Iran

Islamabad, Pakistan – Pakistan has opened six overland transit routes for goods destined for Iran, formalising a road corridor through its territory as thousands of containers remain stranded at Karachi port because of the United States blockade of Iranian ports and ships trying to pass through the Strait of Hormuz.

The Ministry of Commerce issued the Transit of Goods through Territory of Pakistan Order 2026 on April 25, bringing it into immediate effect. The order allows goods originating from third countries to be transported through Pakistan and delivered to Iran by road.

The announcement coincided with Iranian Foreign Minister Abbas Araghchi’s visit to Islamabad for talks with Prime Minister Shehbaz Sharif and army chief Asim Munir, the latest in a series of diplomatic engagements as Pakistan seeks to mediate an end to the two-month war between Washington and Tehran.

Federal Minister for Commerce Jam Kamal Khan described the initiative as “a significant step toward promoting regional trade and enhancing Pakistan’s role as a key trade corridor”.

Iran has not publicly commented on the move, and Al Jazeera’s query to the Iranian embassy in Islamabad went unanswered.

The notification does not extend to Indian-origin goods. A separate Commerce Ministry order issued in May 2025, following the India-Pakistan aerial war that month, bans the transit of goods from India through Pakistan by any mode and remains in force.

Routes and regulations

The six designated routes link Pakistan’s main ports, Karachi, Port Qasim and Gwadar, with two Iranian border crossings, Gabd and Taftan, passing through Balochistan via Turbat, Panjgur, Khuzdar, Quetta and Dalbandin.

The shortest route, the Gwadar-Gabd corridor, reduces travel time to the Iranian border to between two and three hours, compared with the 16 to 18 hours it takes from Karachi – Pakistan’s biggest port – to the Iranian border. The Gwadar-Gabd route could cut transport costs by 45 to 55 percent compared with costs from Karachi port, according to officials.

But for Iran, firms sending their goods to the country, and transporters, all routes into Iranian territory today are viable options, with the principal maritime passage they have traditionally used – the Strait of Hormuz – blockaded by the US Navy.

Corridor shaped by conflict

The current US-Iran war began on February 28, when US and Israeli forces launched attacks on Iran.

In the weeks that followed, Iran restricted commercial navigation through the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil and gas passes during peacetime, disrupting one of the most critical arteries of global trade.

Pakistan brokered a ceasefire on April 8 and hosted the first round of direct US-Iran talks on April 11, in Islamabad. The negotiations lasted nearly a day but ended without a deal. Two days later, Washington imposed a naval blockade on Iranian ports, throttling Tehran’s maritime access.

A second round of talks has since stalled. US President Donald Trump cancelled a planned visit to Islamabad by special envoys Steve Witkoff and Jared Kushner last weekend.

Iran has ruled out direct negotiations with Washington while the blockade remains in place, though Araghchi told Pakistani officials that Tehran would continue engaging with Islamabad’s mediation efforts “until a result is achieved”.

The transit order appears to be a direct economic response to that impasse.

More than 3,000 containers destined for Iran have been stuck at Karachi port for several days, with vessels unable to collect the cargo. War-risk insurance premiums have surged from about 0.12 percent of a vessel’s value before the conflict to roughly 5 percent, making shipping to the region too expensive for many operators.

Shifting regional dynamics

The corridor also signals a shift away from Afghanistan, whose relations with Pakistan have deteriorated sharply.

The two sides engaged in clashes in October 2025 and again in February and March this year, with skirmishes continuing along the northwestern and southwestern borders.

The Torkham and Chaman crossings have ceased to function as reliable commercial routes since tensions escalated, limiting Pakistan’s overland access to Central Asian markets.

“This is a paradigmatic shift. Pakistan’s relations with the Afghan Taliban, the de facto rulers in Kabul, have no reset switch,” Iftikhar Firdous, cofounder of The Khorasan Diary, told Al Jazeera.

“Kabul has been diversifying away from Pakistan towards Iran and Central Asia, but this move flips the equation. Pakistan can now bypass Afghanistan entirely for westbound trade. The impact on Kabul’s transit relevance and revenue is strategic, not immediate – but it is real.”

Firdous said the implications extend beyond bilateral ties.

“This corridor also reduces Pakistan’s reliance on longer maritime routes through the Gulf. Geopolitics, security, and infrastructure will ultimately determine which corridors dominate, but it places Pakistan as the main overland gateway for China-backed trade routes into West Asia and beyond,” he said.

Minhas Majeed Marwat, a Peshawar-based academic and geopolitical analyst, urged caution. “A cornered Afghanistan is a destabilised Afghanistan, and Pakistan knows better than most what that costs,” she wrote on X on April 27.

“The opportunity here is real. So is the risk. Security on the northwestern and southwestern borders remains the variable that could unravel everything. Pakistan is positioned well. It is not yet positioned safely. Those are different things.”

Published on 30/04/2026 – 10:17 GMT+2•Updated
10:28

Brent crude, the international standard for oil prices, jumped by over 7% during early trading on Thursday, touching $126 per barrel, the highest intraday level since 2022 when Russia initiated the full-scale invasion of Ukraine.

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The US benchmark crude, WTI, also rose more than 3% and hit over $110 per barrel.

At the time of writing, prices have corrected slightly with the front month contract for Brent trading at around $122 per barrel and WTI at roughly $108.5.

Prices are now the highest they have been since the start of the Iran war.

The surge in oil prices is a direct consequence of stalled negotiations over the reopening of the Strait of Hormuz, the absence of a clear path toward ending the war and a seemingly increased chance of US-Israeli military action returning.

US President Donald Trump is set to meet with the head of the US Central Command, Admiral Brad Cooper, on Thursday and receive a briefing on new military options for action in Iran, according to Axios which cites two unnamed people.

The meeting signals the potential for fresh escalation in the Middle East as the resumption of combat operations is reportedly “seriously under consideration” and oil markets have reacted swiftly to the news.

A ceasefire has held since early April but recent negotiating efforts have fallen flat with the two sides refusing to meet. Meanwhile, the US and Iran both maintain their blockade of the vital Strait of Hormuz.

US Central Command has also reportedly asked for hypersonic missiles to be sent to the Middle East, which would mark the first time the US army has deployed that type of weapon.

The persistent blockade of ports and the threat of expanded combat have fundamentally reshaped market expectations.

A shifting landscape for OPEC and global supply

The spike in prices is occurring against a backdrop of significant structural change within the global oil hierarchy.

Earlier this week, the United Arab Emirates officially withdrew from the Organisation of the Petroleum Exporting Countries (OPEC) and its wider alliance (OPEC+), a move the nation claimed was necessary to prioritise its own national interests.

Under normal market conditions, the exit of a major producer from the cartel might be expected to signal a potential increase in supply or a decrease in price stability.

However, the sheer scale of the Iran war has rendered the UAE’s departure secondary in the minds of traders.

Despite the UAE’s exit, which was expected to potentially weaken OPEC’s grip on production quotas, prices have continued their upward trajectory.

This suggests that the “war premium” currently dominates all other market fundamentals.

Investors are currently less concerned with the internal politics of oil-producing nations and more focused on the immediate physical absence of Iranian crude, suspended shipping routes through the Strait of Hormuz and the threat to regional infrastructure.

However, the transition of the UAE to an independent actor still highlights a growing fragmentation in global energy governance at a time when the world’s energy security is at its most vulnerable.

Hundreds of Iranians have rallied in Tehran to demand an end to US threats and the ongoing blockade of Iranian ports. The blockade is causing Iran’s already devalued currency to sink further.

Standoff in the Strait of Hormuz is pushing global oil prices above $120 per barrel, with average gas prices in the US hitting a four-year high.

WASHINGTON — Making his first appearance before Congress since the Trump administration went to war in Iran, Defense Secretary Pete Hegseth faced withering questioning from skeptical Democrats Wednesday over a costly conflict being waged without congressional approval.

