Iran-US war latest: Trump threatens to ‘finish’ war if peace talks fail as negotiators arrive in Pakistan – UK Times

President Donald Trump on 7 April 2026, announced a ceasefire between the US and Iran, after more than a month of war marked by US and Israeli strikes against Iranian military leadership, Iranian retaliation against regional oil infrastructure and a global energy crisis.

Where could the war go next?

The Middle East conflict could cut global growth by up to 1 percentage point if it continues, World Bank President Ajay Banga has warned, as uncertainty persists despite a ceasefire.

With an early end to the war, the hit to growth would be smaller, around 0.3 to 0.4 percentage points. while inflation could rise by 200 to 300 basis points, he told Reuters on Friday.

“The question really is, does this current peace and the negotiations that are going to be happening this ‌weekend – will this lead to a lasting peace and then a reopening of the Strait (of Hormuz)?” ‌said Banga. “If it doesn’t lead to that, and if conflict were to break out again, would that have an even larger impact, or longer-term impact on energy infrastructure?”

Emerging markets face sharper pressure, with growth projected at 3.65 per cent in 2026 and inflation rising to 4.9 per cent, while oil prices have already jumped about 50 per cent.

Shelters for displaced people in Lebanon are “severely overcrowded,” the United Nations has warned, as Israeli evacuation orders drive a growing humanitarian crisis.

“Needs in Lebanon exceed the available capacity,” UN spokesperson Stéphane Dujarric said on Friday, adding that nearly half of the country’s public schools are now being used as reception centres.

The UN also warned the country’s health system is under severe strain, with some hospitals at risk of running out of trauma supplies within days.

Up to 1.2 million people have been displaced by Israeli attacks, with around 140,000 sheltering in about 680 sites, according to UN figures.

The crisis has intensified amid a sharp rise in casualties, with Lebanese authorities reporting more than 300 people killed in strikes on Wednesday alone.

A potential agreement between the US and Iran is “almost done,” with groundwork for the deal already laid ahead of talks in Islamabad.

According to a source cited by Al Jazeera, preliminary negotiations were carried out by advance teams before the arrival of US vice president JD Vance and Iranian officials, raising expectations that a deal could be signed.

Pakistan is facilitating the process through indirect talks, passing messages between the two sides. Its efforts have been backed by countries including Saudi Arabia, Egypt, Turkey, and China, underscoring a broader diplomatic push to bring both sides closer to an agreement.

Violence in Lebanon has continued despite the US-Iran ceasefire, with fresh Israeli strikes and Hezbollah retaliation reported on Friday.

An Israeli attack on a government building in the southern city of Nabatieh killed 13 Lebanese state security personnel, according to president Joseph Aoun.

Hezbollah said it responded by firing rockets into northern Israel.

The escalation follows earlier strikes that killed more than 350 people in densely populated areas hours after the ceasefire was announced this week, according to Lebanese authorities.

A two-week ceasefire announced by the United States this week has halted US and Israeli airstrikes on Iran, but it has not extended to other fronts.

Iran has yet to lift restrictions in the Strait of Hormuz, where disruption to shipping has hit global energy supplies.

At the same time, fighting between Israel and Iran-backed Hezbollah in Lebanon has continued, with Israeli strikes and retaliatory rocket fire reported after the truce was announced.

The US and Israel say the Lebanon conflict is not covered by the ceasefire, while Tehran insists it is part of the same war, exposing a key divide ahead of talks.

A senior US delegation led by vice president JD Vance is travelling to Islamabad for negotiations with Iran, as diplomatic efforts intensify to end the war. The team includes president Donald Trump’s envoy Steve Witkoff and adviser Jared Kushner.

Iran’s delegation, led by speaker Mohammad Baqer Qalibaf and foreign minister Abbas Araqchi, arrived a day earlier.

Pakistan has imposed an unprecedented lockdown in the capital, deploying thousands of security personnel ahead of the talks, which prime minister Shehbaz Sharif has described as decisive for the conflict’s outcome.

Hezbollah has said it attacked Israeli soldiers in Lebanon, according to The New York Times.

The drone strike targeted troops in a house in southern Lebanon, the Iran-backed militant group said, per the NYT, in response to Israel’s post-ceasefire attacks in the country.

Israel has said the two-week ceasefire between the US and Iran doesn’t apply to Lebanon, but Iran disagrees.

Iran has cast doubt over planned talks with the US in Islamabad, saying negotiations cannot begin without prior commitments on sanctions relief and a ceasefire in Lebanon.

Iranian parliamentary speaker Mohammad Baqer Qalibaf said on X that Washington had yet to fulfil “mutually agreed upon” measures: “a ceasefire in Lebanon and the release of Iran’s blocked assets”.

Tehran maintains that the conflict in Lebanon, where Israeli strikes have killed nearly 2,000 people since March, is inseparable from the broader war, a position rejected by both the US and Israel.

The disagreement threatens to derail what Pakistan has described as “make-or-break” talks aimed at ending the six-week conflict.

Iran has been unable to find all the mines it planted in the Strait of Hormuz, US officials told The New York Times.

The US announced last month that it was destroying mines laid in the Strait of Hormuz by Iran as the country deterred ships from entering the vital oil passageway in retaliation for the US-Israeli striking campaign.

US officials told the NYT that because Iran can’t remove the mines, it has been unable to open the Strait of Hormuz, despite a two-week ceasefire.