US-Iran conflict: Tehran ready for talks or war as Trump expects new diplomacy

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Saudi Foreign Minister Prince Faisal bin Farhan and US Secretary of State Marco Rubio underscored the need to safeguard maritime security and freedom of navigation through the Strait of Hormuz and Bab al-Mandab during talks in Washington on Monday, the Saudi Foreign Ministry said.

The ministers reviewed strategic ties and discussed regional developments, including the escalating conflict in Yemen, where Houthi forces have intensified attacks on Saudi territory and shipping lanes, according to Saudi and international reports.

Both sides reaffirmed support for diplomatic efforts to resolve regional crises and ensure the flow of global trade, the ministry added.

US Treasury Secretary Scott Bessent pressed Lebanon’s leadership to take “proactive steps” to dismantle Iranian and Hezbollah financial networks during a Monday meeting in Washington with Prime Minister Nawaf Salam and Finance Minister Yassine Jaber, according to a Treasury readout.

Bessent also underscored the need for swift financial-sector reforms to restore confidence in Lebanon’s battered banking system, as Beirut seeks to revive negotiations with the International Monetary Fund and secure World Bank support.

Salam highlighted progress on banking reforms and asked for US help in IMF talks and broader economic recovery, the prime minister’s office said.

The United Kingdom is reportedly holding urgent talks with US authorities over President Donald Trump’s threat to halt American diesel exports, as London prepares contingency measures to cushion a potential supply shock, Chancellor John Healey. Healey, speaking on the sidelines of Labour’s annual conference in Liverpool, confirmed the government is “in discussions with the Americans” and has begun planning for a possible ban, including tapping national fuel stocks if needed.

A US Senate Democratic report released Monday says Tether’s dollar-pegged stablecoin USDT has become a “significant financial lifeline” for Iran’s shadow banking network.

Investigators analysed 846 crypto wallets sanctioned or targeted for seizure over links to Iran and regional proxies, finding that 84% transacted exclusively or nearly exclusively in USDT.

The report criticises Tether for failing to consistently freeze illicit wallets, particularly before 2024.

President Donald Trump said that US officials had spoken with mediators involved in indirect talks with Iran, as Washington and Tehran weigh further diplomacy amid the war. Speaking to reporters in the Oval Office, Trump said, “We’re going to win. As far as I’m concerned, it’s going to be one way or the other. It’s going to go pretty quickly.”

The remarks came as Qatari mediators held separate meetings with Iranian Foreign Minister Abbas Araghchi in New York and with US envoys, discussing proposals to reopen the Strait of Hormuz and address nuclear concerns. Trump has rejected Tehran’s latest truce plan but signaled talks could resume soon.

Iran’s state-run IRNA news agency reported late on Monday that residents on Qeshm Island heard an explosion-like sound coming from the direction of the sea, with no apparent impact on the island. State TV later cited local sources as saying no strikes or explosions had occurred on Qeshm, describing the noise as similar to previous nights and likely warning shots at vessels violating waterway rules. Reuters and other outlets recast earlier reports, noting there was no immediate independent confirmation of the sound’s cause.

Iran’s Civil Aviation Organisation denied reports that flights between Iran and Iraq’s Najaf had resumed, saying no approval had been issued for Iranian carriers. Spokesman Majid Akhavan said reports of resumed Iranian flights were false. The clarification followed reports that Iraqi Airways had restarted flights between Najaf and Iranian airports. Iraq’s flag carrier has resumed the route, while Iranian airlines remain restricted amid US sanctions and concerns over penalties on aviation providers.

An unnamed Iranian official denied reports that Tehran had shown "flexibility" on its nuclear position, telling state-run Press TV via Telegram on Monday that no discussions were underway on the issue.

The official said the US was “trapped” over the Strait of Hormuz and was raising the nuclear file to divert attention, adding that Iran’s nuclear stance had not changed.

The remarks contradict a US official’s account to CNN that Iran had signaled nuclear flexibility and that Washington was holding “positive and constructive discussions” through mediators, with President Donald Trump open to sanctions relief and releasing frozen funds if Tehran made “concrete progress.”

