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Khamenei downplays US talks prospects as some Iranians’ hopes stir, currency gains

Iran’s clerical rulers have publicly said that demands such as dismantling the country’s peaceful nuclear programme or its conventional missile capabilities were off the table.

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Iran’s Supreme Leader Ayatollah Ali Khamenei sought on Tuesday to play down expectations of a breakthrough in nuclear talks with the U.S., following stirrings of hope among some Iranians weary of economic hardships that have at times sparked public unrest.

Failure to reach a deal with President Donald Trump to end Iran’s decades-long dispute with the West could profoundly hurt the Islamic Republic, Iranian politicians and insiders have said, even if Washington is subsequently portrayed by Tehran as the guilty party.

A second round of nuclear talks will be held in Muscat on April 19.

Iran’s battered rial currency has gained some 20% against the dollar in the past few days, with many Iranians hoping an deal to end Iran’s economic isolation may be within reach.

“We are neither overly optimistic nor pessimistic regarding them. After all, it is a process which was decided and its first steps have been well implemented,” Khamenei said in a meeting with officials, according to state media.

White House special envoy Steve Witkoff, who leads the talks with Iran, said that Trump has asked him to “create a tough, fair deal that will endure.”

“Any final arrangement must set a framework for peace, stability, and prosperity in the Middle East – meaning that Iran must stop and eliminate its nuclear enrichment and weaponization program,” Witkoff posted on X on Tuesday.

Iran’s clerical rulers have publicly said that demands such as dismantling the country’s peaceful nuclear programme or its conventional missile capabilities were off the table.

Tehran has approached the talks warily, doubting the likelihood of an agreement and suspicious of Trump, who abandoned Tehran’s 2015 nuclear pact with six world powers during his first term in 2018. He has repeatedly threatened to use military force if there is no deal.

“From here on, it (the talks) must be followed through carefully, with red lines clearly defined for both the other side and for us. The negotiations may lead to results, or they may not,” said Khamenei.

“Avoid linking the country’s fate to these talks.”

Some Iranian officials have suggested that Trump’s business background could make him more receptive to a deal if it includes economic incentives, such as a potential purchase of U.S.-made planes or unlocking of Iran’s economy for U.S. investors.

But a number of Iranian newspapers have warned about inflating public expectations with “baseless hype”.

“Why do you make promises about the talks that cannot be fulfilled? … Don’t undermine public trust with promises made only for fleeting media attention,” wrote the Khorasan newspaper on Monday, in response to comments by an official that raised hopes of economic breakthroughs from the talks.

Since relations with Washington collapsed after Iran’s 1979 Islamic revolution that ousted the U.S.-backed Shah, enmity toward the U.S. has been a rallying point for Iran’s rulers.

But inflation, unemployment and lack of investment as a result of crippling sanctions, reimposed after Trump ditched the 2015 nuclear pact, persuaded Khamenei to support talks with the Trump administration.

Tehran’s concerns were exacerbated by Trump’s speedy revival of his first term’s “maximum pressure” campaign aimed at driving Iran’s oil exports towards zero with more sanctions.

Since 2019, Iran has far surpassed its uranium enrichment limits, according to the International Atomic Energy Agency (IAEA). Tehran is producing stocks of fissile purity well above what Western powers say is justifiable for a civilian energy programme and close to weapons grade.

Tehran has long denied seeking nuclear weapons.

“What Tehran wants in return (from the U.S.) is for sanctions to be removed on several sectors. Once those sanctions are removed, the U.S. cannot bring them back under other pretexts.” the state-run Tehran Times newspaper reported on Monday.

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Saudi Grand Mufti tells troops to be ready to sacrifice their lives fighting Houthis

State TV has ⁠in recent weeks aired footage of an alleged Houthi strike on a mosque in the kingdom’s south, and authorities have also accused the Houthis of launching an attack on Mecca, Islam’s holiest site.

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Saudi Arabia’s top religious authority called on soldiers in the kingdom to be ready to lay ‌down their lives to fight the Iran-backed Houthis until the group is ousted from power, a statement posted on the Saudi state news agency said.

The rare and strongly worded message by Saudi Grand Mufti Sheikh Saleh bin Fawzan Al-Fawzan was addressed to soldiers stationed at the country’s borders and ​drew heavily on Quranic verses and recorded sayings of the Prophet Mohammad related to sacrifice and struggle in defence ​of God, Reuters reported.

It comes after weeks of escalating violence between Saudi Arabia and the Houthis which has ⁠seen the Iran-backed group attack the kingdom with salvos of missiles and drones and Saudi Arabia respond with airstrikes.

Observers have ​been questioning whether Saudi Arabia will launch a broader military operation along with Yemeni government forces it backs.

“Protecting this great nation… and ​punishing anyone who seeks to lay a hand on even an inch of its territory are among the greatest duties and most virtuous acts of devotion, for which lives and souls may be sacrificed in seeking God’s pleasure,” said the statement, issued late Thursday.

Asserting the authority of the ​Saudi-backed internationally recognized Yemeni government over the entire country was “among the most pressing obligations,” it added.

Those government forces lost control of ​the vital Bab el-Mandeb waterway to the Houthis two weeks back, a blow to the kingdom, which has been mired in the conflict since ‌2015 ⁠after it launched an unsuccessful operation to oust the Houthis from the Yemeni capital Sanaa.

The recent fighting is the latest episode in 12 years of civil war in Yemen which had largely been frozen since a 2022 but has escalated again and has become linked to the wider Iran war.

