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Iran’s president sets terms to end the war: Is an off-ramp in sight?

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Iran’s president sets terms to end the war: Is an off-ramp in sight?

Iranian President Masoud Pezeshkian has laid out terms for ending the war with the United States and Israel in what analysts say is a possible sign of de-escalation from Tehran as the US-Israel war on Iran entered its 13th day on Thursday.

In a post on Wednesday on social site X, Pezeshkian said he had spoken to his counterparts in Russia and Pakistan, and that he had confirmed “Iran’s commitment to peace”.

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“The only way to end this war – ignited by the Zionist regime & US – is recognizing Iran’s legitimate rights, payment of reparations, and firm int’l guarantees against future aggression,” Pezeshkian wrote.

This is a rare posture from Tehran, which has maintained a defiant stance and initially rejected any possibility of negotiations or a ceasefire when war broke out nearly two weeks ago.

Pezeshkian’s statement comes as pressure mounts on the US to halt what has become a very costly mission. Analysts say speculation from Washington that Iran would quickly submit after the killing of Supreme Leader Ayatollah Ali Khamenei were misguided.

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Tehran is likely going to determine the end of this war, not the US or Israel, because of its ability to inflict economic pain broadly, they say.

Amid a military pummelling by the US and Israel, Iran has launched heavy retaliatory strikes at US assets and other critical infrastructure in Gulf countries, upsetting global supplies. It has also adopted what analysts call “asymmetric” tactics – such as disrupting the critical Strait of Hormuz and threatening US banking-linked entities – to inflict as much economic pain on the region and wider world as it can.

This is what we know about Pezeshkian’s stance and what the pressures are on both sides to draw the conflict to a close, quickly.

A building lies in ruins after a strike, amid the US-Israeli conflict with Iran, in Tehran, Iran, on March 12, 2026 [Majid Asgaripour/WANA (West Asia News Agency) via Reuters]

What has the war cost so far?

Economically, both sides have weaponised energy. Israel first targeted Iran’s oil facilities in Tehran on March 8, prompting an outcry from global health experts over the potential risk of air and water pollution.

Iran has, meanwhile, tightened its chokehold on the Strait of Hormuz shipping route – the only route to open sea for oil producers in the Gulf – with its military promising on Wednesday that it has the capabilities to wage a long war that could “destroy” the world economy.

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Attacks on ships in the strait, through which about 20 percent of global oil and gas traffic normally passes, have effectively closed the route.

Oil prices rocketed above $100 per barrel late last week, up from around $65 before the war, with ordinary buyers feeling the increases at pumps in the US, Europe and parts of Africa.

On Wednesday, Iran upped the ante, saying it would not allow “a litre of oil” to pass through the strait and warned the world to expect a $200-per-barrel price tag.

“We don’t know how quickly it’ll revert back,” Freya Beamish, chief economist at GlobalData TS Lombard, told Al Jazeera. “We do think it’ll revert back to $80 in due course, but the ball is to some degree in Iran’s court,” she said, adding that because Iran needs oil revenue, the price hikes are expected to be time-limited.

The International Energy Agency agreed on Wednesday to release 400 million barrels from the emergency reserves of several member states but it is not yet clear what impact that will have, nor how quickly this quantity of oil can be released.

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Tehran has also been accused of directly attacking oil facilities in neighbouring countries this week. Iraq shut all its oil port operations on Thursday after explosive-laden Iranian “drone” boats appeared to have attacked two fuel tankers in Iraqi waters, setting them ablaze and killing one crew member.

A drone was filmed striking Oman’s Salalah oil port on Wednesday, although Tehran has denied involvement.

What are Iranian officials saying about ending the war?

There has been conflicting messaging from the Iranian leadership.

Iran’s elite army unit and parallel armed force, the Islamic Revolutionary Guard Corps (IRGC), continues to show defiance, issuing threats and launching attacks on Israel and US military assets and infrastructure in neighbouring Gulf countries.

However, the political leadership has appeared more inclined towards diplomacy, analysts say. On Wednesday, President Pezeshkian said that ending the war would take the US and Israel recognising Iran’s rights, paying Iran reparations – although it’s unclear how much is being asked for – and providing strong guarantees that a future war will not be waged.

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In a video recording last week, he also apologised to neighbouring countries for the strikes and promised that Iran would stop hitting its neighbours as long as they do not allow the US to launch attacks from their territory.