Donald Trump on Monday denied asking Xi Jinping if he would like to buy American weapons, after the US ambassador to Beijing said the US president made the offer to his Chinese counterpart.

"I've never heard of that one," Trump told reporters in the Oval Office when asked about the comments made by envoy David Purdue.

"They'd probably like to buy it because we do make better equipment than them, so maybe it's a good idea. But we didn't discuss it."

President His Highness Sheikh Mohamed bin Zayed Al Nahyan received Israeli Prime Minister Benjamin Netanyahu, who visited the UAE on Sunday.

During the meeting, the two sides discussed bilateral relations between the UAE and Israel and ways to strengthen and further develop them.

US President Donald Trump said Monday that British police should not have released on bail five men who were arrested near an airbase used by the United States over a suspected bomb plot.

Trump added that the case "might be" linked to Iran but declined to give details.

"I'm surprised that they released them, I wouldn't have done that," Trump told reporters in the Oval Office, while adding that British authorities had worked "very closely" with the United States.

"We know everything about them. We would not have released them."

The five men were arrested early Sunday near the Royal Air Force (RAF) Fairford base in southwest England, from which US bombers have taken off to target Iran since March.

British counter-terrorism police announced on Monday that the five men - all London-based Britons in their mid-20s - had been freed on bail, and that officers were probing whether a "foreign state" could be involved.

Asked whether the case was linked to Iran, Trump replied: "It might be."

Pressed to give details, Trump said: "I'd rather not. I mean I know the answer, I could be very specific, but I'd rather not say. I would not have released them."

Iraqi Airways has resumed flights between Najaf and several airports in Iran, Iraq’s state news agency reported on Monday, restoring a key air link used by Iranian Shiite pilgrims and other travellers.

Iran's Foreign Minister Abbas Araghchi was set to meet on Monday with Qatari mediators in New York, Iranian state media said, after US President Donald Trump rejected Tehran's plan for reopening the Strait of Hormuz.

"The foreign minister of our country will meet and hold talks today with the Qatari side, which is acting as a mediator between Iran and the United States," the state broadcaster said.

The meeting is expected to focus on "messages exchanged with the United States through intermediaries... particularly regarding the conditions set by Iran for the reopening of the Strait of Hormuz", it added.

The report comes after state news agency IRNA reported earlier in the day that the Iranian delegation in New York for the UN General Assembly was not planning further talks with the United States, after Trump said he expected more negotiations soon.

Iranian and US officials last week held indirect talks mediated by Qatar on the sidelines of the UN meeting, with Tehran saying it presented seven conditions for ending their war and reopening the Strait of Hormuz.

But state news agency IRNA on Monday quoted an unnamed source close to the UN delegation as saying there were no more talks scheduled.

"Iran's delegation in New York has no plans for negotiations with the United States," IRNA quoted the source as saying.

"Iran's views and positions were conveyed clearly and explicitly to the US side... via a Qatari mediator," IRNA said.

Oil futures surged more than three per cent on Monday, while Wall Street dipped and European equities stalled after US President Donald Trump rejected Iran's offer of a seven-day truce.

High inflation concerns lifted government bond yields as markets bet on the US Federal Reserve hiking interest rates in October after already tightening this month, supporting the dollar.

Wall Street indices were in the red from the outset. The Dow was off 0.7 percent at 51,443.33 points more than two hours into trading, with the broader-based S&P 500 and the tech-heavy Nasdaq showing similar losses.

Europe was sluggish throughout and London and Frankfurt closed 0.1 percent down, while Paris ended flat.

Lebanese Prime Minister Nawaf Salam on Monday called for the further implementation of a framework agreement with Israel in his meeting with US Secretary of State Marco Rubio in Washington.

Tehran-backed Hezbollah drew Lebanon into the broader Middle East war in March this year by attacking Israel, which responded with massive airstrikes and a ground invasion that Lebanon says have killed more than 4,300 people.

Lebanon and Israel concluded a framework agreement in June under US auspices, providing for the gradual withdrawal of Israeli forces and the disarmament of Hezbollah, but its implementation has stalled.

