Good morning.
President Donald Trump has rejected Iran’s latest terms for reopening the Strait of Hormuz, while saying he expects negotiations to resume this week.
Iran has kept its seven-day proposal in place. Tehran says it will reopen the strait if Washington grants sanctions relief, releases frozen funds and ends what Iran describes as the blockade of its ports.
That leaves the diplomatic channel open, with the two sides still divided over the price and sequence of reopening the world’s most important oil chokepoint.
Washington has also publicly thanked the UAE for supporting its pressure campaign against Iran. Saudi Arabia, meanwhile, intercepted another round of Houthi attacks over the weekend, and schools in Riyadh have moved classes online for the week.
Closer to home, the UAE used its first Investment Majlis in New York to promote its logistics ambitions. Etihad Rail’s Al Yalayis station opens in Dubai on Wednesday, with fares to Abu Dhabi from Dh39.
Trump rejects Iran’s terms
Trump rejected Iran’s latest proposal for reopening the Strait of Hormuz on Saturday, then said on Sunday that he expected negotiations to resume this week.
Iran has retained its offer to reopen the strait within seven days. Its conditions include sanctions relief, the release of frozen funds and an end to what Tehran calls the US blockade of Iranian ports.
Foreign Minister Abbas Araghchi said Tehran had seen Trump’s public reaction but was still waiting for a definitive US response through mediators Qatar and Pakistan. He said negotiations offered the only way through the dispute, while questioning why Iran should re-engage after repeated US attacks.
Trump said Iran was seeking terms Washington might have accepted a year earlier and had overplayed its hand. His expectation of further talks nevertheless keeps the diplomatic channel open.
The disagreement now centres on what Washington must concede, when Iran would reopen Hormuz and how either side could enforce a deal. Iran has added a warning at sea: armed forces spokesman Abolfazl Shekarchi said Tehran would not guarantee the safety of ships using routes outside those it has designated.
For the UAE, the practical test is the return of predictable commercial traffic. An agreement on paper will matter only when shipowners, insurers and crews are prepared to use the strait again.
The argument over Hormuz is taking place alongside a second source of pressure: Washington’s effort to restrict Iran’s access to banks, airlines and oil revenue.
Washington credits the UAE
US Treasury Secretary Scott Bessent has publicly thanked the UAE, the UK, Türkiye and Oman for supporting Washington’s economic pressure on Iran.
For the UAE, the confirmed step is the Central Bank’s prohibition involving Bank Melli Iran. Bessent’s remarks identify Abu Dhabi as a partner in the campaign at a sensitive point in the negotiations over Hormuz.
Iran has also clarified its response to regional restrictions on its airlines. The Supreme National Security Council said Tehran did not plan military retaliation, although it left open the possibility of reciprocal measures against some airports.
That reduces the immediate threat to regional aviation but does not resolve the underlying dispute. Gulf governments and companies still face competing pressure from US sanctions and Iranian warnings.
Iraq is seeking an exemption for Iranian flights, which shows how uneven enforcement may become. The next useful signal will come from the airports and service providers that must decide whether to handle Iranian aircraft, payments and passengers.
Financial pressure may shape the negotiations, but the weekend’s military activity showed why Saudi Arabia is taking precautions at home.
Riyadh schools move online
Schools in Riyadh have told parents that classes will move online from Sunday to Thursday. Saudi authorities have not publicly explained the decision.
The change follows another weekend of Houthi attacks. The Saudi-backed coalition said its air defences intercepted two drones sent towards Riyadh and a ballistic missile aimed at Khamis Mushait.
Air-raid alerts returned to the Saudi capital this month after a long absence. Moving lessons online gives families certainty during the school day, even without an official statement linking the measure to the attacks.
The military chiefs of Saudi Arabia, Pakistan and Türkiye also met in Riyadh on Friday and reaffirmed their defence co-operation. The meeting shows Saudi Arabia drawing those partners more closely into its security planning as attacks continue from Yemen.
The UAE read-through is direct. Further escalation could affect regional airspace, insurance and business travel, even when Emirati territory is not the target.
The same tension is visible in the oil market, where Friday’s settlement preceded Trump’s rejection and Iran’s latest shipping warning.
Oil awaits Monday’s verdict
November Brent settled at $104.32 a barrel on Friday, down 2.1% on the day but less than 1% higher over the week.
Prices fell on hopes of a truce before Trump rejected Iran’s latest terms. Monday’s Asian opening will provide the first market response to that rejection and to Tehran’s warning over shipping routes.
Kpler tracked 33.7 million barrels of crude passing through Hormuz from 20 September, according to figures reported by Reuters. The volume shows that oil continues to move, although traffic remains far below normal and exposed to sudden disruption.
Brent’s premium over West Texas Intermediate has widened as traders price in more risk to supplies benchmarked to the international benchmark. For the UAE, the duration of that premium matters more than a single day’s move: sustained prices above $100 support oil revenue while adding transport, insurance, and import costs.
The war has disrupted established trade routes. In New York, the UAE used a new forum to argue for more resilient ones.
UAE holds first Investment Majlis
Sheikh Abdullah bin Zayed attended the first UAE Investment Majlis in New York on the sidelines of the UN General Assembly.
The Ministry of Foreign Affairs and the Ministry of Investment convened the meeting around resilient supply chains and smart logistics. Discussions included the India-Middle East-Europe Economic Corridor and the infrastructure needed to move goods, data and energy across several markets.
No deals were announced. The significance lies in the forum itself: the UAE is placing logistics and supply-chain investment inside its diplomatic programme rather than leaving the subject solely to ports, airlines and sovereign investors.
The timing is deliberate. Disruption in Hormuz, attacks on Saudi infrastructure and pressure on regional aviation have made redundancy a current business problem. The UAE’s pitch is that its ports, free zones, airlines and capital can help companies build alternative routes.
New corridors take years to finance and build. This week, UAE residents get a more immediate transport change.
Dubai’s Etihad Rail station opens
Etihad Rail’s Al Yalayis station in Dubai opens on Wednesday, 30 September, alongside Al Dhaid station in Sharjah.
Comfort fares from Dubai to Abu Dhabi start at Dh39, while Premium tickets start at Dh109. The first service is scheduled to leave at 6.14 am and arrive at 7.18 am, giving a journey time of 64 minutes.
Etihad Rail plans five return services on opening day. The schedule will matter as much as the headline journey time: commuters need departures that fit the working day and reliable connections at both ends.
The station is near Jumeirah Golf Estates Metro station, although passengers should check the precise pedestrian connection and onward transport before travelling. Nol cards will not be accepted at launch, so tickets must be bought through Etihad Rail’s available sales channels.
The Dh39 fare is the useful number. It gives residents a new alternative to driving and intercity buses, and it begins the real test of whether passenger rail can change daily movement between Dubai and Abu Dhabi.
What to watch
The first oil-market response to Trump’s rejection and Iran’s shipping warning.
A formal US reply to Tehran through Qatar or Pakistan.
Further Houthi activity against Riyadh, Khamis Mushait or Saudi energy infrastructure.
Any new UAE measures involving Iranian banks, airlines or service providers.
Ticket availability and onward connections before Al Yalayis opens on Wednesday.
The negotiations are still moving, even if Hormuz is not. By Wednesday, at least one important UAE route should be.
That is enough diplomacy, oil and railway timetables for one Monday morning.
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I had better sign off before either Washington or Tehran changes the lead again.
Have a good Monday.
Steve
AI-supported research, fact-checking, and editing. Steve Moore reviewed and approved the final copy before publication.