Iran Rejects Concessions to the US as Reopening of the Strait of Hormuz Hits Another Impasse

Daily News

Summary:

Iran says it will not make concessions to the US on its established conditions and no longer trusts dialogue with Washington; Hammack says the rise in Treasury yields is not driven by a loss of confidence in the inflation outlook...

【Highlights】

1. Iranian foreign minister to return home Tuesday, with no new round of talks with the US scheduled

2. Oman says it will continue efforts to ensure safe passage through the Strait of Hormuz

3. Saudi Arabia's September oil exports hit their highest level since the war with Iran began, surging nearly 80% month on month

4. Iran says it will not make concessions to the US on its established conditions and no longer trusts dialogue with Washington

5. Iranian foreign minister says Tehran is awaiting mediators' response on its plan to reopen the Strait of Hormuz

6. Hammack says rising Treasury yields are not driven by a loss of confidence in the inflation outlook

【Details】

Iranian Foreign Minister to Return Home Tuesday, With No New Round of Talks With the US Scheduled

According to Iran's Islamic Republic News Agency (IRNA), a source denied conflicting reports that Iran and the United States were holding talks in New York.

The Iranian delegation is currently in New York to attend the United Nations General Assembly. The source said Iran's considerations and position had already been clearly conveyed to the United States through Qatari mediators last Tuesday, and Tehran is now waiting for a response from Washington.

As a result, no new round of negotiations between the Iranian and US delegations has been scheduled. Iranian Foreign Minister Abbas Araghchi is expected to return home on Tuesday after completing his planned engagements.

Oman Says It Will Continue Efforts to Ensure Safe Passage Through the Strait of Hormuz

On September 26 local time, Omani Foreign Minister Badr Al Busaidi said in an address to the 81st United Nations General Assembly that Oman would continue its efforts to ensure the safety of navigation through the Strait of Hormuz.

Badr also called on all parties to cooperate with Oman to ensure freedom of passage through the strait in accordance with international law.

The United States and Israel jointly launched what they described as a "preemptive" military strike against Iran on February 28, prompting Iranian retaliation. Shipping through the Strait of Hormuz remains disrupted, severely affecting crude oil exports.

In a joint statement issued on August 25, Iran and Oman said they planned to establish a mutually agreed safe maritime corridor through the Strait of Hormuz. The two countries also stressed the need to consult with other Gulf states, comply with applicable international law, and respect the sovereign rights of coastal states.

Saudi Arabia's September Oil Exports Hit Their Highest Level Since the War With Iran Began, Surging Nearly 80% Month on Month

According to data from commodities intelligence firm Kpler, Saudi Arabia's crude oil exports surged this month despite a sharp escalation in its conflict with Yemen's Houthi movement.

Saudi Arabia's average daily crude exports reached 6 million barrels in September, the highest level since the war with Iran began about seven months ago. The country's crude export volumes have returned to their monthly average for 2025.

Despite being forced to shut down a key East-West oil pipeline this month following drone attacks launched from Iraq, Saudi Arabia still managed to significantly increase its crude exports. September exports surged nearly 80% from 3.4 million barrels per day in August.

Kpler data showed that the seven-day average of oil exports through the Strait of Hormuz reached 13.2 million barrels per day on Wednesday, compared with about 17 million barrels per day before the Iran conflict disrupted shipping.

Matt Smith, Kpler's head of commodity research, said the sharp increase in Gulf crude exports was partly driven by the pipeline shutdown, which forced producers to rely more heavily on seaborne routes. However, he said the increase also suggests that confidence in using the Strait of Hormuz is improving as vessel traffic picks up.

Iran Says It Will Not Make Concessions to the US and No Longer Trusts Dialogue With Washington

Iranian Foreign Minister Abbas Araghchi said on September 27 that Iran would not make concessions to the United States on its established conditions.

He said reopening the Strait of Hormuz depends on whether Iran's conditions are met, and that any progress toward reopening the waterway would likewise depend on the implementation of those conditions. Iran, he said, would not compromise on these issues.

Tehran has received an initial response from Washington to its proposal but has yet to receive any specific message from the mediators. Iran is waiting for the mediators to convey the final US position and will make its decision accordingly.

Meanwhile, Iranian President Masoud Pezeshkian told Al Jazeera that Iran no longer trusts dialogue with the United States because Washington has launched attacks and imposed sanctions after each round of negotiations.

Pezeshkian said Qatar and Pakistan are currently mediating between Iran and the United States. The negotiations are based on a memorandum of understanding previously signed with the United States, and Washington must clarify its position on the agreement.

Iranian Foreign Minister Says Tehran Is Awaiting Mediators' Response on Plan to Reopen the Strait

Iranian Foreign Minister Abbas Araghchi said on social media on September 26 that during the UN General Assembly, Iran had fully and in detail conveyed to the United States, through mediators, the conditions set by Iran's Supreme National Security Council for reopening the Strait of Hormuz and advancing negotiations.

Tehran is now waiting for the mediators to convey Washington's final position.

Araghchi wrote on social media that Iran had defended its position, policies and established conditions in all of its meetings. He said the plan proposed by Iran had been conveyed to the United States through mediators.

Iran had seen the initial response from the US president, but the mediators had not yet passed any further information to Tehran. Iran is waiting for the mediators to convey the final response and will make a decision accordingly.

Araghchi said Iran's conditions were clear and that any move to reopen the Strait of Hormuz must be contingent on those conditions being met. Iran, he said, would not back down.

He added that only diplomatic negotiations could break the deadlock, and that Iran had never closed the door to diplomacy or negotiations, nor had it abandoned its rights.

Iran has conveyed a plan to the United States through Qatar for reopening the Strait of Hormuz. If Washington takes the necessary steps under the plan, the strait could be reopened within seven days and normal maritime traffic restored.

According to Araghchi, the steps required of the United States are not new conditions but commitments Washington had already made under the Iran-US memorandum of understanding signed in June.

US President Donald Trump said on September 26 that he had rejected Iran's proposal to reopen the Strait of Hormuz. In an interview with the media, Trump said the United States had full control of the Strait of Hormuz and that large volumes of oil were continuing to flow through the waterway.

Hammack Says Rising Treasury Yields Are Not Driven by a Loss of Confidence in the Inflation Outlook

Cleveland Fed President Beth Hammack said on Saturday, September 26, that the recent sharp rise in Treasury yields was not driven by a loss of market confidence in the outlook for lower inflation.

Instead, she said, the increase was mainly driven by higher real interest rates, a stronger economic outlook, fiscal policy and competition among investors for available capital.

Inflation expectations remain broadly well anchored, Hammack said, but inflation that remains above the Federal Reserve's 2% target continues to impose real costs and could affect economic planning and wage pressures.

She said the biggest inflation risk at present is the emergence of an "inflationary mindset," in which the public begins to believe that high inflation will persist for an extended period.

With inflation having remained above the Fed's target for several consecutive years, the central bank needs to ensure that monetary policy remains restrictive enough to bring inflation back toward its 2% target.

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