Economic pressure on Iran has increased this week as restrictions on financial activity and international air services expand, while diplomatic discussions between Washington and Tehran have also resumed on the sidelines of the United Nations General Assembly in New York.
In the United Arab Emirates, the Central Bank has introduced enforcement measures against the UAE branches of Bank Melli Iran. The branches have been barred from carrying out financial transactions with Iran, including trade finance and transfers of funds. The action followed alleged breaches of UAE requirements concerning money laundering, terrorism financing and proliferation financing. Bank Melli Iran is one of Iran’s oldest and largest state owned commercial banks. The UAE had also announced restrictions on trade, commercial exchanges and financial dealings with Iran last month.
Iran’s international aviation links have faced additional difficulties. The United States has warned that companies providing services to Iranian airlines, including fuel, airport access and ticketing support, could face secondary sanctions. Several flights involving Iranian airlines have reportedly been cancelled or suspended at destinations including Turkey, Oman, Iraq, Georgia and Azerbaijan.
Iranian President Masoud Pezeshkian told the United Nations General Assembly on Wednesday that Tehran would not give up in its confrontation with the United States, while also indicating that diplomacy remained an option. US Secretary of State Marco Rubio said reaching an agreement would require extensive negotiations and the involvement of mediators. He also said the US President retained various options, including military action.
Representatives from the two countries held discussions in New York on Tuesday through mediators including Qatar. The talks involved Iranian Foreign Minister Abbas Araghchi, US envoy Steve Witkoff and Jared Kushner.
Tensions have also affected commercial shipping in the region. An Indian national was killed after the Antigua and Barbuda flagged vessel MV Cape Dao came under attack near the coast of Oman, while 19 other Indian crew members were rescued. India condemned attacks on commercial vessels and called for dialogue, diplomacy and the restoration of safe and unrestricted navigation through international waterways in the region.
Meanwhile, fighting has intensified around the Kahboub mountain range in Yemen, an area overlooking the strategically important Bab El Mandeb Strait. Houthi forces are engaged in clashes with forces supporting the Yemeni government over control of the region.
The United States has not directly joined the latest Saudi Houthi fighting. However, US Secretary of State Marco Rubio said Washington has a strong defence agreement with Saudi Arabia and would honour its commitments. He also welcomed the reported reopening of Saudi Arabia’s East West Pipeline, which had previously been shut after a drone attack.