy Iran's economy or eliminate its leadership if Tehran does not reach a deal, telling Fox News on Sunday that the only options were wiping Iran out or letting its economy rot unless both sides settle the conflict.
Iran's military, meanwhile, said its intelligence points to a new, large-scale strike being prepared by the U.S. and its allies. According to Tasnim, Iran's Khatam al-Anbia Central Headquarters warned: "positions and interests in the region will be targeted by sustained, effective and painful attacks". Regional countries backing such a strike would be treated as parties to the conflict, the headquarters said.
Houthi attack on Riyadh complicates diplomacy
The U.S. State Department this weekend issued a security alert citing the risk of unforeseen escalation in the Middle East, urging Americans to stay vigilant and watch for possible flight cancellations and airspace closures. The warning followed missile and drone attacks Iran-backed Houthi militants claimed on Riyadh Saturday, which triggered the first air-raid alert in the Saudi capital since fighting escalated in July.
Saudi authorities said they intercepted and destroyed a ballistic missile and reported no casualties or damage. A Saudi-led coalition spokesperson said the Houthis also tried to hit civilians and infrastructure elsewhere in the kingdom, but those attacks were thwarted by air defenses.
Oil markets stay tense despite Hormuz progress
Oil prices have pulled back in recent days despite the widening hostilities, as traders hope for a recovery in energy shipments from Saudi Arabia. Even so, analysts at Eurasia Group forecast Brent crude will trade in a band of $90-110 per barrel through the rest of the year, saying progress moving oil through the Strait of Hormuz would not be enough to close the overall market deficit.
Tehran has said it will not reopen the strait until Washington fulfills its commitments under a June memorandum, which called for lifting the naval blockade of Iranian ports, easing sanctions, unfreezing Iranian assets and ending U.S. military threats. Iran's parliament speaker, Mohammad Bagher Ghalibaf, said Sunday that Iran must keep fighting and negotiating at once, and pursue diplomacy only once it holds the upper hand on the battlefield.
Source: CNBC
Trading involves risk.
Risk Disclaimer
