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The eruption of the Middle East war in 2026, which began with strikes led by the US and Israel against Iran under Operation Epic Fury, carries devastating consequences for recovery, development and regional stability. The assassination of senior Iranian figures, most notably Supreme Leader Ayatollah Ali Khamenei, Iran’s closure of the Strait of Hormuz, the involvement of Hezbollah and Houthis in support of Iran, alongside Iranian attacks on neighbouring countries, further escalated the crisis. The war transformed from a military confrontation into a broader regional political, diplomatic and economic crisis.

While global attention focused on military escalation, oil markets and the Strait of Hormuz, far less attention was given to the war’s humanitarian consequences, despite the massive and irreversible impacts. The conflict has triggered new waves of displacement across an already fragile region. However, there were no meaningful strategies to protect or to facilitate aid efforts to sustain the lives of displaced people, further exacerbating the life-threatening risks facing affected populations.

The displaced of the 2026 Middle East war

The Middle East was already carrying one of the world’s largest displacement burdens before this escalation, mainly due to the Syrian, Palestinian, Afghan and Iraqi refugees and internally displaced populations. The recent war has deepened these vulnerabilities by displacing millions more across Iran and Lebanon. The speed and scale of displacement reflect the severity of the humanitarian crisis unfolding in the region, overwhelming already strained humanitarian response efforts.

In Iran, the war intensified existing economic fragility and internal tensions while placing enormous pressure on state institutions not only to govern but also to effectively respond to the displacement crisis, a critical condition to maintain stability and prevent further chaos.

The displacement of over 3.2 million people has posed a serious challenge for the Iranian authorities. It has affected over 20 provinces, while the damage of 82,000 civilian infrastructure sites, disrupted essential services and attacks on healthcare have severely undermined the living conditions of displaced people.

Although figures fail to precisely capture the devastating realities experienced by displaced populations, they reflect the scale of vulnerability facing civilians forced to flee amid insufficient aid efforts and collapse of health, shelter and education systems.

Lebanon presents an even more fragile case, already affected by protracted conflict, sectarianism, the Beirut Port explosion and economic paralysis. While it was already hosting 1.4 million Syrian refugees and around 250,000 Palestinian refugees, the war has now led to the internal displacement of 1.3 million Lebanese civilians—one in five of the total population— with children accounting for a third of those displaced. The large-scale and ongoing displacement in the country has generated enormous needs, detrimentally affecting various areas of civilian life. While over 3,000 have been killed and more than 9,000 injured, around 130,000 people remain displaced in collective shelters, experiencing extremely difficult conditions. The plight of displaced populations in Lebanon is worsened by ongoing attacks on healthcare, lack of services and the destruction of the housing sector, in addition to limited access to education, where hundreds of schools are either closed or used as collective shelters.

Humanitarianism subordinated to hard politics

Efforts have been made to address the needs of displaced communities. These include government-led actions in Iran to, for example, address psychosocial and shelter needs and the work of local organisations and international agencies in Lebanon. Yet such efforts remain far from adequate, mainly due to the absence of serious international political will to prioritise civilian protection and displacement prevention.

Instead, regional and international actors continue to prioritise deterrence, strategic alliances, military positioning and regional influence over humanitarian protection. By the end of April, the Pentagon had reportedly spent $25bn on its war on Iran, with other estimates showing greater costs—ranging between $630bn and $1 trillion—amid US President Donald Trump’s request for an additional $1.5 trillion for defence. This is evident in how the US paused a $14bn arms sale to Taiwan to ensure its military readiness to face Iran. Iran’s resilience against these attacks and the use of drones—costing tens of thousands of euros—have pushed the US to dedicate more resources to the war. The use of financial means from both sides solely for war objectives while overlooking the humanitarian responsibilities exposes the extent to which military objectives have been prioritised over humanitarian response.

Even ongoing diplomatic efforts between Washington and Tehran reveal the extent to which humanitarian concerns remain secondary and completely neglected. The peace negotiations have largely focused on issues related to hard politics. These include Iran’s nuclear programme, the reopening of the Strait of Hormuz and Iran’s frozen assets under US sanctions, with all these elements mainly addressing the security, financial and economic implications of the war.

The absence of the displacement crisis from peace agreements and negotiations reveals the deficiencies posed by the international human rights and humanitarian regimes. They underscore a reality where human lives continue to be shaped not by principles of protection, but by the strategic interests of powerful states.

This transformed the plight of affected populations in Iran and Lebanon from a humanitarian concern into a tolerated byproduct of geopolitical strategy.

Implications for future generations: The way forward

The humanitarian consequences of this war will not end when the war ends. Long-term displacement carries profound risks for future generations in Iran and Lebanon through collapsing health systems, interrupted education, intensifying social fragmentation and deepening poverty and dependency on international aid. Thus, the failure to protect displaced populations today risks producing future instability across the region. Addressing this requires tailored humanitarian interventions, international responsibility—especially from the US and Iran as the primary conflicting states—towards affected populations and the adoption of prevention strategies in future wars.

The international community, conflicting parties and international organisations must take practical yet realistic—acknowledging the centrality of self-interest during wars between states—steps towards addressing this issue. Without international responsibility sharing and collaborative efforts, the already-fragile international humanitarian system fails to continue functioning as the primary response mechanism, especially amid the growing humanitarian funding cuts due to the occurrence of other “national priorities”. Therefore, the US and Iran, alongside the international community, must dedicate resources to lead a comprehensive emergency response to alleviate the impacts of war on affected communities. This has to begin with protection-centred diplomacy, where the plight of displaced populations is prioritised among other key areas in the peace agreements.

Equally important is the stricter implementation of international legal frameworks to protect civilian populations during armed conflicts through accountability measures for violations against civilians. The role of international organisations and UN agencies is decisive in these matters, given their expertise and international positionality—though shrinking—when it comes to humanitarian missions and peacekeeping. Such efforts must revolve around promoting, integrating and imposing the adoption of humanitarian safeguarding standards for civilians in military and political decision-making. If displacement continues to be treated as collateral damage rather than political responsibility, the Middle East will keep producing generations of displaced people, serving the interests of regional and global powers.

The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.

Markets betting a deal will reopen the Strait of Hormuz and soothe the deep global economic uncertainty cast by the closure of the vital oil & gas route.

