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US gas reaches $4.30 per gallon; Trump says prices will drop after Iran war | US-Israel war on Iran News

Price of petrol in US jumps by nearly 30 cents in one week amid Strait of Hormuz blockade and Iran diplomatic deadlock.

The average price of one gallon (3.8 litres) of gasoline in the United States has reached $4.30, according to the American Automobile Association (AAA), up from less than $3 before the February 28 start of the US-Israel war on Iran.

Thursday’s prices come as US President Donald Trump insists that time is on his side in the standoff with Iran, even as he refuses Tehran’s offers of a preliminary deal to reopen the Strait of Hormuz.

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According to AAA, prices for gas or petrol went up by 27 cents over the past week amid the deepening impasse, with Iran blocking the strait and the US imposing a naval siege on Iranian ports.

“The national average is $1.12 higher than it was this time last year, as oil prices surge above $100/barrel with no indication of when the Strait of Hormuz will reopen,” AAA said in a brief report on Thursday.

“Gas prices are the highest they’ve been in four years, since late July 2022.”

California, home to nearly 40 million people, saw petrol prices hit more than $6 per gallon on Thursday.

The spike in energy prices has been fuelling inflation and economic uncertainty, adding to Trump’s political woes.

The US president’s approval rating is hitting record lows amid growing discontent with the conflict with Iran, recent public opinion polls show.

Since the start of the war, Trump and his allies have been trying to frame the hike in petrol prices as a temporary price worth paying to achieve the aims of the military campaign.

The US president reiterated that argument on Thursday when asked about the latest price increase.

“And you know what? And we’re not going to have a nuclear weapon in the hands of Iran,” the US president told reporters.

“The gas will go down. As soon as the war is over, it’ll drop like a rock.”

However, oil prices do not drop automatically after hostilities stop. Despite the ceasefire reached on April 8, the cost of gas in the US has continued to climb.

Iran denies seeking a nuclear weapon.

Although the US is one of the largest oil producers and is not heavily reliant on energy products from the Middle East, global prices affect what Americans pay at the pump.

On Thursday, Trump stressed that Iran is all but vanquished militarily and economically – a claim he has been repeating since the early days of the conflict.

“Iran is dying to make a deal,” he said, calling the naval blockade against the country “incredible”.

Tehran has projected defiance, refusing to hold direct talks with the US until the siege is lifted, even after Trump announced last week that he was dispatching his top envoys to Pakistan to negotiate with Iranian officials.

Earlier on Thursday, Iranian President Masoud Pezeshkian suggested that Iran is running out of patience with the current situation of no war and no peace amid the US siege.

“The world has witnessed Iran’s tolerance and conciliation. What is being done under the guise of a naval blockade is an extension of military operations against a nation paying the price for its resistance and independence,” Pezeshkian said in a social media post.

“Continuation of this oppressive approach is intolerable.”

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Pakistan opens up road trade routes into Iran amid Hormuz blockade | US-Israel war on Iran News

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

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

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

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

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

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

Routes and regulations

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

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

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

Corridor shaped by conflict

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

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

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

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

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

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

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

Shifting regional dynamics

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

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

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

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

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

Firdous said the implications extend beyond bilateral ties.

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

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

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

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Iran’s currency falls to new low as US blockade, sanctions impact trade | US-Israel war on Iran News

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

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

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

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

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

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

Non-oil trade takes hit

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

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

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

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

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

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

Oil exports in the crosshairs

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

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

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

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

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

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

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

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

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

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

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

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Is Iran’s oil storage nearly full – and will it have to cut production? | US-Israel war on Iran News

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

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

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

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

What is happening in the Strait of Hormuz?

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

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

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

INTERACTIVE - Strait of Hormuz - March 2, 2026-1772714221

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

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

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

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

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

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

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

INTERACTIVE - Kharg Island Iran map oil coastline-1775116731

What has the US claimed?

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

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

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

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

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

How much oil can Iran store?

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

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

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

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

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

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

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

Will Iran need to cut oil production?

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

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

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

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

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

Why does this matter?

