Middle East

Defection is damaging to Saudi Arabia’s prestige – and could strengthen the US hand in the regionThe United Arab Emirates’ decision to walk out of Opec is a political as much as business decision, and will reignite the simmering rows between the UAE and Saudi Arabia – which had been covered up by their shared anger with Iran over its attacks on the Gulf states since the start of the US-Israel war on Tehran.In the short term, leaving the oil producing cartel it joined in 1967 gives the UAE the freedom to respond quickly to a long-term prospect of constrained supplies, and to maximise profit. But it is a decision the UAE has considered before, as UAE and Saudi tensions over production quotas have been longstanding. Continue reading...

The regional bloc agreed to safeguard regional energy security through strengthened cooperation, timely policy responses and engagement with dialogue partners.

Climate group calls for urgent windfall tax on excess fossil fuel profits, as delegates tell Colombia conference their nations are sufferingThe Middle East oil and gas crunch will impose as much as a trillion dollars of additional costs on the global economy while petroleum companies rake in spectacular profits from elevated fuel prices, analysis has revealed.The uneven distribution of risk and reward comes amid rising concern that the US-Israeli attack on Iran is worsening inequality, poverty and hunger across a world that has become dangerously dependent on fossil fuels. Continue reading...

Tehran’s UN envoy says ‘full respect’ of Iran’s rights also key for lasting regional stabilityUS is being ‘humiliated’ by Iran’s leadership, says Friedrich MerzWe are restarting our live coverage of the US-Israeli war on Iran.Iran needs “credible guarantees” against more US-Israeli attacks before it can ensure security in the Gulf, Tehran’s envoy to the UN has said, while on a Russian visit Iran’s foreign minister blamed Washington for the failure of peace talks.Donald Trump is unhappy with an Iranian proposal on the war because it does not address Iran’s nuclear program, Reuters cited a US official as saying on Monday, after Trump discussed the proposal with his top national security aides. Iran had offered to end its closure of the strait of Hormuz if the US lifted its blockade and ended the war in a proposal that would postpone discussions on Iran’s nuclear program, the Associated Press reported earlier, citing two unnamed regional officials. Later reporting quoted White House spokesperson Karoline Leavitt as saying the proposal was “being discussed”.Lebanese president Joseph Aoun said direct talks with Israel sought to end the war on Lebanon and that those who dragged Lebanon into it were the ones committing “treason” – a jab at the Iran-backed militia Hezbollah, which claimed several attacks on Israeli targets in south Lebanon on Monday.Iraq’s newly elected president nominated businessman Ali al-Zaidi as the country’s prime minister-designate on Monday, after the country’s leaders yielded to US pressure not to support the bid of a former premier close to Iran.The Coordination Framework – an alliance of Shia factions with varying links to Iran – had initially backed powerbroker Nouri al-Maliki to become the country’s next premier, but Trump’s ultimatum left Iraqi leaders looking elsewhere.The US and Iran clashed at the UN on Monday over Tehran’s nuclear program and its selection to be one of dozens of vice-presidents at a month-long conference to review the nuclear non-proliferation treaty. US official Christopher Yeaw said Iran’s selection was an “affront” to the treaty. Tehran’s envoy to the International Atomic Energy Agency, Reza Najafi, rejected the US statement as “baseless and politically motivated”. Continue reading...

US president says there’s ‘no reason to meet’ Tehran unless they agree never to have nuclear weaponsWelcome to our live coverage of events in the Middle East.Donald Trump has said Iran can telephone if it wants to negotiate an end to the war and that it must agree never to have a nuclear weapon, while Pakistan’s leaders have sought to revive the stalled peace talks between Washington and Tehran.Iran gave the US a new proposal on reopening the strait and ending the war, with nuclear negotiations postponed for a later stage, according to the news site Axios. The US state department and White House did not immediately comment on the Sunday report, which cited an unnamed US official and two sources.Araghchi’s talks with Pakistani officials on Sunday had included “implementing a new legal regime over the strait of Hormuz, receiving compensation, guaranteeing no renewed military aggression by warmongers and lifting the naval blockade”, according to Iran’s semi-official Tasnim news agency. In the talks with Omani leader Haitham bin Tariq al-Said, Araghchi called for a regional security framework free of outside interference.Araghchi would meet with Putin “in continuation of the diplomatic jihad to advance the country’s interests and amid external threats”, Iran’s envoy in Russia, Kazem Jalali, said on X.Two US air force C-17s carrying security staff, equipment and vehicles used to protect US officials flew out of Pakistan after the latest diplomatic trip was called off, two Pakistani government sources told Reuters on Sunday. Continue reading...

