President Masoud Pezeshkian will lead an Iranian delegation at the United Nations General Assembly in New York on Tuesday, amid renewed hopes for a diplomatic solution to the Middle East conflict.

Pezeshkian will address the assembly and present Iran’s positions on “international developments,” according to the country’s semi-official Tasnim news agency, with a particular focus on its war with the U.S. and Israel.

He will also hold talks with the leaders of several countries on the sidelines of the event, which is scheduled to take place Sept. 22 to 26, and 28.

The Iranian delegation’s attendance at the UN has renewed hopes for a diplomatic solution to the war, lifting market sentiment on Monday, with stocks rising, oil prices easing and global bond yields falling sharply.

But U.S. President Donald Trump, who has said he would be open to meeting Pezeshkian during the assembly, has threatened to destroy Iran’s economy or eliminate its leadership if Tehran doesn’t strike a deal.

Trump told Fox News on Sunday that the only options on the table were “wiping Iran out,” or letting its economy “rot,” unless both sides reach a deal.

Separately, Iran’s military said that its intelligence suggested a new, large-scale strike being prepared by the U.S. and its allies, warning of “painful” retaliation across the Middle East. Regional countries backing such a strike would be treated as parties to the conflict, it said.

“If the U.S. makes any mistake against the Islamic Republic of Iran, all its positions and interests in the region will be targeted by sustained, effective and painful attacks,” the Khatam al-Anbia Central Headquarters of Iran said, according to Tasnim.

Houthi-Saudi conflict complicates diplomacy hopes

The U.S. State Department this weekend issued a security alert citing risks of unforeseen escalation in the Middle East, telling Americans to exercise more vigilance and be aware of possible flight cancellations and airspace closures.

The warnings came after Iran-backed Houthi militants claimed missile and drone attacks on Riyadh on Saturday, triggering 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. The Houthis also attempted to target civilians and infrastructure in several parts of the kingdom, Saudi-led coalition forces spokesperson Major-General Turki al-Maliki said on X on Saturday, though those attacks were thwarted by the country’s air defenses.

Oil prices have pulled back in recent days despite widening hostilities, as traders hope for a recovery in energy shipments from oil-rich Saudi Arabia.

Oil prices will remain high despite U.S. progress in moving oil through the Strait of Hormuz, a team of analysts at Eurasia Group said in a Saturday note. Any rebound in oil flows would not be enough to address the overall market deficit, they said, forecasting Brent prices to trade in a higher band of $90-110 per barrel through the rest of this year.

“Iran’s leadership will stick with resistance, even as they quarrel internally,” according to the consultancy firm, as Tehran seeks to use military proxies and tanker attacks to keep a chokehold on shipping flows, to pressure Washington into concessions.

Tehran has insisted that it would not reopen the Strait of Hormuz until Washington fulfills its commitment under the June memorandum, which called for lifting the naval blockade of Iranian ports, easing sanctions, unfreezing Iranian assets and ending U.S. military threats.

Iranian parliament speaker Mohammad Bagher Ghalibaf said Sunday that Iran must keep on fighting and negotiating, to push back its enemies, and only work on diplomacy when it has the upper hand on the battlefield.

Crude oil prices declined for the fourth straight session on Monday after President Donald Trump reportedly decided against bombing Yemen for the time being and indicated he was open to diplomatic engagement with Iran.

U.S. West Texas Intermediate futures fell 2.7% to $97.59 per barrel by 7:48 a.m. ET, while Brent crude, the global benchmark, slipped 2.8% to $101 a barrel. The market has risen more than 11% so far this month.

Trump told Fox News he would likely be receptive to meeting Iranian President Masoud Pezeshkian at the United Nations General Assembly later this week.

According to The New York Times, the president has decided not to target the Iran‑aligned Houthi militants for now, despite requests from Saudi Arabia.

Meanwhile, crude shipments from the Middle East appear resilient after Saudi Arabia shut down its East‑West pipeline following attacks. JPMorgan analysts noted in a September 18 report that oil flows from the region remain surprisingly strong, averaging 17.1 million barrels per day over the past 10 days—about 6.1 million bpd below the 2025 average.

Potential supply disruptions persist. Trump told Fox that he is in a “deciding mode” and that “very big things” are expected soon regarding the U.S.–Iran conflict.

Prices are likely to stay closely linked to the pace of export normalization and diplomatic progress, said Daniel Takieddine, co‑founder and CEO of Sky Links Capital Group.

Any setback or renewed deterioration in shipping conditions would tighten the physical market and restore upward pressure on prices, Takieddine added.

This is breaking news. Please refresh for updates.

Politics & Policy

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