The war has cost $25 billion so far, according to Pentagon numbers presented to the House Armed Services Committee during the contentious hearing, ostensibly focused on the administration’s 2027 military budget proposal, which would boost defense spending to a historic $1.5 trillion.

While Republicans focused on the details of military budgeting and voiced support for the operation, Democrats pivoted to the ballooning costs of the war, the huge drawdown of critical U.S. munitions and the bombing of a school that killed children. Some lawmakers also questioned President Trump’s dealings with allies and his shifting justification for the conflict.

Hegseth dismissed the criticism as political and rebuked lawmakers who pushed him for answers.

“The biggest challenge, the biggest adversary we face at this point are the reckless, feckless and defeatist words of congressional Democrats and some Republicans,” Hegseth said.

Democrats press about reasons for war

Wednesday’s hearing stretched nearly six hours as Democrats and some Republicans questioned Hegseth over the war and his ouster of several top military leaders.

In one tense exchange, Hegseth told Rep. Adam Smith (D-Wash.) that Iran’s nuclear facilities were obliterated in a 2025 attack by the U.S., prompting Smith to question the Trump administration’s reasoning for starting the Iran war less than a year later.

“We had to start this war, you just said 60 days ago, because the nuclear weapon was an imminent threat,” said Smith, the ranking Democrat on the committee. “Now you’re saying that it was completely obliterated?”

Hegseth responded by saying that Iran “had not given up their nuclear ambitions” and still had thousands of missiles.

Smith said the war “left us at exactly the same place we were before.”

Democrats accused Hegseth of misleading Americans about the reasons for the conflict and said rising gas prices are now threatening the pocketbooks of millions of people in the U.S.

“Secretary Hegseth, you have been lying to the American public about this war from day one and so has the president,” said Rep. John Garamendi of Walnut Grove, who called the war “a geopolitical calamity,” a “strategic blunder” and a ”self-inflicted wound to America.”

Hegseth blasted Garamendi’s remarks.

“Who are you cheering for here?” he asked the lawmaker. ”Your hatred for President Trump blinds you” to the success of the war.

Hegseth defends firings of officers

The Defense secretary faced intense questions from Rep. Chrissy Houlahan (D-Pa.) about his decision to oust the Army’s top uniformed officer, Gen. Randy George, one of several top military officers to be dismissed since Trump’s reelection.

Houlahan said George was deeply respected by both members of the military and Congress and asked why Hegseth fired him. Hegseth’s response that “new leadership” was needed failed to satisfy Houlahan.

“You have no way of explaining why you fired one of the most decorated and remarkable men —” Houlahan began before Hegseth interrupted her. “We needed new leadership,” he repeated.

The Pentagon announced this month that Navy Secretary John Phelan was stepping down. Hegseth previously removed Adm. Lisa Franchetti, the Navy’s top uniformed officer, and Gen. Jim Slife, the Air Force’s No. 2 leader, while Trump fired Gen. Charles “CQ” Brown Jr. as chairman of the Joint Chiefs of Staff.

Republican Rep. Don Bacon of Nebraska said that while Hegseth is empowered to make personnel changes, he shares what he called “bipartisan concern” about the firings.

“We had a huge bipartisan majority here that had confidence in the Army chief of staff and the secretary of the navy,” Bacon said. “And I would just point out it may be constitutionally right … but it doesn’t make it right or wise.”

Hegseth has said the changes are part of building a “warrior culture” at the Pentagon.

Republican Rep. Nancy Mace of South Carolina defended Hegseth’s personnel moves, saying he is “trying to innovate and trying to change the way we do business.”

“I’m glad that you’re firing people,” Mace said. “There are people there that are getting in your way. They need to go.”

Republicans back Trump on Iran

During the extended hearing, Hegseth detailed plans to increase pay for service members and upgrade munitions while also announcing that, as of Tuesday, the Pentagon had authorized $400 million in military aid for Ukraine in its fight against Russia.

But the debate and the questions were dominated by the war in Iran.

While a fragile ceasefire is now in place, the U.S. and Israel launched the war Feb. 28 without congressional oversight. House and Senate Democrats have failed to pass multiple war power resolutions that would have required Trump to halt the conflict until Congress authorizes further action.

Republicans say they back Trump’s wartime leadership, for now, citing Iran’s nuclear program, the potential for talks to resume and the high stakes of withdrawal. Still, GOP lawmakers are eager for the conflict to end, and some are eyeing future votes that could become an important test for the president if the war drags on.

Democrats questioned Hegseth over the war’s economic impact and rising gasoline costs, noting Trump’s promise to lower consumer costs. Hegseth responded by citing the threat posed by Iran.

“What is the cost of Iran having a nuclear weapon that they wield?” he said.

Republicans expressed support for Trump’s decision to strike Iran, including Mace, who in late March had expressed concerns about the justification for the war. “The longer this war continues, the faster it will lose the support of Congress and the American people,” she wrote in a social media post.

On Wednesday, Mace noted her past concerns but said she is “impressed with where we are today.” She told Hegseth: “Everything I have seen, you have surpassed all of my expectations.”

Iran’s closing of the Strait of Hormuz, a vital shipping corridor for the world’s oil, has sent fuel prices skyrocketing and posed problems for Republicans ahead of the midterm elections. The U.S. has imposed a naval blockade of Iranian shipping and three American aircraft carriers are in the Middle East for the first time in more than 20 years.

The countries appear locked in a stalemate. Trump told Axios on Wednesday that he is rejecting Iran’s proposal to reopen the Strait of Hormuz in exchange for lifting the U.S. blockade.

Finley, Groves, Klepper and Toropin write for the Associated Press.

WASHINGTON, Apri; 29 (UPI) — Secretary of Defense Pete Hegseth alternated between championing a proposed massive increase to defense spending and fielding attacks from Democratic lawmakers during testimony on Capitol Hill Wednesday.

It marked the secretary’s first appearance before lawmakers since the start of a war that has roiled the global economy and decimated Iran’s military.

Hegseth appeared before the House Armed Services Committee alongside Gen. Dan Caine, chairman of the Joint Chiefs of Staff, and the Pentagon’s comptroller, Jules Hurst III. They entered the hearing room past protesters’ chants of “arrest Hegseth” and yells of “war criminal.” The secretary appeared unfazed.

“We’re rebuilding a military that the American people can be proud of — one that instills nothing less than unrelenting fear in our adversaries.” Hegseth said in his opening statement.

Hegseth’s testimony was intended to serve as a defense of the White House’s petition to Congress for $1.5 trillion in defense spending for 2027, a 44%t increase from the 2026 budget.

It’s an increase that, by itself, would be more than the total defense spending of any other nation, according to recently released figures. The spending level exceeds that spent on the Reagan-era military buildup and would be only overshadowed by levels seen during World War II.

The spending boom would come at the cost of domestic programs and at a time when federal tax revenue is set to take a $4.5 trillion hit over the next 10 years, mostly from tax cuts codified in last year’s One Big Beautiful Bill Act, according to the Bipartisan Policy Center, a Washington-based think tank.

But rather than question Hegseth on the specifics of the budget proposal, many Democratic members grilled him about the war in Iran, recent firings of senior leaders in the Pentagon and lethal strikes against alleged drug traffickers in the Pacific and Caribbean oceans.

In one heated exchange, Rep. John Garamendi, D-Calif., delivered a sharp critique of the war in Iran when questioning the defense secretary, calling it a “blunder” in which the United States had expended much to gain little.

Garamendi said it would take years for the U.S. and global economies to recover. The war has hiked average unleaded gas prices in the country to more than $4.20 a gallon and inflation to its highest level in nearly two years.

“Secretary Hegseth, you have been lying to the American public about this war from Day 1,” Garamendi said. “The strategy has been an astounding example of incompetence.”

