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Iran war enters second week as Trump demands ‘unconditional surrender’

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The expanding war in Iran entered its second week on Saturday amid renewed uncertainty about how or when hostilities will end, as U.S. President Donald Trump declared he would only accept Tehran’s “unconditional surrender” and Israel traded fresh attacks with Iran and Lebanon.

Trump’s comments ​on social media on Friday came hours after Iran’s president announced that unnamed countries had begun mediation efforts, briefly raising the possibility, however faint, of a diplomatic resolution a week after ‌the U.S. and Israel launched strikes on Iran, Reuters reported.

“There will be no deal with Iran except UNCONDITIONAL SURRENDER!” Trump wrote. “After that, and the selection of a GREAT & ACCEPTABLE Leader(s), we, and many of our wonderful and very brave allies and partners, will work tirelessly to bring Iran back from the brink of destruction, making it economically bigger, better, and stronger than ever before.”

Trump has offered shifting explanations of his war aims, raising the possibility of an extended regional conflict that has already spilled well beyond Iran’s borders, shaken global financial markets ​and sent oil prices soaring.

In response to the attack, Iran has targeted Israel as well as multiple Gulf states that host U.S. military installations.

Inside Israel on Friday, explosions could be heard as Israeli defenses ​activated to shoot down incoming Iranian fire. The UAE, Kuwait, Qatar, Bahrain and Saudi Arabia all reported fresh drone and missile attacks.

Meanwhile, Israel pursued a major expansion of the ⁠war in Lebanon, pounding the capital Beirut on Friday after ordering an unprecedented evacuation of the city’s entire southern suburbs.

Israel also launched a new wave of attacks on Iran, saying 50 of its warplanes had hit a bunker ​still being used by Iran’s leadership beneath slain Supreme Leader Ayatollah Ali Khamenei’s destroyed Tehran compound.

Early on Saturday, Iran’s semi-official Tasnim news agency reported that Mehrabad Airport in Tehran had been struck.

There was no immediate comment from Iran’s Revolutionary ​Guard or Hezbollah.

Israel has extended its bombing to Lebanon to root out Hezbollah, the Shi’ite militia allied to Iran that has been a dominant faction in Lebanese politics since the 1980s. Hezbollah fired on Israel this week to avenge the death of Khamenei.

“We’re sleeping here in the streets – some in cars, some on the street, some on the beach,” said Jamal Seifeddin, 43, who fled Beirut’s southern suburbs and spent the night on the streets in the downtown district.

About 300,000 people have been displaced in Lebanon in the past four days, ​according to the Norwegian Refugee Council.

The Israeli military says it has destroyed 80% of Iran’s air-defense systems in the first week of the campaign and disabled more than 60% of its missile launchers.

MARKETS SWOON

Trump’s demand for Iran’s surrender, ​and the likelihood that it would complicate any quick path to ending the conflict, sent European and U.S. stock indexes tumbling on Friday. Oil prices hit their highest prices in years with the critical shipping lane of the Strait of Hormuz effectively ‌closed down.

Trump ⁠told Reuters in a telephone interview on Thursday that he must have a say in selecting Iran’s new supreme leader to replace Khamenei, killed on the war’s first day, a demand he repeated on Friday in a remarkable assertion of power over the country of more than 90 million people.

Iran’s U.N. ambassador, Amir Saeid Iravani, told reporters that new leadership would be chosen “in accordance with our constitutional procedures and solely by the will of the Iranian people – without any foreign interference.”

Israel has said openly that it aims to overthrow Iran’s ruling system. It has been bombing parts of western Iran to support Iranian Kurdish militias who hope to exploit the war to seize towns near the frontier, according to three sources ​familiar with Israel’s talks with the factions.

Iran has cast the ​war as an unprovoked attack and describes the ⁠killing of Khamenei as an assassination.

HUNDREDS KILLED SO FAR

Earlier on Friday, Iran President Masoud Pezeshkian posted on social media: “Some countries have begun mediation efforts.” He did not identify the countries or provide further details.

