US-Israel war on Iran

At the colloquium established shortly after the second world war to prevent future wars, United States President Donald Trump did just the inverse: He platformed his unceasing threats against Iran, suggesting almost casually on Tuesday that he could “annihilate” the country he has waged war against since February 28.

But behind closed doors on the sidelines of the United Nations General Assembly (UNGA), a flurry of diplomatic activity concerning the ongoing US-Iran war has also been unfolding, as world leaders gather in New York.

The US and Iran held indirect talks for three hours on Tuesday. US special envoys Steve Witkoff and Jared Kushner met Iranian Foreign Minister Abbas Araghchi, with Trump calling it a “very good” and “very productive” meeting. Trump also met Gulf Cooperation Council (GCC) leaders that day, with senior officials from the region mulling a Qatari proposal for a common security framework involving Iran and the Gulf states.

Meanwhile, Iranian President Masoud Pezeshkian arrived in New York early on Wednesday – the first time a leader whose country is at war with the US has set foot on US soil to address the gathering. And Chinese President Xi Jinping will skirt New York to instead meet Trump one-on-one in Washington, DC – his first state visit to the US in just less than a decade. Xi lands on Wednesday evening.

All these separate diplomatic initiatives, analysts tell Al Jazeera, are parts of a push to bring Iran and the US back to the negotiating table. According to Al Jazeera’s correspondent in Tehran, Tohid Asadi, Araghchi’s meeting with Witkoff and Kushner was to convey Tehran’s latest set of conditions to end the war, following the collapse of the June 60-day memorandum of understanding (MoU) finalised in Islamabad, Pakistan.

But analysts say expecting an actual deal to emerge this week from the diplomatic meetings in the US would be unrealistic. Multiple actors and mediators in the conflict are testing possible off-ramps, but core disagreements between Washington and Tehran remain unresolved.

“I am sceptical that a breakthrough deal can emerge this week, but a series of understandings can build confidence for renewed diplomacy,” Sanam Vakil, the director of the Middle East and North Africa Programme at Chatham House, told Al Jazeera.

Too early for a breakthrough

Vakil is hesitant to call the current moment ripe for a diplomatic breakthrough – it is far too early, and there is a history of negotiations failing, she said.

“Both sides have been negotiating for over two years and on two occasions, that ended with military conflict and these negotiations continue amid persistent military threats,” she said.

Iran has long pointed to its previous rounds of diplomatic talks with the US – in 2025 and again this year – as evidence that Washington can veer from negotiations to military action. It has cited the 12-day war last June, and the current conflict, which began with joint US-Israeli strikes on Tehran at a time Washington and Tehran were engaged in Oman-mediated dialogue.

Adel Abdel Ghafar, a senior fellow focusing on the Middle East at the Australian Strategic Policy Institute, said that there appears to be “genuine” movement towards reigniting negotiations – but also “a fair amount of posturing”. He referenced Trump’s praise for Tuesday’s indirect Iran-US talks and his pugnacious UNGA speech the same day.

A breakthrough hinges on whether Iran’s diplomats in New York can actually deliver, he said.

“Araghchi and Pezeshkian can negotiate, but any deal will need the consent of the [Islamic Revolutionary Guard Corps] and the hardliners in charge of the war back home,” Abdel Ghafar told Al Jazeera.

There are specific indicators to watch for another round of US-Iran contact, the analysts said.

“The signs to watch for are another confirmed round of US-Iran talks, agreement on sequencing or reciprocal steps, and language from both sides becoming more specific about implementation rather than simply repeating maximalist demands,” said Vakil.

Abdel Ghafar added that, against the backdrop of UNGA, signs could include Araghchi or Pezeshkian meeting directly with US officials, in addition to supportive statements from more hardline elements of the Iranian administration back home.

The appearance of such indicators could lead to a stronger push for such talks when Trump meets Xi, as well as an easing of fighting between the Iran-backed Houthi group and the Saudi-led coalition in Yemen, which has escalated in recent weeks, the analyst added.

The limits of Gulf and Chinese diplomacy

The analysts agreed that the Gulf states remain crucial in brokering a return to talks because they have channels to both warring sides, as well as a very strong interest in preventing further escalation, having absorbed the cost of the fighting since February. Qatar, Oman and other Gulf states have been involved in mediation efforts throughout the conflict.

“Qatar and Oman, in particular, can help translate broad political messages into workable arrangements on issues such as Hormuz and regional security,” said Vakil.

China, meanwhile, has less capacity or interest to mediate, she argued.

Beijing, however, could use its economic and political leverage with Tehran “to encourage compromise and give Iran greater confidence that any agreement will not leave it completely isolated”, said Vakil.

Abdel Ghafar pointed out that China remains Iran’s main customer for its oil, explaining why Beijing has pushed for a return to the June interim deal and the reopening of the Strait of Hormuz.

“Still, I think neither can impose a settlement – it ultimately comes down to Washington and Tehran,” he said.

Hostilities and Hormuz

The tit-for-tat rhetoric has resulted in continued deadlock in the conflict, with each side unwilling to relinquish to the other’s demands and appear to admit defeat.

On Tuesday, following Trump’s remarks on annihilating Iran, Iran’s military warned that it is ready to respond with “crushing” attacks more severe than earlier in the war.

“The main challenge is finding a formula that both governments can present domestically as a negotiated compromise rather than capitulation,” said Vakil.

The Strait of Hormuz remains a key obstacle.

“It’s Iran’s strongest card and the thing Washington most wants back, with oil prices high and midterms approaching,” said Abdel Ghafar.

“Tehran will be reluctant to give it up without firm guarantees in return.”

