Nasdaq hits record while oil slips as Washington tightens sanctions on Iran airlines

The Iranian military says it believes the US is preparing to resume strikes against Iran and has vowed to retaliate “without limitations” if Washington launches another attack. The warning comes as President Donald Trump signals he is open to meeting Iranian President Masoud Pezeshkian in New York this week, even as Washington weighs its next military move and Tehran sets conditions for ending the nearly seven-month-old war. Meanwhile, the US has warned that fighting between Saudi Arabia and Iran-backed Houthi forces could “escalate rapidly” after a missile targeted Riyadh for the first time since the Yemen conflict resumed. Oil prices have fallen to their lowest in more than a week amid hopes for diplomacy and signs of a partial recovery in Saudi oil shipments despite continued Houthi attacks. Follow all the latest developments here:
Iran's economy contracted by more than 10 percent during the Middle East war, which began with US-Israeli attacks in late February.
The country's gross domestic product (GDP) shrank by 10.1 percent year-on-year from late March to late June, a period known in Iran as the first quarter of the Persian calendar, according to the Statistical Center of Iran on Sunday.
Iran has been at war with the United States since late February, when US-Israeli strikes killed the Islamic republic's supreme leader and senior military officials at the start of a vast offensive.
The strikes sparked Tehran's retaliation in blocking the Strait of Hormuz - causing global oil prices to surge - as the conflict spread in the Middle East.
Aside from this, Iran's economy has long struggled with hyperinflation and devaluation of its currency, caused in large part by economic sanctions.
The United States warned that fighting between Saudi Arabia and the Iran-backed Houthis could "escalate rapidly" after a missile attack targeted Riyadh for the first time since the Yemen conflict resumed.
US President Donald Trump cut short a weekend at Camp David, a secluded presidential complex in rural Maryland, to return unexpectedly to the White House.
The White House gave no explanation for the early return, which comes as a new threshold was crossed in the conflict between Saudi Arabia and the Houthis, who control a large part of Yemen and are fighting government forces backed by a coalition led by Riyadh.
US President Donald Trump has signalled he is open to meeting Iranian President Masoud Pezeshkian in New York this week, even as Washington weighs its next military move and Tehran presents conditions for ending the nearly seven-month-old war.
Asked by Fox News correspondent Trey Yingst whether he would meet Pezeshkian during the United Nations General Assembly in New York, Trump said he would “probably be open” to it.
The potential encounter would come at a striking moment: Iran has sent Washington a list of conditions for renewed negotiations while Iranian military leaders warn that any new US attack would trigger retaliation against American bases and interests across the region.
Iranian Foreign Minister Abbas Araghchi was due for talks in Qatar, a key mediator in the US-Iran war, before travelling to New York to attend the United Nations General Assembly, state media reported Sunday.
The minister "left Tehran on Sunday evening bound for New York... and will make a brief stop in Doha to hold consultations on the latest developments in the region," state news agency IRNA reported.
The stop in Doha comes as Iranian officials say they have once again stated through mediators Tehran's conditions for ending its blockade of the strategic Strait of Hormuz.
Oil prices edged lower in early Asian trading on Monday (Sept. 21), but remained at historically elevated levels as markets balanced signs of recovering Saudi supplies against continuing disruption around the Strait of Hormuz.
A snapshot from OilPrice.com at 10am Tokyo time showed: WTI crude: $99.22 a barrel, down $1.08, or 1.08%; Brent crude: $103.00, down $0.92, or 0.89%; Murban crude: $117.90, down $3.47, or 2.86%.
The retreat follows an earlier decline in crude prices as traders responded to signs that Saudi Arabia could restore some disrupted exports. Reuters reported that Saudi exports had risen above 4 million barrels per day in September, compared with 2.4 million bpd in August.
Qatar is working with the United States and Iran to resume talks, Qatari Foreign Ministry spokesperson Majed Al Ansari said, noting that US officials have indicated that Washington wants a deal.
Speaking on the sidelines of the Qatar Economic Forum in New York, Al Ansari said Qatar had been exchanging ideas with Washington and Tehran over the past few weeks in an effort to restart negotiations.
"We have been working together through our mediator team with both Tehran and the United States to see if we can get it restarted again. A lot of ideas have been thrown back and forth," Al Ansari said, adding that Qatar was trying to "bridge the gap and find the right moment to move forward."
"We have heard statements on the record from various administration officials who have confirmed that the United States wants a deal, and the United States wants a solution to this war," he said.
Al Ansari said any settlement should provide regional stability while establishing an international understanding to protect strategic waterways, including the Strait of Hormuz, Xinhua news agency reported.
"Open the strait, stop the war. These are the two main objectives of everything that we're doing right now," he added.
