US-Israel war on Iran

Brent crude tops $104 a barrel as hopes fade for deescalation in US-Israel war on Iran.

Oil prices have climbed higher amid fading hopes of deescalation in the Iran war following Tehran’s denial that talks with the United States are under way.

Futures for Brent crude, the international benchmark, rose nearly 2 percent on Thursday to top $104 per barrel after Tehran dismissed reports of direct negotiations with US President Donald Trump’s administration.

The rise comes after oil prices eased on Wednesday following reports that Trump had shared a 15-point plan for ending the war with Iran.

Asian stock markets opened lower on Thursday, with Japan’s Nikkei 225, South Korea’s KOSPI and Hong Kong’s Hang Seng Index all seeing losses.

Iranian Foreign Minister Abbas Araghchi said in an interview with state media aired on Wednesday that Tehran was not engaged in direct talks with Washington and has “no intention of negotiating for now”.

White House Press Secretary Karoline Leavitt warned on Wednesday that Iran would be “hit harder” than ever before if Tehran did not accept military defeat.

Iran’s effective closure of the Strait of Hormuz, a conduit for one-fifth of global oil supplies, and its attacks on energy facilities across the Middle East have prompted a surge in energy prices worldwide.

Oil prices are up more than 40 percent compared with before the US and Israel launched strikes on Iran on February 28, prompting numerous countries to implement fuel rationing and other energy conservation measures.

Market-watchers say prices are likely to rise further until shipping is free to traverse the strait, despite efforts by countries to bolster supply by tapping emergency stockpiles in coordination with the International Energy Agency.

While Tehran has repeatedly claimed that the strait is open to ships that are not aligned with its enemies, daily transits have all but collapsed since the start of the conflict.

Four vessels were tracked transiting the waterway via their automatic identification systems on Tuesday, down from an average of 120 daily transits before the conflict, according to maritime intelligence firm Windward.

Malaysia’s Prime Minister Anwar Ibrahim said any talks with Iran must aim to end the war, not serve as a “tactical advantage” or temporary pause. He reaffirmed Iran’s right to defend its sovereignty while urging restraint to avoid wider regional fallout. His comments come as the US warns Iran to accept defeat or face being “hit harder”.

Home Affairs Department said decision to ban Iranian visitors amid the war on Iran was in Australia’s ‘national interest’.

Australia has temporarily banned visitors from Iran, claiming that the United States-Israeli war on the country has increased the risk that Iranian passport holders could refuse or be unable to fly home once their short-term visitor visas expire.

Australia’s Department of Home Affairs said on Wednesday that the restrictions on Iranian visitors would be for a period of six months, describing the move as in the “national interest amid rapidly changing global conditions”.

“The conflict in Iran has increased the risk that some temporary visa holders may be unable or unlikely to depart Australia when their visas expire,” the Home Affairs Department said in a statement.

“This measure gives the Government time to assess the situation properly, while still allowing flexibility in limited cases,” it said.

The ban applies to Iranian citizens who are currently outside Australia – even if they have an Australian visitor visa for tourism or work.

Exceptions to the ban include Iranian citizens already in Australia, those currently in transit to Australia, spouses, de facto partners, or dependent children of Australian citizens, and those with permanent visas.

Exemptions will also be considered on a case-by-case basis, such as for the parents of Australian citizens, the department said.

Home Affairs Minister Tony Burke said decisions on who can remain permanently in Australia should be made by the government and should not be the “random consequence of who booked a holiday”.

“There are many visitor visas which were issued before the conflict in Iran that may not have been issued if they were applied for now,” he said.

Burke added that the government is monitoring developments and “will adjust settings as required to ensure Australia’s migration system remains orderly, fair and sustainable”.

The Sydney-based Asylum Seekers Centre said in a post on social media that the ban on Iranian visitors was the result of a “shameful new law” rushed through Australia’s parliament that “threatens the very foundations of Australia’s onshore protection programme” for those seeking safety.

“For years, politicians have been stressing the importance of seeking safety through so-called legal routes,” the group said.

“Now, in the face of an international humanitarian crisis, the government is slamming the door shut and blocking a key pathway for people seeking safety today and in the future,” it said.

Earlier this month, US President Donald Trump called on Australian Prime Minister Anthony Albanese to give the Iranian women’s football team asylum in Australia amid fears that players may face repercussions at home for failing to sing their national anthem before a Women’s Asian Cup 2026 match in Queensland.

Albanese later told reporters that five team members had sought assistance and “were safely located” by Australian authorities.

In total, seven players and officials were granted asylum in Australia, though five team members later reversed their decision to stay in Australia and chose to return home.