“I personally apologise to the neighbouring countries that were affected by Iran’s actions,” the president said, adding that Tehran was not looking for confrontations with its neighbours.

However, it is not known how much sway the political leadership has over the IRGC. Hours after the president’s apology last week, air defence sirens went off in Saudi Arabia, Qatar, the UAE and Bahrain, as strikes continued on the Gulf.

So, what is Iran’s actual position?

“Iran wants to go to the end to make sure that the United States and Israel never attack Iran again … so this has to be the final battle,” Al Jazeera’s Resul Serdar Atas explained.

Indeed, the IRGC sees this as an existential war, but the timing of Pezeshkian’s statement about ending the conflict also shows Tehran is pressured economically, politically and militarily, Zeidon Alkinani of Qatar’s Georgetown University told Al Jazeera.

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“These differences and divisions [between IRGC and political leaders] always existed even prior to this war but we may notice it now more, given the fact that the IRGC believes that it has the right to take the front seat in leading this regional war, which is why a lot of the statements and positions are contradicting with the official ones from Pezeshkian,” he said.

The IRGC reports directly to Iran’s Supreme National Security Council (SNSC) and not to the country’s political leadership. That council is led by Ali Larijani, a top politician and close aide to the late supreme leader, Ali Khamenei, who analysts describe as a “hardliner”.

In a post on X on Tuesday, Larijani responded to threats from Trump about attacks on the Strait of Hormuz, saying: “Iranian people do not fear your hollow threats; for those greater than you have failed to erase it … So beware lest you be the ones to vanish.”

The newly elected supreme leader, Mojtaba Khamenei, was once in the IRGC and was put forward by the unit as the next ayatollah after his father was killed on the first day of the war, analysts say. He is thus not expected to follow the reformist, diplomatic ideals of President Pezeshkian and other political leaders which his father managed to marry with the IRGC militarised stance, they say.

Mojtaba Khamenei, son of Iran's supreme leader Ayatollah Ali Khamenei, attends a gathering.
Mojtaba Khamenei, son of Iran’s late Supreme Leader Ayatollah Ali Khamenei, attends a gathering in Tehran on March 2, 2016. Iran marked the appointment of Ayatollah Mojtaba Khamenei to replace his father as its supreme leader with a barrage of missiles against Israel and the Gulf states [File: Rouhollah Vahdati/ISNA via AFP]

What do the US and Israel say about ending the war?

There have also been conflicting messages from the Trump administration and Israel regarding when the war mission on Iran, codenamed Operation Epic Fury, is likely to end.

Trump told US publication Axios on Wednesday that the war on Iran would end “soon” because there’s “practically nothing left to target”.

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“Anytime I want it to end, it will end,” he added. He had said earlier on Monday that “we’re way ahead of our schedule” and that the US had achieved its goals, even as speculation mounts about a possible US ground mission.

On the other hand, Israel’s Defence Minister Israel Katz said on Wednesday that the war would go on “without any time limit, for as long as necessary, until we achieve all the objectives and decisively win the campaign”.

Analysts say Trump’s stance that the conflict will be quick reflects increasing pressure on his administration ahead of upcoming mid-term elections in November.

Trump’s advisers privately told him this week to find a quick end to the war and avoid political backlash, according to reporting by The Wall Street Journal. That came as polls from Quinnipiac University and The Washington Post suggested that most Americans are opposed to the war in Iran.

In his 2024 presidential campaign, Trump promised to lower prices, and inflation had stabilised at 2.4 percent ahead of the war, according to government data released on Wednesday. Analysts speculate the conflict will likely push it back up.

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The US spent more than $11.3bn in the first six days of the war, Pentagon officials told lawmakers in a classified briefing on Tuesday, Reuters reported this week – nearly $2bn a day.

The Washington-based think tank, Center for Strategic and International Studies (CSIS), estimated that the war cost Washington $3.7bn in its first 100 hours alone, or nearly $900m a day, largely due to its expenditure on costly munitions.

“It’s quite ironic that [Trump] chose a war that would make affordability worse, not better,” Rebecca Christie, a senior fellow at the Bruegel think tank, told Al Jazeera’s Counting the Cost.

