Iran open to diplomacy but will defend Hormuz interests, Pezeshkian says

Iranian President Masoud Pezeshkian took the stage at the United Nations on Wednesday, with U.S. officials exiting the General Assembly hall before he spoke.

Pezeshkian stated that Iran seeks nuclear energy, not a nuclear weapon, and contended that the nuclear dispute cannot be resolved through military means. He asserted that Iran has demonstrated a willingness to negotiate but will not capitulate under military coercion. The Iranian leader characterised his country's military stance as defensive, adding that Iran must maintain sufficient strength to repel attacks.

Regarding the Strait of Hormuz, Pezeshkian said Tehran cannot permit others to transport weapons through the waterway that could be used against Iran. He also addressed the Minab girls' school attack, stating that innocent children were killed, and denied that Iran had struck civilian populations. These are the president's assertions; the provided comments do not independently determine responsibility for the assault or the actions of either party.

Former President Donald Trump defended the U.S.-Iran confrontation at the UN General Assembly on Tuesday and said he was weighing whether to "annihilate" Iran. He described it as a major choice, with the alternative being an agreement that would allow Iran to recover. Trump predicted that such a deal would not materialise until after the November midterms, arguing that Tehran is waiting to gauge his performance in those elections without recognising that he is not on the ballot. He maintained that the two countries would settle matters one way or another.

Diplomatic efforts took place behind the scenes as well. Trump later stated that Jared Kushner and special envoy Steve Witkoff held a very productive meeting with Iranian officials on the sidelines, and Witkoff described extensive discussions conducted through intermediaries.

Both presidents left room for a potential agreement, but each coupled that opening with a cautionary note. For market participants, the immediate concern is whether the contacts Trump mentioned lead to another gathering and any concrete arrangement on shipping through Hormuz. Until tangible progress emerges on that front, the waterway remains a source of uncertainty for crude oil.

U.S. Secretary of State Marco Rubio stated that Russia and Ukraine have both indicated interest in a limited ceasefire covering grain and energy. He added that both sides view energy as a strategic objective in the conflict. This suggests potential room for negotiation over specific targets and shipments, though interest in a truce remains short of a formal accord.

Rubio said Washington would be willing to play a constructive role. He also discussed the Russia-Ukraine war and broader U.S.-Russia relations with Russian Foreign Minister Sergey Lavrov. The key question now is whether the two sides can agree on the scope of a limited ceasefire and implement it.

Chinese President Xi Jinping is scheduled to arrive in Washington on Wednesday, with talks set for Thursday with President Donald Trump. Markets are focused on whether the U.S.-China tariff truce will be extended before it expires on November 10. Traders will also monitor progress on rare-earth shipments, U.S. technology export controls, agricultural purchases and Boeing orders. Taiwan and the Iran conflict are expected to feature in broader discussions.

For financial markets, an extension of the truce and specific trade commitments would ease uncertainty for companies linked to global supply chains. The operative word is concrete: expectations for a broad breakthrough are low, so traders must differentiate a specific agreement from a statement that talks were productive.