The Iranian team had arrived in Australia to participate in the football tournament before the US and Israel launched their attack on Iran on February 28.

According to Australian government figures up to 2024, more than 90,000 Australian residents were born in Iran, and large diaspora communities are present in major cities such as Sydney and Melbourne.

Ross Harrison, Senior Fellow at the Middle East Institute, says public talk of diplomacy between the US and Iran is hiding hardline positions, warning that despite the messaging, the situation is still likely heading toward military escalation.

Donald Trump said Iran is negotiating with the US but is “afraid to say it”. Speaking at a Republican fundraising dinner, Trump said that Iran’s leaders fear they could be “killed by their own people” or by the US.

“No negotiations have taken place.” Iran’s foreign minister, Abbas Araghchi says his country is not and will not negotiate with the US while it is under attack. A day earlier, President Trump said the US was already in talks with Iranian officials, which Tehran denied.

Settler attacks, restrictions on aid, and land seizures marked a week that was supposed to be one of celebration for Palestinians. Al Jazeera’s Nida Ibrahim and Tareq Abu Azzoum explain what’s been going on in the occupied West Bank and Gaza.

Iran has kept up attacks on neighbouring Gulf states and Israel, despite intense US and Israeli bombing, with senior Iranian figures assassinated.

The Strait of Hormuz remains effectively closed – limiting the transit of vital energy supplies.

So what’s Iran’s strategy, and what are its options?

Presenter: Nick Clark

Guests:

Foad Izadi – Professor in the Faculty of World Studies, University of Tehran

Mehran Kamrava – Professor at Georgetown University in Qatar and director of the Iranian Studies Unit, Arab Center for Research and Policy Studies

Elijah Magnier – Military and political analyst who specialises in wars in the Middle East

A high-ranking diplomatic source has confirmed that Iran received a 15-point plan from the United States aimed at ending the US-Israeli war on the country.

But the source told Al Jazeera on Wednesday that Tehran described the US proposal as “extremely maximalist and unreasonable”.

“It is not beautiful even on paper,” the source added, calling the plan deceptive and misleading in its presentation.

The comments come as US President Donald Trump has claimed – despite Iranian denials – that negotiations are under way between Washington and Tehran to reach an agreement to end the nearly one-month conflict.

The source explained that Iran has a clear understanding of what conditions it requires for a ceasefire and what it will reject.

The source also stated that there have been no direct Iran-United States talks since the war began – however, messages have been exchanged through a number of mediators.

The response from Iran came hours after sources confirmed to Al Jazeera that Pakistan had shared the US’ ceasefire demands with Iran.

Mediators are pushing for possible in-person talks between the Iranians and the Americans, as early as Friday in Pakistan, Egyptian and Pakistani officials said on Wednesday.

According to Al Jazeera’s Osama Bin Javaid, Pakistan is in a unique position as a mediator because it has a Shia minority, and relatively good ties with Iran including cross-border trade.

It also has a defence agreement with Saudi Arabia, and a Sunni majority that is closely aligned with the Gulf states, he said. Pakistan’s military leader also has a relationship with Trump, Javaid added.

“So, all of this puts Pakistan in a unique position to act between these two sides: it has no US bases on its soil, so Iran cannot accuse it of being used by the United States, and it is a state that has historically tried to mend relations between these actors,” he said.

⁠Egypt’s ⁠Foreign Minister Badr Abdelatty, meanwhile, said Cairo was ready ⁠to host any meetings related to Iran as long as ‌it serves de-escalation.

Abdelatty said in a news conference that Egypt supported ⁠Trump’s initiative to ⁠negotiate with Iran.

On Iran’s response to ⁠the US plan, ⁠he said “we ⁠have to continue our efforts, it’s all about ‌diplomacy and negotiations”.

Turkiye has also been been trying to position itself as a possible mediator, with Harun Armagan, a vice chairman for foreign affairs in Turkiye’s ruling AK Party, telling the Reuters news agency that Ankara has been “playing a role passing messages” between Tehran and Washington.

Iran counters with own conditions to end war

Iranian state television’s English-language broadcaster, Press TV, quoted an anonymous official also stating that Iran rejected the US ceasefire proposal.

“Iran will end the war when it decides to do so and when its own conditions are met,” Press TV quoted the official as saying.

The official offered Iran’s own five-point plan, which included a halt to killings of its officials, means to make sure no other war is waged against it, reparations for the war, the end of hostilities and Iran’s “exercise of sovereignty over the Strait of Hormuz”.

Earlier, two officials from Pakistan described the 15-point US proposal broadly, saying it addressed sanctions relief, a rollback of Iran’s nuclear program, limits on missiles and reopening the Strait of Hormuz, through which a fifth of the world’s oil is shipped.

