U.S. President Donald Trump said Iran was eager to strike a deal to end nearly four weeks of conflict, contradicting remarks from Iran’s foreign minister, who said Tehran was reviewing a U.S. proposal but had no plans to enter talks to de-escalate the war.
The mixed messaging came as the economic and humanitarian impact of the conflict deepened, with global fuel shortages spreading and businesses and governments struggling to manage the fallout. Iranian Foreign Minister Abbas Araqchi said there had been no direct negotiations with the U.S., though messages had been exchanged through intermediaries. He stressed that relaying positions or warnings via third parties should not be considered formal dialogue.
Speaking later in Washington, Trump said Iranian leaders were effectively negotiating and keen to reach an agreement, but hesitant to say so publicly. He did not specify which Iranian officials were involved, amid reports of significant casualties among senior figures since the conflict began on February 28. Iran has continued retaliatory strikes against Israel, U.S. bases, and Gulf states.
The broader consequences of the war have spread well beyond the region, triggering what has been described as the most severe energy shock in history. With the Strait of Hormuz—responsible for about a fifth of global oil and liquefied natural gas flows—effectively shut, industries ranging from aviation to retail are facing rising costs, supply disruptions, and weakening demand. Some governments are considering support measures similar to those used during the COVID-19 pandemic, while shortages of diesel are affecting farmers and fishers, and food insecurity risks are rising.
A U.S. proposal to end the conflict reportedly includes reopening the strait, curbing Iran’s nuclear and missile programmes, and cutting support for regional allies, though details have not been officially confirmed. Israel is said to be sceptical about Iran’s willingness to accept such terms and wary of potential concessions in negotiations. Iran, meanwhile, has indicated that any ceasefire would need to include Lebanon.
Market optimism around a potential resolution has faded, with global equities weakening and oil prices climbing again. Analysts said expectations of a ceasefire have diminished, reflecting ongoing uncertainty.
Meanwhile, military activity continues to escalate. Israeli forces have carried out extensive strikes across Iran, while missiles and drones continue to be exchanged in the region. U.S. officials say thousands of targets have been hit, significantly degrading Iran’s military capabilities, including naval assets and missile infrastructure. Washington is also preparing to deploy additional troops to the Gulf, raising concerns about further escalation.
Amid the growing risks, the United Nations has warned of a potential wider war, urging all sides to step back from escalation and pursue diplomatic solutions.
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