Still, he warned that even if Washington and Tehran de-escalate, that does not automatically extend to the Red Sea.

The wider landscape of regional instability and conflict has created new conditions for Yemen’s unresolved war to flare up once again. The Bab al-Mandeb, now under effective Houthi control, has gained greater significance amid Iran’s effective closure of the Strait of Hormuz, a vital artery for global oil and gas supplies.

“Calm in Hormuz won’t necessarily mean calm in Bab al-Mandab,” said Abdel Ghafar.

The United States and Iran have engaged in hours of indirect talks through mediators on the sidelines of the United Nations General Assembly (UNGA) in New York, but accounts differed over whether officials from the two countries met directly.

US special envoy Steve Witkoff said mediators had “shuttled between” the American and Iranian delegations throughout Tuesday.

“Today, on the sidelines of the United Nations General Assembly, we engaged in lengthy talks with the Iranian delegation through the mediators, who shuttled between the two sides throughout the day,” Witkoff said in a post on X.

“They successfully completed a round of discussions that we hope will prove constructive and promising. The mediators will continue their work.”

US President Donald Trump gave a more direct account, saying Witkoff and Jared Kushner had held a three-hour meeting with Iranian officials.

“They had a very good meeting, a very productive meeting,” Trump told reporters at the UN, adding that he believed there was “a lot of momentum” towards an agreement. Trump later said talks were continuing and that he believed a settlement would eventually be reached.

Al Jazeera’s Kimberly Halkett, reporting from Washington, said Trump’s initial comments had created confusion over who had participated. She said the White House later clarified that Trump had not attended and that Witkoff and Kushner represented the US side.

Al Jazeera’s Tohid Asadi, reporting from Tehran, said state media had confirmed a meeting between Iranian Foreign Minister Abbas Araghchi and Witkoff after weeks without direct contact.

“This latest meeting was held at the request and insistence of the American side, and was aimed at conveying Iran’s messages and conditions, particularly around reopening the Strait of Hormuz,” Asadi reported.

Iranian state media said those conditions included lifting the US naval blockade, releasing frozen Iranian assets and ending the war on what Tehran describes as the “resistance” fronts.

Asadi also reported that an Iranian security source told Al Jazeera there could be room for further diplomatic engagement if Washington met Iran’s conditions and commitments.

The contacts came after a senior Iranian official told the Reuters news agency that Tehran’s delegation in New York had full authority to pursue diplomacy and described the UN gathering as a “golden opportunity” for Washington to return to negotiations.

The official said Iran had submitted its latest proposal to Washington through mediators on September 16 and that details of a possible agreement to end hostilities could be discussed in New York.

The official also said Iran could reopen Hormuz within seven days if the US eased military pressure and lifted its blockade of Iranian ports.

Regional powers push for de-escalation

The indirect talks have been accompanied by a broader diplomatic effort involving the Gulf and other regional states.

Qatar said it was working with Pakistan to reduce tensions between Washington and Tehran, safeguard freedom of navigation through the Strait of Hormuz and promote regional stability.

Qatar’s Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani also met Araghchi in New York on Tuesday.

Qatar’s Ministry of Foreign Affairs said they discussed developments in the region, efforts to de-escalate tensions and ways of creating conditions for dialogue.

Oman has also been involved in maritime diplomacy over the waterway, having previously discussed maritime arrangements with Tehran aimed at facilitating navigation through the strait.

Trump also met leaders and senior officials from Gulf Cooperation Council states, Turkiye, Jordan, Syria and Iraq on Tuesday to discuss Iran and regional security.

Reuters reported that a Qatari proposal for a common security framework involving Iran and Gulf states was among the issues under consideration, with one regional source saying Tehran was reviewing it.

Qatar has not made the proposal public.

Talks follow Trump’s warning

The indirect talks came hours after Trump used his UNGA address to combine the possibility of an agreement with another warning of military escalation.

Trump said he faced a “big decision” between reaching a deal that would allow Iran to rebuild and moving to “annihilate the Islamic Republic”. He also said Washington had previously offered Tehran “full economic cooperation” in return for ending its nuclear programme and what the US describes as Iranian support for terrorism.

Iran’s General Staff of the Armed Forces and Khatam al-Anbiya Central Headquarters responded in a statement carried by Iranian media, describing Trump’s threats as evidence of “strategic weakness” and saying Iran was ready to deliver “more severe, crushing, and unpredictable blows” in response to further attacks.

US officials have repeatedly suggested that negotiations were making progress following the collapse of the June memorandum of understanding. In early August, Trump said the sides had reached parameters for a possible agreement and later described talks over Hormuz as “moving along nicely”, although significant differences remained. Earlier this month, he again said he hoped the war was “towards the end”.

Tehran continues to condition the reopening of the Strait of Hormuz on the US easing military pressure and lifting its blockade of Iranian ports, while Witkoff said mediators would continue their efforts following Tuesday’s mediated exchanges.

Iranian media has reported the sound of an explosion near Iran’s Qeshm Island in the Strait of Hormuz, though the cause remains unclear.

DEVELOPING STORYDEVELOPING STORY,

⁠US ⁠President Donald Trump has told reporters ⁠at the ⁠United Nations that US officials ‌had a “very good” three-hour meeting with the ⁠Iranian delegation.

“They had a very good meeting, a very productive meeting,” Trump said, adding that the meeting on the sidelines of the UN General Assembly in New York lasted about three hours.

“They have another one scheduled in the very near future.”

More to come…

Scott Bessent says airports and companies servicing Iranian carriers risk being cut off from the US dollar system.