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

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

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

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

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‘Particularly badly exposed’: How the Iran war is hitting the UK | US-Israel war on Iran News

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

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

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

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

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

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

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

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

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

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

‘We will stand by working people’: Starmer

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

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

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

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

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

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

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

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

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

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

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

A man who described himself as a 'patriot counter-protester' and supports the U.S. and Israeli operation against Iran, wears a Union Jack-themed jacket while waving an England flag, as anti-war activists protest outside RAF Fairford, which hosts United States Air Force (USAF) personnel, amid the U.S.-Israeli conflict with Iran, in Fairford, Britain, March 7, 2026. REUTERS/Toby Melville
A man who describes himself as a ‘patriot counterprotester’ and supports the US-Israeli war against Iran demonstrates as antiwar activists protest outside RAF Fairford, where US Air Force personnel are stationed, in Fairford, England [File: Toby Melville/Reuters]

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

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

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

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

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Can Russia serve as an economic lifeline for Iran amid the Hormuz blockade? | US-Israel war on Iran News

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

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

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

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

Increasing but modest bilateral trade

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

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

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

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

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

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

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

Russian President Vladimir Putin shakes hands with Iranian Foreign Minister Abbas Araqchi during a meeting at the Boris Yeltsin Presidential Library in Saint Petersburg, Russia April 27, 2026. Dmitri Lovetsky/Pool via REUTERS
Russian President Vladimir Putin shakes hands with Iranian Foreign Minister Abbas Araghchi during a meeting at the Boris Yeltsin Presidential Library in Saint Petersburg, Russia, April 27, 2026 [Dmitri Lovetsky/Pool via Reuters]

Alternatives to Hormuz

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

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

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

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

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

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

Easier in theory than in practice

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

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

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

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

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

Does Moscow want to help Iran?

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

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

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

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

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

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

Others are more optimistic, however.

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

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What’s in Iran’s latest proposal – and how has the US responded? | US-Israel war on Iran News

The United States is considering a new proposal from Iran to end the ongoing war amid a fragile ceasefire between the longtime adversaries.

The offer focuses on reopening the strategic Strait of Hormuz while postponing a deal on Iran’s nuclear programme, arguably the most contentious issue between Tehran and Washington.

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According to US media outlets, the proposal has drawn scrutiny in Washington, and officials there have expressed scepticism.

Early indications from the Trump administration suggest the plan is unlikely to be accepted in its current form, potentially further delaying any prospect of permanently ending the currently paused US-Israel war on Iran, which has killed thousands and sent global energy prices soaring.

Here is what we know so far:

What’s in Iran’s latest proposal?

Iran’s latest proposal aims for de-escalation in the Gulf without immediately placing restraints on its nuclear programme, as the US has demanded. Tehran has offered to reopen the Strait of Hormuz on the condition that the US lifts its naval blockade on Iranian ports and agrees to end the war.

Iran has effectively closed the strait to shipping, creating global economic pressure by driving up energy prices and disrupting supply chains. In peacetime, one-fifth of the world’s oil and liquefied natural gas (LNG) supplies are shipped through the narrow passage, which links Gulf oil producers to the open ocean.

Days after the ceasefire began on April 8, Trump announced a blockade on Iranian ports and ships, restricting Tehran’s ability to export oil and cutting off a crucial source of its revenue.

epa12918541 Iranians walk past a huge billboard carrying a sentence reading in Persian 'The Strait of Hormuz remains closed' at Enghelab Square in Tehran, Iran, 28 April 2026. US President Donald Trump announced that a ceasefire between the US and Iran has been extended. EPA/ABEDIN TAHERKENAREH
Iranians walk past a huge billboard carrying a sentence reading in Persian ‘The Strait of Hormuz remains closed’ at Enghelab Square in Tehran, Iran, 28 April 2026 [Abedin Taherkenareh/EPA]

However, a central feature of Iran’s offer to reopen the Strait to all traffic is that discussions over Iran’s nuclear activities would be postponed until after the war ends.

The proposal was conveyed to Washington through Pakistan, which has been acting as a mediator.

“These messages concern some of the Islamic Republic of Iran’s red lines, including nuclear issues and the Strait of Hormuz,” Iranian state media Fars News Agency reported.

“Informed sources emphasise Mr Araghchi is acting entirely within the framework of the specified red lines and the diplomatic duties of the Ministry of Foreign Affairs.”

The news agency said the messages relayed were “unrelated to negotiations” and are “considered an initiative by Iran to clarify the regional situation”.

Iranian analyst Abas Aslani said Iran’s latest proposal is based on an “altered” approach.

Aslani, a senior research fellow at the Centre for Middle East Strategic Studies, told Al Jazeera that Tehran believes its previous model – which was based on making compromises on its nuclear programme in exchange for economic sanctions relief – is no longer a “viable path towards a potential accord”.