Hegseth counterattacked. With his voice raised, he accused the congressman of “handing propaganda to our enemies.”

“I hope you appreciate how reckless it is,” Hegseth said of Garamendi’s description of the two-month-long war as a quagmire. “Shame on you.”

Hurst, the comptroller, told lawmakers the Iran war has cost the Pentagon $25 billion. Committee ranking member Rep. Adam Smith, D-Wash., responded that was the first time he had been given a cost figure, despite repeated inquiries to the department.

In March, the Pentagon reportedly petitioned Congress for an additional $200 billion to replace stocks from the war and prepare for future operations, should they be ordered. When asked about it at the time, Hegseth indicated the report’s veracity.

“That number could move, obviously,” Hegseth said then. “It takes money to kill bad guys.”

Hegseth’s central defense of the war during the hearing was arguing that it served to prevent Iran from obtaining a nuclear weapon. Republican members echoed his contention.

Iran maintains uranium supplies that could eventually be used to build a nuclear weapon if it were to be further enriched. But since the U.S. bombed Iran’s nuclear facilities in June, Iran has made “no efforts since then to try to rebuild their enrichment capability,” Tulsi Gabbard, the director of national intelligence, said in a written statement to Congress in March.

“What is it worth to ensure Iran never gets a nuclear weapon?” Hegseth asked rhetorically in Wednesday’s hearing.

A defense budget unprecedented in modern times

The Pentagon’s budget request is composed of $1.1 trillion in base discretionary funding and an additional $350 billion in mandatory spending.

The mandatory funds, which are earmarked mostly for munitions and the expansion of the defense industry, would go through the budget reconciliation process and therefore would be shielded from a potential Democratic filibuster in the Senate.

The expansion of America’s defense industrial base — the network of private manufacturers that supply the Pentagon — is a central facet of the proposed budget.

“President Trump inherited a defense industrial base that had been hollowed out by years of ‘America Last’ policies,” Hegseth said. “Under the leadership of President Trump, our builder-in-chief, we are reversing this systemic decay and putting our defense industrial base on a war-time footing.”

Another of the administration’s top defense funding priorities, as reflected in the budget document, is the procurement of munitions.

“Critical munitions are vital to the administration’s priorities to defend the homeland and deter potential aggression after years of neglect by the previous administration,” the White House wrote in a recent budget justification. Limited munitions stockpiles and the United States’ inability to quickly produce them have long troubled U.S. war planners.

While the Trump administration has pushed to expand munitions stockpiles, it has also expended massive amounts of scarce ordnance in the Middle East in recent months.

An April analysis by the Center for Strategic and International Studies estimated that the U.S. military has expended more than 850 Tomahawk cruise missiles in the Iran war from an estimated prewar inventory of 3,100.

Key U.S. capabilities like the Patriot and THAAD air defense systems have also seen stockpiles dwindle by about half since the start of the war, according to the report.

“We’re fighting wars”

The administration’s request for the massive infusion of cash comes as Trump has said that federal spending on healthcare and social programs should take a back seat to “military protection.”

In its proposed budget, the White House moved to cut non-defense discretionary spending by 10%. The spending category comprises public health, scientific research and scores of other domestic programs, but excludes mandatory programs like Medicare and Medicaid.

In a speech at a private Easter luncheon, Trump said spending on childcare, Medicare and Medicaid should be left to the states, while the federal government should be focused solely on national defense.

“We’re fighting wars,” Trump said.

The sentiment runs contrary to Trump’s long-held foundational critique of his predecessors — that money spent on foreign wars from Iraq, to Afghanistan, to Ukraine, should have been used to benefit Americans at home.

Tehran, Iran – Iran’s national currency has plunged to new lows as authorities mobilise to dampen the impact of the naval blockade enforced by the United States.

The Iranian rial shot above 1.81 million to the US dollar on the open market by early afternoon on Wednesday before partially recovering. The embattled currency changed hands for about 1.54 million earlier this week, and its rate was about 811,000 per US dollar a year ago.

The rial had remained relatively stable over the past two months after experiencing an earlier drop as US forces amassed in the lead-up to the US-Israeli war on Iran, which began at the end of February.

The latest freefall follows on from unchecked inflation, which has been increasingly plaguing the Iranian economy as a result of mismanagement and sanctions, and continues to ravage households. Washington now has three aircraft carriers in the region and is bringing in more troops and equipment as Israel expresses readiness to restart fighting, three weeks after a ceasefire began.

Iran’s authorities this week projected a hardened stance on negotiations with Washington, and pledged to fight the naval blockade of Iran’s southern waters, which the US Central Command insisted on Tuesday had “cut off economic trade going into and coming out of” the country.

Amid threats by US President Donald Trump, the Iranian government has also tried to empower its own border provinces to import essential goods by reducing red tape. It has also allocated $1bn from the sovereign wealth fund to buy food, and made a partial policy U-turn to restart offering a preferential subsidised exchange rate with the goal of reducing prices, despite concerns about corruption.

Non-oil trade takes hit

According to customs data released by state media, Iran’s non-oil trade has been negatively affected after commercial ties were disrupted or cut off as a result of the war, and critical infrastructure was bombed.

Iran’s customs authority put the total value of non-oil trade in the Iranian calendar year that ended on March 20 at close to $110bn, with $58bn going to imports. The figure was about 16 percent lower than the year before.

The volume of non-oil trade was valued at approximately $9bn for the 11th month of the calendar year ending on February 19, and $6.46bn in the final month, indicating a drop of about 29 percent in connection with the war, which started on February 28. The final month was also about 50 percent lower than the more than $13bn estimated value for last year’s corresponding month.

Part of the drop is linked with the fact that shipping has been significantly disrupted through the Strait of Hormuz as Iran and the US spar over control of the strategic waterway. The US and Israel also directed some of their thousands of strikes against ports, naval facilities, airports, and railway networks across the country.

Iran’s top steel and petrochemical producers were also extensively bombed, as were oil and gas facilities, power stations, and major industrial zones. The US and Israel have threatened to take Iran “back to the Stone Age” through systematic bombing of civilian infrastructure like power plants.

To manage the impact and preserve domestic supply, Iranian authorities have imposed temporary restrictions on exports of steel, petrochemicals, polymers and other chemicals.

Oil exports in the crosshairs

The US is using its military capabilities and economic chokeholds to drive down Iran’s oil exports, a goal that it has also pursued over recent years through sanctions.

Since mid-April, the US military has been deploying its soldiers to take over or inspect ships transiting through waterways near Iran, in addition to targeting what is known as a shadow fleet of tankers used by Iran to circumvent sanctions and ship its oil.

Warships and thousands of troops could still launch a ground invasion or destructive aerial attacks against Iran’s Kharg and other critical islands, and the Trump administration expects increased pressure on Iran’s oil sector due to hampered access to export routes and supertankers keeping the oil stored on the water.

The US Treasury has been blacklisting refineries in China, the biggest buyers of Iranian crude oil, and going after the banking and cryptocurrency channels alleged to be facilitating Tehran’s oil trade, and having links to the IRGC – which Washington considers a “terrorist” organisation.

“We will follow the money that Tehran is desperately attempting to move outside of the country and target all financial lifelines tied to the regime,” said US Treasury Secretary Scott Bessent on social media.

Chinese refineries buy roughly 90 percent of Iran’s oil shipments, and imported a record 1.8 million barrels per day ⁠in March, according to Vortexa Analytics data cited by the Reuters news agency, which also said purchases were expected to slow due to worsening domestic refining and processing margins.

According to figures released by the General Administration of Customs of China, the volume of the country’s bilateral trade with Iran during the first quarter of 2026 stood at $1.55bn, down 50 percent year-on-year.

In March, the first month of the war, trade stood at $184m, which was nearly 80 percent lower than the year before and 64 percent lower than the month before. China’s imports from Iran and exports to the country were both considerably reduced as a result of the war.