Beyond cutting back on driving, households are slicing deeper into their budgets, with some even forgoing healthcareFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastAs soon as petrol prices started to rise in response to the Middle East conflict, many Australians – already grappling with high living costs – changed their spending habits.Beyond cutting back on driving, households are slicing deeper into their budgets, with some even forgoing healthcare. Continue reading...

Deepening sense of deadlock despite regional diplomacy as Washington and Tehran show no signs of compromiseHopes of a breakthrough in negotiations between Iran and the US faded further on Sunday, amid a deepening sense of a deadlock in the nearly two-month-long conflict despite intense regional diplomatic activity.Washington and Tehran appear unwilling to moderate rhetoric or make concessions, and there are no negotiations scheduled that might bring the war to a definitive end. Continue reading...

Industry analysts say fuel price surge could lead to canceled flight routes that could snarl travelers’ plansCalifornia’s jet fuel supply has dropped to a level not seen since 2023, as turmoil in the Middle East continues to squeeze the global oil market.As of 17 April, the state’s jet fuel stock was just over 2.6m barrels, in comparison to 3.2m barrels two years prior, according to the California energy commission (CEC), which publishes a refinery stocks data dashboard. Continue reading...

Iranian foreign minister has landed in Islamabad but his ministry says there will be no direct negotiations with the US envoyThe Israel Defense Forces (IDF) said it launched strikes in three areas in southern Lebanon against what it claimed were Hezbollah rocket launchers.The strikes hit the villages of Deir al-Zahrani, Kfar Reman and al-Sama’iya, which are north of where IDF forces are located in southern Lebanon. Continue reading...

US president claims ‘total control’ of strait of Hormuz despite Iranian seizure of two ships and report warning it could take months to clear waterway of minesTrump claims US has total control over strait of Hormuz after Iran seizes two container shipsAnalysis: Trump may talk of regime infighting, but Iran seems united by strategy born of warHello and welcome to our live coverage of events in the Middle East.Donald Trump has ordered the US military to “shoot and kill” small Iranian boats that deploy mines in the strait of Hormuz and claimed that US minesweepers “are clearing the strait right now” amid the standoff over the key waterway.Trump said the US had “hit about 75% of our targets” in Iran and that a deal had not yet been reached because Iran was “in turmoil”. Trump added to reporters in the Oval Office that he would not use a nuclear weapon against Iran as the conflict continues without a clear end in sight.Trump also said the US had “total control over the strait of Hormuz” – a claim that has drawn scepticism in the face of Iran’s seizure of two container ships and a US report warning it could take six months to clear the strait of mines.Israel’s killing of a Lebanese journalist in a strike has been met with international outrage as Lebanon’s prime minister described the attack as a “war crime”. Amal Khalil, 43, was killed in what colleagues described as a sustained attack by Israeli forces, with rescuers attempting to dig her out of the rubble of a building also targeted and prevented from providing life-saving assistance.Iran’s president, Masoud Pezeshkian, said there were no “hardliners” or “moderates” in Iran, responding a Trump claim there was internal division in Iran’s leadership. Separately, Iran’s foreign minister, Seyed Abbas Araghchi, said Iranian state institutions “continue to act with unity, purpose and discipline”.Italian sports officials say Italy is not interested in replacing Iran at the upcoming World Cup after a suggestion to that effect by a Trump administration official. Sports minister Andrea Abodi said “it’s not a good idea” while finance minister Giancarlo Giorgetti called the suggestion “shameful”. The US said it had no objections to Iranian players participating in the Cup but they would not be allowed to bring along people with ties to Iran’s Revolutionary Guards.Pope Leo XIV urged the US and Iran to return to talks to end the war and condemned capital punishment, calling for a new “culture of peace” to replace the recourse to violence.It remained unclear if the US and Iran would hold another round of talks in Pakistan amid efforts from mediators there towards a peace deal. Continue reading...

