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China’s Xi calls for oil trade in yuan at Gulf summit in Riyadh

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President Xi Jinping told Gulf Arab leaders on Friday that China would work to buy oil and gas in yuan, a move that would support Beijing’s goal to establish its currency internationally and weaken the US dollar’s grip on world trade.

Xi was speaking in Saudi Arabia where Crown Prince Mohammed bin Salman hosted two “milestone” Arab summits with the Chinese leader which showcased the powerful prince’s regional heft as he courts partnerships beyond close historic ties with the West, Reuters reported.

Top oil exporter Saudi Arabia and economic giant China both sent strong messages during Xi’s visit on “non-interference” at a time when Riyadh’s relationship with Washington has been tested over human rights, energy policy and Russia.

Any move by Saudi Arabia to ditch the dollar in its oil trade would be a seismic political move, which Riyadh had previously threatened in the face of possible US legislation exposing OPEC members to antitrust lawsuits.

China’s growing influence in the Gulf has unnerved the United States. Deepening economic ties were touted during Xi’s visit, where he was greeted with pomp and ceremony and on Friday met with Gulf states and attended a wider summit with leaders of Arab League countries spanning the Gulf, Levant and Africa.

At the start of Friday’s talks, Prince Mohammed heralded a “historic new phase of relations with China”, a sharp contrast with the awkward US-Saudi meetings five months ago when President Joe Biden attended a smaller Arab summit in Riyadh.

Asked about his country’s relations with Washington in light of the warmth shown to Xi, Foreign Minister Prince Faisal bin Farhan Al Saud said Saudi Arabia would continue to work with all its partners. “We don’t see this as a zero sum game,” he said.

“We do not believe in polarization or in choosing between sides,” the prince told a news conference after the talks.

Though Saudi Arabia and China signed several strategic and economic partnership deals, analysts said relations would remain anchored mostly by energy interests, though Chinese firms have made forays into technology and infrastructure sectors.

“Energy concerns will remain front and centre of relations,” Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington, said.

“The Chinese and Saudi governments will also be looking to support their national champions and other private sector actors to move forward with trade and investment deals. There will be more cooperation on the tech side of things too, prompting familiar concerns from Washington.”

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World leaders return to UN amid wars in Middle East and Ukraine

The 15-member UN Security Council may hold high-level meetings on Ukraine, AI and the Middle East, including talks with Arab leaders, diplomats said.

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World leaders gather in New York this week for the UN General Assembly, bracing for President Donald Trump’s return to the rostrum for a second year running, with talks centering on the widening conflicts in the Middle East and Ukraine ​and the risks of artificial intelligence.

Nearly 130 heads of state meet with the post-World War Two order under strain and with the UN itself struggling to remain relevant and weathering ‌attacks from Trump, who has slashed America’s contributions and withdrawn from dozens of UN bodies, Reuters reported.

Chinese leader Xi Jinping, who last addressed the diplomatic jamboree via video in 2021, will skip New York in favor of one-on-one talks with Trump in Washington on Thursday, fueling debate about the UN’s relevance in addressing global crises.

Compounding the crisis of morale and finance are questions about the next leader of the 80-year-old organization: Secretary-General Antonio Guterres completes his term at the end of 2026, with no clear frontrunner in the race ​to replace him.

The 15-member UN Security Council may hold high-level meetings on Ukraine, AI and the Middle East, including talks with Arab leaders, diplomats said.

More than a year into Trump’s second term, “we would ​no longer say that the UN is in freefall, but we would say that it’s stuck in an open-ended crisis,” said Richard Gowan of the International Crisis ⁠Group.

“The UN may not be in emergency care like it was last year, but it seems to be trapped in a trauma center for the foreseeable future,” Gowan said.

The US avoided losing its vote at the assembly ​by paying $725 million in contributions to the regular budget this week, but it still owes the organization more than a billion dollars and makes ongoing demands for cuts and reforms.