“Iran believes this can also function as a trust-building measure to compensate for the trust-deficit issue,” he added.

On Monday, Tehran’s envoy to the United Nations, Amir Saeid Iravani, said “lasting stability and security” in the Gulf and the wider region can only be achieved through a durable and permanent cessation of aggression against Iran.

How has the US responded so far?

US President Donald Trump met with top security advisers on Monday to discuss the Iranian proposal, the White House confirmed.

However, according to media reports, the US response has been largely dismissive. According to Reuters, an unnamed US official said President Trump was unhappy with the proposal because it did not include provisions for Iran’s nuclear programme. The official noted that “he doesn’t love the proposal”.

Citing two people familiar with the matter, US media outlet CNN reported that Trump was unlikely to accept the proposal. It said Washington lifting its blockade of Iranian ports without resolving questions over Tehran’s nuclear programme “could remove a key piece of American leverage in the talks”.

Secretary of State Marco Rubio told Fox News on Monday that the proposal was “better than what we thought they were going to submit”, but questioned Tehran’s intentions.

“They’re very good negotiators,” he said. “We have to ensure that any deal that is made, any agreement that is made, is one that definitively prevents them from sprinting towards a nuclear weapon at any point.”

Al Jazeera’s Mike Hanna, reporting from Washington, said, “There’s been a complete lid over what was discussed” during the meeting between Trump and his national security team.

“It was so tight that we do not know exactly who in his national security team was present at that meeting,” Hanna added.

“Normally, there is some form of readout or some form of more information giving, fleshing out the details of a meeting like this.”

What has been the response from other countries?

While the “US and Iran feel that time is on their side, the longer this goes on, the more difficult it’s going to be,” Mohamed Elmasry, an analyst for the Doha Institute of Graduate Studies, said.

“I really don’t think time is on anyone’s side. I really do think the Europeans are losing patience,” he told Al Jazeera.

On Monday, German Chancellor Merz stated that the “Iranians are negotiating very skilfully”, Elmasry noted. He said this shows that Trump is coming under increasing pressure from his allies, “who believe he [Trump] got them into this big mess and isn’t able to clean it up”.

“Trump isn’t going to be happy hearing that and the chancellor is hitting Trump where it hurts.”

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Bahrain strips 69 people of citizenship over Iran support | US-Israel war on Iran News

Rights groups have described the move as a “blatant abuse of power”.

Bahrain has stripped dozens of people of their citizenship for allegedly supporting Iranian attacks on the country.

Bahrain’s Ministry of Interior announced on Monday that it had revoked the citizenship of 69 people, some of whom were related, after accusing them of sympathising with Iran and “colluding with foreign entities”. The move comes after Tehran carried out strikes on facilities in Bahrain as part of the war launched against Iran by Israel and the United States.

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The directive, issued by King Hamad bin Isa Al Khalifa, stated that all 69 people were “of non-Bahraini origin”. Under Bahraini law, a person can be stripped of citizenship if they are deemed to have caused harm to the country or shown disloyalty.

The London-based Bahrain Institute for Rights and Democracy described the move as “dangerous” and a clear violation of international law.

The organisation said the individuals had not been publicly identified, and it remained unclear whether they had been arrested, whether they were inside or outside Bahrain, and whether they held another nationality.

Iranian strikes

Tehran began striking its Gulf neighbours on February 28, shortly after Israel and the United States began the war by launching attacks on Iran.

Tehran accused the targeted countries of allowing the US to conduct its strikes from their territory. Iran’s retaliatory attacks reportedly caused significant damage to US military sites across the region, including a Navy base in Bahrain, which was hit by missiles and drones.

Iran ceased its attacks on Gulf neighbours on April 9, following the introduction of a ceasefire brokered by Pakistan. Negotiations to permanently end the war are ongoing three weeks later.

Bahrain’s Shia population has long accused authorities of marginalising them. During the Arab Spring in 2011, mass protests against the country’s leadership broke out. The Bahraini government has long blamed Iran for fomenting unrest against it.

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Iran’s foreign minister leaves Pakistan, heads to Russia for more talks | US-Israel war on Iran News

Abbas Araghchi will speak with ‘senior officials’ in Moscow, Iran’s Foreign Ministry says.

Iran’s top diplomat, Abbas Araghchi, has left Islamabad for Moscow, the Iranian Ministry of Foreign Affairs said, as mediators hope to keep the prospect of more Tehran-Washington talks alive.