United States Treasury Secretary Scott Bessent says Iranian airlines could effectively be shut out of international travel from Wednesday, as Washington threatens foreign companies with secondary sanctions if they continue servicing the country’s carriers.

“On September 23, all the Iranian airlines will be shut down around the world,” Bessent told CNBC on Monday.

The warning is aimed not just at the airlines themselves, but at the airports, fuel suppliers, ticketing companies and other businesses they rely on to operate abroad.

“If they land, you cannot provide them with fuel, you cannot provide them with landing services, you cannot sell them tickets, or you will be knocked out of the dollar system,” Bessent said.

The threat marks the latest step in US President Donald Trump administration’s escalating economic campaign against Tehran, which has continued alongside the war between the US and Iran.

Earlier this month, the US Treasury imposed sanctions on all remaining Iranian airlines that had not already been targeted, as well as companies outside Iran accused of supporting the country’s aviation sector.

Iran’s aviation industry was already heavily constrained by years of US sanctions, which have made it difficult for carriers to buy new aircraft and obtain spare parts and maintenance services.

The measures are part of a much broader sanctions regime aimed at isolating Iran from the international financial system. US secondary sanctions threaten foreign companies that do business with Iran across sectors including energy, shipping, technology, gold and digital assets with penalties of their own.

China ‘very engaged’ on Iran sanctions

Bessent’s comments came a day after talks with Chinese Vice Premier He Lifeng, ahead of Trump’s meeting with Chinese President Xi Jinping on Thursday.

China is one of Iran’s most important economic partners and diplomatic backers, making Beijing’s cooperation potentially significant to Washington’s efforts to financially isolate Tehran.

Bessent said Chinese officials had been “very engaged” in the US pressure campaign. Washington was holding what he described as positive talks with Chinese financial authorities, including People’s Bank of China Governor Pan Gongsheng, about compliance with US sanctions on Iran.

In this episode of On the Record, Al Jazeera’s James Bays sits down with United Nations Secretary-General Antonio Guterres, ahead of his final UN General Assembly before stepping down in December 2026. They discuss the situation in the Middle East and its global consequences, whether the UN is still relevant in addressing today’s challenges and why Guterres believes the UN Security Council must be reformed.

Tehran, Iran – Amid dire fuel shortages and mounting economic challenges, the Iranian government is seeking cost-saving measures for government workers and other citizens to deal with the crisis.

On Saturday, the government set office attendance hours for 8am to 1pm from September 23 to the end of the current Iranian year (late March 2027), with the remaining contractual hours to be completed remotely.

Agencies must also designate one day a week when employees and managers travel to work by public transport. In recent days, government ministers have released videos showing themselves using the metro to commute to work as part of the campaign.

Metro and bus rapid transit (BRT) systems will also be free of charge until mid-November in a bid to encourage commuters to leave their cars at home. Worn-out government vehicles will also be replaced with electric, gas-powered or hybrid alternatives, although this is expected to take years to implement.

The reopening of universities is expected to be staggered and partial, with some lessons shifted online by authorities.

Government-linked offices are required to switch off heating and turn off lights after working hours, while schools, universities, healthcare facilities and operational services are to follow separate arrangements to be announced later.

President Masoud Pezeshkian signed a directive on September 12 instructing government agencies to facilitate remote work for suitable employees to save on petrol, electricity and natural gas costs for the state.

“We have begun consumption savings with the government,” Pezeshkian said earlier this month. This is seen as effectively framing remote work and other measures for government workers as in line with other energy-saving measures that the government has asked of the rest of the population.

Resource-rich Iran has dealt with energy crises before, rooted in mismanagement and dated infrastructure, when similar cost-saving measures were implemented. But the added pressure of war with the United States and Israel has forced the government to think of creative solutions to energy shortfalls.

In early September, the cash-strapped government raised the price of fuel for the third tier of quotas for a second time in less than a year, meaning that people will pay double for any petrol use beyond 110 litres (29 gallons) per month. Imported vehicles and some other categories of cars are also limited to the most expensive tier of fuel.

For the first five months of the current Iranian year, which ended on August 22, average daily petrol production was 122 million litres while consumption was at 132 milion litres, highlighting a shortfall in supply versus demand. In the first half of the sixth month, the gap between production and consumption was around the same, at a 10 million litre shortfall.

The US naval blockade of Iran’s southern ports in place since July has halted fuel imports that previously helped balance the gap. The blockade has also stopped Iran from exporting its oil via supertankers transiting the Strait of Hormuz, affecting its foreign currency income. Crude stored on open waters beyond the blockade line is still being gradually sold to China.

Oil and gas facilities, petrochemical companies and major fuel depots were also bombed by the US and Israel, impacting production and distribution. Oil Minister Mohsen Paknejad said in early September that “a significant portion of production capacity has now been restored, and the process is continuing”.

As rampant inflation continues to squeeze most Iranians, data released this week by the Statistical Center of Iran also highlighted the damage the war with the US has dealt to the economy.

Iran experienced a massive 10.1 percent year-on-year fall in real gross domestic product (GDP) and a 26.4 percent fall in oil and gas extraction between late March and late June 2026, the centre’s data showed.

Including oil, industries and mining were down 14.7 percent, while construction was down by 6.4 percent, services overall by 4.8 percent, and transport, storage and communications by 17 percent.

The government has not released any information on how many workers are estimated to be affected by the remote work directive, or how it expected efficiency to be impacted.

But after decades of mismanagement, corruption and inefficiency among government-linked organisations, some Iranians believe it highlights a wider issue of state inefficiency.

