Military

The International Monetary Fund has downgraded its global growth forecast for 2026 from 3.3 to 3.1 percent, citing the impact of the United States-Israeli war on Iran and the shutdown of the Strait of Hormuz on the world economy.

The war has damaged energy infrastructure across the Gulf, while critical exports like oil, gas, chemicals and fertiliser remain largely stranded by Iran’s shutdown of the strait and the subsequent US naval blockade of Iranian ports.

In the worst-case scenario of a prolonged war, the IMF said global growth could fall to 2.5 percent in 2026, with low-income and developing economies hit the hardest by soaring commodity and energy prices. The global shipping and logistics industry is facing a separate crisis.

But every economic crisis also has beneficiaries: despite the dire macroeconomic outlook, some corners of the global economy are thriving on the uncertainty.

Here’s a look at five industries that are doing well either despite – or because of – the darkening economic outlook.

Wall Street investment banks

Global investors have been on a rollercoaster since the start of US President Donald Trump’s second term last year. The president’s erratic decision-making, where he often issues an ultimatum one day and then changes it the next, has led traders to coin the term “TACO trade”, where TACO stands for “Trump Always Chickens Out”.

The recent volatility has made some investors anxious, but it’s been a boon to investment banks, which make millions in commissions and revenue from the surging volume of trade, according to Sean Dunlap, a director of equity research at Morningstar Research Services.

“Clients want to reposition, so they trade frequently,” he told Al Jazeera. “Spreads tend to increase, which increases the profitability for trade intermediaries like banks.”

First-quarter results for 2026 – released this week – showed that Morgan Stanley reported a profit of $5.57bn, up 29 percent year on year, while Goldman Sachs reported a profit of $5.63bn, up 19 percent year on year.

JP Morgan Chase also reported major gains, with first-quarter earnings of $16.49bn, up 13 percent year on year. The banks all cited high levels of trading, deal-making, and “robust client engagement” as the reasons behind surging profits.

The boomtime for banks could reverse course, however, if volatility persists for too long, Dunlap warned, because investors may become increasingly cautious and less willing to borrow money to make trades.

Prediction markets

As mainstream Wall Street banks reap profits, the crypto-based prediction platform Polymarket has been earning upwards of $1m a day since the start of the month by letting users make peer-to-peer bets on everything from sports tournaments to elections.

Polymarket has been doing well since the start of the war, but it revised its fee structure on March 30 to cash in even more on its popularity.

Rival platforms like Kalshi, Novig and Robinhood also follow the same business model, but Polymarket has been the standout winner of 2026 because it controversially allows users to bet on the outcome of conflicts like the Iran war.

Polymarket revised its fee structure on March 30 to cash in on its popularity. The change has already netted the platform more than $21m in fees since April 1, up from $11.6m for all of March and $6.23m for all of February, according to DefiLlama, a website that provides data analysis for decentralised finance platforms.

If the current trend continues, Polymarket could make $342m in fees this year alone, according to DefiLlama’s analysis.

Anonymous users have also made millions correctly predicting the dates of major events like the US-Iran ceasefire, but the outcomes for rank-and-file users are typically less impressive.

Researchers found that the top 1 percent of Polymarket users captured 84 percent of all trading gains, according to a new report released this month analysing 70 million trades from 2022 to 2025. The returns are so high that US federal regulators have pledged to crack down on insider trading in prediction markets following suspiciously well-timed bets on Iran war outcomes.

Aerospace and defence

Unsurprisingly, the aerospace and defence industries are booming this year due to major conflicts in Ukraine, Iran, Sudan, Gaza and Lebanon and a surge in global defence spending.

About half of the world’s countries have increased their military budgets over the past five years, according to an April report from the IMF, which means they are also buying everything from drones to missiles — more than ever before. Demand is growing particularly fast in Europe, where NATO countries have committed to raising defence spending to 5 percent of gross domestic product (GDP) by 2035.

The defence industry has, in turn, seen major gains on the stock market. The MSCI World Aerospace and Defence Index – which tracks aerospace and defence stocks across 23 global markets – reported net returns of 32 percent year on year at the end of March.

The defence index outpaced the MSCI World Index, which tracks 1,300 large and mid-cap companies across the same 23 markets. The index, which gives a broader overview of global stock markets, reported net returns of 18.9 percent over the same period.

Artificial intelligence

Last year, the United Nations Trade and Development (UNCTAD) office predicted that the AI industry would grow from $189bn in 2023 to $4.8 trillion by 2033, and the Iran war does not seem to have dented the outlook.

“Despite the shocks from the Iran war, we’re still seeing resilience in a lot of sectors like artificial intelligence and renewable energy,” said Nick Marro, lead analyst for global trade at the Economist Intelligence Unit.

One metric for the AI boom has been the high volume of semiconductor chips still being exported out of East Asia, he said. At the top of the chart is chipmaking powerhouse Taiwan, which reported record-breaking merchandise exports of $80.2bn in March, up 61.8 percent year on year, according to EIU analysis.