Russia is providing Iran with locations of U.S. warships and aircraft in the Middle East after Iran’s ability to locate U.S. forces was degraded, the Washington ​Post reported, citing three officials familiar with the intelligence.

Russian missions in the U.S. did not immediately respond to requests for comment on the report.

Trump met with executives from ​seven defense contractors on Friday, who ⁠he later said had agreed to accelerate weapons production. The administration has been pressuring contractors as Iran and other recent operations have drawn down supplies.

Karoline Leavitt, a White House spokeswoman, said the U.S. has enough weapons stockpiles to meet the needs of its Iran operations, which she said would take about four to six weeks to complete.

At least 1,332 people have been killed in Iran since the U.S. and Israel launched strikes on February 28, Iravani said, citing the Iranian Red Crescent ⁠Society.

The Lebanese health ​ministry has reported 123 people killed and 683 wounded as a result of Israeli attacks. Iranian attacks have killed 11 people in ​Israel since the war started, and at least six U.S. service members have been killed.

Two U.S. officials told Reuters that military investigators believed it was likely that U.S. forces were responsible for an apparent strike on an Iranian girls’ school that killed scores of children on the first day ​of the war. The investigators have not yet reached a final conclusion.

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US, Iran teams in Pakistan for peace talks amid doubts over Lebanon, sanctions

The Iranian delegation, led by parliamentary Speaker Mohammad Baqer Qalibaf and Foreign Minister Abbas Araqchi, arrived on Friday.

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Senior U.S. and Iranian leaders were in the Pakistani capital Islamabad on Saturday for negotiations to end their six-week-old war, although Tehran threw the talks into doubt by saying they could not begin without commitments on Lebanon and sanctions, Reuters reported.

The U.S. delegation, led by ​Vice President JD Vance and including President Donald Trump’s special envoy Steve Witkoff and son-in-law Jared Kushner, landed in two U.S. Air Force planes at an air base in Islamabad on Saturday morning, where ‌they were received by Pakistan’s army chief, Field Marshal Asim Munir, and Foreign Minister Ishaq Dar.

The Iranian delegation, led by parliamentary Speaker Mohammad Baqer Qalibaf and Foreign Minister Abbas Araqchi, arrived on Friday.

These will be the highest-level U.S.-Iran talks since the Islamic Revolution of 1979. If the two sides hold face-to-face negotiations as expected, they would be first direct talks since 2015, when they reached a deal on Iran’s nuclear programme.

Trump scrapped the nuclear deal in 2018 during his first term in office. That year, Iran’s then-Supreme Leader Ayatollah Ali Khamenei – who was killed at the start ​of the war six weeks ago – banned further direct talks between U.S. and Iranian officials.

Qalibaf said on X that Washington had previously agreed to unblock Iranian assets and to a ceasefire in Lebanon, ​where Israeli attacks on Iran-backed Hezbollah militants have killed nearly 2,000 people since the start of the fighting in March. He said talks would not start until those pledges were ⁠fulfilled.

Israel and the U.S. have said the Lebanon campaign is not part of the Iran-U.S. ceasefire.

Iran’s state broadcaster said the Iranian delegation would meet Pakistani Prime Minister Shehbaz Sharif around noon (0700 GMT) to determine the timing and manner of “possible negotiations”.

Qalibaf said ​Iran was ready to reach a deal if Washington offered what he described as a genuine agreement and granted Iran its rights, Iranian state media reported.

The White House did not immediately comment on the Iranian demands, but Trump posted on social media ​that the only reason the Iranians were alive was to negotiate a deal.

“The Iranians don’t seem to realize they have no cards, other than a short term extortion of the World by using International Waterways. The only reason they are alive today is to negotiate!” he said.

Vance, speaking as he headed to Pakistan, said he expected a positive outcome but added: “If they’re going to try to play us, then they’re going to find the negotiating team is not that receptive.”

