Commodities September 22, 2026 08:16 AM

Iran Signals Possible Hormuz Deal at UN as Gulf Leaders Meet with US

Tehran says it could reopen the Strait of Hormuz within days if Washington lifts its blockade, while Gulf states weigh security and economic trade-offs

By Derek Hwang
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A senior Iranian official said Iran could reopen the Strait of Hormuz to Gulf shipping within days if the United States removes its blockade, describing upcoming United Nations meetings as a key chance to renew diplomacy. With both presidents expected at the UN General Assembly, Tehran says its delegation has authority to restart talks and has transmitted a proposal to Washington. Regional tensions and Houthi advances in Yemen continue to pose risks to oil routes and market stability.

Iran Signals Possible Hormuz Deal at UN as Gulf Leaders Meet with US
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Key Points

  • Iran has indicated it could reopen the Strait of Hormuz to Gulf shipping within days if the US lifts its blockade; Iran says it has sent a proposal to Washington via mediators on September 16.
  • Gulf leaders meeting with the US president are focused on restoring shipping through the Strait of Hormuz, while remaining wary of increasing Iran's regional influence; Saudi Arabia has been drawn deeper into conflict due to Houthi advances in Yemen.
  • Fighting in Yemen, including Houthi efforts to seize the Kahboub Mountains and threats to Bab el-Mandeb, is disrupting shipping routes and has displaced more than 130,000 people this month, affecting energy and maritime sectors.

A senior Iranian official said on Tuesday that Iran could permit Gulf shipping to resume passage through the Strait of Hormuz within days if the United States lifts its blockade, calling the United Nations General Assembly meetings a "golden opportunity" to restore diplomacy between the two countries.

The official indicated that Iran's delegation heading to the UN carries full authority to reopen dialogue with Washington, but added that no direct meetings between the two presidents are planned during the assembly. Both presidents are due to attend the General Assembly in New York, marking the first time they will share the same international forum since the United States launched "Operation Epic Fury" in February.

According to the official, Iran sent its most recent proposal to Washington through intermediaries on September 16. He said the United States must make an explicit diplomatic overture - to announce that it seeks a diplomatic resolution, formalize that intention, and agree a timeline for moving the process forward - before Iran would take reciprocal steps to lift its restrictions on shipping through the Strait.

Separately, US Secretary of State Marco Rubio said on television that the United States was open to talks with Iran at the General Assembly, noting that discussions would be welcomed particularly if they offered the prospect of reaching a positive outcome and advancing stated objectives.


Gulf leaders are gathering in New York this week for meetings with the US president. He is scheduled to meet with leaders of the six Gulf Arab states - Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the United Arab Emirates - countries that share a strong interest in restoring normal shipping through the Strait of Hormuz but remain cautious about empowering Iran.

All of those Gulf states except Oman host large US military bases that have been targeted repeatedly during the conflict, a dynamic that has strained long-standing security ties with Washington. Saudi Arabia, the region's largest oil producer, has become more deeply involved in the conflict this month as Houthi forces aligned with Iran have advanced in Yemen, routing forces of a Saudi-backed government and threatening Saudi oil exports through the Red Sea.

Markets saw some relief on Tuesday after sources indicated that Saudi Arabia had restarted operations at its East-West Pipeline and could resume exports from the Red Sea port of Yanbu within hours, although at reduced volumes. The East-West Pipeline serves as Saudi Arabia's primary alternative route to bypass disruptions in the Strait of Hormuz. It had been shut down after attacks on September 10 that Riyadh blamed on Iran-aligned actors.

Houthi forces in Yemen have been pursuing control of strategic terrain that would strengthen their ability to threaten maritime routes. They are pushing to seize the heights of the Kahboub Mountains, positions that overlook the western coastline and Bab el-Mandeb - the southern gateway to the Red Sea - potentially improving the Houthis' capacity to exert influence over the strait and coastal areas.

The rugged topography of the Kahboub area also presents tactical advantages for the Houthis, enabling fighters to remain more concealed from drones and air strikes than they would be on the coastal plains. The recent fighting has already displaced more than 130,000 people during the month, and the UN refugee agency warned that tens of thousands more could be forced from their homes if the campaign continues.

Despite repeated requests from Saudi Arabia for US military intervention against the Houthis, the United States has so far declined to re-engage directly. A separate report indicated that planned US strikes against the Houthis were called off at the last minute on Sunday after forces had begun preparing munitions.


Regional efforts to reduce tensions are appearing alongside the heightened security concerns. A proposal from Qatar is reportedly on the table in discussions with the Gulf states and the United States. The Qatari proposal seeks a regional security framework that would bring Iran and the Arab Gulf states into a common architecture, according to statements made by Qatar's prime minister during a forum in New York.

That Qatari official said any such arrangement would need to include security guarantees for the Gulf states and expand economic interdependence with Iran. Another regional source indicated that Iran is reviewing the Qatari proposal.

Meanwhile, the intensifying campaign in Yemen continues to affect regional stability and maritime commerce. The Houthis' focus on strategic heights and control of maritime chokepoints could have lasting implications for shipping, insurance costs, and energy markets if the situation does not de-escalate. The humanitarian toll from the fighting, reflected in the recent large-scale displacement, adds another layer of uncertainty to the conflict environment.

As leaders converge at the UN General Assembly, the narrow window for renewed diplomacy and potential practical steps to reopen vital shipping lanes remains open but conditional. Tehran has signaled readiness to engage if Washington first formalizes a diplomatic intent and agrees to a timeline, while Gulf states weigh the balance between restoring maritime commerce and preserving regional security arrangements.

Risks

  • Reopening the Strait of Hormuz depends on a formal diplomatic step by the United States and an agreed timeline - without that, shipping and oil markets could remain disrupted, affecting oil producers and maritime insurers.
  • Continued Houthi advances in Yemen and their campaign to control strategic high ground near Bab el-Mandeb could further threaten Red Sea shipping and Saudi exports, increasing costs and logistical challenges for global energy markets.
  • Gulf states' reluctance to empower Iran while seeking restored shipping leaves regional security architectures fragile; strained security partnerships and varying responses from the United States raise uncertainty for defence and energy sectors.

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