The removal of the United Arab Emirates as a major trade partner and import market for Iran has also significantly affected the country’s economy, increasing its reliance on land neighbours like Turkiye and Iraq to the west and Pakistan to the east.

The UAE, a big part of the Trump-led Abraham Accords that saw multiple countries normalise relations with Israel, was heavily targeted by ballistic missiles and drones launched by Iran.

The UAE has closed down numerous Iranian institutions on its soil over the past two months, including financial facilitators, instructed Iranian citizens to leave, and has said it will take years to restore bilateral relations to previous levels.

Al Jazeera’s Tohid Asadi has been seeing more flights take off at the main airport in Iran’s capital, where operations resumed on Saturday as the ceasefire with the US and Israel continues.

Since the Straight of Hormuz was closed during the Iran War, the price of jet fuel has doubled. As a consequence, many airlines have cancelled flights. Regional airports are feeling the most strain

Europe’s smaller airports face an “existential threat”, according to the boss of the Airports Council of Europe.

Olivier Jankovec, the director general of ACI Europe, has warned that some of the continent’s smaller airports may not survive if jet fuel shortages triggered by the Middle East crisis lead to widespread route cancellations.

Since the Straight of Hormuz was closed during the Iran War, the price of jet fuel has doubled. As a consequence, many airlines have cancelled flights.

Regional airports are most exposed to airlines cutting capacity and raising fares, as demand on their routes is generally more price-sensitive than with bigger airports. This comes in the wake of the coronavirus pandemic, which has left some regional airports 30% below 2019 levels, according to Mr Jankovec.

“The current levels of jet fuel prices and the prospect of a new cost of living crisis mean that many regional airports across our continent are likely to face both a supply and demand shock. For them, this is nothing short of an existential threat,” the aviation boss told the Guardian.

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Conversely, the biggest airports in Europe have a different problem.

Heathrow, the UK’s busiest airport, delivered a stark warning about its capacity on Wednesday, as conflict in the Middle East triggered a surge in demand for connecting flights.

“Heathrow is full”, declared its chief financial officer, Sally Ding. Her comments came alongside the publication of first-quarter figures showing 18.9 million passengers passed through the airport in the opening three months of the year. That represents a 3.7% increase year-on-year.

Airspace closures stemming from the conflict in Iran led to a rise in transfer passengers. This pattern is expected to persist as geopolitical uncertainty continues, impacting one of the UK airport’s chief international competitors for worldwide connections, Dubai.

Heathrow’s trading update noted it had “temporarily absorbed demand from elsewhere”. It also warned “passenger numbers for the rest of the year are likely to be impacted whilst there is significant uncertainty in the Middle East”, as reported by City AM.

Yet as the long-running domestic saga surrounding planning permission for a third runway continues, Ding warned that Heathrow’s operating capacity meant “fewer choices and higher fares for passengers and missed opportunities for the UK economy”.

Heathrow’s £50bn proposal to increase capacity has been mired in political wrangling for years. Its blueprint for a new, 3.5-kilometre runway would elevate passenger capacity to 150m annually from 84m. With it, the airport could accommodate 756,000 flights per year, up from 480,000 currently.

“Our plan is privately financed, rigorously assessed and focused on value. With the right regulatory framework and government policy in place, we are ready to invest, grow and keep the UK connected to the world,” a statement from Heathrow said on Wednesday.

The project involves redesigning part of the M25, London’s ring road which passes close to Heathrow, by diverting it into a tunnel. For the first time in Heathrow’s history, the government examined a competing expansion proposal from another firm.

The more economical bid – costing £25bn, and put forward by the Arora Group, which runs hotels and is involved in property asset management as well as construction – would have avoided the M25 altogether. It was turned down last autumn by Transport Secretary Heidi Alexander. She selected Heathrow’s proposal, but it has faced further delays following a government decision to reassess its overarching strategy in its Airports National Policy Statement, now anticipated this summer.

The US naval blockade of Iranian ports and the Strait of Hormuz, in place since April 13, has raised concerns that Iran could run out of crude oil storage capacity and be forced to curb production.

Bloomberg reported analysis on Tuesday from the data and analytics company Kpler suggesting Iran could run out of crude storage in 12 to 22 days if the blockade persists.

Last week, United States Treasury Secretary Scott Bessent claimed that storage capacity at Kharg Island, where most of Iran’s oil is exported, would be full “in a matter of days”.

So how quickly could Iran run out of oil storage, and why does it matter?

What is happening in the Strait of Hormuz?

The Strait of Hormuz is a narrow channel that connects the Gulf to the open ocean. It spans the territorial waters of Iran on its northern side and Oman on its southern side. It is not in international waters.

During peacetime, 20 percent of the world’s oil and liquefied natural gas (LNG) supplies are shipped through the corridor.

Two days after the US and Israel launched their first air strikes in their war on Iran on February 28, Ebrahim Jabari, a senior adviser to the commander in chief of Iran’s Islamic Revolutionary Guard Corps (IRGC), announced that the strait was “closed”. If any vessels tried to pass through, he said, the IRGC and the navy would “set those ships ablaze”.

As the war has dragged on and negotiations have failed to achieve a settlement, Iran has at times in the past two months allowed some “friendly” ships and those that pay tolls to pass. It is currently refusing to allow any foreign-flagged ships, including those previously deemed friendly, to pass until the US lifts its own naval blockade.

Iranian First Vice President Mohammad Reza Aref said on April 19 that the “security of the Strait of Hormuz is not free”.

“One cannot restrict Iran’s oil exports while expecting free security for others,” he wrote in a post on X.

“The choice is clear: either a free oil market for all, or the risk of significant costs for everyone,” he added. “Stability in global fuel prices depends on a guaranteed and lasting end to the economic and military pressure against Iran and its allies.”

Since the US naval blockade on the strait began, the US has opened fire on and taken control of an Iranian-flagged tanker near the Strait of Hormuz while also redirecting vessels on the high seas transporting cargo to or from Iran. Iran’s armed forces have denounced these actions as “an illegal act” that “amounts to piracy”.

The US naval blockade of the strait means that Iran might have to store the oil it produces.

Iran is the third largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia and Iraq and exports 90 percent of its crude oil via Kharg Island in the Gulf for shipping through the Strait of Hormuz.

What has the US claimed?

The US is eager to curb Iran’s oil revenues, which have risen since Tehran closed the Strait of Hormuz to other shipping. This is the primary motive behind Washington’s naval blockade of Iranian ports.

Iran exported 1.84 million barrels per day (bpd) of crude oil in March and shipped 1.71 million bpd in April, compared with an average of 1.68 million bpd in 2025, according to Kpler.

However, the US naval blockade since mid-April now means that most of its exports are having to be stored instead.

Bessent wrote in an X post on April 22: “In a matter of days, Kharg Island storage will be full and the fragile Iranian oil wells will be shut in.”

“Constraining Iran’s maritime trade directly targets the regime’s primary revenue lifelines.”

How much oil can Iran store?

Iran’s domestic refineries have a production capacity of 2.6 million bpd, according to the energy consultancy Facts Global Energy.

Satellite data show the amount of oil Iran has in storage has risen sharply since the US blockade began, and in the days after the US tightened it, stocks were rising so fast that it appeared Iran had been barely able to export any oil at all.

From April 13 to April 21, data showed that stocks rose by more than 6 million barrels, according to the Columbia Center on Global Energy Policy (CGEP). From April 17 to April 21, the stock increased very rapidly, growing by 1.7 bpd.

As of April 20, the storage tanks at Kharg were about 74 percent full after the island alone had taken on about 3 million extra barrels of oil, the CGEP reported.

Generally, oil companies avoid filling their storage beyond 80 percent capacity to balance safety, emissions control and flexibility.