An Egyptian official involved in the mediation efforts said the proposal also includes restrictions on Iran’s support for armed groups.

Israeli officials, who have been advocating for Trump to continue the war against Iran, were surprised by the submission of a ceasefire plan, the Associated Press news agency reported, citing an anonymous source.

Iran remains highly suspicious of the United States, which twice under the Trump administration has attacked during high-level diplomatic talks, including with the February 28 strikes that started the current war.

Iran’s rejection of the US proposal came as Israel launched air attacks on Tehran and Washington deployed paratroopers and more Marines to the region.

Iran, meanwhile, launched more attacks on Israel and Gulf Arab countries, including an assault that sparked a huge fire at Kuwait International Airport.

As the United States-Israeli war on Iran rages on, schools across Israel have been closed, cultural venues shuttered and large gatherings cancelled under police orders.

Dissent against the war, if there is much at all, has little chance of being aired.

A few demonstrations against the war, such as those staged by the Israeli-Arab activist group Zazim, still flicker through central cities, but they do so under heavy supervision, with officers warning crowds to disperse when sirens sound or when assemblies grow beyond what commanders deem safe.

The effect is a public sphere constrained less by decree than by the constant threat hanging overhead.

“Kids aren’t going to school, while employers are insisting their parents go to work,” Zazim’s co-founder and executive director, Raluca Ganea, says. Everyone is too overwhelmed by the daily grind to voice any dissatisfaction, she adds.

“We’re enduring multiple missile attacks daily, which means people aren’t sleeping. It’s like a manual for tyrants. It’s how you suppress protest or opposition and it’s working so far,” she added.

“We’ve attempted a couple of protests, but people are just too tired to engage,” Ganea says of Zazim’s efforts to resist the war. “It’s not so much that people are telling you that you can’t so much as protesting becomes impossible when a missile attack could happen at any time.”

Support for the war on Iran has remained strong in Israel, a fact borne out by polls. But as exhaustion grows and resentment builds over having their fates decided by often distant leaders such as Israeli Prime Minister Benjamin Netanyahu and US President Donald Trump, who have shown little investment in their welfare, the societal fractures that came to define the war on Gaza are almost inevitable, she warns.

“It’s depressing,” she says. “The only response people have is to feel helpless when their fate is in the hands of people like Trump and Netanyahu, who really don’t care about them.”

Those who have put their heads above the parapet to object openly to the war are shunned anyway, as 19-year-old Itamar Greenberg knows only too well. People spit at him in the street.

“It comes in waves,” he says of the criticism he faces for his opposition to the war on Iran on the streets of his hometown, near Tel Aviv. “Sometimes they follow me, shouting ‘traitor’ or ‘terrorist’.”

Itamar is clear enough that he isn’t a terrorist, though he seems ready to accept the label of traitor if it means halting the war on Iran.

“At my university, everywhere, they say my opposition to the war on Iran is somehow crossing a red line. For instance, because of the [danger to the Israeli] hostages, some people could understand opposition to the genocide on Gaza, but opposing the war on Iran, the great evil, is somehow too much,” he says.

Rising censorship

Across Israel, journalists and activists like Itamar describe a pervasive atmosphere of self-policing and censorship that, they say, has left people less informed about the consequences of the war than the citizens in Iran, whom many in their media encourage them to pity.

In a country largely unified against a threat that, for generations, politicians have told them is existential, criticism, dissent or opposition is, for the majority, beyond the pale.

This way of thinking is baked into Israeli society. The systems employed by the country’s military censor today to curtail media reporting predate the establishment of Israel in 1948.

Furthermore, new wartime restrictions on what can and cannot be broadcast of the Iranian missile barrages targeting Israel, where they land and what damage they have done – introduced on March 5 – mean these largely go entirely unreported, Israeli journalists say.

Reporting on the new media restrictions in mid-March, the Israeli magazine +972 documented one instance when journalists were permitted to report on debris that had hit an educational facility, but did not mention the actual strike by an Iranian missile, which had successfully hit its intended target nearby. Nor were they allowed to examine the site.

In another case reported by +972, journalists photographing damage to a residential block said they were approached by a man they believed to be linked to a security agency. He asked police to stop reporters from recording the real target of the attack, which was located behind them. The police officer replied that the journalists would not have noticed that site at all had it not been pointed out, since the visible destruction was concentrated on the civilian building.