The surge was led by exports to the US, which grew by 124 percent year on year, the EIU said.

Taiwan Semiconductor Manufacturing Company, the world’s top chipmaker better known by its acronym “TSMC,” on Thursday posted a net income of 572.8 billion New Taiwan Dollars (NTD) ($18.1bn) for the first three months of 2026 – up 58 percent year on year in NTD.

Another metric, initial public offerings or “IPOs,” also shows that the industry is confident for the moment, with industry leaders Anthropic and OpenAI both planning to go public this year.

Renewable energy

The Iran war has highlighted the need to transition from fossil fuels not only for environmental reasons, but also for reasons of energy security. The war marks the third major energy shock this decade, following the COVID-19 pandemic and the 2022 Russian invasion of Ukraine.

The Iran war has “boosted” renewable energy “given the urgency to switch away from fossil fuels and diversify towards renewable sources,” Marro of the EIU said.

Even before the Iran war began, the International Energy Agency reported that global governments were already taking active measures to invest in renewable energy for geopolitical reasons.

According to an IEA report released this month, “150 countries have active policies to advance renewable and nuclear deployment, 130 have energy efficiency and electrification policies, and 32 have policies to incentivise supply chain resilience and diversification across critical minerals and clean energy technologies.”

The Iran war has triggered another flurry of policymaking in Asia, which typically buys 80 to 90 percent of the oil and gas that transits through the Strait of Hormuz. Since the shutdown, the region has been struggling to find alternative sources of energy, forcing governments to deploy emergency measures like fuel rationing and price caps.

South Korea, Thailand, India, Cambodia, Indonesia, Vietnam and the Philippines have all announced a variety of measures from tax breaks for at-home solar panels to commissioning new renewable energy projects – and even restarting nuclear reactors.

The surge in policymaking has been good for the renewable industry. The S&P Global Clean Energy Transition Index, which tracks 100 companies that produce solar, wind, hydro, biomass and other renewable energy across emerging and developed markets, is up 70.92 percent year on year.

WASHINGTON — An effort to ramp up U.S. weapons production and build more ships, planes and drones will require a massive upfront investment, President Trump’s budget director told a House committee Wednesday.

The testimony from Russell Vought jump-starts the White House’s push to increase defense spending to nearly $1.5 trillion in the next budget year, up from nearly $1 trillion this year, while cutting health research, heating assistance and scores of other domestic programs by about 10% overall. Such cuts do not cover mandatory spending, which includes such programs as Social Security and Medicare.

The debate over Trump’s proposal underscored the sharp divide that will shape some of the most significant policy debates going into a midterm election that will give voters the ultimate say on the direction of the country.

“For the industrial base to double or triple and build more facilities, not just add shifts, it requires multiyear agreements to purchase into the future,” Vought told lawmakers. “That cost has to be booked in this first year.”

The White House is calling for about $1.1 trillion for defense through the regular appropriations process, which typically requires support from both parties for approval. An additional $350 billion would come through a separate bill that Republicans can accomplish on their own, through party-line majority votes.

Rep. Brendan Boyle of Pennsylvania, the ranking Democratic member of the committee, said he believes in a strong national defense. But he said the idea of increasing defense by more than 40% while cutting programs that people need shows that the Republican administration’s priorities are “out of whack.”

The committee chairman, Rep. Jodey Arrington (R-Texas), predicted the hearing would be more “amped up” than usual, and that proved to be true, beginning with his opening statement focused on criticizing Democrat Joe Biden’s presidency. Arrington said he did not know of any president in his lifetime who “inherited such a complete and utter mess as President Trump did in January of last year.”

Since then, Arrington said, Trump has secured the border, cut taxes and constrained nondefense spending.

It was the beginning of several back-and-forths at the hearing.

“You know how bad this economy is when we hear Joe Biden being invoked, we hear trans people being invoked. I was waiting for Jimmy Carter to be blamed next,” Boyle said in response to Arrington’s opening remarks.

Boyle said consumer confidence is plummeting under Trump and noted a gas station he passed in Philadelphia recently was selling gas at $4.11 a gallon versus less than $3 a gallon some six weeks ago because of Trump’s “war of choice in Iran.”

Rep. Becca Balint (D-Vt.) called the proposed defense spending increase shocking.

“We’ve never in the history of this country seen spending like this, paid for by slashing healthcare, education and housing,” Balint said. “Mr. Vought, yes or no, is $350 billion for the war in Iran lowering costs for Americans?”

“It is certainly not defunding child care. We fully fund child care in this budget,” Vought said, not directly answering the question.

Balint went on to incorporate Trump’s “America first” mantra in her questioning.

She said that $350 billion could pay for an enhanced health insurance tax credit for 10 years and that her constituents are asking how the country can continue to spend money on wars and not find a solution to helping people afford healthcare.

Vought said the president has made clear he was not going to let Iran have nuclear weapons, missiles and a navy that affect U.S. national security.

