The Latest: Pakistan proposes new US-Iran talks as Vance and Trump hint at progress

Pakistani officials said Tuesday that Islamabad has proposed a second round of talks to the U.S. and Iran, while U.S. Vice President JD Vance earlier said negotiations with Iran “did make some progress” and U.S. President Donald Trump said Monday “we’ve been called by the other side” and “they want to work a deal.”

The Pakistani officials spoke on condition of anonymity because they were not authorized to discuss the matter with the press.

A senior Hezbollah official on Monday said the Lebanese militant group will not abide by any agreements that may result from direct Lebanon-Israel talks set to start Tuesday in Washington.

Lebanese officials hope to broker a ceasefire in the Israel-Hezbollah war that has killed at least 2,089 people in Lebanon. Israeli Prime Minister Benjamin Netanyahu has said he doesn’t want a ceasefire and the goal is Hezbollah’s disarmament and a potential peace agreement between Lebanon and Israel.

A U.S. blockade of Iranian ports that began Monday and Iran’s threatened retaliation set up an extraordinary showdown posing serious risks for the global economy and raising the specter of a ceasefire collapse and resumed fighting.

Here is the latest:

Italy suspends military partnership with Israel

Italian Premier Giorgia Meloni said Tuesday that her government has suspended the automatic renewal of a defense agreement with Israel, citing “the current situation.”

Meloni and other Italian government officials have strongly condemned Israel’s air and bombing campaign in Lebanon, which has hit civilians as well as an Italian convoy that is part of a U.N. peacekeeping force. The agreement, ratified in 2005, includes ongoing cooperation between the two countries’ defense ministries and armed forces. It is automatically renewed every five years.

Citing fallout from the Iran war, IMF cuts the outlook for global growth, expects higher inflation

The Iran war has stalled the world’s economic momentum, the International Monetary Fund warned Tuesday as it downgraded its forecast for global growth to 3.1% in 2026, an expected deceleration from last year’s 3.4% expansion.

U.S. and Israeli strikes on Iran — and Tehran’s closing of the Strait of Hormuz and retaliatory strikes on oil refineries and other energy infrastructure in neighboring countries — have driven oil and gas prices sharply higher around the world. As a result, the IMF marked up its expectation for global inflation to 4.4% from 4.1% in 2025.

Massive investment in data centers and artificial intelligence, and rising productivity combined to strengthen economic numbers, but “War in the Middle East has halted this momentum,’′ IMF chief economist Pierre-Olivier Gourinchas wrote in a blog post accompanying the fund’s latest World Economic Outlook.

The IMF’s forecast assumes the war ends soon and energy prices rise “a moderate 19%″ this year. Things could be much worse.

Israel’s top diplomat denies disputes with Lebanon, says ‘the problem is Hezbollah’

Israel’s Foreign Minister Gideon Saar is floating the idea of cooperation with the Lebanese government to dismantle Hezbollah.

“Hezbollah has also its financial roots, there are a lot of dimensions holding this organization, practically keeping Lebanon under Iranian occupation,” Saar said Tuesday, adding that the Lebanese government itself views the Iran-backed militant group as “unlawful.”

Israel and Lebanon are set to begin their first direct talks in decades Tuesday, with large gaps in what each side wants from the negotiations.

Lebanese officials want a ceasefire, while Israeli officials have said they are not interested in a ceasefire but want the talks to focus on disarming Hezbollah as an essential step toward a potential peace deal between the two countries.

Hezbollah militant group renewed its war with Israel on Mar. 2, when it fired missiles into northern Israel. About 2,088 people in Lebanon have been killed in Israeli airstrikes since then, according to figures from Lebanon’s Health Ministry.

US forces to join combat drills in Philippines to show commitment to Asia while fighting Iran

More than 17,000 American and Filipino military personnel will participate in one of their largest annual combat exercises in the Philippines, aiming to show the United States’ staunch commitment to Asia despite its preoccupation with the Middle East, a U.S. military official said Tuesday.

“Our message is our dedication and commitment to our alliance and regional security,” Col. Robert Bunn, a spokesperson for U.S. forces, said when asked what message the U.S. military wants to send with its large deployment despite the war in the Middle East.

