US, Iran hint at talks even as sanctions tighten and Hormuz tensions stay high

The developments centered on the loss of international oversight of Iran’s nuclear material, mounting restrictions and threats involving shipping through Hormuz, and a new round of regional military activity that prompted Saudi emergency alerts and high-level talks with the head of US Central Command.

IAEA warns of serious proliferation concern

The International Atomic Energy Agency has carried out no in-field verification activities in Iran for more than six months, except for an inspection of the Bushehr nuclear power plant in June, Director General Rafael Grossi said at the agency’s General Conference in Vienna.

Grossi said the IAEA withdrew its inspectors after renewed attacks on Iran in late February, worsening a decline in oversight of Tehran’s nuclear program during 2026.

The agency has also lacked continuity of knowledge for more than a year regarding Iran’s previously declared inventories of low- and highly enriched uranium, including material enriched to 60% purity, at nuclear facilities affected by attacks in June 2025.

“The Agency’s lack of information about this nuclear material and access to facilities to verify it is a matter of serious proliferation concern and needs to be addressed with the utmost urgency,” Grossi said.

He called a return to diplomacy and negotiations over Iran’s nuclear program “imperative,” warning that the situation had consequences for the wider global non-proliferation system.

The remarks came as Iran summoned Austria’s chargé d’affaires over Vienna’s failure to issue a visa to Mohammad Eslami, the head of the Atomic Energy Organization of Iran. Foreign Ministry spokesperson Esmail Baghaei called the decision “completely unjustified” and said Tehran had formally protested.

Bloomberg reported earlier that Austria denied Eslami entry after pressure from the Trump administration, preventing him from addressing the IAEA conference. A US official cited by Bloomberg said Washington had urged Austria not to grant a UN-requested sanctions waiver that would have permitted the visit.

Iran threatens restrictions against 77 vessels

Maritime tensions also escalated as Iran’s Persian Gulf Strait Authority published an updated list of 77 vessels it accused of violating Iranian protocols governing passage through the Strait of Hormuz.

The authority warned that the vessels could face restrictions on future passage, including fines, detention or confiscation. Ships cooperating with vessels on the list would also be added, it said, while companies and other entities were warned not to provide services to them.

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  Hormuz diplomacy stalls as attacks deepen pressure on Persian Gulf oil routes

Iran’s Foreign Ministry said Tehran would continue taking what it considered necessary measures for as long as the United States maintained its maritime blockade.

Baghaei said security in the Strait of Hormuz was a matter for Iran and Oman as the two coastal states and blamed US actions for instability in the waterway. He said an understanding between Tehran and Muscat establishing safe shipping routes had been reached after weeks of negotiations while preserving the sovereign rights of both countries.

But a wider regional meeting planned in Oman had been postponed. Baghaei said it could have provided even a small step toward dialogue between Tehran and Persian Gulf countries, describing its postponement as a missed opportunity.

“Israel is the only beneficiary of tensions between Iran and Persian Gulf countries,” he said, calling on neighboring states to set aside past disputes and pursue regional dialogue.

Saudi Arabia had sought amendments to the Omani-Iranian proposal over concerns that its language could establish an unacceptable new status quo in the strait, Axios reported, citing a senior regional official.

The United States, meanwhile, said its forces had redirected 101 commercial vessels while enforcing the blockade against Iran as of September 13.

Shipping traffic through Hormuz remained sharply reduced over the weekend. Only four commodity vessels exited the Persian Gulf and 10 entered, Reuters reported, citing preliminary tracking data. Daily traffic fell to single digits, compared with a 10-day average of 14 vessels, although the figures excluded ships operating with their tracking transponders switched off.

The IRGC also said that it had detected and destroyed an advanced MQ-1 drone over the Strait of Hormuz using a new Aerospace Force air-defense system. It did not identify the drone’s operator, and the statement was not independently verified.

Houthis claim Saudi air-base attack

Yemen’s Iran-backed Houthis said they attacked an air base in Khamis Mushait in southwestern Saudi Arabia on Monday. Saudi authorities did not immediately confirm that a strike had occurred.

Saudi Arabia’s Civil Defense initially issued emergency alerts warning of potential danger in Khamis Mushait and nearby Abha, but announced shortly afterward that the danger had passed in both locations.

Saudi Crown Prince Mohammed bin Salman met US Central Command chief Admiral Brad Cooper to discuss the latest regional developments.

Elsewhere, missiles struck three camps belonging to Iranian Kurdish opposition groups east of Sulaimaniya in Iraq’s Kurdistan region early Monday, two security sources told Reuters. No casualties were reported, and the sources did not identify who carried out the attacks.