White House says Tehran in ‘very weak position’; Iran says two seized ships transferred to its coast; US navy secretary exiting post ‘effective immediately’, says Pentagon‘Impossible’ to reopen strait of Hormuz amid ‘flagrant’ ceasefire breaches, Iran saysWelcome to our live coverage of events in the Middle East.Iran has seized two ships in the strait of Hormuz a day after Donald Trump announced he was indefinitely calling off US attacks, while there is no sign of peace talks restarting.Trump was “satisfied” with the US naval blockade and “understands Iran is in a very weak position”, White House press secretary Karoline Leavitt said. The US president had not set a deadline on Iran submitting a peace proposal, she said, after Trump on Tuesday said he was indefinitely extending the ceasefire at the request of mediator Pakistan until Tehran responded to the US’s negotiating positions or until talks were concluded “one way or the other”.The Pentagon announced that the US secretary of the navy, John Phelan, would depart the office “effective immediately”, without providing an explanation for his sudden exit. The US army’s top officer, Gen Randy George, and two other senior officers were removed earlier this month amid the continuing war with Iran.The US-Israeli war against Iran is “starting to weaken Europe”, Turkish president Recep Tayyip Erdoğan has told his German counterpart. Erdoğan said: “If we do not address this situation with an approach that prioritises peace, the damage caused by the conflict will be far greater.”Israeli strikes in southern Lebanon killed a Lebanese journalist, Amal Khalil, and wounded a photographer accompanying her, a senior Lebanese military official and Khalil’s employer said. The death of Khalil, 43, brought the death toll to five people on Wednesday – the deadliest day since a 10-day truce between Israel and Hezbollah was announced on 16 April. There was no immediate comment from the Israeli military on Khalil’s death.Khalil and freelance photographer Zeinab Faraj were covering developments near the town of al-Tayri when an Israeli strike hit the vehicle in front of them, Reuters reported. They ran into a nearby house that was then also targeted by an Israeli strike, said Lebanon’s health ministry. Lebanese prime minister Nawaf Salam said Israeli targeting of journalists and obstructing relief effort constituted war crimes.Oil prices leapt 4% on Thursday after Iran vowed not to reopen the Hormuz strait amid the US naval blockade despite the truce extension. Around 0025 GMT, the benchmark US oil contract West Texas Intermediate (WTI) rose 4.06% to $96.73 a barrel, while the international oil benchmark Brent North Sea crude climbed 3.62% to $105.63. Both eased back minutes after.Two Palestinians, including a 14-year-old schoolboy, were killed in the occupied West Bank after Israeli settlers opened fire near a school amid mounting assaults on education in the territory, witnesses and local officials have said.United Airlines implemented broad-based rises of 15-20% on fares as it sought to offset the surge in petrol prices while protecting profits, executives said. The big US carrier has also cut its 2026 flying capacity by 5%. Continue reading...

Farmers have been calling for higher prices for weeks, amid soaring diesel and fertiliser costs and limited supplyGet our breaking news email, free app or daily news podcastColes has increased home-brand milk prices by up to 20c a litre, with Woolworths set to follow as war in the Middle East starts to hit Australian grocery costs.The price rise will support the company’s bottom line against pressure from higher fuel and operating costs, while some of the revenue will be temporarily passed on to dairy farmers. Continue reading...

US Treasury secretary Scott Bessent says Iran’s Kharg Island storage facilities will be full and their ‘fragile’ oil wells shut in mere days because of the blockade; oil prices rise amid ongoing uncertaintyTrump announces extension of Iran ceasefire until ‘discussion concluded’Shares have been mixed in early trading across Asia, while oil prices have eased on hopes the US and Iran may resume talks to end their war.The price of Brent crude edged 0.2% lower but was still above $98 a barrel. US benchmark crude fell 0.4% to $89.29 a barrel. Continue reading...

Representatives from EU countries are meeting in Luxembourg todayJust as expected.Spain’s foreign minister José Manuel Albares has just confirmed that Spain, Slovenia and Ireland have requested a discussion on suspending the EU’s association treaty with Israel at today’s meeting of the bloc’s foreign ministers.“European Union has to say today very clearly to Israel that that change is needed. That’s not the right path, and that while Israel continues in that path of a permanent perpetual war, we will not be able to [run our relations] in the same way.” Continue reading...

