The US central bank is widely expected to keep interest rates unchanged at its policy meeting next week, as energy prices stay high and supply chains snarled due to war in the Middle East.

The Federal Reserve's two-day meeting, starting Tuesday, could be chairman Jerome Powell's last at the helm of the independent institution.

But it takes place against a tricky backdrop. Powell's successor has faced a bumpy road to confirmation, while policymakers battle competing pressures as steeper fuel prices drive inflation and job market worries linger.

Fed officials are set to keep rates steady at a range between 3.50 percent and 3.75 percent, extending their pause since the start of the year.

(AFP)

Israel PM orders attacks on Hezbollah after army alleges truce violations

(AFP)

Trump said that he has ordered his envoys to not travel to Pakistan for talks with Iranian officials on ending the war.

Iran's Foreign Minister Abbas Araghchi has arrived in Muscat, Oman, Press TV reports.

Iranian Foreign Minister Abbas Araghchi said on Saturday that it remained to be seen whether the United States was "truly serious" about diplomacy, after he completed a visit to Pakistan where he met with senior officials.

In a post on X after leaving Islamabad, Araghchi said he had "shared Iran's position concerning (a) workable framework to permanently end the war", but he had "yet to see if the US is truly serious about diplomacy".

Shortly after his departure, US President Donald Trump said Washington would no longer be sending envoys to Islamabad for talks.

US President Donald Trump told Fox News on Saturday he had ordered his envoys not to travel to Pakistan to continue talks with Iranian officials on ending the war.

"I've told my people a little while ago they were getting ready to leave, and 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,'" Fox News reported the president as saying in a phone call.

(AFP)

After a full day of high-level diplomatic talks in Islamabad, Iran's Foreign Minister Abbas Araghchi and the Iranian delegation have departed. According to Al Jazeera, they delivered Tehran's formal requirements for ending the US-Israeli conflict to Pakistani officials prior to their exit.

After a full day of high-level diplomatic talks in Islamabad, Iran's Foreign Minister Abbas Araghchi and the Iranian delegation have departed. According to Al Jazeera, they delivered Tehran's formal requirements for ending the US-Israeli conflict to Pakistani officials prior to their exit.

Iran on Saturday issued a strong warning to the United States, vowing a "decisive response" if Washington continues what it described as "blockade, piracy, and maritime robbery" in the Gulf region, particularly over the Strait of Hormuz, Iranian State Media Press TV reported.

According to Press TV, the statement was issued by Iran's Khatam al-Anbiya Central Headquarters, the country's highest operational military command responsible for coordinating between the Iranian Army and the Islamic Revolution Guards Corps (IRGC).

In its warning, the headquarters said the US would face consequences if it persisted with its actions in regional waters.

(ANI)

In a frantic attempt to project regional relevance, Pakistan Prime Minister Shehbaz Sharif held a high-level meeting with Iranian Foreign Minister Abbas Araghchi on Saturday, even as the highly anticipated second round of US-Iran peace talks in the capital teeter on the brink of total collapse.

According to a statement released by the Office of Pakistan's Prime Minister on X, Araghchi arrived at the Prime Minister's House for discussions focused on the "situation in the region".

Significantly, the civilian leadership was closely flanked by the military establishment, with Pakistan Army Chief Marshal Asim Munir and Deputy Prime Minister Ishaq Dar also participating in the talks.

Earlier in the day, Araghchi held a separate meeting with Munir, underscoring the military's dominant hand in Pakistan's foreign affairs amidst a deepening diplomatic deadlock with Washington.

Lebanon's health ministry said Israeli strikes killed four people in the country's south, despite a ceasefire that was extended this week in the war between Israel and militant group Hezbollah.

(AFP)

US envoys are expected to travel to Pakistan on Saturday in a new bid to salvage ceasefire talks with Tehran, even as Iran's top diplomat arrived in Islamabad and ruled out direct negotiations with US representatives.

