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Relayed by Qatar, Abbas Araghchi's plan calls for lifting the naval blockade of Iranian ports, ending oil sanctions and a ceasefire including Lebanon, then reopening Hormuz on day six and resuming nuclear talks on day seven. Tehran rules out nuclear concessions. According to the Wall Street Journal, Donald Trump has rejected it; Tehran awaits an official answer.
On the second day of Xi Jinping's state visit, Donald Trump hailed a "truly great friendship": under two hours of talks, a state dinner with the heads of Apple, Nvidia and AMD, and two pandas promised to Atlanta's zoo. No progress was announced on trade, Taiwan, rare earths or AI; the trade truce is only extended to January 10.
At the General Assembly, Donald Trump said he would have to decide whether to annihilate Iran absent a deal, then minutes later announced a "very good" three-hour meeting between US and Iranian representatives in New York, led by Steve Witkoff and Jared Kushner. A deal, he said, could come after the midterm elections. The Iranian and Cuban delegations walked out; oil prices fell.
Xi Jinping arrived in Washington on Wednesday for a three-day visit, with Donald Trump due to greet him personally on the tarmac at Joint Base Andrews — an unusual protocol gesture. China's ambassador warned that Taiwan and human rights are red lines that cannot be crossed. Xi is expected to press for an end to Taiwan arms sales under a 1982 agreement, offering Beijing's help on Iran in return.
In New York, US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng discussed trade, tariffs, critical minerals and artificial intelligence. Washington proposed a notification mechanism between the two countries for serious AI incidents, and both delegations agreed to open a formal dialogue on AI ahead of the Washington summit.
Vladimir Putin's party is set to win the State Duma election with 57.5% of the vote, in the first parliamentary ballot since the war began and with no real opposition on the papers. On the final day of voting, Moscow reported more than 1,600 Ukrainian drones intercepted, around 450 of them over the capital; the Moscow oil refinery caught fire and the Kremlin has promised to intensify its strikes on Kyiv.
The Federal Reserve raised its benchmark rate by a quarter point to 3.75%-4.00%, its first hike since July 2023. The decision was unanimous under new chair Kevin Warsh, who called inflation 'too high' and signalled further increases could come before year-end. Donald Trump immediately demanded on Truth Social that rates be lowered 'AND FAST!'. Gold rose, the Indian rupee slipped past 96 to the dollar, and the UAE followed with a 25 basis-point move.
Iran has announced it will discuss navigation in the Strait of Hormuz with Gulf states at a meeting in Oman on Monday 14 September, according to its foreign ministry. The meeting comes as the United States says it has loosened Iran's grip on the strait without the war being over, and as crude prices and tanker safety hinge on this passage.
US Central Command destroyed five Iranian oil tankers on 8 September, calling it a response to two ballistic missile attempts against a Navy warship. Iran struck the Al-Azraq base in Jordan, which says it intercepted 18 of 20 missiles, then claimed attacks on shipping in the Strait of Hormuz, where one seafarer was killed and another reported missing. Brent crude passed $100 for the first time since July.
Shipping through the Strait of Hormuz has fallen to its lowest level since May: a ten-day moving average of ten vessels a day, down from more than fifteen on Friday, according to Kpler cited by Reuters. Iran has announced a new restricted zone near the strait and three tankers turned back after a warning from the Revolutionary Guard. Canada has joined the US-French-British effort to reopen the passage.
US Central Command said on Saturday 5 September that it had struck three Iranian oil tankers in response to ballistic missiles which it says the Revolutionary Guard fired at an aircraft carrier and a destroyer. Tehran calls the strikes a war crime under the United Nations Charter, and says it hit three American ships of its own. The two accounts of that night cannot be reconciled.
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