“My unpopular opinion is that if 85-90 percent of government sector personnel are fired and 70 percent of ministries closed down, absolutely no problem will occur in the country,” a user named Mohsen wrote on X.

Zabihollah Salmani, a deputy head of the Administrative and Employment Organisation of Iran, told reporters during a press conference in August that more than 2.43 million were on its payroll.

If council, fire brigades, social security and non-government organisation workers were included, this would bring the number to more than four million people. The average monthly pay for government personnel at the end of the previous Iranian year in late March 2026 was around 240 million rials ($104 at the current exchange rate).

Asked by reporters how many of these employees could potentially be taken off the payroll without hurting output, Salmani said, “We do not yet have these figures.” He added that agencies were being asked to submit that information.

About 1,075,000 people are on the payroll of the Education Ministry, including teachers and trainee staff, while 600,000 employees work under the Ministry of Health and its affiliated networks, according to official figures.

Amir-Hossein, a young man working at a research centre linked with the government-funded University of Tehran, said that since the start of the month, he had been assigned two days of remote work. Working hours were set for 7am-1pm before, but are to be shifted to 8am-1pm starting from Wednesday, per the government.

His work can be done on his laptop, but might require some coordination on the phone or short commutes to other centres, he said. Overall, the remote work lifestyle has been beneficial.

“Sometimes I get more work done than I would have at the office,” he told Al Jazeera, asking not to use his full name due to security reasons.

As Amir-Hossein regularly uses online ride-hailing services to commute to and from his job, working from home has been financially beneficial for him.

An Iran-based economist who spoke to Al Jazeera on background said the government measures are essentially crisis control at best, and not a long-term solution to the problem.

Amid the US-Israel war on Iran, the country’s economy has suffered a sharp contraction, with its crucial oil and gas sector taking the biggest hit as the United States tightens its economic and military pressure on Tehran.

Data released by the government-administered Statistical Center of Iran showed gross domestic product (GDP) shrank by 10.1 percent year-on-year between March 21 and June 20, the first quarter of the Persian calendar.

The period covers the opening months of the US-Israel war on Iran, which began on February 28.

The economic downturn has come as Iran struggles to export its oil, one of its most important sources of foreign currency, while also contending with high inflation, a weakening rial, and disruptions to trade and industry.

Here is what you need to know:

What does the economic data say?

The headline GDP number masks an even steeper decline in Iran’s energy industry. Crude oil and natural gas activity contracted by 26.4 percent compared with the same period a year earlier. GDP excluding oil, by comparison, fell by 4.6 percent.

The damage has spread beyond the energy sector. Industry and mining contracted by 14.7 percent, services declined by 4.8 percent, and manufacturing contracted by 2.5 percent. Agriculture was the exception, growing at 2.3 percent.

Those figures come amid an already difficult economic situation in the country. Earlier this month, Iran’s 12-month average inflation reached 69.9 percent, while food, beverage, and tobacco prices rose at nearly twice that rate. Official unemployment climbed to 9.1 percent in the spring.

The rial, meanwhile, fell from about one million to the US dollar a year earlier to more than 2.2 million in early September.

What is the latest with Iran’s oil exports?

Iran’s ability to sell crude has been dramatically curtailed by the US naval blockade, imposed for most of the war.

Iranian crude and condensate loadings collapsed from about two million barrels per day in March to roughly 740,000bpd in July and just 220,000-255,000bpd in August, according to estimates from Kpler and Vortexa.

TankerTrackers.com told the Reuters news agency that 29 tankers, carrying 36.11 million barrels of crude, were trapped in the Strait of Hormuz. Meanwhile, Vortexa estimated total Iranian crude afloat had fallen from 135 million barrels at the end of July to 107 million barrels by late August.

Is Trump winning the economic war on Iran?

By several economic measures, Washington’s pressure campaign is inflicting damage on Iran’s economy.

On September 6, total trade had fallen by 25 to 35 percent, President Masoud Pezeshkian said, with imports hit harder than exports. The US blockade of the Strait of Hormuz has made it hard for ships carrying imports to reach Iranian ports.

Tehran has also explicitly linked the end of the war to economic relief. Iran’s security chief Mohsen Rezaei told Al Jazeera on Saturday that its conditions include “the release of our frozen funds and an end to the naval blockade”.

In addition to the naval blockade, US Treasury Secretary Scott Bessent last month announced an economic pressure campaign against Iran, pledging to target its financial interests across the world. He said the US would target all of Iran’s sources of revenue, including oil, to prevent other countries and companies from doing business with Tehran.

The US-Israeli attacks and Iran’s retaliations have disrupted Tehran’s trade with one of its main economic partners, the United Arab Emirates.

The UAE last month announced an indefinite trade embargo on Iran after accusing its forces of carrying out several ballistic missile attacks, which Tehran denied, calling it a “false flag operation” by Israel and the US.

Chris Beauchamp, market analyst at IG Group, said, “Most wars are contests of stamina more than anything else.”

“The 10 percent drop in Iranian GDP is a sign that the US is succeeding in putting pressure on its foe. But the question rests, as it has done since March, on whether Iran can weather the fall in economic activity better than the US can stand the surge in energy costs,” he told Al Jazeera.

“For a regime prepared to do anything to stay in power, this news will make little difference, so long as the security forces remain loyal,” he added.

What is the latest with diplomatic efforts to end the war?

While Iran has taken a defiant stance against US economic and military pressure, it has indicated repeatedly that it remains open to diplomatic means to end the nearly seven-month-old war.

On Saturday, Rezaei told Al Jazeera that Iran conveyed a formal set of conditions to Washington through Qatari mediators for ending the war.