“He is doing what is necessary to keep us safe, while at the same time trying to pursue diplomacy so that we can get out of wars and lower those costs over time,” Vought said.

Vought said it was unclear how much the administration would seek to fund the war during the current budget year, which ends Sept. 30. That money would be part of an emergency supplemental spending bill and would be on top of the funds the White House is seeking to boost defense spending next year.

“Would it be more than $50 billion?” asked Rep. Veronica Escobar (D-Texas).

“We’re still working on it,” Vought said. “I don’t have a ballpark for you.”

Freking writes for the Associated Press.

Modern warfare has dramatically changed as we have seen from the Russia-Ukraine war, conflicts involving Gaza, India and Pakistan, and the recent US-Israeli strikes on Iran. At the centre of this shift is a surging global reliance on drone and missile technology as well as advanced air defence systems.

Turkiye, one of the largest military powers in the Middle East, is increasingly positioning itself as a major supplier in the global defence sector. Central to this effort is Roketsan, a company founded in 1988 to supply the Turkish Armed Forces, which has since evolved into the country’s primary manufacturer of missile and rocket systems.

Currently exporting to approximately 50 countries, the firm is one of the fastest-growing defence companies globally.

So how did Roketsan secure a large share of the global arms trade?

Bypassing Western embargoes

Turkiye’s defence expansion was largely accelerated by restrictions placed upon it. Western embargoes aimed at halting its military advancement meant Ankara could not acquire the necessary technical systems or components.

In 2020, the United States imposed Countering America’s Adversaries Through Sanctions Act (CAATSA) restrictions on Turkiye – a key member of the transatlantic military alliance NATO. These sanctions targeted Turkiye’s military procurement agency, its chief Ismail Demir, and three other senior officials. Washington also ejected Ankara from the F-35 stealth jet programme in July 2019.

The measures came after Ankara purchased Russia’s S-400 missile defence system, which was seen as a potential threat to NATO security. The European Union also prepared limited sanctions and discussed restricting arms exports following energy exploration disputes in the Eastern Mediterranean.

To circumvent this, the country built an integrated, domestic defence ecosystem. Today, Turkiye relies on a vast supply chain of nearly 4,000 small and medium-sized enterprises (SMEs) scattered across the country. As a result, the Turkish defence industry now operates with a local production rate exceeding 90 percent.

This shift has yielded significant financial returns for Ankara. In 2025, Turkiye’s defence industry reported $10bn in exports. Roketsan’s General Manager Murat Ikinci told Al Jazeera that the company currently ranks 71st among global defence firms, with ambitions to break into the top 50, then the top 20, and ultimately the top 10.

To support this expansion, Turkish President Recep Tayyip Erdogan inaugurated several large-scale facilities last week, including:

• Europe’s largest warhead facility.
• new research and development (R&D) centre housing 1,000 engineers.
• the “Kirikkale” facility dedicated to rocket fuel technology.
• new infrastructure for the mass production of ballistic and cruise missiles.

These projects represent a $1bn investment, with the company planning to inject an additional $2bn to expand mass production capabilities.

The ‘Tayfun’ and modern warfare

Roketsan’s R&D strategy – which employs 3,200 engineers and makes the company the third-largest R&D institution in Turkiye – is heavily influenced by data gathered from ongoing global conflicts.

According to Ikinci, the war in Ukraine highlighted the impact of cheap, first-person view (FPV) and kamikaze drones supported by artificial intelligence. In response, Roketsan developed air defence systems like “ALKA” and “BURC,” alongside the “CIRIT” laser-guided missile.

The regional landscape was further complicated during the US-Israel war on Iran, as cheap Iranian-designed Shahed drones – recently upgraded by Russia with “Kometa-B” anti-jamming modules – overwhelmed defences and even struck a British base in Cyprus in March 2026. During the same month, NATO air defences were forced to intercept three Iranian ballistic missiles that entered Turkish airspace.

Meanwhile, the recent conflict between Israel and Iran showcased the use of complex attacks combining ballistic missiles with “swarms” of kamikaze drones designed to overwhelm air defences. This environment makes hypersonic technology a critical asset.

This brings the Tayfun (Typhoon) project into focus. Tayfun is a developing family of long-range ballistic missiles. Its most advanced iteration, the Tayfun Block 4, is a hypersonic missile engineered to penetrate advanced air defence systems by travelling at extreme speeds.

When Al Jazeera asked for specific details regarding the Tayfun’s exact operational range, Ikinci was elusive. “We avoid mentioning its range; we just say its range is sufficient,” he noted.

Similarly, historical Western sanctions have pushed Turkiye to form new cooperation initiatives, effectively accelerating an “Eastern shift” away from Western defence dependence. Turkish drones are now being used by a growing number of countries, including by Pakistan during its war against India last May.