The censorship, which had been growing more relaxed in recent years, had been tightened once more during the current war, Meron Rapoport, an editor at +972’s sister paper, Hebrew language Local Call, told Al Jazeera, “We don’t really know what is being or with what explosives,” he said, “The IDF [Israeli army] announcements always refer to strikes being on ‘uninhabited areas,’ which is peculiar, because there aren’t that many uninhabited areas in Tel Aviv. It’s a very compact city.”

Indeed, Iran has launched multiple missiles at Tel Aviv, some of which have resulted in damage and injuries – either by the missiles themselves or by debris falling following interception. Most recently, on Tuesday, missiles triggered air raid sirens in the city, where gaping holes were ripped through a multistorey apartment building.

Israel’s Magen David Adom emergency medical service said: “Six people were lightly injured at four different sites.”

“It’s curious,” Rapoport says. “Israeli commentators are always saying how the Iranian public has no real idea how badly they’re being hit. The irony is that they probably have a better idea of how hard Israel is being hit than most Israelis.”

In a sharp escalation in the Middle East conflict, energy production itself is now in the firing line.

Iran targeted facilities across the Gulf – including the world’s largest liquefied natural gas hub in Qatar.

It was retaliation for an Israeli strike on an Iranian gasfield hours earlier.

Energy prices are soaring, and countries from Asia to Europe are scrambling for alternative supplies.

But, for Asia – the world’s largest LNG buyer – this is a severe energy shock.

The region depends on Gulf supplies to keep its lights on, its factories running, and its people fed.

Israel has been trying to make the case for its war on Iran by portraying the country as a threat to European cities, warning Iranian missiles could reach capitals like London and Paris.

GCC states, UN rights chief Volker Turk warn of grave repercussions amid war on Iran.

Gulf states’ representatives have told the United Nations Human Rights Council that Iranian attacks on their territories amount to a gross violation of state sovereignty, as the UN’s rights chief warned that the Middle East is nearing an “unmitigated catastrophe” as the US-Israel war on Iran approaches the one-month mark.

Saudi Arabia’s representative to the UN, Abdulmohsen Majed bin Khothaila, condemned Iranian attacks during ⁠an emergency meeting called by Gulf states in Geneva on Wednesday, saying the Gulf Cooperation Council (GCC) member states were being attacked despite not being involved in the conflict.

“[Iranian attacks] violate the UN Charter and international law. We must call things by their name,” Majed bin Khothaila said.

“To target a neighbour is a violation of the principles of good neighbourly relations. To target a mediator betrays all efforts aimed at peace and undermines any constructive initiative. To target states that are not party to the hostilities amounts to unacceptable and unjustifiable attacks that cannot be passed over in silence.”

Qatar’s representative to the UN, Hend bint Abd al-Rahman al-Muftah, said Iran’s attacks had “grave repercussions” that were “not only affecting peace and security in the world, but also human rights”.

“These attacks amount to a great source of concern for us, and we can no longer remain silent,” she added.

“To attack the electricity and desalination plants also involves serious environmental consequences and undermines rights that should be guaranteed by human rights provisions.”

The Qatari representative also noted that the de facto closure of the Strait of Hormuz was “a source of great concern, given the dire consequences it can have on the economy and supply routes”.

Kuwait’s ambassador, Naser Abdullah Alhayen, told the council that the Gulf was “seeing an existential threat to international and regional ⁠security”.

“This aggressive approach is undermining international law and sovereignty,” Alhayen added.

The UN’s rights chief, Volker Turk, warned that the war has created an “extremely dangerous and unpredictable” situation that is pushing the Middle East towards an “unmitigated catastrophe”.

“The only guaranteed way to prevent this is to end the conflict, and I urge all states, and particularly those with influence, to do everything in their power to achieve this,” he said.

Al Jazeera’s Zein Basravi, reporting from Dubai, said the “GCC countries are looking for a seat at the table” at negotiations between the United States and Iran.

“As Iran is going to look for guarantees going forward from the US and Israel, Gulf states will be looking for guarantees from Iran,” he said.

Basravi added that while the volume of incoming attacks in Gulf countries seemed to be going down in recent days, a small attack from Iran “can still create the same level of disruption since the beginning of the war”.

Police source tells Al Jazeera the attack hits positions of the Iran-aligned PMF, which the US has increasingly targeted.

An aerial attack on a military base in western Iraq’s Anbar province has killed seven fighters and wounded 13, according to Iraq’s Ministry of Defence.

The strikes on Wednesday targeted the military healthcare clinic at the base in Habbaniyah, according to the ministry. It called the attack “a heinous crime” that violated “all international laws and norms”.

An Iraqi police source told Al Jazeera the attack targeted positions of the Iraqi military’s Popular Mobilisation Forces (PMF), a paramilitary force that includes some Iran-aligned brigades and reportedly shares the base with members of Iraq’s regular army.