The latest effort to broker a deal in Islamabad comes as an indefinite ceasefire has paused most fighting, but the economic fallout is still mounting with global energy shipments disrupted by the near closure of the Strait of Hormuz.

Officials have not specified when President Donald Trump’s envoys Steve Witkoff and Jared Kushner, who are expected to lead the US negotiation team, are due to arrive. The White House declined to comment on Saturday.

(AP)

Iran's military said on Saturday it would respond if the United States maintained its blockade of Iranian ports, calling it "banditry" and "piracy".

In a statement carried by state-run media outlet IRIB, the military's central command Khatam Al-Anbiya said that if "the invading US military continues blockading, banditry, and piracy in the region, they should be certain that they will face a response from Iran's powerful armed forces".

"We are ready and determined, while monitoring the behaviour and movements of enemies," it added.

(AFP)

Defense Secretary Pete Hegseth told reporters that Iran had a chance to make a "good deal" with the United States.

"Iran knows that they still have an open window to choose wisely," he said. "All they have to do is abandon a nuclear weapon in meaningful and verifiable ways."

Iran resumed commercial flights from Tehran's international airport for the first time since the conflict with the US and Israel began about two months ago.

Iran's state-run television reported that flights took off from the Imam Khomeini International Airport in Tehran bound for Istanbul, Oman's capital of Muscat and the Saudi city of Medina.

Flightradar24, a flight tracking platform, showed that at least three Istanbul-bound flights departed Saturday morning.

Pakistan has emerged as a central player in helping de-escalate the conflict between the US, Israel and Iran, with Asim Munir, alongside Prime Minister Shehbaz Sharif, leading mediation efforts. Islamabad has used its close ties with Gulf nations, including Saudi Arabia, Iran, the US and China, to provide a communication channel between the warring parties.

The April 11-12 talks in Pakistan were the among highest diplomatic engagements since the Islamic Revolution in 1979. The highest-level direct contact had been when President Barack Obama, a Democrat, in September 2013 called newly elected Iranian President Hassan Rouhani to discuss Iran's nuclear program.

Here is why Pakistan emerged as a trusted mediator in the talks

The latest effort to broker a deal comes as an indefinite ceasefire has paused most fighting, but economic fallout is still mounting with global energy shipments disrupted by the closure of the Strait of Hormuz.

The first round of talks failed in Islamabad due to disagreement on three crucial issues, including Tehran's highly enriched uranium (HEU) and its nuclear future, the reopening of the Strait of Hormuz, and Israel's war in Lebanon. Iran has asserted its right to enrich uranium. However, it has been said that the level of enrichment could be negotiated.

US envoys are expected to travel to Pakistan on Saturday in a new bid to salvage ceasefire talks with Tehran, even as Iran ruled out direct negotiations with US representatives as its top diplomat arrived in Islamabad.

The White House said that President Donald Trump would send Steve Witkoff and Jared Kushner to meet with Iran's Foreign Minister Abbas Araghchi. But shortly after Araghchi arrived in Islamabad, his ministry said any talks would be indirect, with messages conveyed between the two sides by Pakistani officials.

Iranian Foreign Minister Abbas Araghchi reached Islamabad on Friday ahead of renewed talks between Iran and US.

After days of stalemate, the United States has confirmed that Steve Witkoff and Jared Kushner will head to Pakistan on Saturday for a new round of talks with Iran.

Rebuilding trust between Abu Dhabi and Tehran will take "ages and ages", UAE presidential advisor Anwar Gargash said Friday, after Iran targeted the United Arab Emirates during the Middle East conflict.

"You can't be attacked with 2,800 missiles and drones and then talk to me about trust. That will take ages and ages," Gargash said at a World Policy Conference in the town of Chantilly north of Paris.

The top official said that 89 percent of the Iranian attacks targeted "civilians, civilian infrastructure, energy infrastructure".

"The purpose of this trip is bilateral consultations, discussions about current developments in the region, and also the latest situation of the imposed war by the United States and the Israeli regime against Iran," Mehr News reported.