The United States stock market has been hovering near record highs and oil prices have plunged amid new hope that a ceasefire deal between the US and Iran is close.

The rally came on Wednesday as negotiations continued between Washington and Tehran, with markets betting that a deal would reopen the vital Strait of Hormuz, easing oil and gas supply concerns and soothing the deep uncertainty afflicting the global economy.

Oil prices declined sharply after Iran’s state broadcaster said it had obtained a preliminary document outlining a framework for a potential deal.

The price of US crude fell 5.5 percent to settle at $88.68, while Brent crude, the international oil benchmark, decreased to $92 after prices traded above $100 last week.

The report suggested that Iran would allow traffic through the strait at pre-war levels within 30 days. It added that the US would lift its naval blockade on Iranian ports.

Prices remained subdued even after the White House dismissed the report as a “complete fabrication”.

The S&P 500 rose 0.1 percent and added to its all-time high set the day before. The Dow Jones Industrial Average was up 243 points, or 0.5 percent, with an hour remaining in trading, and the Nasdaq composite was 0.1 percent higher.

Wednesday is far from the first time markets have rallied amid reports of a possible end to the war, only to slump once more as negotiations fail to deliver a resolution.

However, the strength of the current surge reflects statements over the past week that suggest the two parties may be closer than ever to reaching a deal.

President Donald Trump said during a cabinet meeting on Wednesday that US officials were not yet satisfied with the agreement, “but we will be”.

“I think they’re starting to give us the things that they have to give us,” he said. “And if they do, that’s great, and if they won’t, then the man on my left will have to finish them off,” he said, pointing at Defense Secretary Pete Hegseth.

Sticking points

It remains unclear whether the two parties have come to an understanding on the major sticking points, including the fate of about 440 kilogrammes (970lbs) of highly enriched uranium; Iran’s nuclear infrastructure, which the US has long insisted it wants to see dismantled in its entirety; Tehran’s ballistic missiles and its support for armed groups in the region.

It is also not clear whether a halt in hostilities in Lebanon would be part of a deal. Iranian officials have repeatedly said that any agreement would have to include that. However, Prime Minister Benjamin Netanyahu this week ordered the Israeli military to step up its attacks against Hezbollah.

There are also questions on whether Washington would agree to lift its sanctions against Iran and release millions in frozen assets.

Brent crude edged 2.5% higher on Tuesday and seems to have steadied around $100 per barrel at the time of writing, as US-Iran negotiations stall.

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On the other hand, WTI dropped over 4% and is trading around $92.6 per barrel.

Overall, oil prices were declining since last Wednesday as the framework for a peace deal, or at least a longer and more encompassing ceasefire, between the US and Iran was seemingly on the verge of being agreed.

However, Iran accused the US of breaching the current ceasefire after Washington carried out what it described as defensive strikes in the southern part of the country.

Iran’s foreign ministry stated that the US attacks in the Hormozgan province, where Iranian media reported hearing explosions early Tuesday, amounted to a “serious violation” of the fragile ceasefire that has been in effect for almost seven weeks.

Meanwhile, US Secretary of State Marco Rubio said negotiations aimed at ending the conflict could require “a few days” to reach an agreement.

On Monday, US President Donald Trump also reiterated nuclear demands in a social media post, as tensions continue to surround the fundamental aspects of a possible agreement.

Investors appear to have mixed reactions to the developments with some markets seeming to price in a decrease in the probability that a deal is imminent.

In Europe, the Euro Stoxx 50 has fallen more than 0.7% while the broader pan-European Stoxx 600 is trading around 1% lower as we approach the close of Tuesday’s session.

The UK’s FTSE 100, Germany’s DAX 30, France’s CAC 40, Italy’s FTSE MIB, the Netherlands’ AEX and Switzerland’s CH20 have all dropped between 0.1% and 0.7%.

Over in Asia, Japan’s Nikkei 225 and Taiwan’s TAIEX closed flat, but South Korea’s KOSPI jumped 2.5% primarily driven by a continuous demand for AI-related equities.

However, US markets appear completely decoupled from other indices and the broader situation. Not only have WTI prices continued to fall on Tuesday but the S&P 500 also opened 0.6% higher.

Latest on the Strait of Hormuz

Both the US and Iran had signalled headway toward a memorandum of understanding that could end the conflict and resume maritime traffic through the blocked Strait of Hormuz, while allowing negotiators a 60-day window to tackle more complicated matters such as Iran’s nuclear activities and supplies.

In his latest remarks, US Secretary of State Marco Rubio stated that the Strait of Hormuz must remain accessible “one way or the other” as traffic through the chokepoint has dropped sharply, with only a few dozen ships currently using the route each day, compared with the usual 125 to 140 vessels.

Iran has continued to permit limited shipping, prioritising vessels connected to allied or friendly nations and arranging passage through state-to-state agreements.

Continuous reports of attacks in the Strait of Hormuz underscore how far from the normalisation of energy flows and other supplies the global economy still is.

On Tuesday, the United Kingdom Maritime Trade Operations (UKMTO) reported that a tanker experienced an external blast near the waterline on its port side.

According to the agency, the vessel was located about 60 nautical miles from Muscat, the capital of Oman.

UKMTO said the tanker and all crew members were unharmed, although a quantity of bunker fuel spilled into the sea.

This is the most recent reported incident near the Strait of Hormuz at the time of writing.

As the US and Iran move closer to a peace deal, Israel says it reserves the right to keep attacking regional ‘threats’, including in Lebanon, despite any US‑brokered ceasefire. Meanwhile, criticism within Israel is growing over Netanyahu’s handling of the war.

Japan’s stock market surges to record high on hopes of an end to US-Israel war on Iran.

Oil prices have fallen sharply amid tentative hopes for a deal to end the US-Israel war on Iran.

Brent crude, the primary benchmark for global oil prices, fell about 5 percent on Sunday as US President Donald Trump gave mixed signals on the prospects for a permanent end to the conflict.

Brent futures for July stood at $98.47 a barrel as of 01:05 GMT, down about 9 percent from a month ago but still up by more than a third compared with before the start of the war.

Japan’s benchmark stock index, the Nikkei 225, surged more than 3 percent in morning trading, hitting an all-time high after closing at a record peak on Friday.

Trump said in a social media post on Sunday that negotiations with Tehran were proceeding in an “orderly and constructive manner”, but he had instructed officials “not to rush into a deal”.