Based on these threat assessments, Roketsan has prioritised five key areas of production:

1. long-range ballistic and cruise missiles.
2. air defence systems, including the “Steel Dome”, Hisar-A, Hisar-O, and Siper.
3. submarine-launched cruise missiles, utilising the AKYA system to leverage Turkiye’s large submarine fleet.
4. smart micro-munitions designed specifically for armed drones.
5. long-range air-to-air missiles, a need highlighted by the brief India-Pakistan skirmish.

A strategic export model

Unlike traditional arms procurement, Turkiye is marketing its defence industry to international buyers as a strategic partnership.

“Our offer to our partners… is as follows: Let’s produce together, let’s develop technology together,” Ikinci stated.

By establishing joint facilities and R&D centres in allied nations across the Middle East, the Far East, and Europe, Turkiye is attempting to secure long-term geopolitical alliances rather than purely transactional sales. Ikinci highlighted Qatar as a prime example of this model, describing it as a benchmark for technological, military, and security cooperation in the region.

Filling the global stockpile gap

This rapid expansion comes at a critical time for the global arms trade. Ongoing wars have severely depleted the stockpiles of advanced weapon systems worldwide.

During the recent US-Israel war on Iran, Washington relied heavily on multimillion-dollar Patriot and Terminal High Altitude Area Defense (THAAD) systems to intercept cheap Iranian drones targeting US assets across Qatar, Kuwait, Bahrain, Saudi Arabia, and the United Arab Emirates. With growing concerns that US interceptor supplies could run low, Gulf states – which have collectively detected over 1,000 drones in their airspace – are actively seeking alternative defence technologies, creating a highly lucrative opening for Turkiye’s missile industry.

Defence analyses indicate that even military superpowers like the US will require significant time to replenish their current air defence inventories due to the complexity and massive infrastructure required to build them.

Turkish defence officials view this shortage as a strategic opening. Having localised its supply chain, Turkiye claims it can manufacture and export these highly sought-after complex systems independently.

As global demand for air defence and ballistic technologies rises, Roketsan is aggressively reinvesting its revenues into production infrastructure to expand its footprint in the international arms market.

Kharkiv, Ukraine – Hushruzjon Salohidinov, 26, was working as a courier in Saint Petersburg, Russia’s second-largest city and President Vladimir Putin’s hometown.

But last year, the Tajik man and practising Muslim says he was arrested while picking up a parcel which police claimed contained money stolen from elderly women.

Salohidinov says he never interacted with the alleged criminals, but nevertheless spent nine months in the Kresty-2 pre-trial detention centre about 32km (20 miles) from the city, while a judge refused to start his trial because of the “weak evidence” against him.

But instead of releasing him after that, prison wardens threatened to place him in a cell with HIV-infected inmates who, they said, would gang-rape him – unless he “volunteered” to fight in Ukraine.

“They said, ‘Oh, you’ll put on a skirt now, you’ll be raped,’” Salohidinov, who has raven black hair and a messy full beard, told Al Jazeera at a centre for war prisoners in northeastern Ukraine, where he is now being held, having been captured in January this year by Ukrainian forces.

Using a carrot-and-stick tactic, the wardens also promised him a sign-up bonus of 2 million rubles ($26,200), a monthly salary of 200,000 rubles ($2,620) and an amnesty from all convictions.

So, in the autumn of 2025, Salohidinov signed up as he “saw no other way out”.

Officials in Kresty-2, St Petersburg’s prosecutors’ office and Russia’s Ministry of Defence did not respond to any of Al Jazeera’s requests for comment.

‘Catching migrants’

Salohidinov is just one of tens of thousands of labour migrants from Central Asia coerced by Russia to become soldiers as part of the Kremlin’s nationwide campaign, according to human rights groups, media reports and Russian officials.

Hochu Jit, a Ukrainian group that helps Russian soldiers surrender, has published verified lists of thousands of Central Asian soldiers like Salohidinov.

“They are literally sent to be killed, no one considers them soldiers that need to be saved,” the group wrote in a 2025 post on Telegram. These soldiers’ life expectancy on the front line is about four months. “Losses among them are catastrophic,” the group reported.

With its low birthrate and large oil wealth, Russia has for years been a magnet for millions of labour migrants from ex-Soviet Central Asia, especially Tajikistan, Uzbekistan and Kyrgyzstan.

The campaign by the Kremlin to force Central Asians to fight in Ukraine dates back to 2023 – the year after Russia’s invasion of Ukraine – when police began rounding up anyone who didn’t look Slavic and charging them with real or imagined transgressions such as a lack of registration, expired or “fake” permits or blurred stamps on their documents. Sometimes, migrants are simply bused straight to conscription offices.

In 2025, Al Jazeera interviewed another Tajik man who said he had been detained with an expired work permit and was then tortured into “volunteering” while being subjected to countless xenophobic and Islamophobic slurs from his officers.

Migrants say they are abused, tortured and threatened with jail or having their entire families deported.

“The main way of recruiting as many migrants as possible is pressure on them with threats of deportation,” Alisher Ilkhamov, the Uzbekistan-born head of the London-based Central Asia Due Diligence think tank, told Al Jazeera.