The latest round of tensions has added to pressure on energy markets and regional shipping. Brent crude rose more than $3 to above $108 a barrel at the opening on Monday following fresh strikes on Saudi Arabia and vessels in the Persian Gulf over the weekend.

Pressure was also evident in Iran’s currency market with the US dollar trading at 2.34 million rials, the euro at about 2.7 million rials and the British pound at 3.16 million rials by around midday Monday.

The postponement came as Washington and Tehran hardened their positions over what any future negotiations should cover. The Trump administration wants talks with Iran focused on Tehran’s nuclear program rather than reopening the Strait of Hormuz, CNN reported, citing three sources familiar with the matter.

Iran, meanwhile, has signaled that it would consider nuclear negotiations only after the dispute over the strait is resolved, including the lifting of the US naval blockade.

Omani Foreign Minister Badr Albusaidi said the meeting planned for Monday in Salalah had been postponed “in the interests of consensus.” Iran’s IRGC-affiliated Fars News later reported that Tehran and Muscat had jointly agreed to the delay at the request of some regional countries.

Saudi Arabia had submitted amendments to the Omani-Iranian proposal over concerns that its wording could establish a new status quo in the strait unacceptable to Riyadh and other GCC states, Axios reported Sunday, citing a senior regional official.

The disagreements have emerged despite a flurry of regional diplomacy. Qatar’s prime minister and Oman’s foreign minister discussed efforts toward a solution guaranteeing freedom of maritime navigation, while the foreign ministers of Kuwait and Saudi Arabia also discussed ensuring the safety and freedom of shipping through Hormuz.

US blockade remains in force

The United States has continued to tighten its maritime pressure on Iran even as regional states search for a diplomatic arrangement.

US Central Command said Sunday that American forces had redirected 101 commercial vessels to ensure compliance with the blockade against Iran, up from 100 a day earlier.

US officials told CNN they believe American forces currently have the military upper hand in the strait, but questions remain over how long Washington can sustain the large-scale escort and naval operation.

Iranian Foreign Minister Abbas Araghchi has said an agreement with Oman on shipping arrangements would not itself reopen the strait, insisting that reopening depends on Washington meeting Tehran’s demands.

President Donald Trump, meanwhile, said Sunday that Iran “wants to make a deal so badly” and suggested the war could end before or shortly after the US midterm elections.

Vessel strike adds to Hormuz risks

Security risks around the strait also intensified on Sunday after an Iranian commercial container ship was struck by an unidentified projectile near Hengam Island, off Qeshm.

Iranian authorities said one crew member was killed and four others wounded. UK Maritime Trade Operations separately reported a vessel struck by an unknown projectile in the Strait of Hormuz, followed by a fire and crew evacuation, though it was not officially confirmed that the two reports concerned the same vessel.

Several explosions of unknown origin were also reported later Sunday in Sirik, in southern Hormozgan province, according to Iranian state media.

Saudi oil route under pressure

The pressure on Hormuz has become more acute for Saudi Arabia after drone attacks forced it to shut its East-West oil pipeline, a critical route carrying crude from the kingdom’s eastern oilfields to the Red Sea.

The pipeline had been transporting around 4 million barrels per day and allowed Riyadh to bypass the disruption in Hormuz. Reuters reported that stocks at the Red Sea port of Yanbu may be sufficient to sustain exports for only five to seven days if the pipeline remains shut, after which as much as 4% of global oil supply could be at risk.

Oil prices rose sharply as markets reopened, with Brent climbing above $108 a barrel after fresh attacks on Saudi Arabia and shipping in the Persian Gulf.

The Iraqi government has meanwhile stepped up security measures after Saudi Arabia said drones used in the pipeline attack were launched from Iraqi territory. Baghdad has begun reopening several border crossings with Iran after temporary closures and security reviews, with commercial traffic through Shalamcheh expected to resume Monday.

Houthis tighten pressure at Bab el-Mandeb

Saudi Arabia is also facing growing pressure on its western flank as Yemen’s Iran-aligned Houthis expand their position around Bab el-Mandeb, the narrow waterway linking the Red Sea to the Gulf of Aden.

The Houthi advance along Yemen’s Red Sea coast has raised fears that Saudi oil exports diverted away from Hormuz could face disruption at a second chokepoint. The US Navy has remained on high alert as the Houthis move closer to Bab el-Mandeb.

The Houthis said Sunday that four commanders of Saudi-backed Yemeni forces were killed and five others wounded in operations near Bab al-Mandab, according to the group-run Saba news agency.

The combination of pressure at Hormuz, attacks on Saudi infrastructure and Houthi gains near Bab el-Mandeb is narrowing the region’s alternatives at a time when diplomatic efforts remain divided over the terms of any maritime settlement.

