Pakistan has repaid the full $3.45 billion it owed to the United Arab Emirates, the State Bank of Pakistan said on Friday.

According to the Pakistan’s central bank, $1 billion was returned to the Abu Dhabi Fund for Development on April 23, while the remaining $2.45 billion had been repaid to the UAE earlier in the week. “This completes the repayment of total deposits of $3.45 billion to UAE,” the bank said in a statement posted on X.

The repayment comes after Pakistani officials signaled earlier this month that the country intended to settle roughly $3.5 billion in obligations to the UAE before the end of April. A senior official described the move as a deliberate decision to uphold “national dignity,” despite the anticipated strain on foreign exchange reserves.

The funds were originally extended in 2019 as part of financial support from the UAE to help Pakistan stabilize its balance of payments. However, in March, Islamabad was unable to secure a rollover of the facility—its first such setback in seven years—raising concerns about short-term financing needs.

Separately, the central bank reported that Pakistan’s foreign reserves stood at $20.63 billion as of April 17. During April, the country also received $3 billion in deposits from Saudi Arabia, including a $1 billion tranche on April 21.

Pakistan’s external position remains under pressure but is being managed as part of ongoing stabilization efforts tied to reforms supported by the International Monetary Fund. Analysts warn that risks persist, particularly due to volatile energy prices and tight global financial conditions.

Iran flaunted its tightened grip over the Strait of Hormuz on Thursday with a video of commandos in ​a speedboat storming a huge cargo ship, after the collapse of peace talks that Washington had hoped would open one of the world’s most important shipping corridors.

U.S. President Donald Trump dismissed ‌the threat posed by Iran’s “little wise-guy ships” and told reporters that he believed Tehran wanted to make a deal but that its leadership was in turmoil. Trump added that he was in no hurry for a deal, but if Iran did not want one, “I’ll finish it up militarily,” Reuters reported.

Iranian state television broadcast video overnight of masked troops pulling up in a grey speedboat alongside the MSC Francesca, climbing a rope ladder to a door in the hull and jumping through, brandishing rifles.

The video, presented with an action-movie-style soundtrack and no commentary, ​included views of another ship, the Epaminondas. Iran said it had captured both on Wednesday, accusing them of trying to cross the strait without permits.

The Iranian boat seizure was a reminder that the ​United States, despite its more powerful military, struggles to keep control of the Strait of Hormuz. Trump and his military officials have said Iran’s navy is “at the ⁠bottom of the sea,” but Tehran has shown it can still cause major problems for oil markets. Before the war, one-fifth of global oil and liquefied natural gas was shipped through the strait.

Major surveys showed on ​Thursday that the global economy is facing ever more tangible strains from the energy shock of the war, as factories grapple with soaring production costs and activity weakens even in services sectors.

The war, launched by the U.S. and Israel ​on February 28, has been paused since a ceasefire on April 8. The U.S. and Iran met in Pakistan on April 11 and 12 in an attempt to end hostilities, but talks ended without agreement and a second round has yet to take place.

Tehran says it will not consider opening the strait until the U.S. lifts its blockade of Iran’s shipping, which Washington imposed during the ceasefire and Tehran calls a violation of that truce. Iran has also called Israeli strikes on Lebanon, ​where Israel has been engaged with the Iranian-backed group Hezbollah, an obstacle to renewed peace talks.

Israel and Lebanon on Thursday agreed to extend their ceasefire by three weeks after a high-level meeting between representatives of both countries ​in the White House Oval Office, Trump announced on social media.

“I look forward in the near future to hosting the Prime Minister of Israel, Bibi Netanyahu, and the President of Lebanon, Joseph Aoun. It was a Great Honor to ‌be a participant ⁠at this very Historic Meeting!” Trump said. It was unclear, however, how much influence the Lebanese government might exert over Hezbollah.

Before that announcement, Israel warned on Thursday that it was ready to restart attacks on Iran.