“Both sides must take their time and get it right. There can be no mistakes!” Trump wrote on Truth Social.

Trump’s remarks came after he raised hopes for a breakthrough on Saturday by announcing that a deal had been “largely negotiated,” with the terms including the reopening of the Strait of Hormuz.

“Fundamentally, there is no change to the underlying picture, where 10-11 million barrels per day of crude oil continue to be shut-in for every day the Strait of Hormuz remains shut,” June Goh, a senior oil market analyst at Sparta in Singapore, told Al Jazeera.

“However, markets are expecting a gush of 100 million barrels of crude oil from the stranded ships to flow out once the deal is in place.”

Goh said markets are likely to remain on edge for some time after any deal is finalised.

“Sparta estimates still about three to six months required to get everything back to status quo, including time to bring production and refineries back online,” Goh said.

Iran has effectively blockaded the strait since the start of the war in late February, disrupting about one-fifth of the global oil trade.

The US has imposed its own blockade of Iranian ports since mid-April, further disrupting commercial shipping in the waterway.

In his Truth Social post on Sunday, Trump said the US blockade would remain “in full force and effect until an agreement is reached, certified, and signed”.

EXPLAINER

US and Iran continue mediated talks, exchanging draft proposals aimed at reaching a formal agreement.

Iran and the United States are continuing mediated talks aimed at ending the conflict, with Iranian media reporting that both sides are exchanging messages and draft proposals to establish a formal framework for an agreement.

Al Jazeera’s correspondent Almigdad Alruhaid reported from Tehran that Pakistani officials were engaged in “intense mediation activity” between the two countries.

The diplomatic push comes as US Secretary of State Marco Rubio said there were “some good signs” for a possible breakthrough. However, US President Donald Trump also warned Washington could take “very drastic” action if Iran refuses to give up its uranium stockpiles.

Here is what we know:

In Iran

• ‘War crime’ on medical research centre: Iran has accused the US and Israel of committing a “war crime” by bombing the Pasteur Institute of Iran early in the war, after The Lancet journal warned that the attack severely damaged a key pillar of the country’s public health system.

• Thousands rescued from rubble: The Iranian Red Crescent said its aid workers rescued more than 7,200 people trapped beneath rubble during US and Israeli attacks, sharing footage of survivors being pulled from destroyed buildings for the first time.

War diplomacy

• Nuclear ‘red lines’ must shift: Doug Bandow, a senior fellow at the Cato Institute, said the US and Iran will need to move beyond conflicting “red lines” on Tehran’s nuclear programme for negotiations to make progress. Speaking to Al Jazeera, Bandow said both sides must be willing to compromise and continue serious talks if they want to avoid further escalation and move away from war.
• Rubio sees ‘good signs’ in talks: US Secretary of State Marco Rubio said negotiations with Iran have shown “some progress”, while cautioning that it remains unclear whether a deal can be reached in the coming days. Rubio said President Donald Trump still prefers a diplomatic agreement, but warned Washington has “other options” if talks fail.
• Pakistani mediation efforts intensify in Tehran: Al Jazeera’s Alruhaid said senior Pakistani officials are engaged in “intense mediation activity” in Tehran as efforts accelerate to prevent further escalation. While one senior Iranian official said negotiators were close to a deal and working on draft texts, another source cautioned it was still too early to say whether a final agreement was within reach.

In the US

• US forces at ‘peak readiness’:  CENTCOM said the USS Abraham Lincoln strike group remains at “peak readiness” in the Arabian Sea, sharing images of warplanes taking off as Washington maintains pressure on Iran amid ongoing mediation efforts.

• US reportedly suffers major Reaper drone losses: Iran has destroyed more than two dozen MQ-9 Reaper drones operated by US forces since the conflict began, according to Bloomberg News. The reported losses are estimated at $1bn, nearly 20 percent of the Pentagon’s pre-war inventory.
• US pauses Taiwan arms sales: Acting Navy Secretary Hung Cao told a Senate hearing that Washington has paused a $14bn arms sale to Taiwan to ensure the US has enough munitions for its military campaign against Iran, a move Republican Senator Mitch McConnell called “distressing”.

In Lebanon and Palestine

• Israeli strike kills two in southern Lebanon: The Israeli military said it carried out an air raid that killed two people near the Lebanon-Israel border, after detecting what it described as “suspicious movement” in southern Lebanon.
• US sanctions allies of Hezbollah: The US has imposed sanctions on nine people accused of helping Hezbollah undermine Lebanon’s sovereignty and obstruct efforts to disarm the group, including Lebanese politicians, security officials and Iran’s ambassador-designate to Beirut.

• Palestinian envoy condemns aid blockade: Palestine’s UN envoy Riyad Mansour said Israel is continuing to collectively punish more than two million Palestinians through its blockade on aid and ongoing attacks, warning the world must not become “accustomed to seeing Palestinians killed”.

• US urges humane treatment of flotilla detainees: According to Al Jazeera’s Ali Harb, the US State Department said activists detained by Israeli forces after attempting to break the Gaza blockade “must be treated humanely and consistent with international law”, while also reiterating Washington’s opposition to the flotilla movement.

A new opinion poll in the US suggests that 60 percent of Americans now oppose President Donald Trump’s war on Iran.

Donald Trump gives conflicting messages on prominence of Iran war in upcoming talks, with his administration emphasising trade.

United States President Donald Trump has departed the White House en route to Beijing, where he will meet with his Chinese counterpart Xi Jinping.

Trump spoke briefly with reporters on Tuesday as he boarded the Marine One helicopter. He was then set to arrive in China aboard Air Force One on Wednesday, ahead of the planned meetings on Thursday and Friday.

United States officials have taken pains in recent days to downplay how big a topic the US-Israel war on Iran will be during Trump’s visit.

Beijing has made its opposition to the war clear, at times asserting behind-the-scenes pressure on its trading partner Iran. However, it has largely avoided being pulled into the fray.

In recent days, US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent have stepped up their calls for China to use its influence to help reopen the Strait of Hormuz, through which about 20 percent of the world’s oil supply flowed before the war began.

But Trump again gave conflicting messages on Tuesday about how much the war would feature in his meetings in China.