Sometimes, migrants are simply duped.

Salohidinov said one serviceman in his squad was an Uzbek who “didn’t speak a word of Russian” and was fooled into “volunteering” while signing papers at a migration centre.

In their reports about “catching” migrants, officials frequently use derogatory terms about them, and also when they describe men who have obtained Russian passports but skipped registration at conscription offices. Since the Soviet era, such registration has been obligatory for all men and, since 2024, a newly naturalised Russian national can lose his citizenship if he fails to do it.

“We’ve caught 80,000 such Russian citizens, who don’t just want to go to the front line, they don’t even want to go to a conscription office,” chief prosecutor Alexander Bastrykin said in May 2025, referring to the migrants’ alleged patriotic sentiments.

He boasted that 20,000 Central Asians with Russian passports were herded to the front line in 2025.

The year before, he said 10,000 Central Asians had been sent to Ukraine.

Such remarks resonate with the Russian public that lives with “a high level of xenophobia in the stage of fear and helplessness,” Sergey Biziyukin, an exiled opposition activist from the western city of Ryazan, told Al Jazeera.

“For them, such phrases from Bastrykin are a form of sedative.”

What makes Central Asians easy targets is that they hail from police states, which depend on Moscow politically and economically, observers say.

“While the migrants are frightened into signing contracts, their motherland doesn’t really pay any attention,” Galiya Ibragimova, an Uzbekistan-born, Moldova-based regional expert, told Al Jazeera.

Despite hefty signup bonuses and relentless propaganda, the number of Russians who want to fight in Ukraine fell by at least one-fifth this year, and Moscow will strive to recruit more Central Asians, she said.

‘We’ll have our fingers broken’

After signing the contract and leaving his debit card with his sign-up bonus with his parents, Salohidinov was sent to the western city of Voronezh for three weeks of training that did little to prepare him for the war.

“We just kept running back and forth with guns,” he said.

Their drill sergeants, he says, told the conscripts that the standard-issue flak jackets, helmets, boots and flashlights were of subpar quality and urged them to pitch in a million rubles ($13,100) each for “better” gear.

The incident corroborates reports on dozens of similar cases in Russian military units.

Salohidinov was ordered to work in a kitchen – and was verbally abused and beaten for the slightest transgression.

Of 28 men in his unit, 21 were Muslims – but their ethnic Russian officers ignored their pleas not to have pork in meals, repeating a decades-old practice of ignoring religion-related dietary restrictions dating back to the Soviet army.

The commanders demonised Ukrainians, telling them “that if we surrender, we’d be tortured, have our fingers broken, maimed, get [construction] foam up our a**, have our teeth yanked out one by one, have our arms broken”, Salohidinov says.

In early January this year, the conscripts were bused to the Russia-occupied Ukrainian region of Luhansk.

Salohidinov says he was tired, frightened and disoriented – Ukrainian drones were “always” above them and a grenade explosion nearby damaged his left eardrum.

‘Glad I got captured’

On the fourth day of his service, Salohidinov was ordered to run beyond Ukrainian positions as part of Russia’s new tactic to send two or three servicemen to infiltrate the porous front line.

The mission was suicidal because the terrain was open, dotted with landmines and the bodies of dead Russian soldiers, while Ukrainians were firing machineguns and flew drones above them.

“I ran and ran and saw we were being shot at,” he said. “Me and my commander decided to surrender voluntarily instead of dying for nothing.”

They detached their assault rifles’ magazines, raised their hands and yelled they were surrendering.

What followed was “a calm feeling, beautiful”, he said. “They fed us, let us have a smoke, gave us food and water and even cake.”

Now, Salohidinov hopes to return to Tajikistan and panics at the thought of being made part of a prisoner swap – these have taken place several times each year – and returning to Russia because he would be sent back to the front line.

Tajikistan and other Central Asian nations have never endorsed Russia’s war in Ukraine, but nor have they openly criticised it.

In August 2025, Tajikistan’s Prosecutor General Habibullo Vohidzoda declared that no Tajik national would be charged for fighting in Ukraine.

So, what Salohidinov needs right now is an extradition request.

“I’m even glad that I got captured, because I’m not fighting anyone now, not risking anything,” he said. “I’ll even say thanks to Ukraine for taking me prisoner.”

The Tajik embassy in Kyiv did not respond to Al Jazeera’s request for comment.

Some of the reservists accused of sexually assaulting a detainee have already started combat roles, reports Israeli Army Radio.

Israeli military chief Eyal Zamir has authorised five soldiers accused of sexually assaulting a Palestinian inmate in the notorious Sde Teiman detention camp to return to reserve service after charges against them were dropped, according to Israeli media reports.

The soldiers, all from the Force 100 unit assigned to guard military prisons, are being reinstated despite an ongoing, internal military inquiry into their conduct.

Israeli Army Radio reported that some of the reservists have already returned to active duty, including deployment to combat roles.

