U.S.-Iran War Talks Emerge Amid Ongoing Strikes and Economic Fallout

Diplomatic efforts to end the month-long U.S.-Iran war are gaining momentum, even as military operations intensify across the Middle East. President Donald Trump confirmed Sunday that the United States and Iran have engaged in both direct and indirect talks, describing Tehran's new leadership as "very reasonable" — signaling cautious optimism for a potential deal.

Pakistan, serving as a key intermediary, announced plans to host high-level negotiations in Islamabad within days. Pakistani Foreign Minister Ishaq Dar stated the country would be honored to facilitate a "comprehensive and lasting settlement," though confirmation of attendance from both parties remains pending.

Despite the diplomatic signals, fighting shows no signs of slowing. Israel's military reported launching more than 140 airstrikes on central and western Iran over a 24-hour period, targeting ballistic missile infrastructure and storage sites. In retaliation, Iran struck a chemical facility near Beersheba in southern Israel, prompting hazardous materials warnings for nearby residents. Iranian state media also reported strikes on Mehrabad airport and a petrochemical plant in Tabriz.

The conflict has sent shockwaves through global markets. Brent crude futures surged past $115 per barrel, heading toward a record monthly increase, while Asian stock markets declined sharply — Japan's Nikkei falling nearly 5%. Iran's effective blockade of the Strait of Hormuz, responsible for 20% of global oil and gas shipments, continues to fuel inflation fears and recession risks worldwide.

The Pentagon has deployed thousands of additional troops to the region, including special operations forces, preserving the option of a ground offensive — though Trump has not authorized such action. Trump also expressed interest in seizing Iran's Kharg Island, which handles 90% of the country's oil exports. Yemen's Houthis have further complicated the situation by launching their first attacks on Israel, threatening another critical shipping route.