“Every time the US loses even one object, air defence or a plane or something like that, that represents an awful lot of money that could have been used on some of these issues that have an impact on people’s day-to-day lives in the United States.”

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Anthropic pledges $200 million to research AI’s economic impact as CEO suggests job loss solutions

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Anthropic pledges 0 million to research AI’s economic impact as CEO suggests job loss solutions

Anthropic on Wednesday joined growing calls for the artificial intelligence industry to find ways to cushion people from the technology’s disruptions, announcing an initial $200 million investment to research AI’s impact on jobs and the economy.

Alongside new policy proposals from the maker of the Claude chatbot, Anthropic CEO and co-founder Dario Amodei published an essay on his personal website that expanded on his position that the government should promise economic support for those financially impacted by AI. The technology could produce much larger disruptions to the labor market than previous technological advancements, Amodei wrote, and those disruptions could last longer.

“The key challenge in such a world won’t be incentivizing growth, but finding a way for everyone to share in the benefits,” Amodei wrote.

The announcement comes on the heels of Anthropic rival OpenAI on Monday outlining goals that included ensuring gains from the technology are “widely shared.” OpenAI CEO Sam Altman recently met with Sen. Bernie Sanders to discuss a plan for the public to take an ownership stake in artificial intelligence companies like OpenAI, using their stock to create a public wealth fund that would spread the fortune generated by AI behemoths.

In the Oval Office on Wednesday, President Donald Trump told reporters that he will soon meet with executives from several leading AI companies to discuss “giving back” to the public.

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“We’re talking about giving back something to the public, and if we do that, the ⁠public will become very rich,” Trump said. “I think they’ll do that, and I think it’ll make it very popular.”

In his essay, Amodei said he has warned of job displacement not because he is “trying to be a ‘prophet of doom’” but because he wants “both policymakers and the private sector to have the best chance to adapt and respond.” He proposed better data collection to track AI job displacement, pro-employment policy incentives to slow or reduce displacement and “mechanisms such as universal basic income” if job displacement more permanently drives down labor demand.

That universal basic income could be financed through taxes on “relevant companies” or by raising the capital gains tax, Amodei wrote.

Scant details were available Wednesday about the $200 million commitment from Anthropic, but the company said it will go to what it calls an Economic Futures Research Fund that will back research trials and “program evaluation” on public policies it deems promising. The company is also establishing a $150 million national fellowship program it says will help early-career professionals “extend the benefits of AI to communities across America.”

Anthropic and OpenAI each recently announced they were moving toward initial public offerings of shares, following Elon Musk’s rocket company SpaceX, which is pitching itself as an AI-focused space company as it prepares to go public.

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The economic policy framework Anthropic proposed Wednesday set recommendations for how the U.S. government could respond to three levels of economic disruption caused by AI: one in which the national unemployment rate reaches 5%, 10% and an unspecified, “unprecedented” level. The latest unemployment rate, reported last week, was 4.3%.

In the “unprecedented” scenario, the company wrote that more permanent support will be necessary, and it listed several ways to generate and share revenue broadly, including basic income, sovereign wealth models and equity-sharing mechanisms. This would be “novel economic territory,” the company wrote.

The company’s proposals also outlined several suggestions for mitigating safety and security risks. Anthropic is known for its emphasis on safety and building reliable, “steerable” AI systems, with Amodei and its co-founders splitting off from OpenAI to form the new company in 2021.

The proposals add that the government should be able to “block or deter” the rollout of AI models that “pose a significant risk of catastrophic harms.”

Amodei wrote that AI regulations should match the rigor of Federal Aviation Administration regulations in that AI models would be required to go through technical testing and auditing like airplanes. They wouldn’t be released if they didn’t meet high safety standards.

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Last week, Trump signed an executive order on AI oversight that established a framework for the government to vet the national security risks of the most advanced AI systems for up to a month before their public release.

Amodei added existing regulations for aircraft, automobiles and drugs should serve as models for regulating AI. They are all “powerful technologies essential to the modern economy,” he wrote, “but capable of killing large numbers of people if designed or operated poorly.”

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UK spy powers draw US scrutiny over alleged Apple encryption backdoor demand

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UK spy powers draw US scrutiny over alleged Apple encryption backdoor demand

NEWYou can now listen to Fox News articles!

U.K. surveillance laws drew scrutiny from House Judiciary Committee Chairman Jim Jordan, R-Ohio June 5 amid warnings they could expose communications of officials and American citizens, according to reports.