"The Pope's gonna do his thing, that's fine," Hegseth said. 

"We know what our mission is, we know what authority we have. We're very clear about that, we follow that - the orders of the president. We've got lawyers all over the place looking at what we're doing and why we're doing it and giving us every authority necessary under the constitution and under our laws to execute across the spectrum."

Defence Secretary Pete Hegseth said on Friday Iran had a chance to make a "good deal" with the United States and added that 34 ships had been turned around from the Strait of Hormuz by the US Navy so far.

For nearly a week, Pakistan's capital has been waiting for peace talks between the US and Iran to take place there, and although there is no sign the two sides will meet, large parts of the city remain sealed off by authorities.

Key roads leading into Islamabad are shut down and a strict security cordon envelops the administrative centre, the so-called "Red Zone". In the adjacent "Blue Area", cafes have run out of fruit, markets are deserted and with no service at bus terminals, weekend commuters are struggling to get home.

Government officials say the measures are not ending any time soon and that they are ever ready for delegates, including U.S. President Donald Trump, to show up at a moment's notice.

"We have been told that the talks could be held any day," one official said.

(Reuters)

Asia shares struggled on Friday and oil prices resumed their rise, as a shaky ceasefire in the Middle East war and stalled U.S.-Iran peace talks gave investors little to cheer.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3% and was set to end the week with a 0.8% gain, while Japan's Nikkei added 0.45% and stocks in South Korea, China and Hong Kong fell.

Nasdaq futures and S&P 500 futures advanced 0.6% and 0.1%, respectively, after closing lower in the cash session overnight, while EUROSTOXX 50 futures were down 0.65% and FTSE futures fell 0.9%.

The mixed showing underscored the tense market mood as investors this week seesawed between hope for an imminent end to the war and fear that it might not come soon.

US President Donald Trump said he wouldn't turn the war in Iran into a nuclear conflict but threatened, "The clock is ticking" for Tehran to make a peace deal with Washington as a third American aircraft carrier arrived in the Middle East. The warning came as Iranian media reported blasts over Tehran, a first since an increasingly tenuous ceasefire came into effect two weeks ago. 

Oil prices rose on Friday morning over fears of renewed military escalation in the Middle East after Iran released footage of commandos boarding a cargo ship in the Strait of Hormuz and on reports Tehran's air defences had engaged "hostile targets."

Brent crude futures rose $1.23, or 1.17%, to $106.3 a barrel by 0107 GMT, while West Texas Intermediate futures were up $1.07, or 1.12%, at $96.92.

Both benchmark contracts settled up more than 3% on Thursday and jumped $5 a barrel after reports that air defences were engaging targets over Tehran and of a power struggle between Iran's hardliners and moderates.

US President Donald Trump said that Iran may have loaded up its weaponry "a little bit" during the two-week ceasefire, but added that the U.S. military could eliminate it in just a single day.

(Reuters)

The USS George H.W. Bush aircraft carrier has arrived in the Middle East, the US military said Thursday, bringing the number of the massive American warships operating in the region to three.

The Bush was sailing "in the Indian Ocean in the US Central Command area of responsibility, April 23," the military command responsible for the Middle East said in a post on X that included an image of the carrier with its deck packed with warplanes.

Air defence systems were activated in parts of Tehran on Thursday evening amid reports of hostile aerial activity, Iranian state media said in the first such reports since a ceasefire began.

The IRNA state news agency said the "sound of air defence firing" was heard in western Tehran, while the Mehr news agency reported that the systems were activated in several parts of the capital to counter "hostile targets", without elaborating further.

US President Donald Trump on Thursday said that he has directed the country's Navy to take decisive action against any vessels attempting to lay mines in the strategically vital Strait of Hormuz amid escalating tension over the virtual control of the waterway between Tehran and Washington.

In a post on Truth Social, Trump said there will be "no hesitation" from the US side to shoot down such boats.