Bunn did not immediately specify the number of U.S. forces joining the April 20-May 8 maneuvers. Last year, about 9,000 U.S. military personnel joined the Balikatan — Tagalog for shoulder-to-shoulder — exercises.

This year’s drills between the U.S. and Philippines will expand to include Japan, France and Canada, which have signed visiting forces agreements with Manila, the Philippine military said.

Macron urges US-Iran talks to resume

French President Emmanuel Macron urged for the resumption of negotiations between the U.S. and Iran as he had phone calls with President Donald Trump and Iran’s President Masoud Pezeshkian.

“It is essential, in particular, that the ceasefire be strictly respected by all parties and that it include Lebanon,” Macron said in a post on X Tuesday.

He also called for the reopening of the Strait of Hormuz “without restrictions or tolls.”

Macron stressed France and the U.K. will also host a conference in Paris this Friday, bringing together by videoconference non-belligerent countries ready to contribute to a mission aimed at restoring freedom of navigation in the strait when security conditions allow.

US wholesale prices surge as Iran war drives up the cost of energy

The Labor Department reported Tuesday that its producer price index — which measures inflation before it hits consumers — rose 0.5% from February and 4% from March 2025. The year-over-year gains was the biggest in more than three years. Energy prices surged 8.5% from February.

Excluding volatile food and energy prices, so-called core producer prices rose a modest 0.1% from February and 3.8% from a year earlier. The gains in wholesale prices were smaller than economists had forecast.

Wholesale prices can offer an early look at where consumer inflation might be headed. The Labor Department reported last week that soaring gasoline prices pushed consumer prices up 3.3% last month from a year earlier, the biggest year-over-year increase since May 2024. Compared to February, March consumer prices jumped 0.9%, biggest gain in nearly four years.

IEA predicts Iran war will drive down oil demand more sharply than at any time since the pandemic

The war in Iran will lead to an annual decline in oil demand for the first time since the pandemic, when billions of people were trying to live in isolation, according to the International Energy Agency.

The agency, formed after the 1974 oil crisis, said Tuesday that oil demand is expected to decrease by an average of 80,000 barrels a day this year, a sharp revision from the increase of 850,000 barrels a day that it had forecast before the war began.

The drop-off in March was particularly severe because of attacks on energy infrastructure and the shutdown of the Strait of Hormuz, according to the IEA, which expects a decline in demand of 1.5 million barrels in the current quarter.

While the biggest cuts in oil usage have initially come from the Middle East and Asia Pacific region, demand destruction is anticipated to spread as oil prices increase and scarcity continues.

South Korea says it will provide humanitarian assistance to Iran

South Korea says it provided $2 million in humanitarian assistance to Lebanon through international organizations and has also decided to provide $500,000 in aid to Iran through the International Red Cross.

Seoul’s Foreign Ministry said Tuesday it hopes the aid will help ease the humanitarian crisis in affected regions

Red Cross delivers first emergency aid shipment to Iran since war began

The Red Cross delivered its first emergency aid shipment to Iran since the war began over a month ago, which is expected to meet the needs of nearly 25,000 people.

The International Committee of the Red Cross said in a statement Tuesday that it dispatched assistance to the Iranian Red Crescent Society, or IRCS, including five truckloads delivered Monday.

Supplies included blankets, jerrycans, tarpaulins, hygiene kits and solar lamps. The remaining aid shipment, comprised of nine aid trucks, will be given to IRCS later this week.

Macron, Starmer to co-chair talks on Strait of Hormuz mission to protect shipping

French President Emmanuel Macron and British Prime Minister Keir Starmer will co-chair a conference Friday in Paris, bringing together non-belligerent nations willing to participate in a mission in the Strait of Hormuz “when security conditions allow.”

Other participants will take part via videoconference, Macron’s office said. European and other partners are ready to contribute to a “purely defensive mission aimed at restoring freedom of navigation in the Strait of Hormuz,” the statement said.

France and Britain have been working in recent weeks to set up an operation to escort oil tankers and container ships to help ensure safe passage through the strait.