In a statement, Salam's office said that in his meeting with Rubio, he "stressed the need to move to the stage of implementation of the tripartite framework and translation of the principles of reciprocity and phased implementation into practical steps and tangible results on the ground, leading to the restoration of Lebanon’s full sovereignty, the achievement of a complete Israeli withdrawal from Lebanese territory, and the confinement of weapons to the state throughout its territory."

The United States Central Command (CENTCOM) on Monday (local time) sharply rejected claims made by a senior Islamic Revolutionary Guard Corps (IRGC) commander asserting that Iran holds total control over maritime traffic in the strategic Strait of Hormuz.

"CLAIM: A senior Islamic Revolutionary Guard Corps commander said today that Iran has full control over the Strait of Hormuz through Iran’s 'navy.' This is FALSE," CENTCOM said in a statement posted on X. 

British police said Monday five men arrested near an airbase used by the United States were being released on bail, as officers probed whether a "foreign state" could be involved in a suspected bomb plot targeting it.  

The release of the five -- all London-based Britons in their mid-20s -- came as Prime Minister Andy Burnham announced an emergency meeting of top officials to ensure they have "the full picture".

Earlier, Iran had denied involvement in any plot to target the Royal Air Force (RAF) Fairford base in Gloucestershire, southwest England, following the security scare there early Sunday.

The British interior ministry has previously accused Iran and Russia of using proxies to carry out criminal activities on their behalf on UK territory.

Iran's supreme leader Mojtaba Khamenei said Monday the United States would be forced to leave the Middle East after suffering "painful blows", according to a statement carried by state television.

Khamenei, who has not been seen in public since the start of the Middle East war in late February, made the remarks despite attempts to revive talks aimed at ending the fighting.

"Today, having suffered painful blows at the hands of valiant fighters and the guardians of the Strait of Hormuz, they (the enemies) do not venture beyond the Arabian Sea," Khamenei said in the written statement attributed to him, without explicitly mentioning the United States.

"Whenever they have braved this risk, they have only brought harm upon themselves. It will not be long before the Arabian Sea, too, would rid itself of their presence," he added.

The Israeli military set off a significant explosion in the southern Lebanese village of Mansouri on Monday, Lebanese state media and AFP correspondents said.

"A massive explosion rocked the town of Mansouri in the Tyre district a short while ago. The explosion was carried out by Israeli occupation forces," Lebanon's state-run National News Agency reported.

"The sound of the explosions was heard in the city of Tyre and several surrounding villages," the NNA added.

AFP correspondents saw large clouds of smoke emerge from the largely destroyed town after the loud explosion was heard.

An Israeli court on Monday released on bail a Palestinian-American journalist detained for nearly two weeks on charges including working for Iran, her lawyer said.

An AFP journalist saw Naqaa Hamed, who has contributed to Iran's state-run Press TV, being released at a checkpoint near Jenin in the occupied West Bank.

Hamed's lawyer Khaled Mahajneh told AFP that an Israeli military court released her on bail of 8,000 shekels (about $2,600) and on condition she comply with future summons for questioning.

Mahajneh said that Hamed had spent "two weeks of detention under difficult conditions at Damon prison" in the northern Israeli city of Haifa.

The Israeli military arrested Hamed on September 15 at a checkpoint near Bethlehem as she was returning from a reporting assignment for Turkish broadcaster TRT, according to her family and a journalist who was accompanying her at the time.

Press TV reported on her arrest and release and described her as its West Bank correspondent.

Colleagues said Hamed, who holds US citizenship, had stopped working with Press TV about a month earlier and had become a freelance journalist.

The Israeli government considers Press TV to be a propaganda arm of Iran's cleric-run government, which Israel and the United States attacked in late February.

Mahajneh said the investigation into Hamed focused on "a clause concerning incitement against settlers and the Israeli army, a clause concerning contact with a foreign agent, and providing news and information to news agencies described as hostile under Israeli criteria".

"We tried to refute all the suspicions and charges they tried to pin on her by arguing that her work was purely journalistic, clear and legitimate," over four court hearings, Mahajneh said.

Iran's embassy in London said Monday it "categorically rejects and strongly condemns" speculation that Tehran was involved in a bomb scare near a UK military airbase used by the US.