Iranian state media outlet IRNA reported on Monday that Pakistani Interior Minister Mohsin Naqvi was set to visit Tehran, without specifying the agenda or other details.

Mediators Qatar and Pakistan have been working to re-establish negotiations between the two sides since their memorandum of understanding (MoU) expired last month.

Meanwhile, Iranian Foreign Minister Abbas Araghchi will stop briefly in Qatar before going to New York for the UN General Assembly, IRNA reported.

Iran has repeatedly said it remains ready for any new strikes by Washington.

Rezaei said on Saturday Tehran did not rule out a new US strike against Iran, calling the possibility “very much on the cards” based on his country’s military assessments.

Mark Pfeifle, a Republican strategist and former White House and national security official, said Iran and the US are still willing to strike a deal.

“Sometimes in diplomacy it’s what’s taken off the table,” he told Al Jazeera.

Pfeifle said when Rezaei reiterated his demands for talks with the US, he spoke of “ending the blockade, releasing the frozen funds [and] stopping the attacks”.

“But he left off reparations and reconstruction money, which tells me that there’s a concrete sign that amongst all the rhetoric, which is still very strident, that the pressure campaign that the US is putting on Iran is having some effect,” he said.

“And it tells me that both sides are still looking for room to negotiate in the coming weeks.”

Tehran threatens retaliation as Trump weighs military action while Qatar pushes to revive talks.

Iran’s central military command says it has received information that the United States is preparing to resume strikes on the country.

The warning, issued on Sunday by the Khatam al-Anbiya Central Headquarters, which oversees Iran’s armed forces, raises the prospect of a new round of fighting after months of reduced direct attacks.

Tehran said any renewed US assault would bring retaliation against American bases and interests in the Middle East and warned regional countries against helping Washington.

The military command said states that allowed their territory or facilities to support US attacks would be “considered complicit” and could face an Iranian response.

US President Donald Trump told Fox News on Sunday that he was in a “deciding mode” over Iran and said his options included further military action, economic pressure or a deal.

He also said he would be open to meeting Iranian President Masoud Pezeshkian on the sidelines of the United Nations General Assembly in New York this week.

Iran’s Foreign Minister Abbas Araghchi left Tehran on Sunday evening for the UN General Assembly in New York, state media announced, adding that he is making a brief stopover in Qatar.

Parliament Speaker Mohammad Bagher Ghalibaf told lawmakers on Sunday that Tehran should use military force to push back its opponents before turning to diplomacy to secure any gains.

Tehran has told Qatari and Pakistani mediators that conditions for renewed talks include an end to the war and US attacks, the release of frozen Iranian funds and the lifting of the US naval blockade on Iranian ports.

Ghalibaf said the Strait of Hormuz would remain closed until Washington met what Iran says are its commitments under an earlier agreement.

Al Jazeera correspondent Tohid Asadi, reporting from Tehran, said Iranian officials were sending a deliberate two-track message, signalling that they remained open to diplomacy while preparing for renewed fighting.

Qatar, a Gulf state mediating between the two sides, says its officials are travelling between capitals and exchanging proposals aimed at restarting negotiations.

Qatari Foreign Ministry spokesperson Majed al-Ansari said Doha had heard assurances from US officials that Washington wanted an agreement.

The confrontation is already disrupting the Strait of Hormuz, a narrow waterway linking the Gulf to the Arabian Sea and a key route for global energy shipments.

Shipping data showed 12 commodity vessels crossed the strait over the weekend, down from 35 the previous weekend. The war began in late February after joint US-Israeli strikes on Iran.

A 60-day memorandum reached in June reduced full-scale fighting but expired last month, with attacks around Hormuz increasing since then.

Mark Pfeifle, a Republican strategist and former White House national security official, told Al Jazeera that both countries were “locked in this frozen conflict” and trying to increase pressure before possible diplomacy around the UN gathering.

Tehran says it has learned the US may be planning a new round of strikes, warns of retaliation ‘without limitations’.

Iran accuses the French language centre of conducting ‘illegal acts that violated diplomatic conventions’.

France will summon Iran’s ambassador and take “appropriate measures” after Iranian authorities closed a French-language centre linked to its embassy in Tehran, according to the French Foreign Ministry.

“This new attack against France’s cultural presence in Iran, following the assault on two staff members of the French embassy last July, is unjustifiable and unacceptable,” Foreign Ministry spokesperson Pascal Confavreux said in a statement on Sunday.

Iran announced on Sunday the closure of the centre it accused of conducting “illegal acts that violated diplomatic conventions”.

“Based on the Tehran prosecutor’s office, the illegal centre affiliated with the French embassy in Tehran, which has operated for years under the guise of language instruction, was closed,” the Iranian judiciary’s Mizan news website said, referring to the French Language Centre (CLF).

It said the centre “abused its status as a language training facility” and sought to “identify and build networks among the country’s elite figures while facilitating their departure”.

The French Foreign Ministry said it would “take appropriate measures to respond” and would summon Iran’s ambassador in Paris at the request of French Foreign Minister Jean-Noel Barrot.

Relations between Tehran and Paris have been strained in recent months.

In August, Iran’s Intelligence Ministry said it detained two French diplomats over alleged foreign interference during a national security investigation before handing them over to the French ambassador.

Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani has called on states to respect sovereignty as a condition for security in the Middle East, warning against “cycles of escalation” after “an earthquake” caused by the US-Israeli war on Iran.

The region needs a “framework in which sovereignty is respected” and no state can pose a “threat to another”, Sheikh Mohammed said on Sunday at the opening of the Qatar Economic Forum’s UN General Assembly-adjacent event in New York City.

