Morning update

Good morning Middle East Eye readers,

Diplomacy hangs in the balance as Islamabad remains under lockdown and mixed signals continue over US-Iran talks. Meanwhile, the Hormuz crisis is rippling across global trade, energy markets and regional security.

Here are the latest updates: 

• Islamabad locked down as envoys arrive: US officials land for talks, but Iran insists no direct meeting is planned.

• Talks in limbo despite mediation push. Tehran says it will only convey its position through Pakistan, adding to uncertainty.

• Hormuz standoff escalates further as thousands of sailors remain stranded and maritime tensions disrupt one of the world’s busiest routes.

• Global trade routes remain under pressure as Panama Canal fees surge to $4m amid ship rerouting to avoid the Strait of Hormuz.

• US tightens economic squeeze on Iran with Washington ruling out oil waivers and freezing $344 m in Iran-linked assets.

• Iran signals military strength: Officials say much of its missile capability remains unused despite weeks of conflict.

• Israeli attacks continue across Gaza and the West Bank, with fresh strikes reported in Gaza, while arrests intensify in the West Bank.

• Regional tensions widen beyond Iran as Hezbollah claims attacks in south Lebanon while Lebanon’s leadership rejects being drawn into regional bargaining.