“We’re going to have a long talk about it. I think he’s been relatively good, to be honest with you,” Trump said of his plans to discuss the conflict – and how it has roiled global oil markets – with Xi.

Minutes later, he added, “We have a lot of things to discuss. I wouldn’t say Iran is one of them, to be honest with you, because we have Iran very much under control.”

“I don’t think we need ⁠any help with Iran. We’ll win it one way or the other, peacefully or otherwise,” he said.

Trade to loom large

The upcoming meetings will be the first face-to-face exchanges since the leaders of the world’s two largest economies met on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Busan, South Korea, in October 2025.

It is the second time Trump will travel to China as president, and the first time since his second term began on January 20, 2025. Xi is expected to travel to the US later this year.

Beyond the war, the US administration has stressed that trade will be a top subject discussed, with Trump seeking a series of business deals and agreements.

Underscoring that initiative, Trump invited an array of US business leaders to accompany him on the trip, including Tesla CEO Elon Musk, who had previously chaired Trump’s so-called Department of Government Efficiency (DOGE), and Apple CEO Tim Cook.

Both sides are expected to seek to avoid a return to the tariff war that defined Trump’s early days in office, which saw Trump set tariffs on Chinese goods at 145 percent, while China announced a further tightening of rare-earth export controls that would have hurt US industry.

The two sides reached a fragile truce in October of last year.

China’s continued support for Iran’s ballistic programme and its defence of Tehran’s nuclear programme has also risked again derailing relations.

Last month, Trump threatened to impose a 50 percent tariff on China after reports that Beijing was preparing to deliver a shipment of new air defence systems to Iran. He later backed away from the threat, claiming that he had received written assurance from Xi that he would not provide Tehran with weaponry.

Days later, Trump said that the US Navy had intercepted a Chinese vessel carrying a “gift” for Iran. Neither side offered further details of the incident.

Xi was also expected to push Trump on US arms sales to Taiwan, the self-governing island that China claims as its own.

A fragile ceasefire in the US-Israel war on Iran is coming under growing strain as several Gulf countries have reported drone attacks.

Qatar said on Sunday that a drone struck a cargo ship in Qatari waters, sparking a fire, while Kuwait and the United Arab Emirates said they repelled drone attacks.

Though no Gulf country reported casualties in the latest attacks, they have put pressure on the fragile ceasefire, which took effect on April 8.

Qatar’s Ministry of Defence said the freighter had been arriving in the country’s waters from the UAE capital, Abu Dhabi, and was hit by a drone northeast of the port of Mesaieed.

“The vessel continued its journey toward Mesaieed Port after the fire was brought under control,” the ministry said.

The United Kingdom Maritime Trade Operations (UKMTO) said a bulk carrier reported being struck by an “unknown projectile”, and a small fire had been extinguished, but there were no casualties from the incident. “There is no reported environmental impact,” it said.

Kuwait’s Defence Ministry said a “number of hostile drones” were detected in the country’s airspace at dawn. In a post on X, a spokesperson said the drones were dealt with “in accordance with established procedures”, but did not specify where the drones were launched from.

The UAE Defence Ministry said two Iranian drones were intercepted.

“UAE air defence systems successfully engaged two UAVs launched from Iran,” the ministry said in a statement on X.

Ceasefire tested

The Trump administration has said the truce is still in effect, but a naval battle has been taking place in the Gulf region, with Iran restricting traffic through the Strait of Hormuz, a strategic waterway through which a fifth of traded oil transited before the war, and the United States imposing a blockade of Iranian ports.

Several attacks have been reported on ships in the Gulf and the countries in the region over the past week.

On Friday, the US struck two Iranian oil tankers, saying they were trying to breach its blockade of Iran’s ports.

On Tuesday, the UAE said it came under attack from Iranian missiles and drones for the second day in a row. Iran’s Islamic Revolutionary Guard Corps (IRGC), however, denied the claim.

The IRGC Navy on Sunday reiterated its warning that any attack on Iranian oil tankers or commercial vessels would be met with a “heavy assault” on one of the bases in the region used by US forces and enemy ships.

The spokesperson for the Iranian parliament’s foreign policy and security committee, Ebrahim Rezaei, said Tehran’s “restraint is over”.

“Any aggression against our vessels will be met with a heavy and decisive Iranian response against American vessels and bases,” Rezaei wrote on X.

“The clock is ticking against the Americans’ interests; it is to their benefit not to act foolishly and sink themselves deeper into the quagmire they have fallen into. The best course is to surrender and concede concessions. You must get used to the new regional order,” he added.

Talks to end the war

While the truce remains in effect, President Donald Trump has repeatedly threatened to resume the US bombardment if Iran does not accept a deal which includes reopening the Strait of Hormuz and rolling back its nuclear programme.

Iran is still mulling its response to a 14-point proposal by Washington, with Iranian frozen assets and war reparations among other main sticking points.

In a meeting with US Secretary of State Marc Rubio on Saturday, Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani pushed for all parties to respond to the ongoing mediation efforts and to reach an agreement for lasting peace.

Qatar’s prime minister also held a phone call with Iran’s Foreign Minister Abbas Araghchi, the Qatari foreign ministry reported on Sunday.

Sheikh Mohammed told Araghchi that Iran’s use of the Strait of Hormuz as a “pressure card” would only deepen the crisis in the Gulf, and said all parties in the conflict should respond to mediation efforts to end the war.

Reporting from Tehran, Al Jazeera’s Tohid Assadi said when it comes to diplomatic engagement, it seems that the US and Iran want the content of any negotiations to remain private.

Meanwhile, there is a mixture of different sentiments among Iranian citizens, he noted.

“Since the early days of the war, people have gathered to show their sense of nationalism and support for the political establishment,” he said.

“But we also know that there is a sense of frustration, especially when it comes to soaring prices and economic difficulties,” he added.

At a meeting on the reconstruction after damage caused by the war, President Masoud Pezeshkian said negotiations with the US on ending the war do not mean Iran is surrendering.

“The goal is to realise the rights of the Iranian people and defend national interests with authority,” he said.

Available for over a year

Today, US Defence Secretary Pete Hegseth says the US-Iran ceasefire “is not over”, despite attacks in the Strait of Hormuz on Monday.