Sheikh Mohammed – who is also Qatar’s foreign minister – described the economic fallout from the US-Israel war on Iran as “an earthquake” with “its shock waves” reaching far beyond the borders of the Middle East, “challenging assumptions about security and stability”.

“During the crisis, almost every conversation began with security and de-escalation, then turn[ed] to energy supplies, shipping routes, and with our investments, plans will continue. These were different expressions of the same question. When so much is being disrupted, what can still be relied upon?”

He said that Qatar has weathered the test to the “foundations” of the country’s economy and security, but acknowledged that the ongoing conflict in the region is having an impact.

“Permanent security cannot be built through arrangements that leave any state permanently exposed to insecurity,” Sheikh Mohammed said. “We must address the sources of tensions and build confidence.”

Reporting from New York, Al Jazeera’s Kristen Saloomey said that message “no doubt will be repeated” when Gulf leaders meet US President Donald Trump on Tuesday during the UN General Assembly.

Qatar’s $38bn domestic investments

The PM also outlined a domestic shift in Qatar’s investment strategy by pledging more than $38bn in spending on Qatari infrastructure over the next five years.

“That’s meant to attract private investors and send a message of Qatar’s resilience,” Saloomey said, while the PM is nonetheless acknowledging that the ongoing conflict is “having an impact on the region”.

The UNGA starts on Monday and ends on Friday.

The situation in the Middle East and its global ramifications are expected to be high on the agenda during speeches and diplomacy.

Also on Sunday, Qatar’s Foreign Ministry spokesman, Majed Al-Ansari, told US media in New York that the mediation efforts by his government are ongoing to restart talks between Tehran and Washington to end the US-Israel war on Iran.

Iran’s security chief Mohsen Rezaei has laid out Tehran’s latest set of conditions to end its war with the United States.

In an exclusive interview with Al Jazeera on Saturday, Rezaei said that Tehran has conveyed its conditions to the US via Qatari mediators, but added that Tehran was more battle-hardened now than in the first 40 days of the war, which began in late February following joint US-Israeli strikes on Iran.

“We will confront America with greater force, and with more numerous and more painful strikes,” said Rezaei.

While full-scale fighting has been paused for months, the two sides are nowhere close to peace. A June 17 memorandum of understanding (MoU) between the US and Iran expired last month. Since then, attacks have risen, especially in and around the Strait of Hormuz, which Iran has effectively closed, while the US maintains a blockade of Iran’s southern ports.

The escalating attacks on oil tankers attempting to pass through the strait and the effective Houthi control of the Red Sea route, which Saudi Arabia used to export oil, have caused oil prices to cross the $100 mark in recent weeks.

Al Jazeera’s Tohid Asadi, reporting from Tehran, described Rezaei’s remarks as part of the “two-sided, twofold message” Iran has maintained throughout the conflict – combining openness to diplomacy with continued preparations for war”.

So what are Iran’s latest conditions, and do they differ from the June MoU?

What are the Iranian conditions to end the war?

Here is what Rezaei told Al Jazeera:

• An end to the war on all fronts, including, in particular, Lebanon.
• The release of its frozen funds that run into billions of US dollars.
• An end to the naval blockade on Iranian ports.
• An end to US interference in Iran’s internal affairs.
• An end to US cooperation with “the opponents of our revolution”.
• An end to all US attacks on Iranian territory.

“It is in Washington’s interest to accept these conditions. Trump’s threats will not achieve any results. We are prepared for a decisive war,” said the security chief.

On Sunday morning, Iran’s Parliament Speaker Mohammad Bagher Ghalibaf reiterated Tehran’s stance on the Strait of Hormuz, saying the critical waterway will remain closed until the US fulfils its commitments.

“Until these conditions are met, the legitimate rights of the Iranian nation are recognised, and American commitments are fulfilled, there will be no opening for a return to the previous state of negotiations or for the reopening of the Strait of Hormuz,” said Ghalibaf.

What is different to the June MoU?

Iran’s latest set of conditions bears similarities to its demands under the MoU deal signed in June. That agreement also included an end to the war on all fronts, including in Lebanon; respect for each side’s sovereignty and not meddling in internal affairs; an end to the naval blockade by both sides; and the release of Iran’s frozen funds.

The MoU also called for a $300bn US-backed reconstruction plan, while the two sides also agreed that Iran would not procure or develop nuclear weapons and that Tehran would open the Strait of Hormuz for the safe passage of vessels.

It also required the US to issue waivers for the export of Iranian crude oil and other services, no new sanctions on Iran, and no deployment of additional US forces in the region.

In the interview, Rezaei did not mention war reparations from the US as Tehran has been demanding previously.

While there is little genuinely new in the substance of Iranian demands, what has changed is the timing and the channel through which it was delivered, said Adel Abdel Ghafar, a senior fellow focusing on the Middle East at the Australian Strategic Policy Institute.

“With the Islamabad MoU dead and … Rezaei delivering the conditions through Qatar, Iran is putting the onus back on Washington and doing it publicly, for maximum effect,” Abdel Ghafar told Al Jazeera.

Both sides are in a stalemate, he explained, with the US able to sustain the naval blockade and hold air superiority but unable to compel capitulation from Iran.

Iran, meanwhile, cannot break the blockade but “keeps enough asymmetric leverage to make things difficult for everyone”, he said.

“Basically Iran is betting [on the] war’s unpopularity and [that the] US midterms [will] shift things in its favour, so it’s going public with demands and putting the ball in Trump’s court.”