However, Iran and other oil producing countries have exceeded this limit before, for instance, during the COVID-19 pandemic. In April 2020, Kharg island’s stocks reached close to 90 percent capacity, an all-time high.

Iran also has some crude oil storage capacity in the form of “floating tanks”, or parked ships. About 127 million barrels can be stored in this way, Frederic Schneider, a nonresident senior fellow at the Middle East Council on Global Affairs, told Al Jazeera in an interview on April 14.

Will Iran need to cut oil production?

Muyu Xu, a senior crude oil analyst at Kpler, told Al Jazeera that the blockade could eventually force Iran to cut production.

“However, given there is still available storage capacity onshore (roughly covering 20 days of Iran’s current production), we expect any production reduction to be gradual over the coming week with a higher likelihood of acceleration into May,” she said.

Analysis by CGEP nonresident fellow Antoine Halff echoed this. Halff wrote in an article published by CGEP on Tuesday that it may be some time before the US blockade causes Iran to shut off its production “in a big way”.

However, Halff added, Iran may still choose to halt production “fairly aggressively” but this “would be more by choice than by necessity”.

He explained: “Doing so would have the advantage of providing Iran with relatively ample spare storage capacity after the shutdown and would allow for a smoother restart of operations once conditions permit, and the constraint is relaxed, thus minimising adverse impacts from the blockade on longer-term supply.”

Why does this matter?

Halting oil production risks damaging underground reservoirs by reducing reservoir pressure, allowing water or gas to encroach into producing layers and changing patterns of oil flow. This can make some oil harder or more expensive to recover later, experts said.

Restarting the process of oil production can also be slow and costly, involving repairs of corroded equipment or unclogging pipelines.

Halting production would also cause Iran’s export revenues to drop. However, analysts said that for a few months, Iran can continue to earn revenue from oil that is already in transit at sea.

Kenneth Katzman, former Iran analyst at the Congressional Research Service in Washington, DC, said Iran is not exporting new oil during the US blockade of Iranian ports but Tehran has 160 million to 170 million barrels of oil on ships around the world currently.

Holiday guru said people were coming to him asking if they should cancel their holiday

TV holiday expert Simon Calder has given a key holiday booking update for anyone thinking of going away in 2026. People who have booked with jet2, easyjet and TUI have been told that the operators will not charge supplementary fees for fuel even though the Iran conflict has seen prices soar.

The ITV and BBC expert said people were coming to him and asking if they should cancel their holidays. The EU has said that travellers face major problems this year due to the Middle East crisis and the UK Government has said it is working with airlines to monitor the situation.

However, Mr Calder said it was a great time to get mega deals – with some offering loads off. He told GB News: “ Do not cancel your holiday. And if you haven’t booked any and you’re feeling nervous, well, please don’t. Now is a fantastic time to book holidays.

“I wish there wasn’t, but I was looking for instance last night. So, these prices still available. Luton to Mykonos. Okay. Now, beautiful Greek island and most fares in July and August on that route are £55 one way. That is crazy. It should be three times that. It’s a fantastic time to book.

“And you might think, well, yeah, I’ll book the flight and then it’ll be cancelled. But air passenger rights rules are so strong that if you are if your flight is cancelled, then it’s not your problem. It’s the airlines problem. They have to find you an alternative on the same day if at all possible. So, of course, I snapped up one of these flights and I’m just looking forward to it. I’ve been booking holidays like there’s no tomorrow because there’s so many great deals around.”

He said that the current situation was leaving some people worried. He said:”Let me tell you first of all if you have booked a holiday – and I’ve had people it it takes me back almost to COVID – people saying I put this holiday the balance, is due I’ve got to pay you know a couple of thousand pounds should I just cancel the whole thing no go and have a lovely holiday in the UK.

“There will be some flight cancellations, and that is mostly big airlines like Lufthansa, which isn’t a holiday airline. They’ve cancelled 20,000 flights but they’ve done that basically because they were flights which they thought oh we’re not going to make any money out of that with fuel double the price it was so let’s just cancel those.

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“So they’ve taken those flights out. It’s not affecting anybody’s holiday that I know. We’ve had very very unhelpful warnings from European energy chiefs and from the prime minister saying, ‘Oh, you might have to think about your holiday.’No, you don’t. Just just plan your holiday as normal. There is a tiny chance that your flight might be merged with another flight. So, for example, and there is absolutely no plans for this, but if you look at easyJet from Gatwick to Nice, lovely destination, they got six flights a day.

“If they reduce that to four to save a bit of fuel. Well, it would be a slight nuisance for some people. They’d have to go at noon instead of 10:00 in the morning, but ultimately it’s not going to make any difference.

“Another real concern for lots of people is I could be stuck at the other end. Well, I actually put this to an airline boss yesterday and I said, ‘What what happens if you’re in Cyprus?’ Because with other destinations, if they run out of fuel in, I don’t know, Naples, that’s fine. You can just fly out with enough to fly back. Somewhere like Cypress, you can’t do that. And the boss said, ‘Well, it’s very easy. We’ll just do a pit stop in Athens on the way back’. So, there are lots of solutions. Do not cancel your holiday. And if you haven’t booked any and you’re feeling nervous, well, please don’t. Now is a fantastic time to book holidays.”

Jet2 has said holidaymakers are increasingly booking their trips at the last minute since the start of the Iran war amid increasing anxiety over the impact of the conflict and worries over jet fuel supply.

The firm said summer passenger number bookings so far are up 6.2%, thanks to growth across its airline and package holiday business, but in a sign of mounting nervousness among holidaymakers, it revealed the “booking profile has become increasingly close to departure” due to the Middle East war.

It said it is well protected from the fuel cost spike caused by the Iran war for the important summer season, adding it is “maintaining frequent dialogue with our fuel suppliers and airport partners on fuel supply”.

The group’s load factor – a key measure of how well it fills its planes – has remained flat year-on-year for its first quarter so far, though it said the conflict meant there was limited visibility for the peak summer season and beyond.

Its update followed a warning from Heathrow airport separately on Wednesday that it expects passenger numbers for the rest of the year to be affected by the situation in the Middle East.

Airspace closures following the outbreak of the war in the Middle East on February 28 have had a major impact on air travel, and while much of the region’s airspace has since reopened, many people are avoiding flying there because of the conflict.

A raft of European airlines have also recently alerted to impending jet fuel shortages within weeks, given the disruption to their main supply route through the Strait of Hormuz.

Around three-quarters of Europe’s jet fuel supply comes from the Middle East and travels through the crucial shipping route.

Steve Heapy, chief executive of Jet2, said: “Clearly, we continue to monitor the situation in the Middle East but remain focused on our medium-term goals.”

The group said it expects to report a drop in operating profits to between £435 million and £440 million for the past year to March 31, down from £446.5 million in 2024-25, but said this was in line with market forecasts.

It has increased its summer programme for 2026 by 7.7% to 19.9 million passenger seats.

It is unclear whether football officials from Iran were issued Canadian visas to attend AFC and FIFA congresses.

Representatives from Iran’s football federation were not present at the largest formal meeting of Asia’s football leaders before the World Cup.

In the presence of FIFA President Gianni Infantino, there was no discussion at the Asian Football Confederation (AFC) Congress about Iran’s participation in the tournament or whether the team’s games should be moved out of the United States because of the US-Israeli war on Iran.

Concerns were raised that visa issues could affect the Iranian delegation’s ability to travel to both the confederation meeting in Vancouver and the overall FIFA Congress on Thursday, as well as the World Cup starting on June 11.

The 48-team tournament is being hosted by the US, Canada and Mexico.

It was not clear if visa issues prevented Iranian representatives from attending the AFC Congress. However, as the nine AFC teams that qualified for the World Cup were presented with commemorative gifts, it was announced that Iran would receive their token “once they arrive”.

An Iranian government spokesperson said last week that the national team was preparing for “proud and successful participation” in its World Cup games in the United States.

