Key Takeaways
- The UN Security Council is set to maintain sanctions on Iran, following the expected failure of a resolution to permanently lift them, signaling continued international pressure on Tehran's nuclear program and potential impacts on global oil markets.
- JP Morgan (JPM) has pushed back its forecast for Bank of England (BOE) rate cuts, now expecting them in February and April 2026, a delay from previous predictions, reflecting persistent inflation concerns in the UK.
- Palestinian President Mahmoud Abbas will address the UN General Assembly via video, after the U.S. blocked his physical attendance, highlighting ongoing diplomatic tensions surrounding Palestinian statehood.
UN Security Council Maintains Sanctions on Iran Amid Nuclear Concerns
The United Nations Security Council is poised to maintain comprehensive sanctions against Iran, following the failure of a resolution aimed at permanently lifting them. The 15-member council voted on Friday, September 19, on a resolution that was widely expected not to garner the necessary nine votes or avoid a veto from permanent members like the United States, Britain, or France. This decision comes after European powers (E3: France, Germany, and the United Kingdom) triggered the "snapback mechanism" in late August, accusing Iran of non-compliance with the 2015 nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA).
The snapback mechanism automatically reimposes all UN sanctions that were in effect prior to the JCPOA, unless a new resolution to continue sanctions relief is passed within 30 days. These sanctions encompass a wide range of restrictions, including a conventional arms embargo, limitations on ballistic missile development, asset freezes, travel bans, and a prohibition on producing nuclear-related technology. French President Emmanuel Macron indicated that sanctions would likely be reimposed, citing a lack of "serious" negotiations from Tehran. Iran has consistently denied pursuing nuclear weapons, despite increasing its stockpiles of enriched uranium. The reimposition of these sanctions is expected to impact businesses with ties to Iran and could influence global oil markets.
JP Morgan Revises BOE Rate Cut Outlook to 2026
JP Morgan (JPM) has adjusted its predictions for Bank of England (BOE) interest rate cuts, pushing back the expected timeline. The firm now forecasts the next rate reductions to occur in February and April 2026, a revision from its earlier projection of November 2025 and February 2026. This updated outlook aligns with other major brokerages, including Goldman Sachs and Citigroup, which also do not anticipate further BOE rate cuts in 2025.
The Bank of England recently maintained its key interest rate after a quarter-point reduction in August. This cautious stance is influenced by persistent inflationary pressures, with British inflation holding at 3.8% in August, the highest among major advanced economies. BOE Governor Andrew Bailey has cautioned that the economy is "not out of the woods yet" and that any future rate cuts would be gradual and carefully considered. The central bank projects inflation to peak at 4% this month before gradually easing to its 2% target by mid-2027.
Palestinian President Abbas to Address UN General Assembly Via Video
Palestinian President Mahmoud Abbas has been granted permission by the UN General Assembly to address world leaders via video next week. This development follows a decision by the United States to block Abbas and approximately 80 other Palestinian officials from physically attending the assembly in New York by revoking their visas. The U.S. justified its decision by citing concerns over security, extremism, and foreign policy, alleging that the Palestine Liberation Organization (PLO) and the Palestinian Authority (PA) have not renounced extremism and are pursuing "unilateral recognition" of a Palestinian state.
Abbas's office has condemned the U.S. move as a violation of the UN "headquarters agreement," which generally obliges the United States to permit foreign diplomats access to the UN in New York. A spokesperson for the UN Secretary-General indicated that the UN would address the matter with U.S. officials. The upcoming 80th session of the General Assembly, themed "Better together: 80 years and more for peace, development and human rights," is expected to feature discussions on the ongoing conflict between Israel and Hamas in Gaza and the worsening humanitarian crisis. Israeli Prime Minister Benjamin Netanyahu is also scheduled to address the assembly next week.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.