Donald Trump’s “Project Freedom” aims to use the US military to guide stranded cargo ships out of the Strait of Hormuz. But, Iran insists that it controls the strait – and yesterday fired missiles and drones at military and commercial ships, according to the US. Adam is joined by chief presenter Caitriona Perry and business editor Simon Jack.

And, Prime Minister Sir Keir Starmer has said “every part of society” has a responsibility to tackle antisemitism in the UK at a summit in Downing Street. It comes after the stabbing of two Jewish men in Golders Green and a string of attacks at synagogues and other Jewish sites in recent months. Adam and Alex speak with special correspondent Lucy Manning.

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Published on
27/04/2026 – 8:27 GMT+2

Germany’s Dax, France’s CAC 40, Italy’s FTSE MIB and the UK’s FTSE 100 are expected to open in the green, according to IG data, despite peace talks between the US and Iran coming to a halt.

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The White House called off plans to send envoys to Pakistan for more negotiations and US President Donald Trump cited a lack of progress over the weekend.

“If they want, we can talk but we’re not sending people,” Trump told Fox News on Sunday. He said earlier on social media: “All they have to do is call!!!”

In addition to monitoring progress in the Middle East, investors will also be keeping across central bank decisions this week, including from the ECB and Federal Reserve.

Asia-Pacific markets mixed

Meanwhile, markets were mixed overnight in the Asia-Pacific region. Tokyo’s Nikkei 225 index hit a fresh record, surging 1.4% to 60,564.18. The Kospi in South Korea jumped 2.1% to 6,617.94. Hong Kong’s Hang Seng index edged 0.1% lower to 25,951.86 and the Shanghai Composite index was up 0.2% at 4,089.04. Australia’s S&P/ASX 200 slipped 0.3% to 8,759.40.

Taiwan’s Taiex rallied 2.6%, helped by a revival of buying of tech shares driven by the boom in artificial intelligence.

Oil prices rise again

In other dealings early Monday, the price for a barrel of Brent crude to be delivered in July, rose $1.44 to $100.57, while US benchmark crude oil added $1.28 to $95.65.

The dollar fell to 159.34 Japanese yen from 159.59. The euro climbed to $1.1723 from $1.1701.

Brent crude rises more than 2 percent after Washington and Tehran fail to hold second round of talks in Pakistan.

Oil prices have climbed higher amid stalled peace talks between the United States and Iran.

Brent crude rose more than 2 percent on Sunday after hopes for a second round of ceasefire negotiations between Washington and Tehran unravelled over the weekend.

After easing slightly, Brent, the primary benchmark for global prices, stood at $106.99 as of 1:30 GMT.

Stock markets in Asia shrugged off the impasse to open higher on Monday, with Japan’s benchmark Nikkei 225 and South Korea’s KOSPI gaining 0.9 percent and 1.5 percent, respectively, in morning trading.

US President Donald Trump on Saturday cancelled a planned trip to Pakistan by his envoys, Steve Witkoff and Jared Kushner, after Iranian Minister of Foreign Affairs Abbas Araghchi departed Islamabad before any direct engagement could take place between the sides.

Araghchi arrived in Russia’s Saint Petersburg on Monday for talks with Russian President Vladimir Putin and other officials as Tehran seeks a way out of the diplomatic impasse.

Araghchi’s trip, which follows a whistle-stop visit to Oman on Sunday, comes as uncertainty hangs over the fragile ceasefire between Washington and Tehran.

Trump announced an extension to their two-week truce last week, without specifying a deadline for reaching a deal to end the war.

As US and Iranian negotiators struggle to break the deadlock, Tehran’s threats against commercial shipping in the Strait of Hormuz have reduced traffic to a trickle, paralysing a large portion of the world’s supply of oil and natural gas.

On Saturday, 19 commercial vessels transited the strait, which normally carries about one-fifth of global oil and natural gas supplies, according to maritime intelligence platform Windward.

Before the US and Israel launched their war on Iran in late February, the waterway saw an average of 129 daily transits, according to the United Nations Trade and Development.

United States President Donald Trump has cancelled a planned visit to Pakistan by his envoys Steve Witkoff and Jared Kushner, who had been expected to explore indirect talks, which remain deadlocked over issues that include the blockade of the Strait of Hormuz.

“If they want to talk, all they have to do is call!!!” Trump wrote on his social media platform Truth Social on Saturday, signalling that Washington for now would not send negotiators to Pakistan, the country that is mediating between the longtime adversaries.

With neither Washington nor Tehran showing much willingness to soften their positions, prospects for a diplomatic breakthrough in the US-Israeli war on Iran and securing a lasting ceasefire remain stalled.

The conflict spilled into the larger Middle East region, including Lebanon, causing the worst global energy crisis since the 1970s and risking a global recession.

So what do we know about the talks and where they stand as of now?

What has the US said?

The US president on Saturday told reporters in Florida that he scrapped his envoys’ visit because the talks involved too much travel and expense to consider an inadequate offer from the Iranians.

After the diplomatic trip was called off, Iran “offered a lot, but not enough”, Trump said.

On Truth Social, he wrote that there was “tremendous infighting and confusion” within Iran’s leadership.

“Nobody knows who is in charge, including them,” he posted. “Also, we have all the cards, they have none! If they want to talk, all they have to do is call!”

What has Iran said?

In Tehran, Iranian President Masoud Pezeshkian reiterated that his government will not enter negotiations while the US maintains a blockade on Iranian ports.

In a phone call with Pakistani Prime Minister Shehbaz Sharif on Saturday night, Pezeshkian said Washington “should first remove operational obstacles, including the blockade,” before any new talks can begin, according to the ISNA and Tasnim news agencies.

Meanwhile, during his visit to Islamabad on Friday, Iranian Foreign Minister Abbas Araghchi held separate meetings with Pakistan’s army chief, Field Marshal Asim Munir, and Sharif.

In a post on Telegram, Araghchi said their discussions covered regional dynamics and Iran’s non-negotiable positions without disclosing specifics. He added that Tehran intends to engage with Pakistan’s mediation efforts “until a result is achieved”.

After departing Islamabad on Saturday, Araghchi travelled to Oman, where he discussed ways to end the conflict with Sultan Haitham bin Tariq al-Said, according to state media.

He was then scheduled to continue on to Russia. Iran’s IRNA news agency said Araghchi is expected to return to Islamabad on Sunday for additional talks.

What has Pakistan said?