Iranian official stresses no decision made on taking part, as US vice-president JD Vance is set to travel to Islamabad for negotiations JD Vance to lead US delegation in Pakistan if Iran agrees to talksOn Tuesday morning, Islamabad sat poised and ready to host a second round of talks – even as uncertainty reigned over whether both sides would even turn up.Pakistani officials remained optimistic that the second round of negotiations would happen, even as Iranian ministers said they would refuse to come to the table under the threat of “force” and it remained unclear exactly when US vice-president JD Vance planned to depart Washington for Islamabad. Continue reading...

Islamabad has seized chance to act as mediator in Iran war and hopes to reap diplomatic and economic benefitsMiddle East crisis – live updatesAs Pakistan works frantically to narrow differences between Iran and the US in its newfound role as global peacemaker, it is also seeking to recast its diplomatic standing and attract business.Pakistani officials, mediating between an unpredictable US president and hardliners in Tehran, were on Monday trying to coax both sides to put the conditions in place for a second round of talks in Islamabad this week, including easing the standoff in the strait of Hormuz. Pakistan was optimistic that the meeting would happen, viewing objections voiced by the Iranian side and Donald Trump’s threats as posturing for domestic audiences. Continue reading...

Donald Trump said on Sunday that US marines had taken custody of a vessel that tried to get past the American blockade on Iranian portsTehran has ‘no plans to participate’ in new talks, state media reports, as it accuses US of violating ceasefireJust to recap the latest peace talks news, and whether or not Iran will attend negotiations in Pakistan.State broadcaster IRIB on Sunday cited Iranian sources as saying “there are currently no plans to participate in the next round of Iran-US talks”.Iran has reportedly rejected participation in a second round of peace talks with the US in Pakistan, citing “Washington’s excessive demands, unrealistic expectations, constant shifts in stance, repeated contradictions, and the ongoing naval blockade, which it considers a breach of the ceasefire”, according to the official IRNA news agency.Hours before Iran’s statement, Trump said his negotiators would arrive in Islamabad on Monday evening. A White House official said the delegation would be led by vice-president JD Vance and include Middle East envoy Steve Witkoff and Trump’s son-in-law Jared Kushner.Donald Trump said in a post on Sunday that the US marines have taken custody of a vessel that tried to get past the American blockade on Iranian ports, adding that US forces stopped the ship by blowing a hole in its engine room.The US military confirmed that the US destroyer fired “several rounds” towards an Iranian-flagged ship that was attempting to pass through its naval blockade. In a statement released on Sunday, US Central Command said the USS Spruance intercepted the Iranian-flagged Touska ship as it travelled towards an Iranian port “in violation of the US blockade.”The US blockade of Iran’s ports is a violation of the ceasefire agreement and is “both unlawful and criminal”, Esmaeil Baqaei, a spokesperson for Iran’s foreign ministry, said on Sunday.Oil prices jumped, the US dollar rose and stock futures fell on Monday as investors dealt with conflicting messages about the Iran war and news that the strait of Hormuz was closed again. In early Asian trading Brent crude futures jumped about 7% to $96.85 a barrel and S+P 500 futures fell about 0.9%. The euro was down 0.3% at $1.1735 and the yen eased about 0.2% to 158.95 per dollar. Continue reading...