Araghchi sandwiched a trip to Muscat, Oman, in between visits to the Pakistani capital, leaving on Sunday to be in Moscow the following day. But there was no indication that direct talks between Iran and the United States would resume.

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However, in a sign that indirect efforts were ongoing, the Fars news agency reported that Iran had transmitted “written messages” to the Americans via mediator Pakistan, which were “about some of the red lines of the Islamic Republic of Iran, including nuclear issues and the Strait of Hormuz”.

But the messages were not part of any negotiations, Fars said.

US President Donald Trump last week indefinitely extended the ceasefire that Washington and Tehran agreed to on April 7, which has largely halted the fighting that began with joint US-Israeli strikes on Iran on February 28.

But a permanent settlement remains elusive, and the economic shockwaves of the war continue to reverberate around the globe.

Iran has effectively blocked the vital Strait of Hormuz, cutting off vast quantities of oil, natural gas and fertiliser from the global market, and sending prices soaring. The US has imposed a blockade of Iranian ports in response.

There had been hopes for a new round of talks on Saturday, with US envoys Steve Witkoff and Jared Kushner due to visit Islamabad, but Trump later told Fox News he had scrapped the trip, saying there was no point “sitting around talking about nothing”.

On Sunday, Trump told the same channel: “I said, we’re not doing this any more. We have all the cards. If they want to talk, they can come to us, or they can call us. You know, there is a telephone. We have nice, secure lines”.

Asked earlier whether cancelling the trip meant a return to open hostilities, Trump said: “No, it doesn’t mean that.”

Shuttle diplomacy

On Saturday, Araghchi met Pakistan’s military chief, Asim Munir, a key mediator, Prime Minister Shehbaz Sharif and Minister of Foreign Affairs Ishaq Dar, before flying on to Muscat. He returned to Islamabad on Sunday.

In Russia, Iran’s Foreign Ministry said he would speak with “senior officials”.

Russia’s Ministry of Foreign Affairs confirmed that Araghchi would visit Moscow, but did not say if he would meet President Vladimir Putin.

Amid the flurry of meetings, Araghchi signalled scepticism over Washington’s intentions, saying he had “yet to see if the US is truly serious about diplomacy”.

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Has Iran exposed the limits of what US can achieve by force? | US-Israel war on Iran

Political scientist Vali Nasr argues that US and Israeli military options ‘have come up short’.

Despite on-again, off-again negotiations, the United States has no other option but to pursue a diplomatic solution with Iran, argues Vali Nasr, professor of international affairs and Middle East studies at Johns Hopkins University.

Nasr tells host Steve Clemons that the US-Israel war on Iran has shown the limits of military force.

“You don’t go to the table to demand surrender. The other side is not going to surrender because they haven’t lost. So you have to cut a deal,” Nasr said, adding that Iran’s objective is to make sure the US and Israel understand that “war with Iran isn’t easy”.

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Israel issues forced evacuation orders for southern Lebanon in escalation | US-Israel war on Iran News

Hezbollah rejects allegations from Benjamin Netanyahu that it is undermining the Israel-Lebanon ceasefire.

Israel has issued new forced evacuation notices for areas in southern Lebanon, ordering residents of seven towns that lie beyond its so-called “buffer zone” to leave, ramping up the conflict with Hezbollah despite a US-brokered ceasefire.

An Israeli military spokesperson said in a statement on X on Sunday that the Lebanese armed group was violating the ceasefire ⁠and that Israel would act against it, telling residents to head north and west.

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The towns are north of the Litani River, in an area where Israeli troops have continued military operations despite the ceasefire. They lie outside of what Israel has declared a “buffer zone”, an area stretching roughly 10km (6 miles) north of the border inside southern Lebanon where Israeli forces remain.

Hezbollah rejected allegations that it is undermining the Israel-Lebanon ceasefire, saying its continued attacks are a “legitimate response to the enemy’s persistent violations of the ceasefire”, which it claims have exceeded 500 incidents.

The Iran-aligned group said in a statement on Telegram on Sunday that it shouldn’t be linked to a ceasefire that it didn’t approve, as it had “no say or position”, adding that the group will not “place out bets on a failed diplomacy that has proven its ineffectiveness.”

“It must be understood that Hezbollah’s violations are, in practice, dismantling the ceasefire,” Israel’s Prime Minister Benjamin Netanyahu said during a weekly cabinet meeting.