Israeli Defense Minister Israel Katz said Israel was waiting for a “green light” from the U.S. to resume the war, saying that if it did, it would begin by targeting Supreme Leader Ayatollah Mojtaba Khamenei and “return Iran to a dark age.”

STRUGGLE FOR THE STRAIT

Trump said this week he would indefinitely extend what had been a two-week ceasefire with Iran to allow for further peace talks, but on Thursday he said he had ordered the Navy to “shoot and kill” ​Iranian boats laying mines in the strait, and step ​up demining activity.

In a social media post, he ⁠said Washington was in “total control” of the strait, which he described as “‘Sealed up Tight,’ until such time as Iran is able to make a DEAL!!!”

Later at the White House, Trump said Iran might have loaded up its weaponry “a little bit” during the ceasefire, but the U.S. military could knock that out in about one day.

“Don’t ​rush me,” he said when asked how long he was willing to wait for a long-term peace deal. “I want to make the best deal. I ​could make a deal right ⁠now … but I don’t want to do that. I want to have it everlasting.”

Trump, who has used provocative language threatening to obliterate Iran and end its civilization, ruled out the use of nuclear weapons, telling reporters they were unnecessary because the U.S. had “decimated” Iran with conventional arms.

“No, I wouldn’t use it. A nuclear weapon should never be allowed to be used by anybody,” Trump said.

Iranian officials cited in state media dismissed claims by Trump of divisions in Iran’s ⁠leadership, and Khamenei ​said in a post on X that “enemy” media operations were aiming to undermine unity and national security.

Washington, which has been confronting Iranian ​ships in international waters to enforce its blockade, said it had boarded another tanker, the Majestic, in the Indian Ocean on Thursday, an apparent reference to a supertanker last reported off the coast of Sri Lanka carrying 2 million barrels of crude.

The U.S. military ​said on Thursday that U.S. forces had redirected 33 vessels since the blockade began.

Iran has moved to tighten control over the strategic Strait of Hormuz, seizing two vessels and escalating tensions despite an announcement by US President Donald Trump that the United States would halt further attacks on the country.

The developments come amid confusion over the status of a fragile ceasefire between Iran and U.S.-aligned forces. While Washington signalled an extension of the truce to allow for renewed negotiations, Iranian officials have not confirmed any agreement and have instead criticised the continued U.S. naval blockade.

Mohammad Baqer Qalibaf said a meaningful ceasefire would require the lifting of restrictions on Iran’s maritime trade, describing the blockade as a violation of any truce. He added that reopening the vital oil transit route—through which roughly a fifth of global supply once passed—would be impossible under current conditions.

The Islamic Revolutionary Guard Corps (IRGC) said it had detained two foreign-flagged ships for alleged regulatory violations, including operating without permits and tampering with navigation systems. A third vessel was reportedly fired upon but continued its journey without damage, according to maritime security sources.

The U.S. has condemned the seizures, with officials describing them as acts of piracy. At the same time, American forces have continued enforcing a naval blockade, redirecting dozens of ships and intercepting Iranian oil tankers in waters as far afield as South and Southeast Asia.

The standoff has left the Hormuz passage effectively constrained, raising concerns for global energy markets. Brent crude oil prices have climbed above $100 a barrel, reflecting growing fears of prolonged disruption.

Efforts to revive diplomacy remain stalled. Pakistan, which has been mediating between the sides, has yet to secure a new round of talks after both delegations failed to attend a scheduled meeting in Islamabad earlier this week.

Washington has said it is willing to pause military action while discussions continue, but no deadline has been set. The U.S. is pressing Iran to curb its nuclear programme, while Tehran is demanding sanctions relief, compensation for war damage, and recognition of its authority over the strait.

The broader conflict—sparked by joint U.S.-Israeli strikes on Iran in late February—has killed thousands across the region, including in Lebanon, where the Iran-backed Hezbollah has been engaged in fighting with Israel.

With no clear path to de-escalation, the situation remains volatile, and the risk of further disruption to global shipping and energy supplies persists.