With the Oman meeting now postponed and Washington and Tehran publicly at odds over the agenda for negotiations, there is no clear timetable for a diplomatic breakthrough even as the economic and military costs of the conflict continue to rise.

The vessel was hit near Hengam Island, south of Qeshm Island, Qeshm Governor Hossein Amir-Teymouri told state-run IRNA. Ten crew members were aboard, he added.

One crew member, Jamshid Rajabi, was killed and four others injured. Iranian authorities have not identified the projectile or said who was responsible.

UK Maritime Trade Operations separately said a vessel transiting the Strait of Hormuz had been struck by an unknown projectile. A fire broke out and local authorities assisted with the crew’s evacuation, UKMTO added.

Neither UKMTO nor Iranian authorities have confirmed that the reports concerned the same vessel.

Iran rules out reopening Hormuz

The attack came a day before a regional meeting in Oman on a proposed maritime route through the Strait of Hormuz.

Iran will brief participating countries on an agreement with Oman and present maps of the proposed corridor, Foreign Minister Abbas Araghchi told Al-Araby Al-Jadeed.

“The agreement with the Sultanate of Oman does not in any way mean the reopening of the Strait of Hormuz,” Araghchi said.

Tehran would agree to reopen the waterway only if the United States returned to its commitments under the Islamabad memorandum, Araghchi added.

The strait has become a major front in the conflict, with the United States and Iran targeting vessels and disputing control over maritime traffic.

Meanwhile, hardline Iranian newspaper Kayhan called for a sharp expansion of retaliation against attacks on Iranian oil tankers, proposing that Tehran target multiple vessels for every Iranian tanker hit.

“The Islamic Republic of Iran must officially announce that, from now on, if one Iranian tanker is attacked, it will target all tankers in the Persian Gulf and the Gulf of Oman,” Kayhan wrote.

The newspaper, published under the supervision of supreme leader’s representative, argued that disabling large numbers of tankers could cause a global supply shortage and drive oil prices sharply higher.

Saudi-Houthi confrontation widens

Shipping risks have also increased on the other side of the Arabian Peninsula, where Yemen’s Iran-backed Houthis said they targeted Saudi military facilities with ballistic missiles and drones.

Houthi military spokesperson Yahya Saree said the group struck weapons depots and command facilities at a Saudi base in the southern Sharurah region in response to Saudi military operations in Yemen.

Saudi authorities did not immediately confirm the attack.

Iranian President Masoud Pezeshkian sought to distance Tehran from the confrontation.

“We are not at war with Saudi Arabia,” Pezeshkian said. “The Houthis have their own issues.”

His comments followed a drone strike on Saudi Arabia’s East-West oil pipeline, which Riyadh temporarily shut down. The route provides an alternative to shipping oil through the Strait of Hormuz.

Iraqi authorities said drones used in the pipeline strike were launched from Iraqi territory. Iraq subsequently seized 15 drone-launch platforms and pledged to prevent its territory from being used for attacks on neighboring countries, Al Arabiya reported.

The Houthi operations have raised the prospect of simultaneous disruption around the Strait of Hormuz and Bab el-Mandeb, two of the world's most important maritime energy routes.

Lawmakers raise nuclear withdrawal

Iranian politicians have meanwhile raised the possibility of withdrawing from the Nuclear Non-Proliferation Treaty following a resolution by the International Atomic Energy Agency’s Board of Governors.

Leaving the treaty and reconsidering Iran’s nuclear doctrine were “entirely attainable and readily achievable,” parliament presiding board spokesperson Abbas Goudarzi said.

Such measures would “put the United States and its lackeys in their place,” Goudarzi added.

However, two members of parliament’s National Security and Foreign Policy Committee said no legislation to withdraw from the NPT had been submitted to the panel.

Their accounts contradicted lawmaker Hosseinali Hajideligani, who earlier said several lawmakers had signed an expedited bill seeking withdrawal. Hajideligani has also called for tests needed to develop a nuclear weapon, arguing that Iran requires “atomic deterrence.”

A Foreign Ministry official separately said Iran had denied IAEA inspectors access to some nuclear sites following attacks by the United States and Israel.

Diplomacy continues at BRICS summit

Diplomatic contacts continued alongside the military and nuclear disputes, with Pezeshkian meeting Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed on the sidelines of the BRICS summit.

UAE presidential adviser Anwar Gargash said the meeting reflected Abu Dhabi’s approach of combining deterrence with diplomacy.

“Neither can function properly without the other,” Gargash said. “Deterrence strengthens the credibility of diplomacy, while diplomacy succeeds when it begins from a position of parity and capability.”

Gargash also praised Pezeshkian’s approach during the crisis, describing his positions as “balanced and rational.”