GROWING AI RISKS

The assembly meets shortly after several ​artificial intelligence industry leaders called for a coordinated slowdown of the development of the technology, warning that it could soon improve on its own and escape human control.

Guterres has said that AI will be a major topic, adding that countries pushing its frontiers should set up “common guardrails in order to avoid this race to the bottom that could lead one day to a gigantic disaster at the global level.”

The secretary-general has long proposed global governance of AI. In 2023, the UN created an advisory body on the ​technology, with members including tech executives, government officials and academics.

The warning has put Guterres at odds with Trump, who dismissed AI risks as a “hoax,” saying there is a “sick conspiracy” against it and that China would benefit ​from the doubt being cast on its development.

MIDDLE EAST ESCALATION

The Middle East will again be a focus of discussions, as the US-Israeli war on Iran continues to drive global inflation and destabilize the region. Recent gains by Houthi militants threaten shipping in ‌the vital ⁠Bab el-Mandeb Strait and could further spike energy prices.

“It’s very difficult to have a military solution for that problem, and the experience of fighting in Yemen demonstrated how complicated it is to have successful interventions,” said Guterres, adding that the UN’s envoy on Yemen was making a “huge effort” to advance talks.

Peace talks remain stalled, however, as Iran and the US continue to exchange strikes and Trump threatens a major escalation of the war.

Iranian President Masoud Pezeshkian is scheduled to address the assembly on Wednesday.

Israeli Prime Minister Benjamin Netanyahu – wanted by the International Criminal Court over alleged war crimes and crimes against humanity in Gaza that Israel denies – is to speak on Thursday.

Palestinian President ​Mahmoud Abbas will for the second year running not ​be at the gathering in person. The US, ⁠a close Israeli ally, again denied him a visa. On Thursday, the General Assembly voted to allow Abbas to appear via video.

There is likely to be a high-level meeting on the conflict in Sudan on the sidelines, diplomats said, although a diplomatic breakthrough is unlikely.

UKRAINE, FOOD SECURITY

Also on the agenda is Russia’s more than four-year-old war in Ukraine.

Ukrainian ​President Volodymyr Zelenskiy and Russian Foreign Minister Sergei Lavrov will address the General Assembly. Zelenskiy will likely seek to shore up Ukraine’s position ahead of what ​is expected to be another ⁠tough winter, diplomats said.

The Security Council has been unable to take action to end the conflict because permanent member Russia holds a veto.

Trump has at times appeared frustrated that he has been unable to broker an end to the war, a goal he declared a priority when he began his second term in January last year. The US president spoke with his Russian counterpart Vladimir Putin earlier this month, but it was unclear whether he plans to meet Zelenskiy ⁠in New York.

Guterres ​highlighted the impact the war was having on civilians but also on food security and energy prices.

“The effective blockade existing in the ​Black Sea is creating enormous problems that add to the problems generated by the Middle East crisis, and I think it would be very important to find a way to allow Ukrainian exports and Russian exports of food, fertilizers and energy to take place in ​a safe way through the Black Sea,” he said.

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US and Denmark reach deal on Greenland, Trump says

In a separate statement, US Secretary of State Marco Rubio said that the deal “permanently ​and completely” addressed Washington’s ⁠national security concerns with respect to the island.

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The United States, Denmark and Greenland have entered into an agreement for the US to ‌develop a significant military presence on Greenland, while prohibiting US adversaries from building their own bases on the island, Donald Trump said on Friday.

In a Truth Social post, the US president wrote that no US enemies would be able to make sensitive investments on the island without the approval of the United States and that the agreement had no expiry date, Reuters reported.

“At my ​direction, we worked with representatives of Denmark and Greenland to guarantee that the United States will FOREVER have the complete ability to do ​what is necessary in Greenland in order to secure and defend the security of Greenland, and the United States of ⁠America,” Trump wrote.