Despite hardening public positions from Washington and Tehran, Pakistan’s political and military leadership is continuing to mediate, two Pakistani officials said on Sunday, according to The Associated Press news agency. They were quoted as describing the indirect ceasefire contacts as still alive but fragile.

There were no immediate plans for US envoys to return for talks, according to the Pakistani officials, who spoke on the condition of anonymity because they were not authorised to speak to the media, AP added.

Al Jazeera’s Kimberly Halkett, reporting from Islamabad, said Pakistani officials are underscoring that the expected return of Araghchi to Islamabad is seen as a “hopeful sign”.

“What they hope is that this will in fact be something that can be incremental in the process and will advance forward,” she reported.

What is happening with the ceasefire?

The US-Iran ceasefire began on April 8 after nearly six weeks of US and Israeli strikes on Iran and retaliatory Iranian attacks against Israel and across the Gulf region.

The two sides held talks in Islamabad on April 11 aimed at securing a permanent deal, but they ended after 21 hours with no breakthrough.

After repeated threats of restarting the war if Iran did not heed Washington’s demands, Trump extended the ceasefire on Tuesday without a set deadline, saying he was in no rush to conclude a peace deal with Iran.

While the truce has held for the most part, the two sides continue to accuse each other of violations.

Iranian forces, which have essentially blocked the Strait of Hormuz, have captured commercial vessels, and the US has intercepted or detained ships suspected of violating its naval blockade of Iranian ports just one week after the ceasefire went into effect.

The naval blockade is seen by Iran as a breach of the ceasefire. Tehran has warned that reopening the Strait of Hormuz is impossible as long as the blockade remains in place.

The critical waterway has become a central dispute in the conflict. One-fifth of the world’s oil and liquefied natural gas supplies were shipped through the strait, which links the Gulf to the Arabian Sea, before the war began.

Iran insists on sovereignty over the waterway, which lies within the territorial waters of Iran and Oman. It has also floated the idea of levying tolls while Washington demands full freedom of navigation. The Gulf nations, which export most of their petroleum through the strait, have opposed the Iranian plan to impose tolls.

Another key issue is the debate over Iran’s stock of enriched uranium.

The US and Israel are pushing for zero uranium enrichment and have accused Iran of working towards building a nuclear weapon while providing no evidence for their claims.

Iran has insisted its enrichment effort is for civilian purposes only. It is a signatory to the 1970 Treaty on the Non-Proliferation of Nuclear Weapons, and Tehran says it has the right to pursue a civilian nuclear programme. But according to the International Atomic Energy Agency, the global nuclear watchdog, Iran has enriched uranium to 60 percent, a level that is far higher than what is needed for civilian use.

Published on 21/04/2026 – 12:14 GMT+2•Updated
12:16

Oil prices edged slightly higher, European indices traded flat, while Asian markets surged on Tuesday morning as investors monitored potential US-Iran negotiations and the final 48 hours of the current ceasefire.

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At the time of writing, US benchmark crude was up 8.5% from last Friday’s low to around $86.3 a barrel, while Brent crude, the international standard, was around 9.5% higher at roughly $94.5 a barrel.

As for European markets, the Euro Stoxx 50 and the broader pan-European Stoxx 600 were trading within a 0.2% range.

The UK’s FTSE 100, Germany’s DAX 30, France’s CAC 40 and Italy’s FTSE MIB were all similarly trading within a 0.3% range.

On Wall Street, US futures were also all trading within a 0.3% range with the tech-heavy Nasdaq leading. The S&P 500 closed marginally lower by 0.2% on Monday at 7109 points.

Despite US representatives, including special envoy Steve Witkoff and senior adviser Jared Kushner, travelling to Islamabad as part of renewed efforts to secure an agreement, no concrete progress on US-Iran negotiations has been announced.

The Strait of Hormuz remains closed and the current ceasefire ends on Wednesday keeping markets in a state of uncertainty.

US President Donald Trump has asserted that the deal currently being negotiated will be better than the Joint Comprehensive Plan of Action (JCPOA), which was signed by US President Barack Obama in 2015 and from which Trump withdrew in 2018.

Latest on US-Iran negotiations

Following the arrival of US representatives to Islamabad there has been no developments on the negotiations with Iran.

Even though US President Donald Trump confidently declared that there is a historic deal in the works, public statements from major Iranian figures seem to indicate otherwise.

Mohammad Ghalibaf, the speaker of Iran’s parliament and the person previously heading the talks with the US, made sweeping declarations via X on Monday stating that the country will “not accept negotiations under the shadow of threats” and “has prepared to reveal new cards on the battlefield”.

Previously, other Iranian representatives have also described US demands as “excessive”.

For the time being, markets eagerly await developments and are highly sensitive to any headlines about the situation.

Associated British Foods and Primark demerger

Although European markets are trading flat, major news in the retail consumer sector has come out of the UK.

Associated British Foods (ABF) is poised to announce the outcome this week of a strategic review into demerging its fast-fashion retail arm Primark, from its diversified food business.

The conglomerate, controlled by the billionaire Weston family, has been working with advisers from Rothschild & Co to assess whether the split would maximise long-term shareholder value.

Analysts argue the move makes sense because of the limited operational synergies between the two divisions: the food arm generates steady cash flows from brands such as Twinings, Patak’s, Jordans cereals and Allied Bakeries, while Primark has pursued aggressive international expansion in a fiercely competitive retail sector.

The decision comes as ABF faces tough trading conditions, with the group warning in January of flat annual sales and declining profits, further pressured by rising costs and the fallout from the Iran conflict, including potential increases in petrochemical prices.

The US and Iran are supposed to have another round of direct talks in Pakistan on Tuesday, but will the Iranians skip it like they are threatening and what do all sides want? Al Jazeera asked political analyst Mahjoob Zweiri.

European stock markets slipped on Monday as investor sentiment weakened amid renewed tensions between the United States and Iran. The downturn followed the seizure of an Iranian cargo ship by US forces and Tehran’s vow of retaliation, raising fears that a fragile ceasefire nearing its expiry may collapse.

The situation has been further complicated by Iran’s rejection of fresh peace talks and ongoing uncertainty over maritime security in the Strait of Hormuz, a critical global energy route.

