Iran and US held direct UN talks, with Islamic Republic's terms to reopen Hormuz hardening

What Happened

Iranian Foreign Minister Abbas Araghchi met US special envoy Steve Witkoff on Tuesday on the sidelines of the United Nations General Assembly in New York City, in what was described as the first public meeting between the two sides in months. Multiple Gulf officials told Middle East Eye that Qatar took the lead among Gulf states in facilitating the meeting, with Qatar and the UAE having called for de-escalation over the weekend. Iranian state media confirmed the meeting and said Araghchi submitted Iran's terms to reopen the Strait of Hormuz: an immediate lifting of the US naval blockade, release of frozen Iranian assets, and an end to the war across all 'resistance' fronts. Separately, IRGC spokesman Hossein Mohebi told AFP that Iran was demanding the full $24bn in frozen assets up front rather than in stages, and that Saudi Arabia's blockade on Houthi-controlled areas of Yemen be lifted as part of any ceasefire. US President Donald Trump told reporters the mediators had a 'very good' and 'very productive' meeting, with another scheduled in the very near future, but also threatened to 'annihilate' Iran in his UN address; Witkoff said he felt 'very good' about the talks.

Key Actors

Why It Matters

The direct public meeting breaks a months-long freeze in US-Iran negotiations, but the IRGC's hardened demands — full asset release upfront and inclusion of Yemen's blockade — signal internal tension between Iranian diplomats and the IRGC and reduce the likelihood of a quick deal. The talks occur amid mutual strikes on vessels in the Strait of Hormuz, making the terms for reopening the waterway a core security issue for Gulf states and global shipping.

Watch For

Monitor whether a follow-up US-Iran meeting takes place 'in the very near future' as Trump stated, and whether a 'bump-in' between Trump and President Masoud Pezeshkian materialises despite logistical complications. Watch for any US or Saudi response to Iran's demand to lift the blockade on Houthi-controlled Yemen and release the full $24bn in frozen assets upfront, as well as further incidents in the Strait of Hormuz.