EconoTicker

Israeli Defense Minister Yisrael Katz said Israel’s attacks on Iran will intensify and expand, arguing that Tehran will pay a “heavy” and rising price after continued attacks on Israeli civilians. In remarks released by his office and reflected in current reporting, Katz said the campaign would widen to additional targets and sectors that support Iran’s military capabilities.

The statement points to a new stage of escalation, with Israel indicating that future strikes will go beyond existing targets and hit more of the infrastructure linked to the development and use of weapons. The comments come amid the broader U.S.-Israeli military campaign against Iran, even as diplomatic contacts continue in parallel.

Source: Reuters; Associated Press.

Germany said it has no plans for any direct talks with the Islamic Republic بشأن granting German ships passage through the Strait of Hormuz, according to a government spokesperson. The stance suggests Berlin is not seeking a separate bilateral arrangement with Tehran at a time when maritime security in the waterway remains under heavy pressure.

The position also fits with a broader European approach that is focusing more on multilateral maritime security planning than on one-off national understandings with Iran. Reuters reported this week that France had already consulted around 35 countries, including Germany, on a possible future mission linked to restoring shipping through Hormuz after the war.

Source: Reuters.

Indirect contacts between Tehran and Washington are moving very slowly, according to a report attributed to i24NEWS, which said no meeting between officials has yet been scheduled. The report points to a diplomatic channel that remains open in theory but has yet to produce any visible breakthrough.

The broader picture from other reporting also suggests a sluggish process. Reuters reported on March 26 that a senior Iranian official said no negotiations are currently planned and that no framework for constructive talks has yet been established, even though diplomacy remains possible if the U.S. changes its approach.

Source: i24NEWS; Reuters.

Saudi Arabia said its air defenses intercepted and destroyed three drones in the Riyadh region, according to an official statement carried by the Saudi Press Agency. The announcement said debris fell near a military site, but no injuries were reported.

The incident underscores the continued security pressure on Gulf states as regional aerial threats persist, even though Saudi authorities said the latest interception did not cause casualties.

Source: Saudi Press Agency (SPA).

Ukraine is close to finalizing several security agreements, including with the United Arab Emirates and Qatar, aimed at helping those countries counter attacks linked to the Islamic Republic, according to Foreign Minister Andrii Sybiha. Reuters reported that the talks are most advanced with the UAE and Qatar, and that the planned accords focus on unmanned technologies and military cooperation.

The move reflects Kyiv’s effort to turn its wartime experience against Iranian-made drones and missile threats into a new area of defense cooperation with Gulf states. Reuters and AP both reported that Ukraine has been offering practical expertise in intercepting drones and missiles, while also deepening broader ties with regional partners amid heightened Middle East tensions.

Source: Reuters; Associated Press.

The United Arab Emirates said its air defense systems intercepted and destroyed 6 ballistic missiles and 9 drones launched from Iran on Friday, March 27. The announcement came from the UAE Ministry of Defence, which said the latest operation was part of the country’s ongoing response to Iranian attacks.

The latest interception highlights the continued pressure on Gulf air defenses as the regional war remains active. Reports citing the ministry said that, since the start of the attacks, the UAE has intercepted 378 ballistic missiles, 15 cruise missiles, and 1,835 drones.

Source: UAE Ministry of Defence.

Traffic through the Strait of Hormuz is showing early signs of improvement after a period of sharp disruption linked to the Iran war. President Donald Trump said Iran had allowed 10 oil tankers through the waterway as a goodwill gesture during talks, while shipping estimates cited by market reports suggest outbound flows have indeed picked up in recent days. Morgan Stanley estimated that 12 vessels transited the Strait from March 23 to March 26, up from only three vessels during the prior four-day period.

Even with that rebound, the energy market remains on edge. Barclays said the Iran war has created the largest geopolitical shock to energy markets since the 1990 Gulf War, warning that a prolonged disruption in Hormuz could remove 13–14 million barrels per day from global oil supply. The bank said flows may normalize by early April, but only if the conflict does not intensify again.

Source: Reuters; Barclays; Morgan Stanley estimates cited in market reporting.

Shortly after the Wall Street close, President Donald Trump said in a social media post that he was extending the suspension of U.S. attacks on Iran’s energy infrastructure by 10 days, saying the move came at the request of the Iranian government. Reuters reported that the pause now runs until April 6, even as broader fighting and diplomatic uncertainty continue.

The announcement suggests Washington is still keeping a diplomatic window open, despite mixed signals over whether meaningful talks are actually underway. That pause on energy-related strikes has remained a key market focus because of its direct implications for oil supply risk and the wider inflation outlook.

Source: Reuters.

The Pentagon is weighing a supplemental funding request of roughly $200 billion to sustain the war effort, according to Reuters, highlighting the growing financial burden of the conflict and the possibility of a difficult fight in Congress over new defense spending.

The debate also underscores a broader strategic problem for Washington. The 2026 National Defense Strategy makes the Indo-Pacific a central priority and explicitly places deterring China at the core of U.S. defense planning. A prolonged Middle East war risks consuming attention, munitions, and political capital that Washington says it needs for its long-term competition with Beijing.

In the strategy document, the Defense Department describes deterring China in the Indo-Pacific as one of its main lines of effort, reflecting the view that Beijing remains the most important long-run challenge to U.S. power. That tension between an urgent Middle East conflict and a longer-term China-centered strategy is now becoming harder to ignore.

Source: Reuters; U.S. Department of Defense — 2026 National Defense Strategy.

France said its top military official held talks on Thursday with about 35 countries on a possible mission to help reopen the Strait of Hormuz after the U.S.-Israeli war against Iran ends, highlighting deep concern that threats to shipping could continue even after active fighting subsides. Reuters reported that the discussions were led by Fabien Mandon, chief of staff of the French armed forces, in a mass video conference with countries from all continents.

According to the French defense ministry, the initiative is independent of current military operations and strictly defensive, aimed at organizing the return of commercial shipping through Hormuz once hostilities have ceased. The move reflects growing Western concern that Iran could keep pressuring the waterway even after the war, especially as shipping through the strait has already slowed sharply.

France did not identify the 35 countries involved, but Reuters said Paris and London are among the governments taking a leading role in early planning for a future maritime security effort.

Source: Reuters; French Defense Ministry.

Videos circulating on social media appear to show Iranian Americans placing lion-and-sun flags on streets surrounding the venue of the Conservative Political Action Conference (CPAC) in Texas, in a visible show of support ahead of Reza Pahlavi’s appearance.

The display comes as CPAC USA 2026 is being held from March 25 to 28 at the Gaylord Texan Resort & Convention Center in Grapevine, near Dallas, and CPAC has officially listed Reza Pahlavi as one of its confirmed speakers. The scene highlights how parts of the Iranian diaspora in the United States are using the event to project opposition symbolism and public backing around a high-profile conservative gathering.

Source: Social media videos; CPAC official website.

U.S. President Donald Trump said the pause on potential U.S. strikes against Iran’s energy infrastructure has been extended by 10 more days, saying the move came after a request from the Iranian side and amid what he described as productive diplomacy. Multiple current reports say the new deadline runs to April 6, 2026; that corresponds to 17 Farvardin 1405, not 18 Farvardin.

Trump also said negotiations are ongoing and claimed they are progressing well, even as public messaging from Tehran has remained far more skeptical about the existence or nature of any talks. The extension signals a temporary opening for diplomacy, while leaving military pressure on the table if the current window fails to produce results.

Source: Axios; AP; Wall Street Journal; Reuters.