“We ask God Almighty to grant you all his support, and to protect our countries and ​beloved Yemen from all harm. ​We also ask him to ⁠bring about the complete defeat of the Houthi group and those who assist and support them,” the statement said.

The Mufti’s letter adds to a growing religiously centered narrative by authorities in the ​conservative Sunni Muslim kingdom aimed at discrediting the Houthis, who follow a different sect of ​Islam.

State TV has ⁠in recent weeks aired footage of an alleged Houthi strike on a mosque in the kingdom’s south, and authorities have also accused the Houthis of launching an attack on Mecca, Islam’s holiest site.

“It is incumbent upon you, brothers serving on the front lines, to ⁠remain constantly ​prepared to perform your duty, to obey the rulers and your field commanders, ​and to carry out orders with the utmost precision, as God Almighty commanded the companions of his Prophet to do,” the statement said.

“You are following in ​the footsteps of the Prophet’s companions, defending the sacred sites of Muslims.”

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Iran airlines cancel flights as US sanctions hit

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Iranian airlines cancelled some international flights on Wednesday after the United States imposed new sanctions targeting Iran’s aviation sector.

Georgia and Azerbaijan confirmed the suspension of flights to Iran, while a travel agent in Tehran told AFP that flights to Baghdad, Muscat and Qatar had also been halted. Flights to several other destinations, including China, continued.

The new US measures were announced by Treasury Secretary Scott Bessent on Monday as Washington seeks to increase economic pressure on Tehran amid the ongoing conflict.

“We are squeezing the Iranians like they’ve never seen,” Bessent told Fox News on Wednesday, claiming that more than 80% to 90% of Iran’s international flights had been affected.

Iranian President Masoud Pezeshkian, who is attending the United Nations General Assembly in New York, rejected the pressure.

“The resistance of the Iranian people will only intensify in the face of sanctions, mounting pressure and growing intimidation” from the United States, Pezeshkian said.

Iran’s aviation industry has faced US sanctions for years, but the latest measures could further restrict international connections.

Despite the new sanctions, flight-tracking data showed a Mahan Air flight from Tehran arriving in Guangzhou, China, on Wednesday. A flight to Shanghai was also scheduled to depart from Tehran’s international airport.

China has opposed the new US sanctions, describing them as illegal.

Some flights to Istanbul also continued, although others were cancelled, according to the Tehran-based travel agent, who said the situation remained uncertain.

“The situation is unstable and we are no longer selling tickets for the time being for fear of cancellations,” the agent told AFP.

Flights connecting Iran with Turkey and Armenia were also still possible on some smaller Iranian airlines, while flights to Najaf in Iraq and Dubai in the United Arab Emirates were listed as scheduled.

Mohsen Rezaei, head of Iran’s Supreme National Security Council, warned neighbouring countries against complying with the US measures.

“If a country cooperates with or embarks on adventures with the United States, its airports will no longer be able to operate flights” to Iran, he told Iranian state television.

The possible suspension of flights between Iran and Iraq has raised particular concerns because of the large number of Iranian religious pilgrims who travel to Iraq.

Iranian media reported that authorities were considering rerouting flights from Baghdad to Najaf. AFP also reported that several sources in Iraq said Baghdad would comply with the US sanctions, although the Iraqi government had not publicly announced a flight ban.

Travel agents in Najaf said passengers were seeking information about possible cancellations and considering travelling by land instead.

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US and Iran hold first talks since June after Trump’s ‘annihilation’ threat

WATCH Donald Trump’s speech to UNGA on Iran, including his ‘annihilation’ threat

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The United States and Iran have held their first high-level talks since June, with discussions taking place on the sidelines of the United Nations General Assembly in New York amid continued fighting and growing international pressure to end the conflict.

Iranian Foreign Minister Abbas Araghchi and US special envoy Steve Witkoff took part in the talks, which were mediated by Qatar. US envoy Jared Kushner also participated on the American side, according to reports.

No breakthrough was immediately reported. Witkoff said the two sides had completed a round of discussions that he hoped would prove “constructive and promising”, adding that mediators would continue their efforts.

Iranian officials said Araghchi conveyed Tehran’s conditions, including an end to what Iran describes as US acts of aggression and the lifting of measures affecting Iranian shipping and assets.

The talks came just hours after US President Donald Trump warned in his address to the UN General Assembly that he could “annihilate” Iran if no agreement was reached.

Trump said Iran faced a choice between reaching a deal and what he described as destruction, while also saying he believed an agreement could be reached after the US midterm elections in November.

Trump later described the three-hour discussions as very productive. Witkoff, however, clarified that the two sides communicated through mediators who shuttled between the delegations rather than holding direct face-to-face negotiations.

The latest contact follows months of conflict between Iran, Israel and the United States. The fighting has also disrupted shipping through the Strait of Hormuz, one of the world’s most important energy routes.

Iran has indicated that it could reopen the strategic waterway if Washington takes steps to ease military and economic pressure on Tehran. Iranian officials have linked the issue to demands including the lifting of the US naval blockade and the release of frozen Iranian assets.

The Strait of Hormuz is a key route for global energy supplies, and its closure has contributed to volatility in international oil markets.

Despite the renewed diplomatic contact, significant differences remain between Washington and Tehran over the war, Iran’s nuclear programme, sanctions, shipping through the Strait of Hormuz and US military operations in the region.

Iranian President Masoud Pezeshkian is due to address the UN General Assembly on Wednesday, with further diplomatic efforts expected to continue in New York.

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