“What we understand from the military here is that air strikes were carried out and then further strikes carried out on that same position,” said Al Jazeera’s Assed Baig, reporting from Baghdad. He said it appeared to be the first time the PMF was hit alongside the broader Iraqi military.

Iraq has denounced the attack as the country has been dragged into the United States-Israeli war on Iran. On Tuesday, Iraqi Prime Minister Mohammed Shia al-Sudani’s office said Baghdad would summon the Iranian and US ambassadors over the recent strikes.

‘Right to respond’

A security official quoted by the AFP news agency said the strike occurred at the same base that suffered a deadly attack the day before.

Tuesday’s strike, which the PMF blamed on the US, was the deadliest in Iraq since the start of the war on Iran on February 28, It killed 15 fighters, including a commander.

The attack prompted Iraq’s government to grant the PMF a “right to respond” to any attack against it, a position Baghdad reaffirmed on Wednesday.

“We reserve our full right to take all necessary measures to respond to this aggression within the established legal frameworks,” the Defence Ministry said.

Since the war began, pro-Iran armed groups have claimed responsibility for attacks on US interests in Iraq and across the region while strikes have also targeted these groups, including at government-linked positions.

The US Department of Defense has acknowledged that combat helicopters have carried out strikes against pro-Iran armed groups in Iraq during the current conflict.

Baig said the latest strikes demonstrate “an escalation in terms of the PMF being targeted”.

“Increasingly, Iraq is becoming a battlefield between Iraqi armed factions and the United States,” he said.

Iran’s military has said the United States is failing in its war and negotiating with itself to save face, dismissing claims by US President Donald Trump that talks are under way to end the conflict.

“Has the level of your inner ⁠struggle reached the stage ⁠of you negotiating with yourself?” Ebrahim Zolfaqari, spokesperson for the unified command of Iran’s armed ⁠forces, Khatam al-Anbiya Central Headquarters, said on Wednesday in comments carried by Iran’s semiofficial Fars news agency.

“Don’t call your failure an agreement,” he added, mocking US leadership.

The statement is the latest official Iranian denial that Tehran is engaged in diplomacy with Washington, even as Trump insists talks are ongoing and reports circulate of the US sending a peace proposal.

Speaking to reporters at the White House yesterday, the US president said Washington is speaking to the “right people” in Iran, which he claimed wants to make a deal “so badly”.

“They are talking to us, and they’re making sense,” said Trump.

Trump’s position marks a stark shift from days earlier, when he threatened to strike Iran’s power plants if Tehran did not fully reopen the Strait of Hormuz, where it has threatened vessels from “enemy” nations. Hours before the ultimatum expired on Monday – and US markets reopened for the trading week – Trump said he would delay any planned attack by five days, citing diplomatic progress. Iranian officials denied this.

Zolfaqari said there would be no return to previous oil prices or the prior regional order “until our will is done”.

‘Obscurity in Iran’

Questions over possible diplomacy were amplified by US media reports that Washington had sent Tehran a 15-point plan to end the war.

The Wall Street Journal, quoting unnamed officials, reported that the plan calls on Iran to dismantle its three main nuclear sites, end any enrichment on its soil, suspend its ballistic missile programme, curb support for its regional allies and fully reopen the Strait of Hormuz. In return, Iran would have nuclear-related sanctions lifted and the US would assist the country’s civilian nuclear programme, according to the Journal.

Al Jazeera’s Mohamed Vall, reporting from Tehran, said there is “total confusion” in Iran over the status of potential negotiations.

“Contrary to the clarity with which Donald Trump seems to speak, there is obscurity in Iran,” said Vall. “What we hear instead are the officials and politicians here saying the complete opposite. They say there is no negotiation.

“There is total confusion, total obscurity, and it’s really making this situation very interesting and very strange,” he added.

While there is a “cloud of mistrust” between the US and Iran, Tehran is engaged diplomatically with several regional countries, including Pakistan, said Al Jazeera’s Tohid Asadi, also reporting from Tehran. Islamabad, which appears to have emerged as a possible mediator in the conflict, delivered the US’s plan to Tehran, according to The New York Times.

Israel, Iran trade strikes

Amid the competing claims about negotiations, Israel continued to strike Iran, and the US reportedly prepared to send more troops to the Middle East.

Israel’s military said it carried out a series of late-night strikes on infrastructure in Tehran. Iran’s Fars news agency reported at least 12 people killed and 28 wounded in an “enemy attack” on the residential area of Varamin in southern Tehran.