Araghchi separately released images of conversations with the foreign ministers of Russia, China, Egypt, Indonesia and Kazakhstan at the summit, without providing details of what was discussed.

Monday’s talks in Oman will take place with the Strait of Hormuz still closed and no responsibility established for Sunday’s deadly strike, leaving the proposed maritime corridor facing an immediate test of whether ships can use it safely.

Southern Iraqi exports are now about 33% below pre-war levels, the vessel-tracking service said, a dramatic improvement from April, when they were down 95%.

The recovery comes despite severe disruption to the Strait of Hormuz and a US naval blockade that has reshaped oil flows from the region.

TankerTrackers said not a single barrel of Iranian crude had crossed the blockade line between the Gulf of Oman and Arabian Sea over the past 60 days.

Iran's loss of export capacity does not appear to be creating the storage crunch that might normally follow such a collapse in overseas sales. TankerTrackers estimates Iranian production has fallen to roughly the level required for domestic consumption and refining, leaving little excess crude to store.

Oil finds new routes

Other data suggest producers and traders are adapting to the disruption.

Ship-to-ship transfers of crude in the Gulf of Oman averaged 7.15 million barrels per day over the past 14 days, TankerTrackers said, up 56% from the previous month.

The service also said some Arab producers have begun using tankers previously involved in sanctions-busting trades to move their oil.

“They can spoof their positions thanks to the military-grade transponders that still operate onboard them,” it posted on X. “It also means that they are pinging on the other side of the planet.”

The adaptations come as oil prices remain elevated after another week of attacks and threats to key Middle Eastern export routes.

Brent crude settled at $104.61 a barrel on Friday despite falling 2.8% on the day, gaining more than 8% over the week. US West Texas Intermediate remained above $100.

The Strait of Hormuz remains severely disrupted after months of fighting and the US blockade, while Iran-backed Houthis have advanced around the Bab el-Mandeb Strait, putting further pressure on shipping between the Red Sea and Gulf of Aden.

Saudi Arabia has meanwhile shut its East-West pipeline as a precaution after a drone attack. The route, which carries Saudi crude west to the Red Sea and bypasses Hormuz, had recently been moving about 4 million to 5 million barrels per day.

Saudi and Iraqi authorities said the drones were launched from Iraqi territory.

Attention now turns to Oman, where Iran and regional states are expected to meet on Monday to discuss Hormuz and regional security.

Iran and Oman have held consultations over arrangements for safe shipping through the strait, although Tehran says their understanding would establish a framework for any eventual reopening rather than reopen Hormuz immediately.

The Islamic Resistance in Iraq said an attack on Saudi Arabia’s critical infrastructure would be “a source of pride” if it had carried it out, but insisted that it had not.

“The accusations against the Iraqi resistance regarding the attack on Saudi Arabia’s vital infrastructure, while a source of pride if we had carried out such an action, are not something we claim,” the alliance said in a statement carried by Iran’s Tasnim news agency.

Iraq closed three border crossings with Iran on Saturday, officials told AFP, after Iraqi and Saudi authorities said the drones that struck the pipeline had been launched from Iraqi territory.

An Iraqi security source said the closures were “part of an intelligence effort to track down the perpetrators and prevent their escape” and to hinder the smuggling of drones through the crossings.

Iraqi Prime Minister Ali al-Zaidi also dismissed the military commander in Maysan province, which borders Iran, after authorities determined that drones had been launched from the province.

No group has claimed responsibility.

The statement criticized the Iraqi government for what it called a rush to accept the accusations “without documented and reliable evidence or an investigation,” and said the alliance was prepared to participate in any government inquiry aimed at establishing what happened.

US President Donald Trump has said Iran was probably behind the attack, while Saudi Arabia has said the drones originated in Iraq. Neither Riyadh nor Baghdad has publicly identified the group responsible.

The dispute has also spilled over into relations between Baghdad and Tehran.

Iran’s ambassador to Iraq, Mohammad Kazem Al-e Sadegh, told Tasnim that the Mehran and Khosravi crossings remained open and said Tehran was in talks with senior Iraqi officials over the closure of the Chazabeh and Shalamcheh crossings.

Al-e Sadegh acknowledged reports that the closures had been ordered in connection with an operation against Saudi Arabia launched from Iraqi territory, but questioned their relevance to the border and said large numbers of Iraqis who had travelled to Iran for pilgrimage or medical treatment had been left stranded.

The attack has taken on wider significance because of the growing importance of the East-West pipeline during the war.

The route carries Saudi crude from the kingdom’s oil-producing east to the Red Sea, bypassing the Strait of Hormuz as shipping through the waterway faces severe disruption.