Market Reaction

The pan-European STOXX 600 index declined by 0.8%, reflecting broad-based caution across financial markets. Major indices also moved lower, with Germany’s DAX down 1% and France’s CAC 40 falling 0.9%.

Losses were concentrated in sectors sensitive to geopolitical risk. Travel and leisure stocks led declines, followed by banking and automobile shares, which also came under pressure. In contrast, energy stocks rose as oil prices surged, reflecting concerns about supply disruptions.

Oil and Energy Impact

Crude oil prices jumped sharply, with Brent crude rising more than 5% to around $95 a barrel. The increase reflects heightened fears of disruption in the Strait of Hormuz, through which a significant portion of global energy trade passes.

Energy-dependent European economies remain particularly sensitive to price volatility, adding to investor caution across broader markets.

Geopolitical Tensions

Market sentiment shifted sharply from the previous week’s optimism, when easing signals from the Strait of Hormuz had briefly boosted equities. That optimism faded quickly after renewed maritime incidents and political escalation.

The United States and Iran continue to exchange accusations over ceasefire violations, while diplomatic efforts appear increasingly uncertain. The rejection of fresh negotiations by Iran and continued US pressure have added to concerns that the conflict could intensify further.

Outlook

Financial markets remain closely tied to developments in the Middle East. With the ceasefire approaching its expiration and no clear diplomatic breakthrough in sight, volatility is expected to persist.

Investors are likely to remain cautious until there is greater clarity on both maritime security in the Strait of Hormuz and the future of US–Iran relations.

With information from Reuters.

Islamabad, Pakistan – Pakistan is gearing up to host the second round of talks between the United States and Iran aimed at ending their war, but rising tensions in recent hours have cast uncertainty over Tehran’s participation, as the deadline nears for the end of the two-week ceasefire.

Unlike the first round of talks held in Islamabad on April 11, the upcoming negotiations could last for multiple days until a temporary deal – mediators are calling it a memorandum of understanding – is signed, effectively extending the ceasefire, sources close to these efforts have told Al Jazeera. If the MoU is agreed, it would give negotiators a longer window – even up to 60 days – to secure a longer peace deal.

But all of that hinges on the participation of Iran, which – as of Monday morning – has not confirmed that it will be sending its negotiators to Islamabad. That follows a rapid escalation in tensions over the past 24 hours.

US President Donald Trump announced on Sunday that his representatives were heading to Pakistan for a second round of negotiations with Iran, as a fragile ceasefire, due to expire on Wednesday, edges towards its deadline.  But Trump accompanied his announcement with a revival of earlier pre-ceasefire threats to bomb Iran’s energy and power facilities.

“My Representatives are going to Islamabad, Pakistan. They will be there tomorrow evening, for Negotiations,” Trump wrote on Truth Social. He accused Iran of a “Total Violation of our Ceasefire Agreement” after Iranian gunboats fired on vessels in the Strait of Hormuz on Saturday, hitting ships including a French vessel and a British freighter.

“We’re offering a very fair and reasonable DEAL, and I hope they take it because, if they don’t, the United States is going to knock out every single Power Plant, and every single Bridge, in Iran,” Trump wrote. “NO MORE MR. NICE GUY!”

The tensions did not ease overnight. In the early hours of Monday, Trump announced on Truth Social that the US Navy guided missile destroyer USS Spruance had intercepted an Iranian-flagged cargo ship, the Touska, nearly 900 feet (274 metres) long, in the Gulf of Oman after its crew refused to heed warnings to stop.

“Our Navy ship stopped them right in their tracks by blowing a hole in the engine room,” Trump wrote. US Marines have now taken charge of the vessel, which Trump alleged was under US Treasury sanctions for prior illegal activity.

Iran has described the seizure of the ship as “piracy”.

Pakistan’s preparations

Amid those military and social media exchanges between Iran and the United States, Pakistan has been busy getting ready to host talks that it – as the principal mediator between Washington and Tehran – hopes will yield a deal to end the war, now into its eighth week.

Islamabad’s Marriott Hotel asked guests to vacate by Sunday afternoon. The Serena Hotel, just a few kilometres away and the venue for the first round of talks a week earlier, soon issued the same order and stopped taking reservations.

Roads into the Red Zone, the capital’s most heavily fortified area, were sealed. The district houses key government buildings, including the National Assembly, foreign embassies and both five-star hotels. Thousands of additional police and paramilitary personnel arrived from across the country.

Barbed wire and barricades lined the streets, and most access routes were shut.

But even before Trump’s latest threat to blow up Iranian energy and power facilities, and the subsequent hijacking of the Iranian ship, Tehran was unclear about whether it would join the talks.

Minutes before Trump’s Truth Social message, Iran’s ambassador to Pakistan, Reza Amiri Moghadam wrote on his social media that violations of international law, the continuation of the US naval blockade of the Strait of Hormuz, threats of further strikes, and what he described as unreasonable demands could not be reconciled with a genuine pursuit of peace.

“As long as the naval blockade remains, faultlines remain,” he added.

The negotiators: The US and Iranian teams

Trump first said on Sunday that Vice President JD Vance, who had led the US team in the first round of Islamabad talks, would not visit the Pakistani capital this time around, because of security concerns.

But White House Press Secretary Karoline Leavitt later said that Vance would join the US delegation, alongside special envoy Steve Witkoff and Trump’s son-in-law, Jared Kushner, the same team that led the first round.

Flight tracking data showed at least four US government aircraft carrying communications equipment and motorcade support landed on Sunday at PAF Base Nur Khan in Rawalpindi, the primary VIP entry point for Islamabad.

However, by late night, sources close to mediators told Al Jazeera that it was once again unclear whether Vance would travel to Islamabad on Monday. They said that the US might now send Witkoff and Kushner to Islamabad first, and if the talks actually happen, Vance might join them.

Amid Iranian hesitation over whether to join the Islamabad talks, Pakistani Prime Minister Shehbaz Sharif spoke with Iranian President Masoud Pezeshkian. The call lasted about 45 minutes, the Pakistan PM’s office said.

Sharif briefed Pezeshkian on his recent visits to Saudi Arabia, Qatar and Turkiye, where he met with their leaders, describing those engagements as helpful in “building consensus in support of a sustained process of dialogue and diplomacy”.

But by early Monday morning, Trump’s revived threats and the capture of the Iranian cargo ship have left the prospects of talks in Islamabad even more on edge than before.