Iran, for its part, claimed to fire more missiles at Israel, including targeting a military base in the northern Israeli city of Safad, as well as sites in the cities of Tel Aviv, Kiryat Shmona and Bnei Brak. There were no immediate reports of casualties from that missile salvo, though an earlier rocket attack by Hezbollah killed one woman in northern Israel.

Meanwhile, the US was expected to send at least 1,000 soldiers from the Army’s elite 82nd Airborne Division to the ⁠Middle East, adding to some 50,000 US soldiers already in the region, the Reuters and AP news agencies reported.

“As the US is preparing for peace talks, it’s also preparing for war,” said Al Jazeera’s John Hendren from Washington, DC. “Diplomacy and military moves are going on at the same time.”

As the United States-Israeli war with Iran sends tremors through the global economy, the poorest members of the Global South are the most exposed to the fallout.

In Asia, Africa and the Middle East, developing economies are bearing the brunt of surging energy costs prompted by the closure of the Strait of Hormuz and attacks on oil and gas facilities across the Gulf.

From Pakistan to Bangladesh and Sri Lanka, through to Jordan, Egypt and Ethiopia, policymakers are facing the double whammy of being both heavily dependent on imported energy and having limited financial firepower to absorb the shock of spiking prices.

In Pakistan, which imports about 80 percent of its energy from the Gulf and has lurched between economic crises for years, authorities have scrambled to roll out measures to conserve fuel.

Facing the depletion of the country’s petrol and diesel reserves within weeks, officials have closed schools, introduced a four-day working week for government offices, ordered half of the country’s public sector employees to work from home, and slashed fuel allowances for official business.

Pakistani Prime Minister Shehbaz Sharif said last week that he had decided against a proposed hike in petrol and diesel prices before the Eid Al-Fitr celebration, saying the government would “bear the burden” of rising costs.

Sharif’s announcement came after the government had earlier this month approved a 55 rupee ($0.20) rise in the price of a litre (0.26 gallons) of petrol or diesel.

While government subsidies have helped cushion the blow for the public, there are fears that petroleum prices will surge and bring economic activity to a halt if the war drags on, said S Akbar Zaidi, the executive director of the Institute of Business Administration in Karachi.

“The overall shock is quite severe, although it has not been fully passed on to consumers and to industry,” Zaidi said.

“I expect the next few weeks to make things far worse once the disruption and price factors pass through.”

In Bangladesh, which imports about 95 percent of its oil and is expected to run through its fuel reserves within days, petrol pumps in some districts have run dry despite the introduction of fuel rationing.

Sri Lanka, which imports about 60 percent of its energy needs and is still reeling from an economic meltdown that began in 2019, has declared every Wednesday a public holiday and introduced a mandatory fuel pass for vehicle owners to conserve petrol and diesel, stockpiles of which are projected to run dry within weeks.

In Egypt, one of the biggest energy importers and among the most indebted economies in the Middle East, the government has ordered malls, shops and cafes to close by 9pm on weekdays and 10pm during weekends, and cut back on public lighting.

Facing growing pressure on public finances due to the government’s heavy subsidisation of fuel prices, Egyptian officials on March 10 announced price hikes of between 15 and 22 percent for petrol, diesel and cooking gas.

While acknowledging the burden on the public, Egyptian President Abdel Fattah el-Sisi said the move was necessary to avoid “harsher and more dangerous outcomes”.

“For a majority of developing economies, especially those already grappling with debt and high import dependence, they are facing a potent mix of inflation, currency pressures and fiscal strains,” said Yeah Kim Leng, a professor of economics at the Jeffrey Cheah Institute on Southeast Asia at Sunway University in Kuala Lumpur, Malaysia.

“The hardest hit are net energy and food importers, especially those with fragile macroeconomic foundations and pre-existing vulnerabilities that typified countries with low per capita income and high poverty rates,” Yeah added.

Pakistan, Bangladesh, Sri Lanka, Jordan, Senegal, Egypt, Angola, Ethiopia and Zambia are among the most at risk, according to a recent analysis by the Washington-based Centre for Global Development, which looked at factors including dependence on fuel imports, public debt levels and foreign exchange reserve/import ratios.

Currency depreciation

The weakening of many developing countries’ currencies against the US dollar – the result of investors buying the greenback amid heightened geopolitical uncertainty – has compounded the situation by further driving up costs.

“Countries such as Indonesia and the Philippines have already seen their currencies at near record lows even before the start of the conflict, making imports, including oil, much more expensive,” said Azizul Amiludin, a non-resident senior fellow at the Malaysia Institute of Economic Research in Kuala Lumpur.

Much as the fallout of the war poses particular challenges for governments in developing countries, the effect on citizens is disproportionate, too.