Preliminary discussions have been separately held by Pakistani officials with advance teams from both sides, sources ​in Islamabad said.

Iran’s semi-official Tasnim news agency said these included 70 members from Tehran, including technical specialists in economic, security and political fields as well as media personnel and support staff. About 100 members of an advance U.S. team were in the ​city, a Pakistani government source said.

Pakistan’s Dar said he hoped the U.S. and Iran would engage in constructive talks to reach a “lasting and durable solution to the conflict”, according to a statement from Pakistan’s foreign ministry.

A Pakistani source said it was too early to say ‌whether talks would ⁠end on Saturday, adding there was no time limit for negotiations.

Islamabad was under an unprecedented lockdown ahead of the talks with thousands of paramilitary personnel and army troops on the streets, read the report.

Trump announced a two-week ceasefire in the war on Tuesday, which has halted U.S. and Israeli airstrikes on Iran.

But it has not ended Iran’s blockade of the Strait of Hormuz, which has caused the biggest-ever disruption to global energy supplies, or calmed the parallel war between Israel and Hezbollah in Lebanon.

Israeli and Lebanese officials will hold talks in Washington on Tuesday, both sides said, amid conflicting accounts on what those talks would cover.

Lebanon’s presidency said officials from the two countries had spoken by phone on Friday and agreed to discuss announcing a ceasefire and ​setting a start date for bilateral talks under U.S. mediation. ​But Israel’s embassy in Washington said the talks would ⁠constitute the start of “formal peace negotiations” and that Israel had refused to discuss a ceasefire with Hezbollah.

Tehran’s agenda at the Islamabad talks also includes demands for major new concessions, including the end of sanctions that crippled its economy for years, and acknowledgment of its authority over the Strait of Hormuz, where it aims to collect transit fees and control access in what would amount ​to a huge shift in regional power.

Iran’s ships were sailing through the strait unimpeded on Friday, while those of other countries remained hemmed inside.

Disruption to energy supplies has fed inflation ​and slowed the global economy, with ⁠an impact expected to last for months even if negotiators succeed in reopening the strait.

The hard line taken by Iran’s leaders ahead of the negotiations followed a defiant message from its new supreme leader, Ayatollah Mojtaba Khamenei, on Thursday.

Khamenei, yet to be seen in public and said to be suffering from severe facial and leg injuries sustained in the attack that killed his father, said Iran would demand compensation for all wartime damage. “We will certainly not leave unpunished the criminal aggressors who attacked our country,” he said.

Although Trump has ⁠declared victory and ​degraded Iran’s military capabilities, the war has not achieved many of the aims he set out at the start: to deprive Iran of the ability ​to strike its neighbours, dismantle its nuclear programme and make it easier for its people to overthrow their government, Reuters reported.

Iran still possesses missiles and drones capable of hitting its neighbours and a stockpile of more than 400 kg (900 pounds) of uranium enriched near the level needed to make a bomb. Its clerical ​rulers, who faced a popular uprising just months ago, withstood the war with no sign of organised opposition.

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Iran war doubles Russia’s main oil revenue to $9 bln in April, Reuters calculations show

For the whole of 2026, Russia has budgeted for 7.9 trillion roubles from the mineral extraction tax.

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Russia will see revenue from its biggest ‌single oil tax double to $9 billion in April due to the oil and gas crisis triggered by the U.S. and Israeli attack on Iran, Reuters calculations showed on Thursday.

The Reuters calculation is some of the first concrete evidence of a windfall ​for Russia, the world’s second-largest oil exporter, from the Iran war, which oil traders say has ​triggered the most serious energy crisis in recent history.

Iran effectively shut the Strait of ⁠Hormuz – a route for about a fifth of global oil and LNG flows – after U.S. and Israeli ​airstrikes on Iran at the end of February, sending Brent futures shooting well past $100 per barrel.

