Iran and UAE Leaders Agree to Move Past Differences

Iranian President Ebrahim Raisi stated that he held "positive talks" with UAE Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan on the sidelines of the BRICS summit in New Delhi. Raisi indicated that both sides agreed to "put the past behind us" and look towards building a shared future, aiming to "open a new page" in their bilateral relations, which have reportedly deteriorated since the start of the war in the Middle East. He described the exchange as "fruitful."

In other news, the Israeli military announced it had eliminated two Hamas engineering unit operatives, Hassan Ali Abu Nada and Abd al-Rahim Ahmed Khalil Khawail, in an airstrike in Gaza City. The IDF stated the men were involved in developing and producing weapons, promoting attacks against Israeli forces and civilians, and attempting to restore Hamas's capabilities in violation of the ceasefire. The military emphasized that measures were taken to minimize civilian harm during the operation.

Saudi Arabia faces potential oil export disruptions if its main Red Sea pipeline is not restored to operation within days. Traders and buyers suggest this could lead to a loss of up to 4% of global oil supply, exacerbating existing supply crises, driving fuel prices to new highs, fueling global inflation, and pushing U.S. bond yields to their highest levels since the 2008 financial crisis. The extent of the damage and the duration of the shutdown remain unclear, with estimates for repairs ranging from five to six weeks, though some believe pumping could resume partially sooner.

Separately, former U.S. President Donald Trump expressed his belief that the war in Iran would conclude by year's end, likely after the November midterm elections, predicting a subsequent plunge in oil prices. Trump told reporters that Iran is "desperate" for a deal and is "calling non-stop," but he would not sign a deal that is not favorable.