Rezaei, in his interview with Al Jazeera, rejected the US accusation that Tehran violated the MoU by striking an oil tanker in the Strait of Hormuz, stating that Iran’s actions came only after US attacks on Bandar Abbas and an Iranian surveillance platform there.

He said any agreement, including the MoU, required recourse to a dispute-resolution committee agreed between Ghalibaf, Iran’s chief negotiator, and US Vice President JD Vance, which Washington unilaterally withdrew from.

What did Rezaei say on Iran’s nuclear progamme, Yemen and others?

On the nuclear programme, Rezaei said Iran could have withdrawn from the Nuclear Non-Proliferation Treaty following attacks by the US and Israel – something that Tehran would not rule out in the future.

“We were indeed threatened, but we have not withdrawn from the treaty to this day,” he said.

For now, however, the country continues to abide by a fatwa (decree) from the former Supreme Leader Ayatollah Ali Khamenei prohibiting nuclear weapons, said the security chief.

“But we do not know what will happen in the future,” he said, citing further sanctions or a UN Security Council referral of Iran’s nuclear file as potential future pressure.

On the intensifying war in Yemen, Rezaei denied any Iranian involvement, adding that it could offer mediation between the warring sides. He also said Tehran was not exploiting the conflict “for its own political ends”.

“We are fully prepared to help achieve peace between Yemen and Saudi Arabia,” said Rezaei.

The security chief also dismissed speculation, including inside Iran, that it could close the Bab al-Mandeb Strait to pressure global energy markets, stating the waterway “is a Yemeni matter” relating to the Houthi movement, not Iran.

On the Strait of Hormuz, Rezaei said Tehran came within “a short step” of announcing a deal with Oman to manage it, but it may require regional endorsement before being made public.

What has been the US response?

The US has not yet responded to Iran’s new conditions. Rezaei said Iran is “waiting for the Americans to accept and implement” them.

The US did, however, on Saturday warn its citizens in Iraq, Bahrain, Oman, Saudi Arabia, Iran, Qatar, Lebanon, Kuwait and Jordan to exercise “heightened vigilance”, stating that “the security environment remains complex with the potential for unforeseen escalation”.

US President Donald Trump also cut his weekend short from his trip to Camp David, returning to Washington, DC on Saturday from the secluded presidential complex in rural Maryland, the White House said. No explanation was given for the early return, which comes as fighting between Saudi Arabia and the Houthis has escalated.

According to Rob Geist Pinfold, a lecturer at King’s College London, Trump may take Iran’s memo seriously – in an effort to end the war before the US midterm elections in November.

“Trump very much wants a deal to wind up the war before the midterms,” Pinfold told Al Jazeera.

“The US’s Gulf allies will also likely push for a renewal of talks. But it doesn’t mean there still aren’t significant substantive gaps between the parties, which make a comprehensive deal unlikely anytime soon.”

David Des Roches, a former Pentagon director of Arabian Peninsula affairs, however, told Al Jazeera that Washington was unlikely to see Iran’s terms as a serious opening.

“At first glance, probably not serious; they would be viewed as surrender,” Des Roches said.

But he pointed to Iran’s apparent abandonment of war reparations as a sign of movement.

Iran’s top security official says Tehran has sent its conditions for ending war to the US via Qatari mediators.

This was the first time an alert was sounded in Riyadh since an escalation between the Houthis in Yemen and the Saudis.

Saudi-led coalition forces fighting Yemen’s Houthis have said that the Iran-backed group fired a ballistic missile at Riyadh at dawn before it was intercepted and destroyed.

“The Houthis also attempted to target civilians and civilian infrastructure in Bisha, Taif, Farasan and Yanbu,” coalition forces spokesman Major-General Turki al-Maliki wrote on X on Saturday, adding that the attacks were thwarted by the Gulf monarchy’s air defences.

Saudi Arabia warned of a “hostile aerial threat” and issued a string of emergency alerts across the kingdom overnight on Friday.

On Saturday, at least one explosion was heard in Riyadh, with residents near the airport saying they saw a large plume of black smoke later in the morning. Saudi authorities reported no casualties or damage.

It was the first air raid alert sounded in Riyadh since an escalation in fighting with the Houthis in Yemen began in July.

The Saudi spokesman said that the Houthis are escalating their attempts to target civilians and civilian infrastructure in the capital. He also affirmed the coalition command’s right to take “appropriate” action to deter the Houthis, in accordance with international humanitarian law.

Earlier on Saturday, Houthi fighters in Yemen said they attacked “sensitive” sites in Riyadh as well as an Aramco oil facility in the western coastal city of Yanbu, according to a statement shared by Houthi military spokesman Yahya Saree.

Saree said the Houthis attacked Saudi Arabia with cruise and ballistic missiles as well as drones.

“You could see that the Houthis are determining the timelines and the levels of the escalation,” Yasmeen al-Eryani, executive director for knowledge production at the Sana’a Center think tank, told Al Jazeera. “So, depending on the current situation, it seems that the Houthis are the ones in control,” she added.

Meanwhile, on the ground in Yemen, the armed forces of the Saudi-backed internationally recognised government said their fighters thwarted a Houthi infiltration attempt in the al-Fuliahan sector in southern Marib on Saturday, killing 12 Houthi fighters and injuring others.

The army also said 13 Yemeni soldiers were killed in two days of clashes with Houthi forces in the southwestern provinces of Taiz and Lahj.

Renewed clashes are taking place in Yemen’s Marib, Taiz, Lahj, al-Jawf and al-Bayda as part of a military escalation that began in early July – the most intense since the relative calm following an April 2022 truce.

Al-Eryani told Al Jazeera that military options against the Houthis are currently limited because much of the fighting is taking place in mountainous terrain that is difficult for opposing forces to access and hold.