A dozen commodity vessels transited the Strait of Hormuz over the weekend, down from 35 the previous weekend, according to shipping data cited by Reuters on Monday.
Reuters reported that visible traffic through the strategic waterway has dwindled to a trickle as the US and Iran remain at a stalemate and tensions persist in the Gulf.
The strait previously handled about a fifth of global oil and liquefied natural gas shipments before the war. Middle Eastern producers, however, continue to export oil on tankers travelling with their transponders switched off, Reuters reported.
US envoy to the UN Mike Waltz says President Donald Trump remains determined to prevent Iran from acquiring a nuclear weapon, while keeping the door open to negotiations.
In a post on X, Waltz said the US would continue its 'maximum pressure' campaign against Iran but would accept a return to the negotiating table if Tehran engages 'in good faith'.
Waltz also described the US-Israel war on Iran as a continuation of a 47-year conflict in remarks at an Al-Monitor event in New York.
Etihad has largely maintained services to Bahrain, Kuwait, Riyadh, Al Qassim and Medina, although some flights to Dammam and Jeddah are delayed. Emirates has services to Bahrain and Kuwait scheduled, while flydubai and Air Arabia have recorded a few cancellations.
Travellers are being urged to check individual flight status before leaving for the airport as schedules can change at short notice.
Iran's Revolutionary Guards on Monday warned they would attack new targets and deploy new weapons if the US launches further attacks on the country.
Almost seven months into their war, Tehran and Washington remain locked in a stalemate, though neither side appears willing to return to full-scale war.
In a statement, a spokesman for the Islamic Revolutionary Guards Corps, the ideological arm of Iran's military, said "there will certainly be significant changes in our defence and our counteroffensive" in the event of a new US attack.
"We will introduce new weapons with new capabilities into the battlefield, and the world will be surprised," he said.
"Our targets will not necessarily be the same as before either. We have new targets that have not yet been attacked."
The Guards also said they were prepared for a "prolonged war".
The targets had been selected. Bombs were being loaded onto US warplanes. An American attack on Houthi positions in Yemen appeared imminent.
Then President Donald Trump pulled back.
The extraordinary sequence, reported by The New York Times citing US administration officials and people briefed on the operation, shows how close Washington came to opening another front in an already widening Middle East war.
Read more here.
The UK Maritime Trade Operations (UKMTO) said a tanker conducting an inbound transit of the Strait of Hormuz was struck by an unknown projectile.
Two crew members sustained minor injuries, while the vessel is continuing to its next port of call under its own power, UKMTO said.
There was no reported environmental impact. Military authorities are investigating the incident.
Vessels transiting the Strait of Hormuz have been advised to proceed with caution and report any suspicious activity to UKMTO.
The United States has refused to issue visas for Iranian President Masoud Pezeshkian's communications team, ruling them out of this week's trip to the UN General Assembly, Iranian state media reported Monday.
"In an unprecedented hostile move by the US government, (US President Donald) Trump has denied US visas to certain members of the president's high-level delegation," state news agency Irna reported. The Mehr news agency also carried the story, citing a spokesperson for the Iranian presidency.
Get updated faster and for FREE: Download the Gulf News app now - simply click here.
Pakistan’s Interior Minister Mohsin Naqvi arrived in Tehran on Monday for talks with Iranian officials as regional tensions continue to rise.
Iran’s state-run news agency said the visit will focus on “expanding ties and coordinating ongoing matters” between the two neighbouring countries.
Naqvi has travelled to Tehran several times since Pakistan stepped up efforts to mediate between Iran and the United States.
US Treasury Secretary Scott Bessent warned that Iranian airlines will have trouble functioning globally in two days under the weight of American sanctions - as the Trump administration seeks to keep pressure on Tehran.
On September 23, "all the Iranian airlines will be shut down around the world," Bessent told CNBC in an interview.
"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," he added.
The Treasury Department also took aim at targets for supporting Iran's aviation sector, including firms based outside Iran.
Bessent previously vowed the United States would declare "economic D-Day" on Iran and pledged to choke off Tehran financially.
Bessent's comments came a day after he met with Chinese Vice Premier He Lifeng for economic talks laying the groundwork for President Donald Trump's summit this Thursday with Chinese leader Xi Jinping.
China is one of Iran's top economic partners and diplomatic backers.
Iran's aviation sector has long grappled with sanctions, which have restricted its ability to acquire aircraft, spare parts and maintenance services.
Wall Street stocks rose early as oil prices retreated amid optimism that this week's diplomatic events could alter the course of the Middle East war.
This week's United Nations gathering will bring both US President Donald Trump and Iranian President Masoud Pezeshkian to New York, meaning the market is "resting some additional hope" on the possibility of a meeting between the men, said Briefing.com analyst Patrick O'Hare.