In less advanced economies, citizens spend much more of their pay cheques on fuel and food, leaving them more exposed to rising living costs.

At the same time, governments in developing countries have less capacity to provide a safety net for those at risk of falling through the cracks.

“In vulnerable economies, governments often attempt to shield their populations from price hikes by subsidising fuel and food,” said Yeah, the Jeffrey Cheah Institute professor.

“However, with depleted fiscal buffers and shrinking revenues, this becomes unsustainable. The ensuing austerity, combined with hyperinflation, can trigger widespread social unrest and a full-blown fiscal crisis.”

With the US and Israel barely a month into their war and no clear timetable for its end in sight, many analysts expect things to get worse before they get better.

Khalid Waleed, a research fellow at the Sustainable Development Policy Institute in Islamabad, said rising transport costs would soon be felt at supermarket checkouts.

“Diesel is the backbone of Pakistan’s freight and agricultural economy,” Waleed said.

“Trucking costs have started climbing, and that will feed into everything from flour to fertiliser in the weeks ahead.”

Once Pakistan’s wheat harvest gets under way in April, food prices could spike well beyond their current levels, Waleed said.

“Combine harvesters, threshers, tractors for haulage from field to market, and the trucks that move grain from fields to flour mills and storage facilities all run on high-speed diesel,” he said.

“For a country where wheat flour is the single largest item in the food basket of the bottom two income quintiles, this is not a marginal concern,” Waleed added.

“If diesel prices stay elevated through April and May, Pakistan will harvest its wheat at the most expensive input cost in years, and that cost will transmit directly into food inflation at a time when households have almost no capacity left to absorb further price shocks.”

Trita Parsi, Vice President of the Quincy Institute, argues that Iran is unlikely to agree to end the war without sanctions relief, while there is little sign Donald Trump is willing to offer meaningful concessions, adding that a deal remains unlikely until then.

US media is reporting the Trump administration has proposed a temporary ceasefire and a 15-point plan to end the war on Iran. The reports emerge as Trump claims the US is already talking to Iranian officials – a claim Iran has vehemently denied.

After Israel’s bombing of Beirut’s southern suburb of Dahiyeh, Palestinian refugee Dalal Dawali once again finds herself forcibly displaced. She and her children joined hundreds of families fleeing to Beddawi camp in north Lebanon. Al Jazeera’s Justin Salhani tells her story.

United States President Donald Trump is insistent that “productive” negotiations have taken place with Iran to end the war he launched with Israel’s Prime Minister Benjamin Netanyahu almost a month ago. The major problem with that narrative is that Iran’s top officials have repeatedly denied it.

Amid the fog of war and the propaganda being pushed by all sides, it is hard to know who to believe. But an analysis of what each side has to gain from any negotiations – and a potential end to the conflict – could bring more clarity.

Trump’s comments that there were “major points of agreement” after “very good” talks with an unnamed “top” Iranian figure came as stock markets opened in the US for the start of the trading week. The five-day deadline he gave for a positive response from Iran also happens to coincide with the end of the trading week.

Many have cynically noted that timing, especially as it comes after a two-week period in which oil prices have fluctuated in line with events in the Middle East, leading to a high of about $120 a barrel last week.

Trump’s talk of negotiations may also give time for more US troops to arrive in the Middle East, if Washington decides to conduct some form of ground invasion of Iranian territory.

Among those questioning Trump’s motives was the man believed by some to be the senior Iranian official Trump was referencing: the Iranian parliamentary speaker, Mohammad Bagher Ghalibaf.

“No negotiations have been held with the US, and fakenews is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped,” Ghalibaf wrote on social media.

The impact on stock markets and oil prices is not just relevant to the US and Trump, but also to Iran. However, for Tehran, the benefit comes in the damage the war is doing to the US and global economies.

The Iranian state wants the US to feel economic pain from the war, as a means of deterrence for any future Israeli or US attack on Iran.

Therefore, as much as it is in the US interest to play up talk of negotiations in order to calm the markets, it is also in Iran’s interest to downplay any talk to do the exact opposite, and not give the Trump administration any breathing space.

US benefits?

Consequently, both sides have their own narratives on negotiations, and public comments will do little to inform us as to whether those negotiations are really taking place, or in what form they may be.

That instead leads us into what each side has to gain from negotiations, and an actual end to the war at the current stage.

Trump appears to have underestimated the consequences of the conflict that he launched with Netanyahu on February 28, and the ability of the Iranian state to withstand the attacks against it without collapsing.

“They weren’t supposed to go after all these other countries in the Middle East … Nobody expected that,” he said last week, adding that even “the greatest experts” didn’t believe that.