Iran’s top negotiator says both sides remain far apart after Tehran again closed strait of Hormuz after US said it would not end its blockadeFull report: Iran closes strait of Hormuz again ‘until US lifts blockade’Welcome to our live coverage of events in the Middle East.Iran’s top negotiator, Mohammad Bagher Ghalibaf, said on Saturday that the recent talks with the US had made progress but gaps remained over nuclear issues and the strait of Hormuz. “We have had progress but there is still a big distance between us,” he told state media, referring to talks last weekend. “We made progress in the negotiations, but there are many gaps and some fundamental points remain.”After the initial talks between the US and Iran last weekend in Pakistan, the Iranian deputy foreign minister, Saeed Khatibzadeh, said a second date cannot be set until both sides “have agreed on the framework”.Iran’s supreme national security council, the country’s highest decision-making body under the supreme leader, said it is reviewing “new proposals” put forward by the US, according to Iranian media.Hezbollah has denied it was involved in the deadly attack against UN peacekeepers in southern Lebanon, which killed a French soldier. A UN peacekeeper was killed and three others were injured after a patrol came under attack from “non-state actors”, the UN Interim Force in Lebanon said.Israeli forces on Saturday began demolishing homes in the southern Lebanese town of Bint Jbeil and other border towns where Israeli troops are present, Lebanese state media reported.The Israeli military killed two Unicef-contracted truck drivers at a water point in the northern Gaza Strip, forcing the UN agency to suspend its operations in the area, Unicef said.Pope Leo XIV said that it is “not in my interest at all” to debate Trump about the Iran war, but that he would continue preaching the Gospel message of peace.Trump left the White House Saturday afternoon to play golf, despite Iran’s re-closure of the strait of Hormuz in response to the US blockade of Iranian ports. Continue reading...

Iranian parliamentary speaker also says passage through waterway will depend on Iranian authorisation and accuses Donald Trump of multiple falsehoodsIran says strait of Hormuz ‘completely open’ to commercial vessels as oil prices fallBritain will make “a wide-ranging military contribution” to an international mission to protect shipping in the strait of Hormuz trade waterway, the UK ambassador to the US has said.Christian Turner’s commitment comes amid long-running concerns over the state of Britain’s armed forces and warnings of under-funding. Continue reading...

António Guterres welcomes truce and says through spokesperson he hopes halt in fighting will ‘pave the way for negotiations’Hello and welcome to our live coverage of events in the Middle East.United Nations chief António Guterres has welcomed the ceasefire announced on Thursday between Israel and Lebanon, urging “all actors” to fully respect the truce.A 10-day ceasefire between Israel and Lebanon has come into effect, pausing fighting in a devastating conflict between Israel and Hezbollah that has killed more than 2,100 Lebanese people and displaced more than 2.1 million. The agreement was announced earlier by Donald Trump, who said he had spoken with Israeli prime minister Benjamin Netanyahu and Lebanese president Joseph Aoun, and invited both leaders “for meaningful talks” at the White House. Both leaders welcomed the agreement. But how long the ceasefire will hold is the key question, as both Israel and Hezbollah have maintained their right to defend themselves if the truce is broken. Here’s our report.Netanyahu called it a “historic” opportunity for peace, though he refused to withdraw his troops from southern Lebanon during the pause in fighting. “We are remaining in Lebanon in an expanded security zone,” he said, due to the “danger of an invasion” and to prevent fire into Israel. “That is where we are, and we are not leaving.” The Israeli prime minister maintained that his key demand was dismantling Hezbollah. He has previously declared his intention to occupy southern Lebanon up to the Litani River – about 30km from the border – while Lebanon demands the complete withdrawal of Israeli forces and for displaced residents to be able to return to their homes.Iran’s foreign ministry spokesperson Esmail Baghaei welcomed the ceasefire and stressed it was already part of the original Iran-US agreement brokered by Pakistan. Baghaei said Iran emphasised “from the outset” the need for a “simultaneous ceasefire throughout the region, including Lebanon”, and expressed his “solidarity” with the people and government of Lebanon. He called for the return of displaced residents to their homes and emphasised the necessity of the “complete withdrawal” of Israeli forces from the south of the country – which, as mentioned, Israel has refused to do.The Lebanese army urged residents to “exercise restraint” in returning to their villages and towns in southern Lebanon ahead of the ceasefire coming into effect. The army added that even then residents should avoid areas that remain occupied by Israeli forces. It was followed by a similar statement issued by Hezbollah, urging caution amid Israel’s history of “breaking covenants and agreements”.The Israeli military issued an urgent warning to the people of southern Lebanon not to return south of the Litani River despite the ceasefire coming into force.In the hours before the truce took effect, Israel and Hezbollah continued to exchange fire. Just as the ceasefire came into force, the Israeli military said it had hit more than 380 Hezbollah targets in southern Lebanon in the past 24 hours, including rocket launchers, headquarters and Hezbollah members themselves. Meanwhile, Israeli strikes on Lebanese towns and villages killed dozens of people, including an attack on the town of Ghazieh which killed at least seven people and wounded 33, the health ministry said on Thursday. Continue reading...