The US-mediated ceasefire, which started on April 16 and has been extended to mid-May, has brought a significant reduction in hostilities between Israel and Hezbollah, though both sides have continued to fire at each other, trading blame over breaches.

Al Jazeera’s correspondent in Tyre, Heidi Pett, said “there have been multiple airstrikes across south Lebanon” on Sunday, with many people fleeing to the towns of Sidon and Tyre.

“We once again have thousands of people leaving their homes, joining the hundreds of thousands who were already previously displaced,” she said.

A displaced man, who fled his home after an Israeli evacuation order, sits in a university-turned-shelter in Sidon,
A displaced man, who fled his home after an Israeli evacuation order, sits in a university-turned-shelter in Sidon, Lebanon, April 13, 2026 [Aziz Taher/Reuters]

Hezbollah said it attacked Israeli troops inside Lebanon as well as the rescue force that came to evacuate them, targeting a newly established Israeli artillery position in the town of Biyyada with a swarm of drones.

It also claimed two drone attacks on a gathering of Israeli soldiers in the town of Taybeh, saying casualties were reported among Israeli forces, without giving further details.

‘The security of Israel’

The Israeli army said a 19-year-old soldier, Sergeant Idan Fooks, was killed “during combat” in southern Lebanon, while five others were injured.

“From our perspective, what obliges us is the security of Israel, the security of our soldiers, the security of our communities,” Netanyahu was cited as saying at a cabinet meeting in Jerusalem, by Reuters news agency.

Under the terms of the truce, Israel reserves the right to respond to “planned, imminent or ongoing attacks” and has been striking what it says are Hezbollah targets in south Lebanon almost every day.

The Israeli military said it struck Hezbollah’s “military infrastructure sites used to advance attacks,” in a post on X.

Since the war was renewed between Israel and Hezbollah on March 2, at least 2,509 people have been killed and 7,755 wounded by Israeli attacks, according to Lebanon’s Health Ministry.

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US-Iran conflict: What’s the latest as the Islamabad talks stall? | US-Israel war on Iran News

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.

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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.

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Trump cancels US envoys’ trip after Iran’s Araghchi leaves Pakistan | US-Israel war on Iran News

Trump later suggests that next talks will be over phone, saying ‘If they want to talk, all they have to do is call!!!’

United States President Donald Trump has announced that his envoys would not be travelling to Pakistan for talks with Iranian officials after Foreign Minister Abbas Araghchi left the country.

The US president told news outlet Fox News that he had ordered Steve Witkoff and Jared Kushner to ditch plans to visit the Pakistani capital, Islamabad, for the possible talks, despite his earlier claims that Iran was “making an offer” aimed at resolving the two-month conflict.

“I said, ‘Nope, you’re not making an 18-hour flight to go there. We have all the cards. They can call us anytime they want, but you’re not going to be making any more 18-hour flights to sit around talking about nothing,” Trump said.

In any case, Araghchi had already departed Islamabad, the first destination of a three-leg tour including Oman and Russia. Iran’s state-run Press TV confirmed he left on Saturday after meeting Pakistani Prime Minister Shehbaz Sharif, Army chief Field Marshal Asim Munir and Foreign Minister Ishaq Dar.

Posting on X, Araghchi said he had shared “Iran’s position concerning workable framework to permanently end the war on Iran” with Pakistani officials. “Have yet to see if the U.S. is truly serious about diplomacy,” he added.

Later, Trump appeared to say on social media that any future talks would be taking place over the phone. “If they want to talk, all they have to do is call!!!” he wrote, adding that nobody knew who was in charge in Iran and that there was “tremendous infighting and confusion within their ‘leadership’”.

Reporting from Washington, Al Jazeera’s Rosiland Jordan said Trump’s comments suggested that the US did not see “any yielding on the Iranians part”.

She said that his talk of holding “all the cards” appeared to allude to “the US naval blockade, as well as the ongoing presence of more than 50,000 troops in the region, ready to resume combat operations”.

The pressure to strike a deal to permanently end the war has mounted amid an ongoing standoff in the Strait of Hormuz, through which approximately one-fifth of global oil and liquefied natural gas shipments transit.

Iran’s powerful Islamic Revolutionary Guard Corps said Saturday that they had no intention of ending their effective blocking of the waterway, which has thrown energy markets into turmoil, according to the news agency AFP.

Asked by US media outlet Axios whether the cancelled trip by his envoys meant a resumption of hostilities, Trump said: “No. It doesn’t mean that. We haven’t thought about it yet.”