Earlier on Friday, Reuters exclusively reported that the US and Denmark were closing in on a deal that would result in an increased ​US military presence in Greenland, an autonomous territory of Denmark, but would stop well short of Trump’s long-held dream of acquiring the island for the United ​States.

The US already has nearly total overflight and basing rights in Greenland due to a 1951 treaty.

Trump’s announcement suggests he was nonetheless pleased with the outcome of the negotiations and that he might not revive his territorial claims, at least in the near future. He said, without elaborating, that the US would soon be rolling out a large military presence ​on the island, which already hosts one Space Force base in its remote northwest.

“This is a dream come true for the United States of America,” Trump ​wrote.

EXTENT OF AGREEMENT REMAINS UNCLEAR

The Danish prime minister’s office said on Friday that the agreement would strengthen North Atlantic and Arctic security.

Greenland’s prime minister, Jens-Frederik Nielsen, said in a ‌statement that ⁠the agreement recognized Greenland’s interests and the Arctic island’s place in international cooperation. “This benefits us all,” he said.

Much was unclear as of Friday night, including whether any new US bases would be constructed as a result of the agreement. Trump’s Truth Social posts about negotiations or agreements often lack context or specifics.

Imran Bayoumi, a former Pentagon official now with the Atlantic Council think tank, said it would be new if the US can build bases without the approval of ​Greenland or Denmark but that largely “it seems ​that Washington could have achieved ⁠a lot of these objectives through diplomacy and dialogue without straining the broader US-NATO relationship.”

It was also unclear how the agreement would be received in Greenland, an autonomous territory of Denmark. The island’s residents aspire to independence and have bristled at ​US attempts to assert control.

In a separate statement, US Secretary of State Marco Rubio said that the deal “permanently ​and completely” addressed Washington’s ⁠national security concerns with respect to the island.

“Greenland will forever be part of the strategic defense area of North America and exclude any adversary from it and the surrounding area,” he wrote.

A State Department official, speaking on condition of anonymity to discuss specific terms, said the deal prohibits non-NATO countries from building a base in ⁠Greenland and will ​allow only the US and its allies to make unspecified “sensitive investments.” The official said the ​agreement grants the US permanent access, basing and overflight rights, and would continue to apply even if Greenland becomes independent.

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UN allows Palestinian president to again speak via video after US denies visa

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The United Nations General Assembly voted on Thursday to allow Palestinian President Mahmoud Abbas to address ​the annual gathering of world leaders next week via video – ‌for the second year in a row – after the United States again denied him a visa to travel to New York.

The resolution received 152 votes in favor and three ​votes against, while four countries abstained. It also allows Abbas and ​any other high-level Palestinian officials to take part in U.N. ⁠meetings or conferences via video over the next year if they are ​prevented from traveling to the United State, Reuters reported.

The US said last year that ​Abbas and about 80 other Palestinians would be affected by its decision to deny and revoke visas from members of the umbrella Palestine Liberation Organization and the West Bank-based ​Palestinian Authority. Washington announced on Wednesday that it had extended the visa ​bans.

“If the PA wants to be treated as a partner, it must stop subsidizing ‌terror ⁠and stop using diplomatic theater as a substitute for serious governance,” Deputy US Ambassador to the United Nations Tammy Bruce told the assembly before the vote.

Palestinian leaders rejected and condemned the move by the United States, Palestinian ​UN envoy Riyad Mansour ​told the General ⁠Assembly.

Without naming specific officials, the US State Department said on Wednesday it would extend visa sanctions against Palestinian ​officials over actions they took to “internationalize the Israeli-Palestinian conflict,” ​including pursuing ⁠cases against Israel at international tribunals.

A Palestinian official, who spoke on condition of anonymity, confirmed Abbas’ visa had been denied.

Under a 1947 U.N. “headquarters agreement,” the U.S. ⁠is ​generally required to allow access for foreign diplomats ​to the UN in New York. However, Washington has said it can deny visas for ​security, extremism and foreign policy reasons.

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