UAE and Gulf Focus on UN Diplomacy, GCC Meetings Amid Market Volatility.
The US-Iran conflict is entering another potentially pivotal phase, with US President Donald Trump saying Tehran is interested in reaching an agreement but is not yet prepared to accept Washington’s terms.
Meanwhile, tensions remain high in the Strait of Hormuz. Iran’s state news agency IRNA reported on Friday, September 18, that the country’s Revolutionary Guards had struck and detained the Togo-flagged oil tanker M/T Trend, accusing it of attempting an “illegal passage” through the strategic waterway.
The UK Maritime Trade Operations separately reported a security incident about 16 nautical miles (29.6km) northeast of Khasab, Oman. It did not identify the vessel involved, leaving it unclear whether the incident was connected to the Trend.
Elsewhere in the region, Saudi Arabia is working to restore its East-West oil pipeline following drone attacks, while commercial vessel traffic through the Strait of Hormuz remains significantly below recent averages. Washington is also preparing for discussions with Gulf leaders during the upcoming UN General Assembly, with the conflict and regional security expected to feature prominently.
For UAE residents, attention remains focused on several immediate concerns, including flight schedules, oil prices, shipping disruptions, regional security and ongoing diplomatic efforts aimed at bringing the conflict to an end.
Developments also suggest that the coming week could be significant on the diplomatic front, with Iranian officials permitted to travel to New York for the United Nations General Assembly. Their presence could provide an important setting for diplomatic engagement as international efforts to address the conflict continue.
What to know today:
Trump says Iran wants a deal, but is ‘not ready’
US President Donald Trump said Iran is seeking an agreement with Washington but, in his view, is not yet prepared to accept the terms required for a deal.
“Iran wants to make a deal; they’re not ready, in my opinion,” Trump said.
The US president also said he hoped the conflict was moving “toward the end” and claimed that he had communicated directly with Iranian officials. Tehran, however, has not publicly confirmed the details of any such contact.
The mixed signals — suggesting a possible diplomatic opening while military action remains a possibility — highlight the uncertainty surrounding the conflict’s next phase.
Saudi pipeline repairs make progress
Concerns following the attack that put Saudi Arabia’s East-West oil pipeline out of operation have eased amid signs that repair work is advancing. US and Asian stock markets have also recovered as worries over a prolonged disruption subsided.
US Energy Secretary Chris Wright said the interruption was expected to last only “days”, indicating that the pipeline could return to operation relatively quickly.
The strategically important route transports crude from Saudi Arabia’s main oil-producing region in the east to the Red Sea port of Yanbu, offering an alternative export channel that reduces reliance on shipments through the Strait of Hormuz.
Progress on repairing the pipeline has helped ease pressure on oil markets and supported a rebound on Wall Street. However, the broader energy outlook remains uncertain, with commercial shipping through the Strait of Hormuz continuing to face significant disruption.
Trump, Gulf leaders to discuss Iran conflict
US President Donald Trump is expected to meet leaders or foreign ministers from the six Gulf Cooperation Council (GCC) countries — Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait and Oman — in New York on the sidelines of the UN General Assembly next week.
According to Axios, the US State Department sent initial invitations on Wednesday. The discussions could give Gulf governments an opportunity to directly address their concerns about the conflict and its regional impact, including:
Key issues expected to feature in Gulf discussions include attacks on energy infrastructure, disruption to shipping through the Strait of Hormuz, threats from Iran-aligned groups, risks to aviation and regional airspace, volatility in oil markets, and the shape of regional security arrangements once the conflict ends.
UAE: Focus on deterrence and dialogue
The UAE continues to emphasise a combination of security measures and diplomatic engagement as it responds to regional tensions. Dr Anwar Gargash, Diplomatic Adviser to the UAE President, has stressed the importance of protecting sovereignty while also pursuing dialogue and longer-term diplomacy aimed at strengthening regional stability.
The approach reflects a broader effort to manage immediate security challenges while keeping channels open for de-escalation, economic development and a more stable regional framework.
The comments come after Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan met Iranian President Masoud Pezeshkian on the sidelines of the BRICS Summit in New Delhi. During the meeting, the two sides discussed regional and international issues and highlighted efforts to ease tensions, promote de-escalation and support regional stability.
Oil prices
As of Friday morning, September 18, in Tokyo, crude prices remained below the levels seen earlier in the week:
- Brent crude: Around $103.70 per barrel
- WTI crude: Around $100.90 per barrel
- Murban crude: Around $121 per barrel, down 1.95%
Oil prices had moved close to $110 a barrel earlier in the week before retreating as some immediate supply concerns eased.
Saudi Arabia has also been offering additional crude cargoes to Asian refiners using ship-to-ship transfers near Oman’s Sohar port, outside the Gulf. The alternative arrangement has helped alleviate some concerns about maintaining oil supplies amid disruptions to traditional shipping routes.
Strait of Hormuz: Shipping remains severely disrupted
The Strait of Hormuz remains a major pressure point in the conflict, with commercial shipping continuing to face significant disruption. Some vessels have reportedly travelled through the waterway with their automatic identification systems (AIS) switched off.