For now, she said, containing the group may be a more realistic option than defeating it militarily. “Without controlling the peaks that are parallel to the coast, you will not be able to control the coast,” said al-Eryani.

Tehran, Iran – Hossein, a 32-year-old marketing specialist based in Tehran, has been thinking of replacing his 13-year-old Iranian-made car with a newer model.

Even though he earns about four-and-a-half times the minimum wage after a recent pay rise – his salary is now close to 900 million rials (about $390 at the current exchange rate) – imported vehicles are not even remotely affordable for him.

Even finding a locally made car might be out of his budget, with an economic crisis gripping the country since the United States and Israel launched a surprise war on Iran on February 28 and later enacted a crippling siege and sanctions on the country.

“I’m losing hope of ever being able to buy a new domestic production car too, unless the country opens up and becomes a bit more normal again,” Hossein, who asked to keep his full name confidential for security reasons, told Al Jazeera.

His old manual Peugeot 206 model, an originally French-made car but now produced domestically after foreign counterparts left Iran due to sanctions, can fetch up to 10 billion rials ($4,350) if he sells it towards making a new purchase. However, his replacement options are limited.

Upgrading to a slightly improved Peugeot 207 with an automatic gearbox could cost him 28 billion rials ($12,170) now. This means that, after selling his car, he would need more than 20 months of his entire salary.

A domestic sedan Shahin model costs more than 31 billion rials ($13,480), and a crossover Reera is priced at more than 43 billion rials ($18,700).

With these options, he would need to save about 24 months and 37 months of his whole salary, respectively, and that is if prices remain stable and he does not spend a rial on anything else. But the reality of the fast-rising living costs and lagging incomes in Iran means he can barely put aside any money, let alone afford a new car.

Domestic car prices have mostly risen 40 to 80 percent since the start of the war, while some vehicles sell for more than 130 percent of their September 2025 costs.

The costs of maintaining the vehicles are also rising much faster than people’s salaries. Domestically produced tyres, motor oil, brake pads and clutch kits have at least doubled since last year, with some car parts having more than tripled in price.

Domestic vehicles have generally low safety standards, meaning that they contribute to staggering road accident deaths. At least 1,609 Iranians have been killed so far on intercity roads in the current month of Shahrivar of the solar Hijri calendar, which ends on September 22. More than 20,000 people lose their lives on the roads every year. In comparison, fewer people in the whole of the European Union, nearly five times Iran’s population, died on roads last year.

Iran’s fuel-guzzling cars also contribute to smoke-congested city streets, degrade vehicles faster and increase fuel costs, just as petrol prices have risen for users.

How did we get here?

Experts say, due to a combination of protected state-linked businesses, privileged access, economic isolation and a curtailing of imports, Iranian households have no choice but to pay exorbitant prices – compared with their salaries – to buy low-quality cars.

The damage from the war, including the extensive bombing of multiple steel giants by Israel and the US, has only added insult to injury. The naval blockade of Iran’s southern ports has prevented goods coming in from popular neighbouring markets like the United Arab Emirates.

Under such circumstances, domestic vehicle manufacturers have little incentive to improve.

End customers are also beset by government charges, currency and financing costs, margins levied by murky intermediaries – and in numerous documented cases, industry corruption.

“People are forced to buy expensive low-quality cars whose real prices should be a quarter of global prices, and this is a direct harm done to them,” Mohammad Rashidi, a member of the presiding board of Iran’s parliament, told local media on Saturday. “The traces of a mafia system are visible throughout the process.”

His claims echo those of other officials and state-linked media, who have openly described the industry as resembling an organised crime operation.

According to the latest figures released by state media, about 233,000 cars were manufactured or assembled in Iran in the first five months of 2026, compared with 366,000 the year before. Only about 25,000 vehicles were imported in that period.

Only a handful of state-linked companies or intermediaries are allowed to import vehicles, with duties plus value-added tax increasing final prices up to 200 percent.

The government and parliament have discussed lowering import tariffs this year, with no agreement announced so far.

The premiums are more visible for high-end cars, with a 2026 Toyota Land Cruiser VXR going for approximately 660 billion rials ($287,000) in Iran at the moment, while the same model is available for about $86,000 in the UAE. The same story applies to most other models, at different rates depending on the rarity of the vehicle and the availability of parts.

The price of a mid-range Chinese-designed SUV sold as Exeed VX in international markets is listed at about $32,000 in China, while it is priced at about $42,000 in the UAE. The same car, assembled from imported parts by a state-linked company in Iran under a different name, currently costs Iranian customers the equivalent of $53,000.

The bizarre situation was on full display during a three-day “international” car exhibition in Tehran last week that mostly featured Chinese-manufactured vehicles. These remain available in Iran despite the US sanctions, since Tehran exports almost all of its oil to China and barters this for goods, including cars.

Some domestic manufacturers and importers were absent, either because they had no products to offer or because they had angry customers who registered months ago to get vehicles they never received. Spare parts for some of the vehicles on display are currently either not available in the Iranian market or cost several times their price in international markets.

Even the cheapest vehicles offered at the exhibition were completely unaffordable to the average Iranian. It would take a worker on the minimum wage with standard allowances 50 years to buy an XPENG G9, a Chinese-made electric SUV priced at 120 billion rials ($52,150), on his or her salary, without spending a rial on food, housing or clothing.

Still, there were huge queues outside the exhibition centre each of the three days.

“It was sad because most people just came to take pictures with the cars they knew they could never afford,” a young man who attended the exhibition told Al Jazeera. “The doors of the cars were locked too.”