He further, in a veiled reference to Iran, claimed that all 159 of "their naval ships" are at the bottom of the sea.

The video shows speedboats with Iranian flags approaching the vessels, after which soldiers wearing face masks climb the ships, donning rifles.

The US military on Thursday seized another tanker associated with the smuggling of Iranian oil, ratcheting up a standoff with Iran a day after its paramilitary Revolutionary Guards took control of two vessels in the crucial Strait of Hormuz.

The Defence Department released video footage of U.S. forces on the deck of the oil tanker Majestic X, which was seized in the Indian Ocean.

“We will continue global maritime enforcement to disrupt illicit networks and interdict vessels providing material support to Iran, wherever they operate,” a Pentagon statement said.

Foreign Ministry Spokesperson Randhir Jaiswal said, "We have 10 Indian ships which have exited Strait of Hormuz safely in the last few weeks. We have 14 Indian ships which are still in the Persian Gulf."

Regarding the two ships that were fired upon, he said, "They are foreign ships. There are some Indian nationals on them, on board these ships. They are safe. As far as our ships are concerned in the Persian Gulf, we continue to remain in close conversation with Iranian authorities so that they can safely exit Persian Gulf and reach India."

Iran's Revolutionary Guards have attacked a third ship on Wednesday in the Strait of Hormuz, throwing into question efforts to end the war. Nour News, Fars and Mehr all reported the attack by the Guards on a vessel called the Euphoria.

There were 21 Indian seafarers on the Euphoria vessel, however, all of them are safe, and none of them have been injured.

A senior Iranian parliament official said on Thursday that Tehran has received the first revenue from tolls it imposed on the strategic Strait of Hormuz in its war with the United States and Israel. 

"The first revenue received from the Strait of Hormuz tolls was deposited into the Central Bank account," said deputy speaker of parliament Hamidreza Hajibabaei, according to Tasnim news agency. 

Other Iranian media carried the same statement, without elaborating.

China's role as an unofficial mediator in the latest war in the Middle East is drawing attention across the world as it seeks to project the image of being a responsible global power while U.S. actions are straining its long-standing alliances. China’s profile in international diplomacy has risen in recent years, thanks to active efforts from its diplomats. Long reluctant to get involved in conflicts far from its borders, it has nevertheless emerged as a major player with attempts to mediate conflicts from Southeast Asia to Europe.

With the Iran war, Beijing is not an official mediator, but all parties — including Washington and Tehran — say it has played an important role in trying to de-escalate the conflict.

Experts say Beijing's strategies for diplomacy in multiple conflicts have looked similar and have had mixed success in influencing negotiations, but the efforts come at an opportune time, as U.S. actions under President Donald Trump have increased tensions with traditional diplomatic allies.

In the Iran war, experts say, China's close economic and political ties to Tehran put it in a unique position of influence as the conflict hurts the global energy supply, especially in Asia.

Trump has said he believes China helped encourage Iran to negotiate the fragile ceasefire that he has now extended.

The Pentagon's assessment points to potentially long-lasting economic consequences, as the critical trade artery carried a fifth of the world's oil during peacetime.

The video then uses a SpongeBob SquarePants '2,000 years later' meme template to show AI Trump getting frustrated at Iran's no-show.

Former Secretary of State John Kerry said that the previous US presidents did not agree to go to war with Iran because they had not "exhausted all the remedies of peaceful process".

US President Donald Trump said that "good news" regarding a second round of peace talks with Iran may come as soon as Friday. The New York Post, citing sources in Islamabad, reported on Wednesday that peace talks could resume within the next "36 to 72" hours.

Israel and Lebanon hold a new round of talks in Washington on Thursday, during which Beirut plans to request a one-month extension of a ceasefire due to expire within days. Israel stated ahead of the talks that it has no "serious disagreements" with Lebanon, calling on it to "work together" against the pro-Iran Hezbollah, which is notably absent from and opposed to the negotiations.  The two countries, officially at war for decades, held a meeting in Washington on April 14, the first of its kind since 1993, in an attempt to put an end to the more than six-week war between Hezbollah and Israel. 