The concern centered on the U.K.’s use of secret Technical Capability Notices under the Investigatory Powers Act, which critics say could make U.S. companies weaken encryption or create “backdoors” weaken encryption or create “backdoors” while preventing firms from disclosing requests without U.K. government approval.

Critics have argued this could undermine privacy, create vulnerabilities and limit congressional oversight with one former intelligence official warning of a “standing invitation to Beijing.”

“We have already seen how this ends,” former Department of Defense official Andrew Badger told Fox News Digital.

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JD VANCE ‘DIRECTLY’ CONVINCED UK TO DROP APPLE BACKDOOR DATA DEMAND, PROTECTING AMERICANS’ RIGHTS: US OFFICIAL

Rep. Jim Jordan said Republicans are “the party of common sense,” and Democrats are “the party that takes these crazy positions.” (Kevin Dietsch/Getty Images)

“There are legitimate privacy concerns here, and those have been well aired. The less examined issue is national security,” Badger said.

“A backdoor compelled by one ally becomes a standing invitation to Beijing, Moscow and Tehran so once one government can quietly compel access, others will demand the same, and a one-off concession hardens into a permanent vulnerability,” he warned.

According to the Telegraph, a June 5 letter sent by Jordan to U.K. Home Secretary Shabana Mahmood, showed the Trump ally had called for a review.

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The report said Mahmood’s decision had been to deny a U.S. company permission to speak with Congress about an alleged encryption backdoor notice.

Jordan was also said to have warned that a lack of bilateral coordination raised concerns about the “trust and effective partnership between our two countries.”

“Five Eyes works because every partner trusts the others not to weaken the systems they all depend on,” Badger, co-author of “The Great Heist: China’s Epic Campaign to Steal America’s Secrets,” said.

“If Washington also concludes that U.K. surveillance powers could inadvertently expose Americans and American officials to espionage, it puts real strain on the relationship and makes future cooperation on intelligence and cyber harder to sustain.”

US SPIES URGED TO REFOCUS EFFORTS ON AMERICA’S BACKYARD, NEW HOUSE INTEL CHAIR SAYS

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The Thames House headquarters of MI5 in London on Nov. 18, 2025. Britain’s domestic security service has warned of growing state-backed threats, including more than 20 Iran-backed plots uncovered in the UK, as lawmakers consider new legislation targeting foreign state-linked groups. (Betty Laura Zapata/Bloomberg via Getty Images)

On the encryption issue, Badger noted that mainstream encrypted platforms now function as “de facto infrastructure for sensitive communication well beyond the consumer market.”

“Any access point built into them becomes a permanent target. It is not a private key the requesting government gets to keep to itself,” he said.

U.S. and British cyber officials have also repeatedly warned that an axis of hostile states — including Russia, China and Iran — poses threats to Western security and infrastructure.

As previously reported by Fox News Digital, cyberespionage by groups such as Salt Typhoon, linked to China, has carried out operations targeting sensitive communications.

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“China is actively running one of the largest state-backed cyberespionage operations ever uncovered. The Salt Typhoon campaign has targeted hundreds of organizations across roughly 80 countries and, through those intrusions, gained access to sensitive communications and networks used by senior Western officials,” Badger warned.

“Chinese state hackers didn’t defeat encryption. They walked straight through the lawful-intercept systems telecom providers had built, reaching the communications of senior officials and even information about surveillance targets.”

CHINESE BIOWEAPON SMUGGLING CASE SHOWS US ‘TRAINS OUR ENEMIES,’ ‘LEARNED NOTHING’ FROM COVID: SECURITY EXPERT

The flag of China is flown behind a pair of surveillance cameras outside the Central Government Offices. (Roy Liu/Bloomberg via Getty Images)

Reports also surfaced that U.K. Foreign Secretary Yvette Cooper used a burner phone during a recent trip to Beijing and raising further concerns about state-sponsored espionage.

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Badger noted that the episode reflects a broader pattern of Chinese targeting of British democratic institutions, including the “hacking of senior Downing Street officials’ phones and an Electoral Commission breach that exposed the data of roughly 40 million voters,” he said.

“The telling thing is that no one issues burner phones for a trip to Sweden or Germany,” he said.