Trump is also slated to meet with Chinese President Xi Jinping at a summit later in the week, an engagement that could also touch on ways to lessen the US-Iran war's impact on oil supply.
About 15 minutes into trading, the Dow Jones Industrial Average was up 0.2 percent at 51,768.81.
The broad-based S&P 500 gained 0.6 percent to 7,698.74, while the tech-rich Nasdaq Composite Index jumped 1.1 percent to 26,804.02.
A dip in US Treasury bond yields also supported equities.
Lower crude prices and bond yields "seem to be a tailwind for markets, but this also means that if you are realistic to those factors, this could reverse at any point," said Art Hogan of B. Riley Wealth Management.
An LPG tanker transiting outbound through the Strait of Hormuz was hit by debris from unknown projectiles, according to the UK Maritime Trade Operations (UKMTO).
In an incident report issued on Monday, UKMTO said it had received a delayed report from the vessel's master.
The master reported that the tanker had been struck by debris from unknown projectiles. All crew members are safe and there has been no environmental impact, the UKMTO said.
The tanker will continue to its next port of call, while authorities investigate the incident.
UKMTO advised vessels transiting the area to proceed with caution and report any suspicious activity to the organisation.
US forces have redirected 110 commercial vessels since the start of the latest operations to ensure compliance, the US Central Command (CENTCOM) said on Monday.
In a statement on social media, CENTCOM said the vessels had been redirected as of September 21.
The command did not provide further details on the locations or circumstances surrounding the vessel movements.
Two Iraqi government sources told AFP on Monday that Baghdad would suspend flights by Iranian airlines following the US Treasury's announcement that the sanctioned companies would be "shut down" worldwide in two days.
"Iraq will enforce the ban on Iranian airlines in accordance with the US Treasury decision starting Tuesday at dawn," an official said, warning that "countries that do not implement the decision risk sanctions". Another source confirmed the account.
The head of Yemen's governing body Rashad al-Alimi held a call with US President Donald Trump in which he requested American support against the Iran-backed Houthis, a source in Alimi's office told AFP on Monday.
Trump did not promise military support, the source said, adding that the call took place on Sunday and was intended as a show of solidarity with Yemen's embattled government after the Houthis seized the country's entire Red Sea coast in a lightning offensive.
Alimi heads Yemen's Saudi-backed Presidential Leadership Council, whose forces are fighting the Houthis with air support from the kingdom.
His request follows a Houthi attack on Riyadh on Saturday, their first to target the Saudi capital in years and a major escalation.
Fox News reported on Sunday that Trump had said the Houthis have agreed not to hit US targets.
The Houthis now control strategic coastal areas overlooking the Bab al-Mandeb strait after seizing them from Saudi-backed government forces.
Iran’s national carrier says services from Tehran, Mashhad and Isfahan will operate as scheduled
Iran Air has announced that it will continue operating flights from Iran to Najaf in Iraq despite a US threat of sanctions against Iranian airlines.
The airline said flights from Tehran, Mashhad and Isfahan to Najaf will continue according to their scheduled timetables.
According to Iran Air’s public relations department, the services will operate as planned despite the sanctions threat from Washington.
Najaf is a key destination for Iranian travellers, particularly religious pilgrims visiting Iraq.
Iran will definitely change the "geography" of the war with the United States and Israel if it comes under another "invasion," Hossein Mohebbi, spokesperson of Iran's Islamic Revolutionary Guard Corps (IRGC), has said.
"If another invasion is launched (against Iran), there will be significant changes in our defence and offence... We will definitely change the war's geography," Mohebbi said in an interview with Iran's Al-Alam news channel published Sunday night.
"We will certainly introduce new weapons with new capabilities into the fray, and the world will be astonished," Mohebbi said. "We have new targets that have not been attacked yet."
Mohebbi emphasised that the war has not ended yet, and the IRGC has prepared itself for a long-term conflict, Xinhua News Agency reported.
Meanwhile, the General Staff of Iran's Armed Forces on Monday vowed "more defeats" for the United States, Israel and their allies.
"Iran's armed forces will not back down in the face of the enemy and will give the aggressors and ill-wishers, especially the US and Israeli enemies and their allies, the bitter taste of more defeats," it said in a statement.
The United States has refused to issue visas to members of Iranian President Masoud Pezeshkian's delegation, including his communications team, for this week's trip to the UN General Assembly, Iranian state media reported Monday.
Pezeshkian will be the highest-ranking Iranian official to enter the United States since the Middle East war began with US-Israeli strikes on Iran in February.
"In an unprecedented hostile move by the US government, (US President Donald) Trump has denied US visas to certain members of the president's high-level delegation, including members of his communications team," state news agency IRNA reported.