Leaving aside that experts – including US intelligence officials – had repeatedly made those warnings, reality has now made Trump aware of the consequences he had previously ignored.

While some allies and supporters may continue to push him to plough on with the conflict, Trump has previously shown himself amenable to cutting deals to extricate himself from difficult situations, and it is not far-fetched to see the benefits of doing so in this instance.

The US president has already ordered his government to issue temporary sanctions waivers on some Iranian oil, in an effort to calm oil prices. This is the first time Iran has lifted sanctions on any Iranian oil since 2019, and it will not be lost on Iran that the waivers have come as a result of their policy to expand the conflict to the wider Gulf and the Strait of Hormuz, a key waterway through which a fifth of the world’s oil and liquified natural gas transits.

The war was already unpopular in the US – and now even more so, as consumers see the impact on petrol prices and potentially other areas of the economy, all in the run-up to congressional elections later this year, in which Trump’s Republicans are likely to do poorly.

Trump, therefore, has the options of extending this war – and suffering the economic and political cost, or ending it – and facing the criticism that he was unable to finish what he termed as a “short-term excursion”.

The Iranian perspective

But whatever Trump wants to do, the decision is not totally in his hands. Iran, attacked for the second time in less than a year, now appears to have less of an incentive to end the war without the establishment of an effective deterrent to another in the future.

Gone are the days of the telegraphed attacks on US assets and the slow climb up the escalation ladder. From the outset of the current war, it was clear that Iran had changed its tactics and was not as interested in restraint.

It is now arguably in the Iranian state’s benefit to drag out the conflict and inflict more suffering on the region, if it wants to ensure its survival.

There may also be a belief that interceptor stocks in Israel are running low, allowing Iran to strike targets more effectively. The thinking – particularly among the hardliners who now appear to be in the ascendancy in Iran – will be that now is not the time to stop, and allow those interceptor stocks to replenish.

And yet, Iran is suffering. More than 1,500 people have been killed across the country, according to the government. Infrastructure has been heavily damaged, and the power grid could be next. Relations with Gulf neighbours have nosedived, and, after repeated Iranian attacks, are unlikely to return to their previous levels after the conflict.

More moderate voices in Iran will look at that and think that things could easily get worse. They can argue that some form of deterrence has been achieved, and that the time is now ripe to talk. And if they can get some concessions – such as a promise of no future attacks, or greater authority in the Strait of Hormuz – they may decide that the time is right to make a deal.

Mohammad Bagher Zolghadr, ex-IRGC commander, to replace late Ali Larijani as chief of Iran’s Supreme National Security Council.

Iran has named Mohammad Bagher Zolghadr, a former commander of Iran’s Islamic Revolutionary Guard Corps (IRGC), as the successor to Ali Larijani, head of the country’s Supreme National Security Council (SNSC), who was killed in a US-Israeli air strike earlier this month.

President Masoud Pezeshkian’s deputy of communications announced the appointment on X on Tuesday.

The SNSC, formally chaired by Pezeshkian, coordinates security and foreign policy and includes top military, intelligence and government officials, in addition to representatives of Supreme Leader Mojtaba Khamenei.

Zolghadr, who served in the 1980s war against Saddam Hussein’s Iraq, went on to become head of the IRGC’s joint staff for eight years and then deputy commander-in-chief of the elite force for another eight years.

In 2005, he was named deputy interior minister for security and police in the government of then-President Mahmoud Ahmadinejad, a move that was seen at the time as bolstering the IRGC’s influence in politics.

Since 2023, he has been the secretary of the Expediency Council, a powerful body that plays both an advisory and mediating role between Iran’s various power structures and the supreme leader.

Zolghadr’s new position consolidates the IRGC’s growing clout in Iran amid growing uncertainty regarding decision-making at the top of the system. Mojtaba Khamenei has not been seen in public since he succeeded his assassinated father, Ayatollah Ali Khamenei, in early March.

Larijani, one of the most prominent non-clerical figures in Iranian politics, was killed last Tuesday in a week that saw the war spiralling throughout the region, upending global energy markets and roiling the world economy.

On Tuesday, the war showed no sign of de-escalation after US President Donald Trump’s claim that he was speaking to an unidentified “top person”, as he extended by five days a deadline to hit Iran’s power plants.

Iran’s Parliament Speaker Mohammad Bagher Ghalibaf said “no negotiations” were under way, accusing Trump of seeking “to manipulate the financial and oil markets”.

Rescuers have pulled a man alive from the rubble after US-Israeli strikes hit a residential area on the outskirts of Tehran, the Iranian Red Crescent said. The US and Israel have continued to strike Iran, despite President Trump’s claims of diplomatic progress.