Developments in the strait are particularly significant for the UAE because of its proximity to one of the world’s busiest and most strategically important routes for energy shipments and international trade.
A prolonged disruption could have wider consequences for tanker traffic, marine insurance premiums, freight rates, fuel costs, imported goods, port activity and supply chains across the region.
One killed, two injured by drone debris in Saudi Arabia
Saudi authorities said one person was killed and two others were injured after debris from an intercepted drone fell in Taif. According to the Saudi Civil Defence, the drone was launched by Yemen’s Iran-aligned Houthi movement.
A Yemeni resident was killed in the incident, while a Saudi woman and a Pakistani resident sustained injuries. The Pakistani resident was reported to be in critical condition. Falling debris also caused damage to several buildings and vehicles.
US targets Iranian crypto exchange with sanctions
The US Treasury has imposed sanctions on Iranian cryptocurrency exchange BitBank, alleging that it transferred hundreds of millions of dollars to Iran’s Islamic Revolutionary Guard Corps and facilitated payments linked to shipping access through the Strait of Hormuz.
The action reflects Washington’s broader effort to target alternative financial networks that US authorities allege are used by Tehran to bypass existing sanctions and maintain access to international financial channels.
Russia and China block Iran sanctions-monitoring proposal
Russia and China vetoed a US-backed proposal at the UN Security Council that sought to extend the mandate of experts responsible for monitoring sanctions on Iran. The underlying sanctions, however, remain in place.
The measures cover areas including Iranian assets, arms transfers and activities related to ballistic missiles. The vote underscores continuing divisions among major powers over the international approach towards Iran, even as signs emerge that Washington and Tehran may be considering potential diplomatic engagement.
Markets find cautious relief
The latest developments point to cautious relief across financial and energy markets, although significant security risks remain across the region.
- Flights: UAE airports remain operational, but passengers are advised to confirm their flight status before travelling as airlines continue adjusting routes in response to changing airspace conditions.
- Oil: Brent and WTI crude have eased from their recent peaks, although both remain above $100 per barrel.
- Fuel and logistics: A prolonged disruption in the Strait of Hormuz could maintain upward pressure on transportation, freight and logistics costs.
- Shipping: Commercial traffic through Hormuz remains severely reduced, keeping concerns over regional trade and energy flows elevated.
- Saudi security: The drone incident in Taif highlights how security risks extend beyond oil and other energy infrastructure.
- Diplomacy: Trump’s remarks have raised the prospect of renewed diplomatic engagement, even as he continues to warn that further military action remains possible.
- Gulf talks: Planned discussions between Trump and GCC leaders could provide an opportunity to address the conflict and possible post-war regional security arrangements.
- UN diplomacy: Iran’s participation in the upcoming UN General Assembly could open another avenue for direct or indirect diplomatic engagement.
- UAE position: Abu Dhabi continues to emphasise protecting its sovereignty and security while maintaining dialogue with Tehran.
- Key risk: Any renewed attack on Gulf energy infrastructure or further restrictions on shipping through Hormuz could quickly increase supply concerns and renewed volatility in oil markets.
UN General Assembly: Why next week matters for Iran
Attention is now turning to the UN General Assembly’s High-Level Week in New York, which could become an important setting for diplomacy surrounding the conflict.
The General Debate is scheduled to take place from September 22 to 26 and again on September 28, bringing together heads of state, government leaders and senior officials from around the world.
With Iranian representatives expected to attend and Gulf leaders gathering in New York, the meetings could provide opportunities for direct discussions, indirect contacts and broader diplomatic efforts aimed at addressing the conflict.
Key upcoming dates
- September 22: UN General Debate begins.
- September 23: High-level meetings focus on development and climate action.
- September 24: High-level meeting on sea-level rise.
- September 25: High-level meeting on pandemic prevention and preparedness.
- September 28: The General Debate resumes, alongside a high-level meeting marking the 25th anniversary of the Durban Declaration.
- September 29: UN meeting on international efforts to eliminate nuclear weapons.
For the Iran crisis, however, the General Debate is expected to be the main diplomatic focus. According to US officials, Washington has agreed to allow Iran’s core delegation to attend, including President Masoud Pezeshkian and Foreign Minister Abbas Araghchi. The US State Department said the decision was in line with the country’s obligations as host of the United Nations headquarters.
Their attendance creates an unusual diplomatic setting, with senior Iranian officials potentially present in New York while the US and Iran remain engaged in active conflict. The gathering could provide opportunities for direct or indirect contacts involving the two sides and other regional and international actors.
No clear endgame yet
The conflict has yet to reach a clearly defined endgame.
Trump’s comments about the possibility of a deal, planned consultations with Gulf states and Iran’s participation in the UN General Assembly point to potential avenues for diplomacy.
At the same time, continuing attacks, severe disruption to shipping and uncertainty surrounding regional airspace mean conditions can change rapidly. For the UAE and the wider Gulf, the coming days are therefore likely to remain shaped by a combination of diplomatic activity, security concerns and volatility across energy and transport markets.