FIFA, football’s international governing body, has consistently said Iran will stick to the World Cup game schedule decided last December, before the US and Israel launched military attacks on Iran on February 28, and has refused to entertain suggestions that the team’s games be moved to Mexico.

“Now even more, now that the world is going through a very, very delicate, difficult, dangerous time with many conflicts, and many of you are directly affected and involved in these conflicts,” Infantino told the AFC leaders.

“Now even more, we need to find ways to build these famous bridges, or maybe to build football fields instead. And to build competitions where people can join and come together.”

Iran are placed in Group G with Belgium, New Zealand and Egypt.

Team Melli’s planned training camp would be in Tucson, Arizona, and they are scheduled to open their World Cup campaign on June 15 against New Zealand in Inglewood, California, near Los Angeles.

Iran will play Belgium in Inglewood on June 21 before facing Egypt in the final group match in Seattle on June 26.

Oil markets face renewed instability following the United Arab Emirates’ formal exit from the Organisation of the Petroleum Exporting Countries (OPEC) and its wider alliance (OPEC+), announced on Tuesday and taking effect on Friday.

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The move, which ends decades of membership, comes as the global economy continues to reel from the ongoing war with Iran and the blockade of the Strait of Hormuz remains in place.

Investors are currently weighing the potential for higher future output from the UAE against the immediate and acute risks posed to global supply routes, as well as the increased chances that more countries drop out of OPEC and OPEC+.

Following the announcement, markets reacted swiftly as the potential for oversupply from the UAE was priced in. Oil prices fell by between 2% and 3%, particularly in futures contracts a couple of months ahead.

However, the move was just as quickly offset by the risk premium associated with the Middle East conflict and the current halt to US-Iran negotiations.

At the time of writing, US benchmark crude, WTI, is trading above $105 a barrel, while Brent crude, the international standard, is over $112. Both prices are around 4% higher on Wednesday from the UAE announcement low.

The UAE’s decision follows years of simmering tension between Abu Dhabi and Riyadh over production quotas. The UAE has invested over $150 billion (€128bn) in the state-owned Abu Dhabi National Oil Company (ADNOC) to expand its capacity to five million barrels per day.

However, under OPEC’s restrictive framework, much of this capacity remained underutilised, now prompting the government to prioritise its national interest.

The departure of the group’s third-largest producer is a significant blow to the cohesion of the 60-year-old organisation. Maurizio Carulli, global energy analyst at Quilter Cheviot, noted the limitations this exit places on the remaining members.

“Until tanker traffic through the Strait of Hormuz is safe again, OPEC’s ability to stabilise prices is sharply constrained, while US producers have gained outsized influence,” Carulli explained.

While the UAE has pledged to bring additional production to the market in a “gradual and measured” manner, the sudden lack of coordination within OPEC has introduced a new layer of uncertainty.

For the UAE, the blockade served as a final catalyst for its exit. With its primary export route under threat, Abu Dhabi has sought the diplomatic flexibility to forge independent security and trade partnerships outside the traditional cartel structure.

Despite the geopolitical turmoil, energy equities have remained resilient.

According to Carulli, “integrated majors such as BP, Shell, TotalEnergies, ENI, Chevron and ExxonMobil are benefitting from a price uplift that could add 5-10% to operating cash flow for every $10 increase in oil prices.”

Standoff over the Strait of Hormuz

In a separate but related development, the security situation in the Middle East remains precarious despite a fragile ceasefire. Iran has recently offered a ten-point proposal to reopen the Strait of Hormuz.

In exchange for restoring maritime traffic, Tehran is demanding a full withdrawal of the US naval blockade and an end to the current hostilities.

US President Donald Trump, who recently extended the two-week ceasefire mediated by Pakistan, described the latest Iranian offer as “much better” than previous iterations but still did not accept the terms.

Shortly after, Trump posted on social media claiming that Iran is in a dire and desperate condition with no leverage to negotiate.

Washington continues to insist on a permanent settlement regarding Iran’s nuclear programme and an “unconditional” reopening of the waterway before sanctions are lifted.

The impact of this blockade on global energy security cannot be overstated.

“The prolonged closure of the Strait of Hormuz has removed roughly 12% of global oil supply from the market, according to the IEA, a bigger disruption than the Yom Kippur war, the Iran‑Iraq conflict, the invasion of Kuwait or even the fallout from Ukraine,” Carulli highlighted.

London, United Kingdom – Recent headlines from British newspapers speak to different areas of tension in the UK due to the United States-Israel war on Iran: economic woes, political friction and worries about the country’s readiness for the future, strategically and militarily, if the conflict persists.

On Thursday, the Financial Times blared, “Consumer confidence slumps to two-year low,” as The Guardian reported, “UK braces for price rises driven by Iran war as economic confidence plummets” and “UK prepared to deploy RAF Typhoons to keep Strait of Hormuz open after Iran war.” Earlier this month, The Independent reported that Prime Minister Keir Starmer risked US President Donald Trump’s wrath as he “refuses to let US use UK bases” for strikes on Iran’s infrastructure. And on Sunday, quoting a minister, The Times said the  “economic fallout from the Iran war” would last at least eight months.

Beyond the headlines is real public angst about what the war in Iran means on a human level and what the economic and political fallout may be.

For Iranians living in the UK, there is a whole other level of worry.

Omid Habibinia, a man in his 50s who was born in Tehran but moved to the UK 25 years ago, described the impact on him personally.

“Since the first day of the war, connection has been cut off. I am witnessing the pain and suffering of those close to me, many of whom have no news of their families. Beyond the fact that around 90 million people inside Iran have effectively been imprisoned by the internet shutdown and millions more have been deprived of contact with their loved ones, the attacks on the country’s critical infrastructure – alongside the killing and injury of thousands of civilians and the displacement of many – are deeply distressing to me,” he told Al Jazeera.

It seems clear that the impact will last long after the conflict has ended or at least a long-term ceasefire is agreed. There are worries of higher mortgage costs and higher food and fuel prices amid a continued cost-of-living crisis.

Luke Bartholomew, deputy chief economist at fund manager Aberdeen, said the UK economy is “particularly badly exposed to the Iran shock as a big energy importer with weakly anchored inflation expectations and an already soft labour market”.

For many people still recovering from the energy inflation shock that followed Russia’s invasion of Ukraine in 2022, this is a hit to their household finances that is hard to manage.

Although the government has urged people not to worry, sporadic queues at petrol stations and talk of a return to panic shopping seen during the start of the COVID-19 pandemic are commonplace.

‘We will stand by working people’: Starmer

Starmer formed an Iran crisis committee that met on Tuesday to persuade people that “you can be sure we will stand by working people in this crisis”.

He hinted that people might change their holiday plans and might already be cutting back on food.

“I think we’ll see how long the conflict goes on. I can see that, if there’s more impact, people might change their habits, … where they go on holiday this year, what they’re buying in the supermarket, that sort of thing,” he said.

Critics said the government’s stretched finances mean it cannot afford the energy subsidy that may be needed. They have also lamented the government’s reluctance to exploit the nation’s untapped oil reserves in the North Sea. Experts disagreed on whether this would make any significant difference.

Before the Iran war began, the UK economy was turning a corner. Inflation and fuel costs were falling, government borrowing was down and unemployment was falling.

The hits to the UK population range from the relatively trivial to the potentially terrifying.

London house prices have tumbled as sellers become nervous and buyers sit tight, but some observers have noted that they were overpriced in the first place.

Flights being cancelled due to a lack of jet fuel might be an inconvenience. Higher prices for fuel and food and then everything else are a major problem for those whose incomes are already stretched.

Then there is the genuine fear of what a prolonged war could mean, such as a serious recession or military involvement.