In an X post, the embassy criticised "the recent unfounded and malicious speculations published by some British individuals and media outlets attempting to link Iran" to the incident early Sunday near the Royal Air Force (RAF) Fairford base.

Five men, all British nationals in their mid-20s, have been arrested and UK counter-terrorism police are leading the probe.

Oil futures surged more than four percent on Monday, alongside gains for natural gas and diesel prices, after US President Donald Trump rejected Iran's offer of a seven-day truce.

High inflation concerns lifted government bond yields as markets bet on the US Federal Reserve hiking interest rates in October after already tightening this month, supporting the dollar.

European stock markets steadied in midday deals after a mixed showing across Asia, with markets also reacting to Washington and Beijing extending their trade truce at the end of last week.

"There was renewed strength in oil prices after comments from President Trump that he had rejected Iran's latest proposal to reopen the Strait of Hormuz," noted AJ Bell investment director Russ Mould.

With no sign of an imminent end to the US-Israel-Iran war, European natural gas prices also won support on Monday, while average diesel prices in the UK hit a record high just shy of two pounds ($2.65) per litre, according to the RAC motoring organisation.

On the downside, "gold prices have slumped from their summer highs as investors have reacted to the stronger dollar - which makes the metal more expensive for non-dollar buyers", Mould explained.

Iran has lodged a complaint with the United Nations over US sanctions against its aviation sector that have forced the cancellation of flights, state media reported Monday.

This month the United States imposed restrictions on the entire aviation industry in Iran and vowed to take a hard line against companies that assist it.

As the sanctions took effect last Wednesday, major airlines were forced to cancel international flights after several countries implemented bans.

"To defend the legitimate rights of the aviation industry and counter illegal restrictions imposed by America, Iran has drafted and submitted a formal protest to the International Civil Aviation Organisation (ICAO)," said civil aviation chief Abouzar Shiroudi, according to Iran's official IRNA news agency.

The ICAO is a UN agency based in Montreal, Canada that sets and regulates standards for civil aviation.

"In cooperation with the foreign ministry, we have also filed a complaint with the International Court of Justice at The Hague," Shiroudi added.

Oil prices spiked with bond yields as Trump's rejection of an Iranian offer of a seven-day truce stoked inflation concerns, while stocks were mixed as traders look ahead to the release of key US data.

Tehran last week set out a plan at the UN General Assembly for a halt in hostilities that would see the Strait of Hormuz reopened, which would ease a crippling supply crisis that has jacked up costs around the world.

The waterway is key to the world's energy supply and is now central to the conflict between the US and Iran, particularly with Houthis seizing Yemen's entire Red Sea coast, including the Bab al-Mandab Strait, a vital shipping lane.

Iran was still standing by its conditions for reopening the Strait, including the release of frozen assets, the lifting of sanctions on its oil and an end to the US naval blockade.

Oil prices, which fell more than two percent Friday on news of the offer, bounced back at the start of the new week, with Brent surging more than three percent back above $107 a barrel

Saudi Foreign Minister Faisal bin Farhan bin Abdullah has arrived in Washington, DC, for an official visit, Saudi state news agency reports.

He is due to meet US Secretary of State Marco Rubio to discuss bilateral relations and key regional and international developments.

Brent crude jumped more than three percent Monday after Donald Trump rejected an Iranian offer of a seven-day truce that Tehran said would see it reopen the Strait of Hormuz.

The contract climbed 3.1 percent to $107.51 in afternoon Asian trade, while West Texas Intermediate climbed 2.1 percent to $94.32, putting fresh upward pressure on inflation.

UAE travellers are starting the week with continued flight disruption after a weekend of cancellations across Dubai, Abu Dhabi and Sharjah, with multiple delays again reported on Monday morning.

Emirates and Etihad continue to operate most services, but several flights are running late, while flydubai and Air Arabia have cancelled services on some regional routes.

Travellers are being advised to check their individual flight status before leaving for the airport, as schedules remain subject to change amid renewed regional tensions. Recent reporting also shows airlines gradually restoring UAE services while keeping some routes suspended into October and beyond

Oil prices spiked with bond yields Monday as Donald Trump's rejection of an Iranian offer of a seven-day truce stoked inflation concerns, while stocks were mixed as traders look ahead to the release of key US data.