The United States announced a 10-day truce shortly after the first meeting, and it is due to expire on Sunday.

The Pentagon announced Wednesday that the Navy's top civilian official, Secretary of the Navy John Phelan, is leaving his job.

Trump had earlier said on social media that the women's release could work in Iran's favour in negotiations.

Israeli strikes on southern Lebanon on Wednesday killed Lebanese journalist Amal Khalil and wounded a photographer accompanying her, according to a senior Lebanese military official and Khalil's employer, the Al-Akhbar newspaper. 

There was no immediate comment from the Israeli military on Khalil's death. Earlier, the Israeli military said in a statement it ​had received reports that two journalists were injured as a result of its strikes.

The death of Khalil, 43, brought the death toll on Wednesday to five people. It was the deadliest day since a 10-day ceasefire was announced on April 16 to halt hostilities between Israel and Lebanese armed group Hezbollah. 

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. They ran into a nearby house, which was then also targeted by an Israeli strike, Lebanon's health ministry, the senior Lebanese military official and press advocates said. 

Israeli strikes killed five people, including a journalist, and wounded another in Lebanon on Wednesday, despite an ongoing ceasefire that Beirut will request an extension for in upcoming talks with Israel in Washington.

Iran said on Wednesday it would not reopen the Strait of Hormuz as long as the US naval blockade remained in place, calling it a "blatant violation" of the ceasefire between the longtime foes.

Brent crude futures fell 15 cents to $101.76 a barrel, after settling above $100 for the first time in more than two weeks on Wednesday. West Texas Intermediate futures fell 14 cents to $92.82.

Both benchmarks closed more than $3 higher on Wednesday after larger-than-expected gasoline and distillate stock draws in the US, and over the lack of progress on peace talks.

While US President Donald Trump extended a ceasefire between the countries following a request by Pakistani mediators, Iran and the U.S. are still restricting the transit of ships through the Strait of Hormuz. The Strait carried about 20% of daily global oil and liquefied natural gas supplies until the war began at the end of February with attacks by the U.S. and Israel on Iran. 

Three container ships, including one headed to India, were attacked by Iran’s security forces in the Strait of Hormuz on Wednesday, amid looming uncertainty about the US-Iran ceasefire and proposed peace talks.

All three containers crossed the Strait of Hormuz from the Persian Gulf and two of them didn’t relay information about their location, destination and port of origin while crossing the waterway, ship-tracking data suggests.

Iran’s state media and BBC identified the three container ships as Liberia-flagged Epaminondas and Panama-flagged MSC Francesca and Euphoria.

Epaminondas, who declared its destination as Mundra Port in India, was the first vessel to have come under gunfire on Wednesday. As per the UK Maritime Trade Operations (UKMTO) Centre, a “gun boat" belonging to Iran’s elite paramilitary force, the Islamic Revolutionary Guards Corp (IRGC), opened fire on the container ship in the Strait of Hormuz, 15 nautical miles northeast of Oman causing heavy damage to the vessel's bridge.

Iran vowed Wednesday not to reopen the Strait of Hormuz so long as a US naval blockade remained in place despite a ceasefire extension, as it announced the seizure of two ships trying to cross the strategic waterway. As the clock ticked for a return to the war that has engulfed the region, US President Donald Trump had said Tuesday he would maintain the truce to allow more time for Pakistani-brokered peace talks.

Iran said it welcomed the efforts by Pakistan but made no other comment on Trump's announcement.

"A complete ceasefire only has meaning if it is not violated through a naval blockade," said Iranian parliament speaker Mohammad Bagher Ghalibaf, who led Tehran's delegation in the first round of talks in Islamabad.

"Reopening the Strait of Hormuz is not possible amid a blatant violation of the ceasefire."