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The world's finance ministers and central bank governors are gathering in Washington for the half-yearly meetings of the International Monetary Fund and the World Bank, with the global economy in a perilous spot. The US-Israeli war on Iran, coming soon after the Covid pandemic and Russia's invasion of Ukraine, has triggered significant economic turbulence.Even if a durable peace deal in the Middle East can be reached, there will still be permanent economic scars. The conflict has caused damage to infrastructure, heaping further pressure on already struggling households. This is the biggest energy shock of the modern age, with oil and gas prices surging, inflation rising, and borrowing costs increasing.The IMF has said it will cut its growth forecasts for 2026 when it publishes its flagship world economic outlook. In every scenario, growth is slower and inflation higher. Households worldwide will feel the pain, with the world's poorest bearing the brunt.The fund's managing director, Kristalina Georgieva, has urged officials to work together, warning that "go-it-alone actions" may have appeal but would ultimately make matters worse. The IMF cautions that any energy support should be targeted and temporary to limit the costs of blanket support and avoid stoking inequality.For central banks, the fund urges them to remain vigilant, with financial markets expecting interest rates to be kept on hold or raised to prevent high inflation from becoming entrenched. The economic problems are interlinked with political instability, making it a challenging situation for governments worldwide.

The U.S. Central Command (CENTCOM) reported that the destroyers USS Frank E. Peterson and USS Michael Murphy "transited the Strait of Hormuz and operated in the Arabian Gulf" as part of a mission to clear sea mines allegedly laid by Iran’s Islamic Revolutionary Guard Corps (IRGC).Admiral Brad Cooper hailed the operation as a turning point in the U.S.–Israeli campaign against Iran, saying the navy was establishing a "new passage" to restore safe commercial flow. Iran’s Khatam al‑Anbiya Central Headquarters immediately rejected the claim, stating that any vessel movement in the strait remains under the "Armed Forces of the Islamic Republic of Iran" and that the U.S. report is "strongly denied." The strait, a narrow chokepoint through which roughly 20% of the world’s oil and natural gas transits, has been a flashpoint since the February 28 U.S.–Israel attacks that prompted Iran to restrict passage to pre‑approved ships. The closure spiked global fuel prices and disrupted both commercial and military traffic. Analysts, such as Maria Sultan of the South Asian Strategic Stability Institute, argue that any U.S. navigation would require Tehran’s explicit permission, underscoring the strategic leverage Iran holds over the waterway. Simultaneously, senior delegations from the United States and Iran met in Islamabad for historic face‑to‑face talks—the highest‑level engagement since the 1979 Islamic Revolution. The negotiations, sparked by a preliminary ceasefire announced earlier in the week, focus on contentious issues including Iran’s nuclear program, frozen assets, and the future of Israeli operations in Lebanon. Both parties acknowledge that control of the Strait of Hormuz remains a major point of disagreement. Iran has signaled willingness to temporarily reopen the channel for commercial shipping but insists on maintaining leverage, proposing tolls to compensate for war damages. The United States, however, deems continued Iranian control a "non‑starter." U.S. President Donald Trump used his Truth Social platform to assert that Iran is "losing big" and to downplay the strait’s importance to the United States relative to its allies, claiming the mine‑clearing effort benefits nations such as China, Japan, South Korea, France, and Germany. Al Jazeera’s on‑the‑ground correspondents noted that despite a "deficit of trust," negotiators are working late into the night to bridge gaps, though fundamental disagreements over the strait’s governance persist.

Pakistan dispatched a mixed fleet of fighter and support aircraft to King Abdulaziz Air Base in Saudi Arabia’s Eastern Province on Saturday, marking the first visible military action under the mutual defence agreement signed in September 2025. The Saudi Ministry of Defence confirmed the landing, noting the deployment aligns with the collective defence clause that obliges each signatory to treat an attack on the other as an attack on itself. At the same time, Islamabad is hosting direct US‑Iran negotiations aimed at halting weeks of regional fighting triggered by Iran’s missile and drone strikes on Gulf targets after the US‑Israeli killing of Supreme Leader Ali Khamenei on 28 February. Foreign Minister Ishaq Dar told reporters he personally warned Iranian leaders in early March that Pakistan must honour its obligations to Riyadh. Tehran, seeking assurances that Saudi soil would not be used for attacks against it, received such guarantees, Dar added. Despite these diplomatic overtures, Iranian attacks on Saudi facilities – including key bases and a US embassy building – have persisted. In early March, Pakistan’s army chief, Field Marshal Asim Munir, flew to Riyadh to discuss measures to curb Iranian strikes within the framework of the defence pact. Four days before the jet deployment, Prime Minister Shehbaz Sharif phoned Crown Prince Mohammed bin Salman, pledging that Pakistan would stand “shoulder to shoulder” with Saudi Arabia. The two leaders also agreed to accelerate a $5 billion Saudi investment package earmarked for Pakistan. Saudi Finance Minister Mohammed al‑Jadaan met Sharif, Dar and Munir in Islamabad on Saturday, underscoring the economic dimension of the partnership. Saudi Arabia hosts roughly 2.5 million Pakistani workers, whose remittances are vital to Pakistan’s fragile economy, and has repeatedly provided financial assistance. Security analyst Imtiaz Gul told Al Jazeera the deployment was not intended as a military escalation but as a “messaging tool” to remind Tehran of Pakistan’s treaty obligations. “Three jets won’t make much of a difference militarily,” he said, noting Saudi Arabia’s own sizable air force. Michael Kugelman, senior fellow for South Asia at the Atlantic Council, described the move as “a risky gambit.” He warned that if Iran refuses concessions, Pakistan could be drawn closer to Saudi Arabia, potentially invoking the defence pact in a renewed conflict.