Tehran last week set out a plan at the UN General Assembly for a halt in hostilities that would see the Strait of Hormuz reopened, which would ease a crippling supply crisis that has jacked up costs around the world.

The waterway is key to the world's energy supply and is now central to the conflict between the US and Iran, particularly with Houthis seizing Yemen's entire Red Sea coast, including the Bab al-Mandab Strait, a vital shipping lane.

However, the US president told reporters outside the White House "I reject their proposal".

Still, he told Axios that he expects negotiations to resume.

"They want to make a deal, but it is not the deal that I want to make," he told the news platform. "It is what we would have maybe agreed to a year ago."

"They overplayed their hand," Trump added, in the interview published Sunday.

Citing sources familiar with the matter, Axios reported that indirect talks between Washington and Tehran could take place as early as Monday.

Crude oil exports from key Middle Eastern producers climbed to 12.8 million barrels per day in September, their highest level since the US-Israel war on Iran began, Reuters reports, citing maritime intelligence firm Kpler.

The increase was driven by higher shipments from Saudi Arabia and the UAE, although exports remain below the 18.8 million bpd recorded in February, before the conflict began.

Shipments through the Strait of Hormuz have also picked up, with flows expected to reach about 7.4 million bpd this month, Reuters reported.

Iranian Foreign Minister Abbas Araghchi said Tehran remains open to diplomacy while warning that it will stand firm against any aggression.

In a post on X, Araghchi said he and President Masoud Pezeshkian had travelled to New York to pursue peace rather than promote war.

He added that Iran was prepared for 'real diplomacy' but would remain steadfast even in the event of what he described as an 'apocalyptic war'.

Despite President Donald Trump's rejection of Iran's proposal, “positive and constructive” US-Iran discussions were continuing through mediators, including on nuclear issues, Axios reported.

The report indicated that talks between Washington and Tehran are "still possible" despite Trump's "no", and saying Iran had “overplayed its hand”.

Qatar has emerged as the principal intermediary in the latest effort.

Read more here.

Talks between Washington and Tehran are "still possible" despite Trump's rejection of Iran's proposal, and the US president saying Iran had “overplayed its hand”.

“Positive and constructive” discussions were continuing through mediators, including on nuclear issues, American official told Axios.

It indicates that while Trump rejected the proposal, not necessarily the diplomatic channel itself. Qatar has emerged as the principal intermediary in the latest effort.

According to Axios, Qatar's prime minister met Iranian President Masoud Pezeshkian in New York last Thursday and discussed the potential deal with the Trump administration. Senior Qatari officials subsequently met Witkoff and briefed him.

Qatari mediators then discussed Iran's original proposal with both sides and reportedly produced a compromise proposal for Washington and Tehran to consider. Over the weekend, Qatari officials continued shuttling between the two sides over changes to the proposed text.

UK police said Sunday that five men arrested in the middle of the night near an air base used by the United States during its war against Iran are being held on suspicion of preparing a terrorist act that appeared to involve three trucks.

London's Metropolitan Police, which takes the lead on potential terrorism activities, said local police received a call at 12:45 a.m. related to the three suspicious vehicles that appeared to be traveling toward RAF Fairford, a UK-owned base that is operated by the US under an agreement dating back to the Cold War.

Another round of indirect US-Iran dialogue could happen as early as Monday, September 28, Axios reported, citing a US official and two regional sources.

Qatari mediators are shuttling between the two sides and were expected to meet separately with Iranian Foreign Minister Abbas Araghchi and US envoy Steve Witkoff.

The talks would be indirect, meaning US and Iranian officials would not necessarily sit across the same table. Qatar would carry messages between the two sides.

Day 212: Trump expects talks with Iran to resume in coming week

Day 211: US military activity surges around Strait of Hormuz

Day 210: Trump discusses Iran conflict with Xi Jinping

Day 209: Iran's Pezeshkian vows no surrender as US talks loom

Day 208: Trump tells Arab leaders Iran deal gaining momentum

Day 207: Trump says US, Iranian officials had 'productive' talks

Day 206: Iran warns it will change war’s ‘geography’ if invaded