An Israeli army statement, cited by Israel’s Haaretz newspaper, said: “The investigation does not prevent them from continuing to serve … the command-level investigation will be completed as soon as possible.”

The reinstatement comes after Israel’s top military lawyer dropped all charges against the soldiers last month, closing a case that had been among the most divisive in Israel’s recent history.

The soldiers had been charged with aggravated assault and causing severe injury, after footage broadcast by Israeli television showed them abusing a Palestinian man in Sde Teiman. The military’s own indictment described soldiers stabbing the detainee with a sharp object near his rectum, causing cracked ribs, a punctured lung and an internal tear.

A doctor at the facility, Yoel Donchin, told Haaretz he was so shocked by the Palestinian inmate’s condition that he initially assumed it was the work of a rival armed group.

Military Advocate General Itay Offir said the indictments were scrapped partly because of “complexities in the evidentiary structure” and “difficulties” arising from the detainee’s release to the Gaza Strip.

Rights groups condemned the decision as a legal injustice, with Amnesty International calling it “yet another unconscionable chapter in the Israeli legal system’s long-standing history of granting impunity to perpetrators of grave crimes against Palestinians”.

“Since the start of Israel’s genocide against Palestinians in the occupied Gaza Strip, and despite overwhelming evidence of widespread torture and abuse, including sexual violence, against Palestinians in Israeli detention centers, only one Israeli soldier has so far been sentenced over torturing a Palestinian detainee,” said the rights group in a statement.

Palestinians released from Israeli detention have reported suffering widespread abuse while in custody.

A February report by the Committee to Protect Journalists also cited dozens of formerly detained Palestinian journalists describing “routine beatings, starvation and sexual assault” in Israeli custody.

US–Iran talks gain pace as Pakistan mediates, with fresh optimism for a new round of talks in Islamabad.

Efforts to revive US-Iran negotiations are gathering pace, with Pakistan again having an important mediating role as its leaders hold high-level talks in Tehran and the Gulf.

Amid a renewed push to end the war, a Pakistani delegation, led by army chief Field Marshal Asim Munir is in Tehran. He is expected to relay messages from the United States, while Pakistan’s Prime Minister, Shehbaz Sharif, arrived in Saudi Arabia as part of a regional tour that includes Qatar and Turkiye.

Iran’s Foreign Ministry spokesman, Esmael Baghaei, said Tehran and Washington have remained in contact since talks in Islamabad ended on Sunday. On Wednesday, Washington signalled optimism about a new round of talks in the Pakistani capital.

But the diplomatic push comes amid increasing tension, as Iran warns it could expand its response to the US naval blockade beyond its own waters.

Divisions in Washington persist, with the US Senate rejecting a measure to limit the war without congressional approval.

Here is what we know:

In Iran

• Hormuz tensions remain high: Adviser Mohsen Rezaei warned that Iran could target US ships, if Washington continues to enforce its naval blockade in the Strait of Hormuz. The warning comes as the US tightens restrictions on vessels linked to Iranian ports, with ships already being turned back amid the standoff.
• Nuclear issue shows potential breakthrough: Analyst Abas Aslani says Tehran is open to nuclear transparency if Washington is serious about a deal, but new US sanctions and the blockade of Iranian ports are fuelling distrust.
• “There is a sense of distrust, and at the moment, Iran is ready for every possible scenario, either progress in the negotiations or returning to the military conflict,” he told Al Jazeera.
• Iran’s Foreign Minister Abbas Araghchi warned of consequences over US “provocative actions” in the Gulf and the Strait of Hormuz during a call with his Chinese counterpart Wang Yi.

War diplomacy

• Round two of talks: The US is discussing holding a second round of peace talks with Iran and is optimistic about reaching a deal, the White House said.
• China supports ‘momentum’ of peace talks: China’s Foreign Minister, Wang Yi, told his Iranian counterpart that Beijing “supports maintaining the momentum of the ceasefire and peace talks”.
• Saudi crown prince, Pakistan PM meet: Crown Prince Mohammed bin Salman and Shehbaz Sharif met in Jeddah to discuss regional issues, including US-Iran negotiations. Talks hosted by Pakistan were a key focus, said the Saudi Press Agency.
• US and Qatar: US President Trump discussed regional developments and energy concerns, specifically regarding the oil market and gas prices, with Qatari Emir Sheikh Tamim bin Hamad Al Thani.

In the US

• US President Donald Trump has announced that Israeli and Lebanese leaders will hold direct talks later today – their first such contact in 34 years.
• New oil sanctions: US officials targeted more than two dozen individuals, along with companies and vessels linked to the oil transport network of Iranian shipping magnate Mohammad Hossein Shamkhani.
• US says 10 vessels blocked from Iranian ports: The US military’s Middle East command (CENTCOM) said 10 ships were stopped or redirected within the first 48 hours of a naval blockade, with none leaving Iranian ports.
• US Congress divisions: The Senate rejected efforts to limit US involvement in the war and blocked measures targeting arms sales to Israel, though growing opposition signals shifting political pressure.