New meeting to come after rare direct talks between the countries mediated by US; Netanyahu earlier says Israel about to ‘overwhelm’ part of southern LebanonUS and Iran in indirect talks to extend two-week ceasefireHello and welcome to our live coverage of events in the Middle East.Donald Trump says the leaders of Israel and Lebanon will hold talks on Thursday, after the countries’ first face-to-face diplomatic negotiations in decades.Pakistan’s army chief met with Iran’s foreign minister in Tehran on Wednesday in the latest diplomatic move to ease Middle East tensions and arrange a second round of US-Iran negotiations. Trump said earlier that the war was “very close to over”.Leavitt said a second round of US-Iran talks would “very likely” take place in Islamabad again and that Pakistan was “the only mediator” in the discussions.Major Wall Street stock indices extended an upward climb on optimism about a US-Iran agreement.Israel’s security cabinet met to discuss a ceasefire after the Israel-Lebanon talks mediated by the US in Washington on Tuesday. But the Israeli military continues to strike the country, with Netanyahu saying Israel was about to “overwhelm” the southern Lebanese town of Bint Jbeil, calling it a Hezbollah stronghold.Four Lebanese rescue workers were killed in consecutive Israeli strikes in the southern Lebanon village of Mayfadoun on Wednesday, paramedic groups said. Six others were wounded.The US military’s Middle East command Centcom said it stopped 10 vessels from sailing out of Iranian ports during the first 48 hours of the US naval blockade. But ship tracking data indicated at least three ships sailing from Iranian ports crossed the strait of Hormuz, though some vessels taking the route later turned back.The finance ministers of 11 countries including the UK and Japan called for “coordinated emergency support” from the IMF and World Bank to help countries hit by disruptions from the Middle East war. Continue reading...

US military boasts blockade of the strait of Hormuz will incapacitate Iran’s economy; Trump says negotiations could return to PakistanUS-Iran peace talks could resume in next two days, Trump saysWelcome to the Guardian’s continuing coverage of the crisis in the Middle East.The US military has said American forces have completely halted economic trade going in and out of Iran by sea through a blockade.An estimated 90% of Iran’s economy is fueled by international trade by sea. In less than 36 hours since the blockade was implemented, U.S. forces have completely halted economic trade going into and out of Iran by sea.”Donald Trump has said that talks with Iran could resume in Pakistan over the next two days, according to an interview with the New York Post. “Something could be happening over the next two days, and we’re more inclined to go there,” Trump was quoted as saying.US secretary of state Marco Rubio said Israel-Lebanon talks in Washington on Tuesday were a “historic opportunity”. He said that while every complexity would not be resolved immediately, he hoped the parties would begin to move forward.Lebanon’s president expressed hope that direct talks would lead to an end to his country’s “suffering” after war erupted again between Israel and Hezbollah last month. “I hope that the meeting in Washington... will mark the beginning of the end of the suffering of the Lebanese people in general, and those in the south in particular,” president Joseph Aoun said in a statement, adding that “stability will not return to the south if Israel continues to occupy its lands”.Lebanon’s top envoy to the US said the high-level diplomatic engagement between her country and Israel was “constructive,” but urged an end to the ongoing conflict between Israel and Iran-backed Hezbollah militants that has displaced thousands of Lebanese. After participating in Tuesday’s talks with Rubio and Israel’s ambassador to the US, Nada Hamadeh Moawad said she had “underscored the need to preserve our territorial integrity and state sovereignty”.The US will not renew a 30-day waiver of sanctions on Iranian oil at sea that expires this week officials told Reuters, as the US imposes a blockade on shipments from Iranian ports.UK prime minister Keir Starmer and French president Emmanuel Macron will co-host a summit in Paris on Friday focused on efforts to reopen the strait of Hormuz, Downing Street said. A spokesperson said: “The summit will advance work towards a coordinated, independent, multinational plan to safeguard international shipping once the conflict ends.”Trump criticised Italian prime minister Giorgia Meloni, a political ally, in an interview published on Tuesday for her unwillingness to help in the Iran war. “I’m shocked at her. I thought she had courage, but I was wrong,” he told Italian daily Corriere della Sera.Foreign ministers from Saudi Arabia, Pakistan and Egypt will meet Turkey’s top diplomat this week for talks on regional matters, a ministry source told AFP on Tuesday. “This is the third meeting of the four countries to discuss regional affairs, not specifically Hormuz,” said the source, who wished to remain anonymous.Hezbollah said it targeted 13 northern Israeli towns with rockets shortly after the start of Lebanese-Israeli talks in Washington. In a statement, the group said it targeted Kiryat Shmona, Metula and 11 other towns “with simultaneous rocket salvos” at 6.15pm.US treasury secretary Scott Bessent has said the underlying US economy remains strong and that growth could still exceed 3% or 3.5% this year despite the impact of the US-Israel war on Iran. Earlier on Tuesday, the International Monetary Fund (IMF) cut its growth forecasts for 2026 based on the impact of the war and said any further escalation in the conflict could trigger a global recession. Bessent however cast cuts in global growth forecasts and higher inflation projections by the IMF and World Bank as an overreaction. Continue reading...

