Main developments
The shadow-fleet tanker Elpis, which took on cargo in Iran, has transited the Strait of Hormuz, posing an early test for the new US naval blockade.
“Iran needs to gauge how seriously the US intends to enforce it, and Elpis is the guinea pig,” said Eurasia Group analyst Gregory Brew.
Donald Trump said Iranian negotiators had contacted the US and were keen for a deal. President Masoud Pezeshkian said Tehran was open to talks but only within the framework of “international law”.
China has threatened to retaliate if the US imposes punitive tariffs on the country for allegedly supplying arms to Iran, and labelled the US blockade “irresponsible”.
Oil dipped below $100 per barrel and stocks rose amid signs of further talks between the US and Iran.
Global oil demand is expected to fall this year because of the Iran war, according to the International Energy Agency.
Emmanuel Macron and Sir Keir Starmer will co-host a summit of leaders in Paris on Friday. UK Chancellor Rachel Reeves dubbed the war as “folly” in a hardening of the government’s criticism of the conflict.
Iran war could slow global growth to weakest since pandemic, IMF warns
The global economy is at risk of growing at its slowest pace since the Covid-19 pandemic if conflict in the Middle East keeps oil prices at $100 per barrel for the rest of this year, the IMF has warned.
The fund said the global economy would expand by just 2.5 per cent this year — the weakest pace since 2020 — and inflation would soar by 5.4 per cent under an “adverse scenario” where petroleum spot prices held around their current level.
Read more on the IMF outlook here.
Media watchdog calls on Kuwait to release journalist arrested for sharing war footage
The Committee to Protect Journalists has called on Kuwait to “immediately and unconditionally” release Kuwaiti-American journalist Ahmed Shihab-Eldin who was reportedly arrested in early March after sharing online footage related to the US-Iran war.
“Journalism is not a crime, and Shihab-Eldin’s case reflects a broader pattern of using national security laws to stifle scrutiny and control the narrative,” CPJ Regional Director Sara Qudah said in a statement.
Gulf states have repeatedly warned citizens and residents against recording or circulating footage of Iranian missile and drone attacks or their impact sites.
Abu Dhabi police said last week that 375 people have been arrested on suspicion of filming incidents related to attacks on the UAE and sharing “misleading” information online.