US-Iran Engagement Signals Talks as Strait of Hormuz Traffic Falls to Low Levels

Daily News

Summary:

Iran’s foreign minister meets with the US special envoy in New York; the number of merchant vessels transiting the Strait of Hormuz falls to just two...

【Highlights】

1. Iran’s foreign minister meets with the US special envoy in New York

2. Trump: Talks with Iran are ongoing, and the two sides may reach an agreement

3. Houthis warn Egypt, Türkiye and Pakistan of a possible plan to drag them into the war, accusing Saudi Arabia of involvement

4. Barkin: US economy is growing increasingly stronger, while inflation risks remain dominant

5. Only two merchant vessels transit the Strait of Hormuz

6. Fed’s monetary policy toolkit remains effective, with Treasury bill purchases to be adjusted based on market needs

【Details】

Iran’s Foreign Minister Meets with US Special Envoy in New York

According to Iranian state media, Iranian Foreign Minister Abbas Araghchi met with US presidential envoy Steve Witkoff in New York on September 22 local time on the sidelines of the 81st session of the United Nations General Assembly.

Iranian sources said the meeting was held at the request of the US side. Iran agreed to Witkoff’s request for a meeting in order to convey its conditions for reopening the Strait of Hormuz. During the meeting, Iran reiterated its firm position to US representatives.

According to reports, Iran’s conditions for reopening the Strait of Hormuz include the immediate lifting of the US maritime blockade, the immediate unfreezing of all Iranian assets, and an end to military operations across the region.

US news outlet Axios reported that the US-Iran talks lasted approximately three hours.

Trump: Talks with Iran Are Ongoing and the Two Sides May Reach an Agreement

US President Donald Trump said Iran and the United States held talks on Tuesday and that he believes the two countries will ultimately reach an agreement.

Speaking after meeting with UK Prime Minister Burnham during the United Nations General Assembly in New York, Trump said, “I think they’re going to make a deal. They want to talk to us. They’ve been talking to us, and they’re talking to us even today. The relationship is developing.”

He added that the United States could not allow Iran to have nuclear weapons, saying that Iran understands this as well.

Houthis Warn Egypt, Türkiye and Pakistan of Possible Plan to Drag Them into War, Accusing Saudi Arabia of Involvement

According to Iran’s Nour News, Mohammed Farah, a member of the political office of Yemen’s Houthi movement, warned Egypt, Türkiye and Pakistan that there was a plan to drag these countries into war and internal conflict, alleging that Saudi Arabia was playing a role in the process.

He said such a scenario could exhaust the resources and capabilities of these countries while weakening and fragmenting their domestic social structures.

Farah said attacks by the “enemy” against Iran would not necessarily be confined to Iranian territory and that Egypt, Türkiye and Pakistan could potentially become the next targets. He argued that the three countries hold important positions in the Islamic world, and that their power and influence could serve as a barrier to what he described as Israel’s plans.

Barkin: US Economy Growing Increasingly Stronger, Inflation Risks Still Dominant

Richmond Fed President Thomas Barkin said on Tuesday that, even if the US economy has changed in some respects, it is becoming increasingly stronger.

Consumer spending continues to grow, while economic activity outside the artificial intelligence boom is also showing strength. This is prompting the Federal Reserve to keep its policy focus on controlling inflation.

Barkin said higher interest rates, along with the prospect of further rate increases, could restrain businesses’ inflation expectations and help moderate price increases as companies prepare their budgets for the coming year.

Only Two Merchant Vessels Transit the Strait of Hormuz

Preliminary data released by vessel-tracking firm Kpler on September 22 showed that only two merchant vessels transited the Strait of Hormuz on September 21, down from 10 vessels the previous day.

The vessels consisted of a Panama-flagged bulk carrier carrying mineral products and a Liberia-flagged bulk carrier.

The figures do not include vessels that may have switched off their Automatic Identification Systems (AIS) to avoid being tracked.

Fed’s Monetary Policy Toolkit Remains Effective, Treasury Bill Purchases to Be Adjusted Based on Market Needs

Perry, manager of the System Open Market Account at the Federal Reserve Bank of New York, said the Fed’s monetary policy toolkit continues to operate very effectively.

“We have maintained very strong control over interest rates, kept reserves within an ample range, and our Treasury bill purchases have also proceeded smoothly,” he said.

He also said the Fed’s recent efforts to add liquidity to the financial system, which are currently on hold, are not following a predetermined path. This suggests the central bank could resume Treasury bill purchases if it determines that additional liquidity is needed to support market functioning.

He added that so-called Reserve Management Purchases (RMPs) of Treasury bills would be adjusted according to market liquidity needs.

【Today’s Key Events】

15:00 (UTC+8) ECB Vice President Boris Vujčić Speaks

15:15 (UTC+8) France September Manufacturing PMI Preliminary

15:30 (UTC+8) Germany September Manufacturing PMI Preliminary

16:00 (UTC+8) Eurozone September Manufacturing PMI Preliminary

16:30 (UTC+8) UK September Manufacturing PMI Preliminary

21:45 (UTC+8) US September S&P Global Manufacturing PMI Preliminary

00:30 (UTC+8) ECB Chief Economist Philip Lane Speaks

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