Iran pushes back

Tehran pushed back sharply against Trump’s flurry of social media posts on Sunday.

Iran’s state news agency IRNA said reports of a second round of talks in Islamabad were “not correct”, and blamed the lack of progress on what it described as American “greed”, unreasonable demands, shifting positions and “continuous contradictions”.

According to IRNA, the naval blockade – imposed by Trump last Monday, two days after the first round of Islamabad talks – violated the ceasefire understanding and had “so far prevented progress in negotiations”.

It added that “no clear prospect for productive negotiations is foreseen” under current conditions and dismissed US statements on talks as “a media game”, aimed at pressuring Iran through a “blame game”.

In a post on X, foreign ministry spokesman Esmaeil Baghaei went further, describing the US naval blockade as “unlawful and criminal” and saying it amounted to “war crime and crime against humanity”.

Despite the public denials, Iranian sources earlier on Sunday indicated a delegation was expected in Pakistan on Tuesday. It could include Parliamentary Speaker Mohammad Bagher Ghalibaf, who led Tehran’s team in the first round, and Foreign Minister Abbas Araghchi, who had joined him then.

Pakistan’s foreign ministry said Araghchi and his Pakistani counterpart Ishaq Dar spoke by phone on Sunday and discussed “the need for continued dialogue and engagement as essential to resolving the current issues as soon as possible”.

Analysts say the gap between Iran’s public stance and private signalling reflects a deliberate strategy.

“This gap reflects a dual-track negotiation strategy,” Seyed Mojtaba Jalalzadeh, an international relations analyst based in Tehran, told Al Jazeera. “At the public level, Iran maintains a hardline position to preserve domestic legitimacy and increase its leverage; at the non-public level, by dispatching a team to Islamabad, it signals that it has not abandoned diplomacy but is instead testing its conditions.”

Fahd Humayun, an assistant professor of political science at Tufts University, agreed.

“When warring parties come to the table to negotiate, they come with the understanding that there is occasionally a gap between public posturing and private positions,” he told Al Jazeera. “My sense is that they will pick up from where they left off, rather than getting too caught up in the rhetoric that has emerged since”.

That divergence extends to the pace of negotiations.

Washington has pushed for a rapid resolution, with Trump repeatedly declaring the war “close to over” even as fighting continues. Tehran, by contrast, has shown little inclination to be rushed.

A diplomat in Islamabad, who has followed the talks closely, described the contrast.

“The previous round of talks is a great example. It appeared as if the Americans brought a stop-watch, whereas the Iranians came armed with a calendar,” the diplomat said on condition of anonymity.

What is achievable?

Officials do not expect a final deal this week.

The immediate goal is likely to be a ceasefire extension, with both sides in Islamabad working towards a limited understanding.

Pakistani officials expressed cautious optimism, saying the process was moving in a positive direction while stressing that a final agreement would require sustained engagement and compromise.

Unlike the first round, talks could run for several days, with the aim of agreeing on a framework for broader negotiations in the coming weeks and months.

Humayun cautioned against viewing the first round as a failure.

“I wouldn’t characterise the first round as having failed, that assumes expectations of resolving the most difficult issues early on, which is unlikely in talks of this nature where the issues are so complex,” he said.

For this round, a ceasefire extension would be “a meaningful outcome in itself”, while both sides would likely be “probing for any shifts or flexibility in positions since they last spoke”.

It is that movement, he added, that would allow both sides to “politically sanction an extension of the ceasefire”.

“A ceasefire extension could represent the most minimal form of agreement achievable in this round,” Jalalzadeh said, adding that the deal Washington seeks is “far broader in scope and is rooted in a history stretching back 47 years”.

Iran’s Deputy Foreign Minister Saeed Khatibzadeh, speaking on the sidelines of the Antalya Diplomacy Forum in Turkiye over the weekend, said “significant progress” had been made in the previous round but stressed that a framework must be agreed upon before talks could advance.

He described US demands on Iran’s nuclear programme as “maximalist”.

Ghalibaf was more direct. “There are many gaps and some fundamental points remain,” he said in televised remarks on Saturday night. “We are still far from the final discussion”.

The core sticking points, Iran’s nuclear programme and control of the Strait of Hormuz, remain unresolved since the first round, held on April 11, which lasted 21 hours and ended without agreement.

A separate Israel-Lebanon ceasefire is now in place, removing one of Tehran’s stated conditions for talks.

But Jalalzadeh said the ceasefire fell well short of satisfying Iran’s demands. “The current Israel-Lebanon ceasefire is temporary, fragile, and incomplete,” he told Al Jazeera, noting that Hezbollah – Tehran’s most powerful regional ally – was absent from the agreement, which the Lebanese government negotiated with Israel.

“This ceasefire is a tactical palliative, not a substitute for Iran’s strategic demand,” he said, adding that Tehran’s insistence on Lebanon being part of any broader deal, rather than handled through a separate arrangement, remained unchanged.

Humayun said Iran would want the Israel-Lebanon truce to hold and ideally include “some form of assurance against violations”.

The broader question, he said, is “whether Iran can secure at least some degree of US pressure on Israel to adhere to the ceasefire and to refrain from further escalation”.

The Sharif-Pezeshkian call capped an intensive week of Pakistani diplomacy.

Field Marshal Asim Munir travelled to Tehran last Wednesday, carrying what officials described as a new message from Washington.

Iranian Ambassador Reza Amiri Moghadam said last week in Islamabad that Tehran would “do talks in Pakistan and nowhere else, because we trust Pakistan”.

Analysts say Pakistan’s value as a mediator lies in the rare credibility it holds with both sides.

Humayun said that even if this round produces no breakthrough, it would not necessarily erode trust in Islamabad.

“All parties understand how difficult these issues are and that, without Pakistan’s facilitation, they may not have reached this point at all,” he said.

Jalalzadeh offered a more cautious assessment, saying Pakistan’s role ultimately depends on results.

“If this round also fails, its standing as an effective mediator will be weakened, even if it continues to function as a minimal communication channel,” he said.

Still, he noted, Islamabad has already distinguished itself among countries that have attempted mediation, filling a gap left by others and establishing itself as a credible host.

Trump, however, insisted a deal would come regardless.

“It will happen. One way or another. The nice way or the hard way,” he told ABC News. “You can quote me.”