UN diplomacy offers a fragile opening as Gulf shipping and markets remain on edge.
As of September 23, 2026, the US-Iran conflict is unfolding on two parallel tracks, with intensified military and economic pressure alongside renewed diplomatic efforts.
For the UAE, the key concerns remain shipping through the Strait of Hormuz, oil prices, regional aviation, airspace risks and whether diplomatic efforts can ease tensions or give way to another escalation.
Here are the latest developments:
Pezeshkian arrives in New York
Iranian President Masoud Pezeshkian has arrived in New York to attend the UN General Assembly.
The gathering provides a rare diplomatic setting where senior officials from countries involved in the conflict can communicate directly or through intermediaries.
President Donald Trump used his UN General Assembly address to defend the US military campaign and warn of further escalation. Hours later, he confirmed that US and Iranian officials had held a three-hour meeting in New York, describing the talks as productive and saying another meeting was expected soon.
Iranian officials have indicated that reopening the Strait of Hormuz could form part of a broader diplomatic arrangement, with Tehran seeking steps from Washington to ease military and economic pressure.
Diplomatic talks and UN speeches
- Trump’s UNGA address: President Donald Trump defended US military actions against Iran and warned that he faced a major decision over whether to pursue a deal or escalate further.
- US-Iran talks: Despite the public rhetoric, US and Iranian officials held about three hours of talks on the sidelines of the UN General Assembly. Trump described the meeting as “very good” and said another meeting was scheduled in the near future.
- Officials involved: US Special Envoy Steve Witkoff and Jared Kushner took part in the talks, while Iranian Foreign Minister Abbas Araghchi represented Tehran. Iranian officials said the discussions included conditions linked to reopening the Strait of Hormuz.
New aviation sanctions
- New aviation sanctions: From September 23, the US Treasury is implementing secondary sanctions targeting Iran’s civil aviation network, according to US Treasury Secretary Scott Bessent.
- Impact on foreign businesses: Bessent warned that international airports, fuel suppliers, ticketing agencies and ground-handling companies serving Iranian carriers could risk losing access to the US dollar financial system. Some international aviation hubs and regional airports have reportedly begun notifying authorities that they will no longer accept Iranian aircraft as they seek to comply with the measures.
Regional and market impacts
- Strait of Hormuz: Tensions remain high around the Strait of Hormuz, with Iran’s parliamentary national security committee pushing legislation that would impose penalties on vessels violating restrictions.
- Oil markets: Oil prices eased slightly on Wednesday as traders weighed signs of stabilising Gulf supplies against the possibility that diplomatic talks could eventually reduce disruption around the Strait of Hormuz.
- Underlying risks remain: The decline in crude prices does not necessarily signal a return to normal conditions, with uncertainty over shipping and the wider conflict continuing to weigh on markets.
Iran tightens pressure on shipping
Iranian authorities continue to impose restrictions on shipping through the strategic waterway.
The Iranian parliament’s national security committee has been pushing legislation that would impose penalties on vessels violating the restrictions, adding another layer of uncertainty for commercial operators.
The developments are particularly significant for the UAE, which is a major Gulf energy and maritime hub and could be affected by any prolonged disruption to shipping through the Strait of Hormuz.
Why this matters to UAE residents
1. Flights
Iranian aviation could face significant restrictions from September 23. UAE-based passengers travelling to Iran or flying with Iranian carriers should check their flight status with the airline before heading to the airport.
2. Oil and fuel
As an oil producer and exporter, the UAE could benefit from higher global crude prices through increased energy revenues. However, prolonged disruption could also raise transportation, insurance and operating costs.
3. Shipping
The Strait of Hormuz remains a critical route for Gulf energy exports. The ship-to-ship (STS) transfer system off Oman is allowing some oil cargoes to continue moving, but the process is more costly and operationally complex.
4. Food and consumer prices
Higher fuel and freight costs can eventually feed through to shipping and logistics expenses and the prices of imported goods, particularly if disruption continues.
5. Regional security
Any breakdown in diplomatic efforts could raise the risk of renewed attacks on Gulf-linked infrastructure or shipping routes.
6. The diplomatic wildcard
The three-hour US-Iran meeting in New York is a significant development because it shows that diplomatic contacts are continuing despite the military confrontation. Trump has said another meeting is expected, while Iran continues to call for changes to US military and economic pressure.
By the numbers
- 7 months: Approximate duration of the US-Iran war.
- 3 hours: Length of the US-Iran meeting in New York disclosed by Trump.
- September 23: Date Bessent said Iranian airlines would be effectively shut out of global operations.
- 27: Iranian airlines sanctioned by the US Treasury on September 8.
- 36: Aviation-sector targets included in the September 8 Treasury action.
- 2.5 million bpd: Estimated September volume moved through ship-to-ship transfers near Oman.
- 1.4 million bpd: Comparable STS transfer volume in August.
- 6.5 million bpd: Approximate September oil flows through the Strait of Hormuz, based on Kpler data.
- $30+ per barrel: VLCC freight costs reported by Reuters amid disruption to Gulf shipping.
What to watch today
The next US-Iran meeting: Whether the talks produce concrete terms or lead to another round of diplomatic engagement.
Hormuz traffic: Whether more tankers resume normal passage through the Strait or operators continue relying on ship-to-ship transfers off Oman.
Iranian flights — whether airports and aviation companies actually stop servicing Iranian carriers in response to Washington’s secondary-sanctions threat.
Oil prices — whether continued diplomatic engagement puts further downward pressure on prices or renewed military tensions reverse the trend.
Gulf security — any new attacks affecting shipping, pipelines, ports, airports or energy infrastructure will remain closely watched. For shipping companies, the concern is not simply whether a tanker can physically pass through the Strait of Hormuz, but whether operators can secure insurance, security clearances and financing, while maintaining predictable access to the route.
What happens next
For UAE residents, the situation remains between conflict and diplomacy. The military confrontation continues, but the first significant direct US-Iran contacts in months have opened a diplomatic channel that could influence the next phase of the conflict.