The Mehr news agency also carried the story, citing a spokesperson for the Iranian presidency, and added that Pezeshkian would address the UN General Assembly on Wednesday.
Foreign ministry spokesman Esmaeil Baqaei accused the Trump administration of "trampling on the right of access to information", pointing to its recent move to bar three major US media outlets from the White House over objections to their coverage.
"When an administration slams its doors shut - even on American journalists it happens to dislike - and bars foreign reporters, including the Iranian president's media team, whose voices it would rather silence, it is not managing access; it is trying to hide the truth," Baqaei said on X.
The US has authorised an Iranian delegation to travel for the UN General Assembly but will, like last year, put restrictions in place.
Turkish Airlines has suspended all flights to Iran until at least March 2027, a company representative told Iran International, as Iraq also moves to halt Iranian carriers following a US Treasury warning of a worldwide shutdown.
The representative said the airline currently has no flights scheduled to Iran before March and could not guarantee that services would resume then.
Turkey has long been one of the most accessible international destinations for Iranians, with relatively affordable travel and extensive air links supporting tourism, family visits and business.
The prolonged suspension by Turkish Airlines would further reduce international air connectivity for Iranians facing growing restrictions on overseas travel.
US Vice President JD Vance has blamed Iran for rising fuel prices in the US, saying Tehran was “creating fear and threats in shipping” and driving up energy costs.
The Nasdaq jumped to a new record on Monday while oil prices retreated on optimism for a diplomatic breakthrough in the US-Iran war at this week's United Nations gathering.
The Nasdaq piled on 2.3 percent to lead major US indices as analysts also cited hopes for progress on artificial intelligence at a US-China summit.
The White House has launched "Trump TV" streaming service. The move came after President Trump banned CNN, MSNBC, and Politico from White House grounds over what he called "fake news".
The new service features major remarks, real-time updates, and videos in one spot. Supporters cheered it as an epic checkmate on traditional outlets, with posts hailing the direct line to the action.
Critics labeled it state media fit for dictators, highlighting divides over independent coverage. Live programming starts at 7 pm EST on Sept. 21, 2026 (3am on Sept. 22 Gulf | 7am Beijing | 8am Tokyo) as media access disputes rage on.
CNN, MS NOW and Politico have filed a lawsuit against Trump's White ban. Major US networks later suspended White House TV coverage of Trump as he heads to New York for the UN summit.
Many have fled the war by crossing the Red Sea to Djibouti.
Thousands of Yemenis have taken boats across the Red Sea to Djibouti as a renewed Houthi offensive and Saudi-backed counterattacks drive a rapidly worsening humanitarian crisis, threatening to reopen one of the Middle East's most dangerous conflicts.
The latest escalation has pushed Yemen's long-running civil war into a new and potentially wider phase, with Iran-backed Houthi forces expanding their control along the Red Sea coast while Saudi Arabia steps up airstrikes against Houthi positions.
More than 130,000 people have been displaced inside Yemen since the latest fighting began, while about 3,000 Yemenis have fled by sea to Africa, according to figures cited by Reuters. Nearly 700 people have been killed and thousands injured.
British Prime Minister Andy Burnham has said the UK will provide Saudi Arabia with "defensive air-to-air refuelling" following a request from Riyadh, after it faced attacks from the Houthis in Yemen, the BBC reported.
While "visible" traffic through the Strait of Hormuz has dwindled sharply, Middle Eastern producers continue exporting oil on tankers traveling with their transponders switched off, Reuters reported.
A dozen commodity vessels transited the Strait of Hormuz over the weekend, down from 35 the previous weekend, according to Kpler data tracking ships using transponder and satellite information.
Kpler data showed four trackable vessels exited the strait Sunday, including two tankers carrying refined oil products, while two small oil tankers entered the Arabian Gulf.
Critics say Kpler data is "skewed", adding that the real moves are all "off-chain", as dozens of ships transit with automatic identification system (AIS) off using the southern route, near Oman.
France is ready to work on "securing" Saudi energy infrastructure targeted by Iran-backed Houthis, adopting a "strictly defensive approach," a diplomatic source said.
"France is ready to contribute to securing Saudi energy infrastructure in Yanbu and along the East-West Pipeline, within the framework of a strictly defensive approach," the source said, emphasizing that "this in no way involves taking part in the conflict with the Houthis."
The Houthis have carried out attacks against facilities belonging to the Saudi oil giant Aramco in the Red Sea port city of Yanbu. The East-West Pipeline -- a crucial crude oil export route -- has also been shut down following drone attacks launched from Iraq, according to Riyadh.
We are closing this live coverage. For the latest updates, click here.
Sign up for the Daily Briefing
Get the latest news and updates straight to your inbox
Network Links
GN StoreDownload our app
© Al Nisr Publishing LLC 2026. All rights reserved.