Thomas Pugh, chief economist at the consulting firm RSM UK, said: “The Strait of Hormuz has effectively been shut since early March. The International Energy Agency called it the largest supply disruption in the history of the global oil market. Oil prices have spiked, gas prices are climbing and inflation fears are back. But the bigger risk is ‘demand destruction’.

“Demand destruction happens when high prices force people and businesses to buy less. We’re seeing it already in fuel rationing in emerging market economies. It means fewer cars sold, fewer homes bought, fewer restaurant meals, fewer business investments and eventually fewer jobs. Because this crisis is about more than oil, demand destruction appears across the whole economy.”

The Iran war arrived at a time when the UK population was already unhappy.

A survey by the polling company IPSOS in December reported: “Three quarters of Britons expect large-scale public unrest in 2026. 59 percent think there will be protests against the way their country is being run, highest in Peru (80%) and South Africa (76%). In Great Britain, 74% predict large scale unrest. Since 2019, three of the G7 countries – Great Britain, Japan (both+11pp [percentage points]) and United States (+10pp) – have seen a double-digit increase in the proportion that think there will be large-scale public unrest.”

Bartholomew added: “With inflation rising and wage growth sluggish after a sustained period of very weak employment activity, real wages are likely to turn negative in coming months, adding a further headwind to the economy. So it’s probably just too early for the full effects of the war to be felt or show up in the data yet. But one place the impact of the war is very clearly showing up is around the path of interest rates.

“It is very likely that were it not for the war, the Bank of England would be cutting rates at its April meeting. Instead, the market is pricing in a series of rate hikes this year. For households that were hoping for mortgage rate cuts this year, the prospect of rates staying on hold is almost as painful as renewed hikes.”

April 29 (UPI) — The United States has sanctioned 35 entities and individuals accused of overseeing a shadow-banking network that moved tens of billions of dollars for Iran, as the Trump administration flexes Washington’s financial might amid a stalemate in peace negotiations with Tehran.

The sanctions announced Tuesday come as U.S.-Iran peace negotiations came to a halt last week after Tehran said it would not participate in talks until the United States lifted its blockade of sea-based trade to the Middle Eastern nation.

Those blacklisted by the Treasury include several private companies known as rahbars, which manage thousands of overseas companies used by Iranian banks cut off from the international financial system to execute payments for Iranian trade.

According to the Treasury, these rahbar companies coordinate with Iranian exchange houses and front companies to conduct international trade on behalf of the Islamic Revolutionary Guard Corps, Iran’s Armed Forces General Staff, the National Iranian Oil Company and other sanctioned entities.

“By dismantling these financial channels, we advance the administration’s policy in the conflict with Iran and underscore our commitment to imposing maximum pressure on Iran,” State Department spokesman Thomas Pigott said in a statement.

The punitive action was part of what the Treasury calls Operation Economic Fury, a branded escalation of President Donald Trump‘s broader maximum-pressure campaign against Iran.

Coinciding with the sanctions on Tuesday, the Treasury’s Office of Foreign Assets Control issued an alert to financial institutions over the risks they face for doing business with so-called teapot oil refineries in China, primarily in Shandong Province, that import and refine Iranian crude oil.

According to the alert, China is the largest purchaser of Iranian oil, and the Treasury has designated multiple small China-based refineries since March of last year.

“The United States will further disrupt illicit funding streams that finance Iran’s malign activities,” Pigott said.

“We will not relent in our efforts to deny Iran and its proxies the resources they use to threaten U.S. interests and regional stability.”

Trump first employed the maximum-pressure campaign strategy to coerce Iran into negotiations over its nuclear program in 2018 after unilaterally withdrawing the United States from a landmark multinational accord that sought to prevent Tehran from obtaining a nuclear weapon.

Iran then breached its commitments under the deal, enriching uranium up to 60%, far exceeding the accord’s 3.67% but below weapons-grade levels.

Trump restored the maximum-pressure campaign after returning to office in 2025, and the United States bombed three major Iranian nuclear facilities that June.

The United States and Israel have since escalated their pressure campaign, attacking Iran in strikes that triggered a war now halted by a fragile cease-fire to permit peace talks.

Iran has imposed restrictions on energy trade through the Strait of Hormuz, prompting the United States to impose a blockade of Iran’s ports in response to what it describes as Tehran holding a major share of the world’s energy supplies hostage.

As Iran stares down the economic consequences of a prolonged blockade of the Strait of Hormuz, attention is shifting north.

With Gulf shipping lanes disrupted and oil exports constrained, Tehran may seek to depend less on the Gulf and more on a patchwork of railways, Caspian ports and sanctions-era trade networks linking it to Russia.

The importance of that relationship was underscored this week when Iranian Foreign Minister Abbas Araghchi travelled to St Petersburg for talks with Russia’s President Vladimir Putin, praising Moscow’s “firm and unshaken” support as the two sides discussed the war, sanctions and the future of the Strait of Hormuz.

But could Moscow really offer a lifeline for Iran’s beleaguered, war-torn economy, and would it even want to? We spoke to experts to find out.

Increasing but modest bilateral trade

Economic relations between Iran and Russia deepened after the US withdrew from a 2015 nuclear deal with Iran and other nations in 2018 and reimposed sweeping sanctions on Tehran.

Russia’s full-scale invasion of Ukraine in 2022 served to accelerate that trend as both countries found themselves increasingly cut off from the Western financial system. They turned to sanctions-evasion networks, alternative payment systems and non-Western trade corridors to keep goods, energy and money flowing.

Current trade is dominated by agricultural products – especially wheat, barley and corn – alongside machinery, metals, timber, fertilisers and industrial inputs. Tehran has also supplied Russia with low-cost Shahed drones, which Russia updated and has been using in its war on Ukraine.

“Trade turnover reached $4.8bn last year [2024], but we believe that the potential for our mutual trade is much greater,” Russian Energy Minister Sergey Tsivilyov told an intergovernmental commission on trade and economic cooperation between Moscow and Tehran in 2025.

Bilateral trade is reported to have increased by 16 percent during that period, driven largely by Russian exports of grain, metals, machinery and industrial goods.

But experts say that despite this increase, the overall trade relationship remains relatively modest compared with Iran’s trade with China or the Gulf countries.

Trade between the two is “not substantial, because both countries are producing almost similar products and the industries are similar”, Mahdi Ghodsi, an economist at the Vienna Institute for International Economic Studies, told Al Jazeera.

Alternatives to Hormuz

The backbone of Russia-Iran trade is the International North-South Transport Corridor (INSTC), a network of shipping lanes, railways, and roads linking Russia to Iran and onward to Asia, bypassing Western-controlled maritime routes.

Goods move from southern Russian ports, across the Caspian Sea to northern Iranian ports, including Bandar Anzali, before continuing by rail or truck.

The route has become increasingly important for Russian grain, machinery and industrial exports to Iran.

This route can serve as a “viable but partial lifeline”, Naeem Aslam, chief market analyst at London-based Think Markets, told Al Jazeera, adding that Russian ports in Astrakhan, on the Volga River delta near the Caspian Sea, and Makhachkala, on the Caspian Sea, are already “primed for a surge in grain, metals, timber and refined products”.

A western branch also runs through Azerbaijan, though a key missing rail link between Rasht and Astara in northern Iran remains unfinished.

In 2023, Moscow agreed to help finance the line, with Russia’s president calling the agreement a “great event” that “will help to significantly diversify global traffic flows”.

Easier in theory than in practice

Analysts say that, although these routes may provide a temporary solution, the Strait of Hormuz offers a scale and efficiency that rail and land corridors cannot easily replicate.

Although maritime trade has been highly volatile in recent weeks, “from a historical perspective it is simply the quickest and the most cost-effective way of transporting anything”, Adam Grimshaw, an economic historian at the University of Helsinki, told Al Jazeera.