In Israel

• ‘Identical’ goals: Israeli Prime Minister Benjamin Netanyahu said that Israel and the US are fully aligned in their objectives to contain Iran.
• Ceasefire pressure, no halt in fighting: Despite pressure, Netanyahu said Israel would continue military operations.
• End of Hezbollah: The Israeli prime minister said the country’s top priority in Lebanon was to secure the “dismantling” of Hezbollah, in its first direct talks with the country in decades.
• “There are two central objectives: first, the dismantling of Hezbollah; second, a sustainable peace… achieved through strength,” he said.

In Lebanon

• Relentless strikes continue: Air raids and shelling hit southern and eastern Lebanon, including Kafr Sir and Nabatieh, while a “triple-tap” strike in Mayfadoun killed four paramedics. Israeli vehicles and bulldozers remain active.
• Lebanon’s Minister for Administrative Reform Fadi Makki said an Israeli attack that killed four paramedics in southern Lebanon was “a new war crime”.
• Rising toll: Israeli strikes have killed at least 2,167 and injured more than 7,000 people, according to the Lebanese Health Ministry. About 1.2 million people have been displaced since March 2. Israel has been accused of destroying homes in southern Lebanon, as happened in Gaza.
• ‘Homes that no longer exist’: “Even if a ceasefire is reached, the reality on the ground is devastating.. entire communities along the border have been destroyed,” Al Jazeera’s Malcolm Webb reported from Beirut. He added that Israel has yet to secure its objective of controlling territory up to the Litani River.
• Balakrishnan Rajagopal, the UN special rapporteur on the right to housing, has joined other UN human rights experts, calling for Israel to immediately stop its bombing of Lebanon. Rajagopal wrote on social media that the Israeli military is using the “same strategy” in southern Lebanon as in Gaza or the occupied West Bank.
• Diplomatic tensions grow: Hezbollah has condemned US-hosted Israel-Lebanon talks as “shameful,” while a failed Senate vote to block bulldozer sales to Israel highlights increasing concern over civilian harm.

Global economy

• Growing hunger fears: The war could push millions more towards hunger as its economic fallout reverberates around the globe, the World Bank’s chief economist told AFP.
• “You have about 300 million people who suffer from acute food insecurity already,” Indermit Gill said.  “That’ll go up by about 20 percent very, very quickly,” as knock-on effects grow.
• Wall Street records: Major Wall Street stock indices finished at record highs on Wednesday following optimism about an accord in the US-Iran conflict.

Italy’s decision to suspend a defence agreement with Israel has more symbolic value than concrete consequences, but it is an unprecedented move by the Italian government and reflects deep unease over its longtime ally’s actions in the Middle East, analysts say.

On Monday, Prime Minister Giorgia Meloni said Italy would not renew a memorandum of understanding – signed in 2003 and ratified in 2005 – between the two countries’ ministries of defence. The accord provided a framework for cooperation in “defence industry and procurement policy” and “import, export and transit of defence and military equipment”, among other things.

The memorandum was set to automatically renew every five years “unless a written notice of intention to denounce is given” by one of the two countries to the other.

That notice arrived on Monday in a letter written by Italian Defence Minister Guido Crosetto to his Israeli counterpart, Israel Katz.

The Israeli government has downplayed the move. Foreign Minister Gideon Saar said it was a deal that “never materialised” and did not have “substantial content”. “Israel’s security will not be harmed,” he wrote on X.

It is true that the Italy-Israel agreement constituted more of a political framework than a series of operational commitments between the two countries. Furthermore, the Italian government’s decision does not cancel it outright, as opposition parties and human rights advocates have long demanded, but merely suspends it.

Still, the move is a sharp reversal for a right-wing government that has been one of Europe’s staunchest allies of Israel.

Along with Germany, Italy has been one of the strongest opponents of calls to suspend a trade agreement between Israel and the European Union. Italy has largely supported Israel’s war on Gaza, which a United Nations inquiry says amounts to genocide, and it has refused to recognise Palestinian statehood. 

But relations between Israel and Italy have soured recently.

On Monday, the Italian ambassador to Tel Aviv, Luca Ferrari, was summoned after Italy’s Foreign Minister Antonio Tajani condemned Israel for its “unacceptable attacks against the civilian population” in Lebanon during a visit there. And last week, the Italian government accused Israeli forces of firing warning shots at a convoy of Italian peacekeepers in southern Lebanon, prompting Tajani to summon the Israeli ambassador.

Israel also launched a massive attack across Lebanon last week, bombing 100 targets in 10 minutes on Wednesday, shortly after a two-week truce between Iran and the US was called. That series of strikes killed hundreds of people in one of the country’s worst mass slaughters since the end of the country’s civil war in 1990. Observers say the attack on Lebanon was an unwelcome disruptor to efforts to de-escalate tensions in the region.