• Finance ministers and central bank governors gathered in Washington for IMF and World Bank Spring Meetings are confronting an unprecedented global energy shock caused by the Iran war and Strait of Hormuz closure, according to IMF Managing Director Kristalina Georgieva. • Georgieva warned that "there will be no neat and clean return to the status quo ante," indicating long-term economic impacts regardless of ceasefire outcomes or efforts to reopen shipping routes. • The energy crisis is already affecting hundreds of millions of people globally, with decisions made at the meetings regarding resource allocation and emergency funding expected to have tangible impacts on livelihoods in the coming weeks.

As Persian Gulf carriers reduce routes, the Australian airline is also feeling the impact of rising fuel costsFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastQantas has lifted fares and cut domestic flights amid a surge in travel demand away from airlines that transit through the troubled Middle East.The Australian airline says it has redeployed capacity from its US and domestic network to take advantage of the strong interest in Europe-bound travel – in particular to Paris and Rome – according to a market update released on Tuesday. Continue reading...

Hezbollah says it will not abide by agreements that result from the Lebanon-Israel talks in the US; Trump claims Iran wants to make a dealUS starts naval blockade of Iranian ports after deadline passesThe Lebanese militant group Hezbollah will not abide by any agreements that may result from direct Lebanon-Israel talks in the US, negotiations it firmly opposes, a senior Hezbollah official has said.Wafiq Safa, a high-ranking member of Hezbollah’s political council, spoke on the eve of talks expected in Washington between Lebanese and Israeli ambassadors to the US.Trump said the blockade would be on all Iranian ports along the strait from Monday onward. About 20% of the global oil and gas supply moved through this waterway before the war. Seafarers as well as the United Kingdom Maritime Trade Operations received advisories indicating Trump’s blockade would apply to all ship traffic, regardless of the vessel’s flag.Trump claimed that Iran wanted to reach a deal. He insisted the US would not agree to any deal that would permit Iran to have a nuclear weapon. “We can’t let a country blackmail or extort the world,” he said at a last-minute press conference at the White House on Monday.After receiving a McDonald’s delivery at the beginning of the presser, Trump invoked bellicose language in discussing Iran. “Iran will not have a nuclear weapon, and we’re going to get the dust back. We’ll get it back, either we’ll get it back from them, or we’ll take it,” he said. At one point, when questioned about some sort of prior ultimatum regarding Iran, Trump said: “I don’t want to comment on that but it won’t be pleasant.”Talks are expected in Washington between Lebanese and Israeli ambassadors to the US. It will be the first time in decades that envoys from Lebanon and Israel, which do not have diplomatic relations, will meet face-to-face in direct talks. Lebanese officials are looking to broker a ceasefire in the Israel-Hezbollah war.There were reports indicating that US officials were continuing talks with Tehran. One official told CNN: “There is continued engagement between the US and Iran and forward motion on trying to get an agreement.” Meanwhile, some administration officials were having internal talks about how a second sit-down with Iranian officials might look, should the opportunity arise, CNN reported.Trump blasted Pope Leo XIV on social media in response to the pontiff’s call for an end to the war. The president claimed the pope was trying to appease the “radical left”. The pope said he had “no intention to debate” Trump over Iran but would continue to advocate for peace. US vice-president JD Vance urged the Vatican to “stick to matters of morality”. Continue reading...