“The precaution is itself an admission of the threat environment. The working assumption — correctly — is that anything digital taken into China should be treated as potentially compromised.”

The systemic vulnerability also highlights a fundamental contradiction in Western diplomatic strategy, according to Badger.

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“This case perfectly underscores the contradiction at the heart of the U.K. Labour government’s China policy: chasing positive economic relations and expanded trade with Beijing on one hand, while being forced to take elaborate precautions against a state whose core interests remain fundamentally at odds with its own on the other,” Badger said.

“You can’t simultaneously treat China as a trusted economic partner and a hostile intelligence threat. It’s a fundamental contradiction. The need to use burner phones symbolically underscore this.”

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Trade and defence top of agenda at EU-South Korea summit

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Trade and defence top of agenda at EU-South Korea summit

European Commission President Ursula von der Leyen, European Council President Antonio Costa and with South Korean President Lee Jae-myung celebrated the signing of new a digital trade agreement at a ceremony in Brussels on Wednesday.

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The event marked the EU and South Korea’s 11th summit, with everything from security and defence to trade on the agenda.

“Korea is one of Europe’s closest partners in the Indo-Pacific region and on the global stage,” von der Leyen said. “In today’s uncertain world, stable and trusted partnerships like ours are more precious than ever.”

The trio released a joint statement extolling the value of the talks and committing the two sides to a firm and friendly relationship.

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“We reaffirm our shared commitment to effective multilateralism, and to a stable and predictable rules-based free and fair economic order,” the statement reads.

The semiconductor factor

Both sides have an interest in diversifying their trade relationships at a time of growing tensions with both China and the US, and the EU-South Korea digital trade agreement comes more than a decade after a landmark free trade deal.

Since 2015, trade between the EU and South Korea has doubled, with goods trade reaching approximately €124.25 billion in 2025, according to figures from the European Commission.

“The European Union-Korea Free Trade Agreement remains one of the European Union’s most successful trade agreements since its entry into enforcement in 2011,” European Council António Costa said on Wednesday.

South Korea is becoming an increasingly important investor in Europe, particularly in strategic sectors such as batteries, electric vehicles and semiconductors.

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For the EU, a key objective is to secure semiconductor supply chains while attracting further investment from Korean companies into Europe.

“Korea has a global leadership position in semiconductors,” an EU official said. “This is clearly an area with significant potential for cooperation that would benefit both sides.”

The digital trade agreement concluded on Wednesday is expected to complement the broader trade partnership by reducing “unnecessary barriers to digital trade” and providing greater “legal certainty” for businesses operating across the two markets, according to another EU official. It will facilitate cross-border data flows while prohibiting the mandatory transfer of source code.

The deal is also designed to establish robust online consumer protection rules, though both partners intend to maintain their respective levels of protection for personal data and privacy.

Economic security was also high on the summit agenda, with the two sides agreeing to establish a high-level dialogue on supply chain resilience.

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Supply chains came under pressure last year following China’s restrictions on exports of strategic materials, including rare earths – essential for green technologies and the defence sector – as well as products linked to the chip industry, which are critical to automotive manufacturing.

Security and defence

One thing that did not get over the line was a security of information agreement, which had been touted by EU officials prior to the summit as a means of strengthening the flow of classified information between Brussels and Seoul.

“I hope that the security of information agreement will be adopted soon, so that Korea and the EU can share confidential information safely, which will allow the two sides to engage in industrial and research cooperation actively through information exchange exchange,” President Lee said on Wednesday.

The agreement would build on the Security and Defence Partnership agreement that South Korea and the EU signed in 2024. That deal was designed to facilitate cooperation in areas spanning maritime security, countering hybrid threats, fighting foreign information manipulation and interference, and more besides.

In the run-up to this week’s talks, a senior EU official said a key topic of the discussions will be nuclear non-proliferation, as North Korea continues to hold a small but concerning stockpile of nuclear-armed warheads.

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North Korea (the DPRK) and Russia were considered “big questions” at the summit, the source said, with Brussels ready to share information on its support for Ukraine with Seoul.

The joint statement from the summit reiterates this, with words of condemnation directed at North Korea and other nations who enable Russia to sustain its war of aggression against Ukraine.

“We urge Russia and the DPRK to immediately cease all such activities and abide by the UN Charter and all relevant United Nations Security Council resolutions,” the statement reads.

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