De-escalating Middle East tensions

The Italian government’s decision to suspend its defence agreement with Israel “must be seen within a broader effort to progressively stabilise the region, including by reducing tensions in Lebanon”, said Michele Valensise, president of the Institute for International Affairs and former secretary-general of Italy’s Ministry of Foreign Affairs.

“Israel’s military operation there objectively constitutes an irritant, complicating negotiations with the Iranians,” said Valensise. “If the Lebanese front can be part of a deal with Iran, then everyone has an interest in de-escalation there.”

European governments, including Italy, have been watching nervously as the United States-Israeli war on Iran has unfolded. Following initial joint Israel-US strikes on Tehran on February 28, Iranian forces brought shipping traffic in the Strait of Hormuz to a near-total halt, causing the paralysis of the one-fifth of global oil and liquefied natural gas (LNG) exports that pass through the narrow waterway in peacetime.

Following a first failed round of high-stakes Iran-US talks in Islamabad last weekend – amid a fragile two-week truce – Washington imposed a naval blockade on Iranian ports, further aggravating fears of a protracted energy crisis. Italy heavily relies on gas imports.

‘Stop the genocide’

Possibly more importantly, Italy’s government and prime minister are preparing for elections next year.

“There is a general discontent over the war in Iran and the crisis in the Strait of Hormuz – a crisis that’s impacting Italian growth and, if it continues, could have a significant impact on citizens, something Meloni worries about in a pre-election year,” said Arturo Varvelli, a political scientist and senior policy fellow at the European Council on Foreign Relations.

Italian public opinion also has a strong pro-Palestinian component. Last October, more than two million Italians took to the streets as part of a general strike in solidarity with the Global Sumud Flotilla, which was intercepted by Israel while trying to bring aid to Palestinians in Gaza. The flotilla had been carrying 40 Italians among its passengers, calling on Israel to “stop the genocide”.

“There’s a concern that this will be a long agony, between an increasingly unmanageable Trump and the economic problems he and Netanyahu have caused with the war in the Middle East,” Varvelli said.

After years of efforts to emerge as US President Donald Trump’s “whisperer” in Europe, Meloni has been pushed by the war in Iran to put some distance between herself and Trump. Rome refused the US president’s request to join a naval coalition to force the opening of the Strait of Hormuz and to allow US bombers to refuel at a military base in southern Italy.

Trump had not commented on those decisions until yesterday, when, in an interview with Italian newspaper Corriere della Sera, he took aim at Meloni. The Italian PM had leapt to defend Pope Leo XIV after he became embroiled in a feud with Trump. Pope Leo had condemned the US president’s threat that Iran’s “civilisation will die” if it didn’t re-open the Strait of Hormuz. In response to that, Trump unleashed a storm of criticism at Leo, calling him “weak on crime” and “terrible for foreign policy”. He said he does not “want a Pope who criticises the President of the United States”.

Trump also posted a bizarre image of himself as a Christ-like figure healing the sick on social media. He has since claimed it was meant to depict him as a doctor, following widespread criticism.

Of Meloni, who he once affectionately called “a real live wire”, Trump said, “I’m shocked at her” during an interview with Corriere della Sera on Tuesday.

“Do people like her? I can’t believe it,” he said in the interview, adding, “I thought she had courage. I was wrong.”

The killings mark the fourth US deadly strike in the past four days on vessels in the eastern Pacific Ocean.

The US military has killed four more people in its fourth deadly attack on vessels in the eastern Pacific Ocean over the past four days.

US Southern Command (SOUTHCOM) announced the attack in a social media post on Tuesday, alongside a video that showed a stationary boat with outboard engines being hit by a missile and exploding into a huge ball of flames.

SOUTHCOM, which is responsible for US military operations in Latin America and the Caribbean, claimed that the four people killed were “narco-terrorists”, but provided no evidence to support its claims.

Justification for the lethal attack, according to SOUTHCOM, was due to intelligence – details of which were not provided – that confirmed that “the vessel was transiting along known narco-trafficking routes in the eastern Pacific and was engaged in narco-trafficking operations”.

The latest killing of people on board vessels in international waters in the eastern Pacific Ocean and Caribbean brings the overall death toll to at least 175 since early September, when US President Donald Trump ordered the attacks to stop what the White House claims are Latin American cartels transporting drugs to the US.

Tuesday’s killings came after two people were killed in a US strike on Monday, and five people were killed in two separate strikes on Saturday, also in the eastern Pacific.

The Associated Press news agency reported that the US coastguard has suspended a search for one survivor from the two attacks reported on Saturday.

International legal experts and rights groups say the US military campaign amounts to “extrajudicial killings” in international waters and that the attacks have targeted civilian fishing boats.

Legal experts have said that if some vessels were involved in drug trafficking, those on board should face the law, rather than deadly attacks.

Critics have also questioned the effectiveness of the US military operation in part because the fentanyl behind many fatal overdoses in the US, which Trump has used to justify his campaign, is typically trafficked to the US over land from Mexico, where it is produced with chemicals imported from China and India.