Resolution Foundation says households face rising costs from higher bills for energy and filling upHigher energy prices as a result of the Iran war are likely to deal a blow to Britons’ living standards, leaving them nearly £500 worse off this year, a thinktank has warned.The Resolution Foundation said households faced rising costs from both higher gas and electricity bills and at the petrol pump. Continue reading...

Centcom says blockade of Iranian ports to begin at 10am ET; Iran’s negotiator says ‘we will not bow to threats’; oil prices rise. Follow the latest newsFull report: Trump says US will blockade strait of Hormuz after Iran peace talks failPlaneloads of negotiators and too little time: US and Iran’s 21 hours of talksWelcome to the Guardian’s continuing coverage of the US-Israel war on Iran and its consequences for the wider region, the world and the global economy.Here are the main developments:Trump said the US Navy would start blockading the Hormuz strait and would also interdict every vessel in international waters that had paid a toll to Iran. In a lengthy post on his Truth Social platform, the president said the US was going to start “BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz”.In another post Trump also claimed Iran had “knowingly failed” to make good on its promise to open the strait, causing “anxiety” and “pain” for many countries around the world.US Central Command (Centcom) announced it would begin its blockade of the strait beginning Monday morning. “Centcom forces will begin implementing a blockade of all maritime traffic entering and exiting Iranian ports on April 13 at 10am ET [1400 GMT], in accordance with the president’s proclamation.”Iran’s Revolutionary Guard warned that “approaching military vessels to the strait of Hormuz is considered a violation of the ceasefire”.Oil prices rose in early market trading after Trump’s blockade announcement. The price of US crude oil rose 8% to $104.24 a barrel and Brent crude oil – the international standard – rose 7% to $102.29. Australia’s share market dropped sharply on Monday morning.Donald Trump and his advisers are looking at resuming limited military strikes in Iran in addition to the US blockade of the strait of Hormuz, the Wall Street Journal is reporting, citing officials and people familiar with the situation.Trump launched a scathing attack on Pope Leo XIV, saying he was “weak on crime and terrible for foreign policy” and was hurting the Catholic church. “Leo should get his act together as Pope,” the president said on Truth Social. The attack came after Leo denounced the “delusion of omnipotence” as fuelling the US-Israel war in Iran and demanded political leaders stop and negotiate peace.Australian prime minister Anthony Albanese said his government had not been asked to participate in any US blockade of the strait of Hormuz and that he wanted to see negotiations between the US and Iran continue.Trump reiterated his threat to destroy Iran’s power plants and other civilian energy infrastructure if no deal was reached to end the war, which he started with Israel in what is widely seen as an illegal and unprovoked attack. “I could take out Iran in one day,” he told Fox News on Sunday.Trump also said the US didn’t need the strait. “We don’t get our oil from there. We have so much oil,” he told Fox. “We have boats pouring up to the United States … We don’t need the strait.”Iranian parliamentary speaker Mohammad Bagher Ghalibaf, who led the Tehran side in the US talks, said Trump’s new threats would have no effect on the Iranian nation. “If you fight, we will fight, and if you come forward with logic, we will deal with logic. We will not bow to any threats.” He later taunted Trump on X, posting: “Enjoy the current pump figures. With the so-called ‘blockade’, Soon you’ll be nostalgic for $4–$5 gas.” Continue reading...

Mohammad Baqer Qalibaf says ‘if you fight, we will fight’, reports state media, as US president also threatens to bomb Iran’s water treatment facilitiesJD Vance and US delegation leave Pakistan after failing to reach deal with IranPlaneloads of negotiators and too little time: US and Iran’s 21 hours of talksA post about an hour ago on the Israel Defense Forces Telegram channel claimed that overnight, the IDF “identified a rocket launcher positioned and ready to launch toward the State of Israel in the area of Jouaiyya in southern Lebanon”.Shortly after the identification, the launcher was struck and dismantled in a rapid closure cycle, thwarting the launch before it could be carried out. Continue reading...