Russia’s main revenue from ​its vast oil and gas industry is based on production. Export duty on crude oil has been nullified from the start of 2024 as part of the so-called wider tax manoeuvre, a years-long tax reform of the industry.

According to Reuters calculations ​based on preliminary production data and oil prices, Russia’s mineral extraction tax on oil output will increase ​in April to around 700 billion roubles ($9 billion) from 327 billion roubles in March. The revenue is up by some ‌10% from ⁠April last year.

For the whole of 2026, Russia has budgeted for 7.9 trillion roubles from the mineral extraction tax.

The average price of Russia’s Urals crude, used for taxation, jumped to $77 per barrel in March, its highest since October 2023, according to economy ministry data.

That was up 73% from February’s $44.59 per barrel ​and above the level of $59 ​assumed in this year’s ⁠state budget.

The Kremlin said on Tuesday there were a huge number of requests for Russian energy from a range of different places amid a grave global energy crisis ​that was shaking the foundations of the oil and gas markets.

Still, there are ​limits on ⁠the windfall for Russia, and economists inside Russia have repeatedly cautioned that 2026 could be a tough year.

Russia ran a budget deficit of 4.58 trillion roubles, or 1.9% of gross domestic product, in January-March 2026, the finance ministry ⁠said on ​Wednesday.

And Ukraine’s attacks on Russian energy infrastructure, with an aim ​to cripple Moscow’s finances, have also contributed to lower earnings and threaten oil production cuts.

The size of the windfall for Russia will ultimately depend ​on how long the Iran crisis lasts.

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Israel prepares for long conflict despite US–Iran ceasefire efforts

While Israel has reportedly halted direct strikes on Iran, it continues operations against Iran-aligned groups in neighbouring areas.

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As the United States and Iran move toward cementing a ceasefire, Israeli military strategy appears increasingly focused on preparing for a prolonged and evolving regional conflict.

According to Israeli officials and analysts, the country has intensified efforts to establish and maintain “buffer zones” across multiple areas, including the Gaza Strip, southern Lebanon, and parts of Syria.

The approach reflects a shift in doctrine following the October 7 attacks, with an emphasis on containing threats rather than fully eliminating them.

Reuters reported that Israeli officials say the aim of these zones is to push potential threats further from border communities and reduce the risk of attacks. Military sources indicate that areas extending several kilometres beyond Israel’s borders are being cleared or monitored to limit the reach of armed groups such as Hezbollah and Hamas.

The developments come as Washington and Tehran agreed to a temporary pause in hostilities while negotiating a broader settlement following the latest escalation, which began in late February.

While Israel has reportedly halted direct strikes on Iran, it continues operations against Iran-aligned groups in neighbouring areas.

In southern Lebanon, Israeli forces have advanced into areas near the Litani River, with military officials describing efforts to establish a security belt aimed at preventing cross-border fire. The operation has reportedly involved evacuations and the destruction of structures suspected of being used for military purposes.

Israeli leaders have framed the strategy as necessary for long-term security.

In recent remarks, Benjamin Netanyahu said Israel has created defensive belts extending beyond its borders in multiple areas, including Gaza and Syria.

However, the approach has raised concerns among analysts and legal experts. Some warn that widespread destruction of civilian infrastructure may violate international law unless clearly justified by military necessity. Others caution that maintaining multiple fronts could place significant strain on Israeli forces over time.

The strategy also reflects deep scepticism within Israel about the prospects for lasting peace agreements. Surveys in recent years suggest limited public confidence in long-term stability with Palestinians or neighbouring states, reinforcing support for security-driven policies.

At the same time, statements from some members of Israel’s government have fuelled concern about possible territorial ambitions, particularly in Gaza and southern Lebanon. Still, military officials have indicated that buffer zones are intended as flexible security measures rather than permanent borders.

As diplomatic efforts continue, the contrast between ceasefire negotiations and military preparations highlights the uncertainty surrounding the region’s trajectory—raising the possibility that even if fighting subsides in the short term, a longer period of instability may lie ahead.

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