Iran’s Ministry of Foreign Affairs said Araghchi had arrived in Muscat on Saturday for meetings with Omani officials. He is also expected to travel on to Russia to discuss efforts to end the war, which the United States and Israel began against Iran on February 28.

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Iran FM Abbas Araghchi and Pakistan PM Shehbaz Sharif meet in Pakistan | US-Israel war on Iran News

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An Iranian delegation led by Foreign Minister Abbas Araghchi met Pakistani Prime Minister Shehbaz Sharif in Islamabad. Iran outlined its proposal to Pakistani mediators as part of efforts to revive direct negotiations with the US.

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What’s at stake for Iran and the US in Islamabad? | US-Israel war on Iran

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Iran’s foreign minister is in Islamabad, with US envoys also on the way. Iranian officials deny they plan on holding talks with US delegates, but the visits have raised hopes the two sides can break the Strait of Hormuz deadlock with diplomacy.

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US sending envoys to Pakistan, raising hopes of talks with Iran’s Araghchi | US-Israel war on Iran News

Iranian Foreign Minister Abbas Araghchi arrives in Islamabad, but Tehran yet to commit to more talks with US delegation.

United States President Donald Trump is sending envoys Steve Witkoff and Jared Kushner to Pakistan as Iran’s foreign minister arrived in the country, raising hopes of new talks on ending the US-Israeli war on Iran amid a fragile ceasefire and growing tensions over control of the Hormuz Strait.

White House press secretary Karoline Leavitt said on Friday that US envoys would sit down with Abbas Araghchi, expressing hope that parties would “move the ball forward to a deal”, but it remained unclear whether the Iranian delegation had agreed to hold talks.

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Writing on X on Friday, Iran’s top diplomat had said he was off on a “timely tour of Islamabad, Muscat, and Moscow”, to coordinate on “bilateral matters”, with no specific mention of any intention to meet with US negotiators.

Trump expressed optimism over a potential deal, telling the news agency Reuters that Iran was “making an offer” aimed at satisfying US demands, which include ending its nuclear programme.

Earlier, US Defense Secretary Pete Hegseth said Iran had a chance to make a “good deal”. “Iran knows that they still have an open window to choose wisely … at the negotiating table,” he said, adding that all they had to do was “abandon a nuclear weapon in meaningful and verifiable ways”.

But two Pakistani government sources told Reuters that the Iranian foreign minister’s visit would be brief, focusing on Iran’s proposals for talks with the US, which mediator Pakistan would then convey to Washington.

Reporting from Tehran, Al Jazeera’s Ali Hashem said a “senior official” had “made it clear” to him that there would not be any US-Iran talks in Pakistan.

“These regional partners all have their own ideas on how to solve this deadlock, but for the moment, Iran has said it would not meet for a new round of talks,” he said.

Top negotiators from last round absent

Reports on Araghchi’s trip in Iranian state media made no mention of Mohammad Baqer Ghalibaf, the speaker of Iran’s parliament, who was the head of its delegation at talks with a US delegation earlier this month that ended with no breakthrough.

The Iranian parliament’s media office denied a report that Ghalibaf had resigned as head of Iran’s negotiating team, adding that there was no new round of talks scheduled yet, according to Reuters.

US Vice President JD Vance also participated in the first round of talks, but is not travelling to Pakistan on this occasion, though Leavitt said he remained “deeply involved” and was on “standby” to join if needed.

She said Trump decided to send Witkoff and Kushner to Pakistan “to hear the Iranians out”. “We’ve certainly seen some progress from the Iranian side in the last couple of days,” she maintained, without offering any further details.

Reporting from Washington, Al Jazeera’s Mike Hanna said there appeared to be a “graded process” in place, describing it as “an initial exploratory phase” that could lead to “higher-level engagement if negotiations deepen”.

A new round of talks had been expected to start on Tuesday but did not materialise, with Iran saying it was not yet ready to commit to attending.

Trump had unilaterally extended a two-week ceasefire on Tuesday to allow more time to reconvene the negotiators as the US continued its blockade on Iranian ports.

Iran says it will not stop blocking the Strait of Hormuz, a crucial maritime trade chokepoint, until Trump lifts his blockade. On Friday, the US applied more pressure on Tehran by freezing $344m in cryptocurrency assets in a bid to “systematically degrade Tehran’s ability to generate, move, and repatriate funds”.

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