“Roughly 90 percent of Iran’s international trade is maritime trade that goes through the Gulf, which can’t be quickly or immediately replaced through land access to Iran or through air transport to circumvent the American blockade”, Nader Hashemi, an associate professor at Georgetown University, told Al Jazeera.

Ghodsi said Russia might be able to offer a “lifeline” in the short term, as it did when it exported grain during Iran’s droughts, but in the long run, it simply “cannot substitute” the vast amounts of maritime trade.

Re-routing trade routes via land “takes time”, pushing up prices for consumers and creating more food waste as perishables rot en route.

Does Moscow want to help Iran?

Most analysts say throwing an economic lifeline to Iran is not in Russia’s interests.

“They’ve got their own economic problems,” John Lough, head of foreign policy at the New Eurasian Strategies Centre, told Al Jazeera, pointing to signs of stagnation inside Russia, pressure on reserves and growing frustration over the prolonged war in Ukraine.

While Moscow could offer symbolic support or limited humanitarian assistance, “now is not a good time” to invest in Iran, he said, referring to the US-Israel war on the country.

Replacing maritime trade with overland routes would be extremely difficult, despite years of discussion about alternative corridors linking the two nations, he said.

It also won’t necessarily help Iran’s economy, which needs all the export revenue it can get, experts say.

“Much of Iran’s economy revolves around the sale of oil, and with that blocked or prevented by the American blockade, Russia really can’t help in that regard”, Hashemi said.

Others are more optimistic, however.

“Propping [up] Iran locks in higher global oil prices that buoy Russia’s war economy, cements INSTC dominance for Asian trade, and keeps a key anti-Western ally alive – no downside for Moscow in a fragmented Gulf,” Aslaam said.

The UAE’s decision to quit OPEC to prioritise its ‘national interests’ deals a blow to the oil group already grappling with the challenge of shipping Gulf exports through the Strait of Hormuz. Here’s what we know about why it’s withdrawing and the impact it might have.

US president says Iran has reached out and asked Washington to lift its naval blockade on Iranian ports.

Only 22 percent of US voters back the president’s performance on the cost of living, Reuters/Ipsos survey suggests.

United States President Donald Trump’s approval rating has dropped to its lowest point since he returned to the White House, sinking to 34 percent amid economic uncertainty and the US-Israel war on Iran, a Reuters/Ipsos poll suggests.

The poll, released on Tuesday, also showed that only 22 percent of respondents back Trump’s performance on the cost of living. Affordability has been a top issue for US voters.

The Iran war, which saw Tehran block most shipping through the Strait of Hormuz, has sent energy prices soaring across the world and fuelled inflation in the US.

The Reuters poll was conducted April 24-27, and it surveyed 1,014 US adults.

It comes months before the midterm elections in November when Trump’s Republican Party will have to contend with the US president’s abysmal job approval ratings as it tries to retain control of the Senate and House of Representatives.

Trump continues to enjoy near-unanimous support from Republicans in Congress despite growing criticism of the war on Iran by some right-wing commentators and podcasters.

The conflict has also been unpopular with US voters, including a sizeable Republican constituency.

A Marquette Law School survey released last week suggested that only 32 percent of voters approve of Trump’s handling of the war.

The number rose to 65 percent among Republican respondents, but it still showed significant dissent within the party on the issue.

A separate Associated Press-NORC poll last week reported similar findings – Trump’s overall approval rating at 33 percent, support for the war at 32 percent and his handling of the economy at 30 percent.

The US and Iran reached a two-week ceasefire on April 8 that Trump extended indefinitely, but tensions remain high in the region.

Duelling blockades in the Gulf – Iran shutting down the Strait of Hormuz and the US laying a naval siege on Iranian ports – have caused global energy supply issues to persist despite the truce.

In the US, the average price of 1 gallon (3.8 litres) of petrol is currently at $4.17, up from less than $3 before the war.

Still, Trump has suggested that he is comfortable with the status quo, claiming repeatedly that the Iranian economy is crumbling and that time is on his side.

“Iran has just informed us that they are in a ‘State of Collapse,’” the US president wrote in a social media post on Tuesday.

“They want us to ‘Open the Hormuz Strait,’ as soon as possible, as they try to figure out their leadership situation (Which I believe they will be able to do!)”

It’s not clear how or why Iran, which is currently refusing to hold direct negotiations with the US without it lifting the naval blockade, would inform Trump that its own economy is collapsing.

WASHINGTON — King Charles III will address a joint session of Congress on Tuesday, becoming the second British monarch in history to do so as the United States commemorates the 250th anniversary of its independence from England.

The king’s address, the centerpiece of a four-day state visit, comes at a moment of unusual strain between Washington and London. President Trump has repeatedly clashed with British Prime Minister Keir Starmer over the United States’ war with Iran, derided the British government’s refusal to commit forces to the conflict and even mocked the Royal Navy’s battleships as “toys.”

At a welcome ceremony for the king and Queen Camilla at the White House, Trump struck a more appreciative tone, describing the relationship between the two nations as a centuries-old “cherished bond.”

“Long before Americans had a nation or a Constitution, we first had a culture, a character and a creed,” the president said. “Before we ever proclaimed our independence, Americans carried within us the rarest of gifts — moral courage — and it came from a small but mighty kingdom from across the sea.”

Trump said that some may think it is “ironic” to honor the British king during celebrations of America’s independence, but argued the tribute “could not be more appropriate.”

“Americans have had no closer friends than the British,” Trump said. “We share the same root. We speak the same language. We hold the same values. And together, our warriors have defended the same extraordinary civilization under twin banners of red, white and blue.”

Trump said he will not be attending the king’s remarks at the Capitol due to security protocols, but said he planned to watch from afar. He did not elaborate on any security concerns, but the decision comes in the aftermath of a shooting at the White House correspondents’ dinner in which authorities said Trump was a likely target.

Following the welcome ceremony, the king joined Trump in the Oval Office for a closed-door bilateral meeting.

The president appeared to be enjoying the visit. He told the crowd at the White House that his late mother “loved” the royal family and watched their events on television. The president even joked his mother had a “crush” on the king when he was younger.

“I wonder what’s she’s thinking right now,” he said.

Earlier in the day, Trump posted on Truth Social that he planned to raise with the king and queen a media report suggesting his family roots may be tied to the royal family, a prospect he appeared to find amusing.

“I’ve always wanted to live in Buckingham Palace!!!” the president said in the post.

The king is scheduled to address Congress at 3 p.m. EDT. He is expected to delivered prepared remarks about the two nations’ shared history and their enduring diplomatic ties, while offering measured acknowledgment to the tensions defining the current moment.

The only precedent for an address by a British monarch was 35 years ago, when Queen Elizabeth II addressed a joint session of Congress in 1991. The timing of her address came after the end of the Gulf War.

How the king will address the current geopolitical tensions, including the Iran war and Trump’s threats to leave the North Atlantic Treaty Organization, remains to be seen.

But hanging over the king’s visit is the shadow of the Jeffrey Epstein scandal.

Rep. Ro Khanna (D-Fremont), one of the most vocal lawmakers pushing for the release of the Epstein files, last month requested that the king privately meet with some of the women who were sexually abused by the late financier.

The request was made in a letter to Buckingham Palace. In it, Khanna noted that the Epstein scandal extended to Britain, where the king’s brother, Andrew Mountbatten-Windsor, was tied to the alleged misconduct.

In February, the former Prince Andrew was arrested on suspicion of misconduct in public office related to his links to Epstein, marking the first time in nearly four centuries that a senior British royal was criminally apprehended.

But the king declined to meet directly with the survivors, Khanna said in an MS NOW interview on Tuesday morning. The California Democrat said he expects the king to address the issue during his remarks to Congress.

Qatar’s foreign ministry spokesman Majed al-Ansari told reporters at a weekly briefing that the Strait of Hormuz must not be used as a bargaining chip, as peace talks between the US and Iran continue to stall.