In the early hours of Thursday, a wave of Israeli air strikes across Gaza resulted in the deaths of several civilians. Families across the enclave gathered to mourn their loved ones, holding impromptu vigils and sharing grief in a climate of heightened tension. While official casualty figures have not yet been released, the emotional impact on the community is evident, with many expressing sorrow and fear for the future.Local residents described the attacks as sudden and devastating, noting that the strikes targeted densely populated neighborhoods. Humanitarian groups have called for an immediate ceasefire to prevent further loss of life and to allow aid agencies to reach affected families. The incident adds to a growing list of confrontations that have strained relations between Israel and Palestinian territories, drawing international attention to the urgent need for diplomatic intervention.

Iraq's parliament has elected Nizar Amedi as the country's new president, ending a political deadlock that had paralyzed government formation. Amedi, nominated by the Patriotic Union of Kurdistan (PUK), secured 227 votes in a second round of voting on Saturday, comfortably defeating independent candidate Muthanna Amin Nader, who received 15 votes.He becomes the sixth Iraqi head of state since the removal of Saddam Hussein in a US-led invasion in 2003. Speaking to parliament after the vote, Amedi acknowledged the weight of what lies ahead, pledging to work alongside all three branches of government and committing to the principle of 'Iraq First'.Amedi also condemned attacks that had targeted Iraq during the US-Israel war on Iran. The election comes as Iraq is still absorbing the shockwaves of the weeks-long war, which was halted with a ceasefire announced earlier this week.Attention now turns sharply to the choice of prime minister, a far more consequential and politically explosive question. Under Iraq's sectarian power-sharing system, the prime minister must be a Shia Muslim, the parliamentary speaker a Sunni, and the president a Kurd.Amedi now has 15 days to formally task the nominee of the largest parliamentary bloc with forming a cabinet, which must then be assembled within 30 days. Amedi, 58, is a career public servant who spent decades at the heart of Iraqi political life, previously serving as a senior aide to two former presidents and as environment minister between 2022 and 2024.Iraq has gone almost 150 days without a new government since the November elections.

A solemn gathering was organized in Madrid to remember the victims of the latest Israeli airstrikes on Lebanon. Participants, including members of the Lebanese diaspora and local supporters, assembled in the city’s central square, lighting candles and holding signs that expressed grief and solidarity. Key messages emphasized the human cost of the conflict and called for an immediate cessation of hostilities. While specific organizers were not named, the event underscored a broader European concern over the escalating violence in the region. The vigil also served as a platform for attendees to voice demands for diplomatic efforts aimed at protecting civilians and restoring stability in the Middle East.

An Iranian rabbi has made public statements regarding the alleged destruction of a synagogue in Tehran by Israel. This incident has brought renewed attention to the complex and often strained relationship between Iran and Israel.The rabbi's account provides a unique perspective on the situation, emphasizing the religious and cultural implications of such an act. While details remain scarce, the incident underscores the longstanding geopolitical tensions between the two countries.

Ali Majed Hamadneh, 23, was killed after Israeli settlers opened fire during a raid on the West Bank village of Deir Jarir, north‑east of Ramallah, the Palestinian Ministry of Health reported on Saturday. He was transported to the Palestine Medical Complex in critical condition and later succumbed to his gunshot wounds.The Palestinian news agency Wafa described the attack as carried out by "armed colonists, under the protection of Israeli forces," who entered the village from its western entrance and fired on residents. The Israeli military has not issued an immediate comment.This raid occurs just two days after Israel approved 34 new settlements in the occupied West Bank, a move denounced by the Palestinian Presidency, the Organisation of Islamic Cooperation and the European Union as a breach of international law.Since assuming office in 2022, Prime Minister Benjamin Netanyahu's right‑wing government has sanctioned at least 102 settlements, a marked increase compared with previous administrations. All Israeli settlements in the occupied West Bank are considered illegal under international law.Violence in the West Bank has escalated sharply since Israel's war in Gaza began in October 2023, and a further spike in deadly settler attacks has been reported since the United States‑Israel conflict with Iran started at the end of February, according to Palestinian authorities and the United Nations.While settler assaults have persisted for years, the recent surge has drawn criticism from influential rabbis, settler leaders, and Israel’s military chief Eyal Zamir, who labeled the attacks "morally and ethically unacceptable."

Iran's economy is struggling to recover from a lethal mix of local mismanagement, corruption, sanctions, and two major wars in less than a year. The ceasefire announced overnight into Wednesday has brought some relief, with more people returning to work and shops reopening in Tehran's Grand Bazaar.However, sales remain slow compared to before the war, and merchants are facing significant challenges, including 20-30 percent price increases for products due to inflation. The near-total internet shutdown imposed since the start of the war on February 28 has caused countless income streams to be wiped out for families trying to survive.The government has promised to provide support to digital businesses, but it is unclear how they will operate while their customers remain offline. Lay-offs are widespread, with technology firms only signing contracts spanning several months, major carmakers laying off thousands of workers, and numerous journalists being let go by state-run and private sector media outlets.The situation for the embattled Iranian economy could still get worse, as the deepening impact of attacks against civilian infrastructure will likely become more apparent over the coming weeks and months. Iran's top steel factories, petrochemical manufacturers, aluminium producers, airports, and civilian aircraft have been bombed and put out of commission by the US and Israel.It would take Iran years to rebuild even if the war ended today, and that is while the country faced a huge budget crunch even before the war, and still has no prospects of lifting the harsh sanctions imposed by the US and the United Nations over its nuclear programme in order to boost foreign investments.