Pakistan’s Prime Minister Shehbaz Sharif has extended the countrywide austerity drive till June 13, 2026 in the wake of uncertainty caused by the U.S. and Iran’s failure to strike a deal to end the conflict in West Asia amid a fragile ceasefire.

The government announced several measures on March 9, 2026 following the disruption in the energy supplies after the U.S. and Israel launched an attack against Iran on February 28. The austerity measures were initially announced for two months.

Also Read: Updates onIran-Israel war

According to a notification issued by the Cabinet division of the government on Monday (May 11, 2026), it has been decided to extend the same for more than a month after U.S. President Donald Trump on Sunday (May 10, 2026) rejected Iran’s proposal to end the months-long war, calling it “totally unacceptable.”

“The Prime Minister, on consideration of the recommendations of the committee for monitoring and implementation of fuel conservation and additional austerity measures, has been pleased to extend the applicability of the following additional austerity measures up till 13th June, 2026, with immediate effect,” it read.

Among the key measures, the government had announced a 50% reduction in fuel allowance for official vehicles, with the exemption of operational vehicles such as ambulances and public buses.

Other steps included the grounding of 60% of official vehicles and a complete ban on foreign visits, excluding those as specified the last time, which were deemed essential for the country’s interests.

Pakistan is highly dependent on oil supplies from West Asia, and the Iran war choked the key supply line for the country, making it impossible to run the national affairs as per routine.

Despite the austerity drive in place, Pakistan had to jack up the prices of fuel, making it one of the costliest countries for petroleum products. 

The ongoing conflict, triggered by the U.S. and Israel’s joint strikes on Iran and Tehran’s subsequent retaliation, has remained under a ceasefire since April 8. Islamabad hosted one round of direct talks between Iran and the U.S. on April 11, but the two sides failed to reach an agreement.

The Strait of Hormuz and Iran’s nuclear enrichment programme remain key sticking points in the negotiations. On April 21, Mr. Trump indefinitely extended the ceasefire beyond its two-week deadline to allow more time for negotiations with Tehran.

The latest developments come at a time when the United Arab Emirates and Kuwait have reported drone incursions into their airspace, while a drone strike caused a minor fire aboard a commercial vessel near Qatar’s coast, testing the ceasefire.

U.S. President Donald Trump warned Iran on Thursday (February 19, 2026) that it must reach a ‌deal over its nuclear program or “bad things” will happen, and appeared to set a 10-day deadline ​before the U.S. might take action.

Amid a massive U.S. military buildup in the West Asia ⁠that has fueled fears of a wider war, Mr. Trump said negotiations with Iran were going well but insisted Tehran has to reach a “meaningful” agreement.

“Otherwise bad things happen,” Mr. Trump, who has repeatedly threatened to attack Iran, told the first meeting of his Board of Peace ‌in Washington.

Trump spoke of the U.S. airstrikes carried out in June, saying Iran’s nuclear potential had been “decimated,” adding “we may have to take it a step further or we may not.”

“You’ll be finding ‌out over the next probably 10 days,” he said, without elaborating.

‘Good talks’: Trump

U.S. threats to bomb Iran, with ‌the ⁠two sides far apart in talks on Tehran’s nuclear programme, have pushed up oil prices, and ⁠a Russian corvette warship on Thursday (February 19, 2026) joined planned Iranian naval drills in the Gulf of Oman, a vital sea route for global energy.

Iranian and U.S. negotiators met on Tuesday and Iranian Foreign Minister Abbas Araqchi said they had agreed on “guiding principles.” White House press secretary Karoline Leavitt said on ​Wednesday (February 18, 2026), however, that the two sides remained apart ‌on some issues.

Mr. Trump said “good talks are being had,” and a senior U.S. official said Iran would make a written proposal on how to address U.S. concerns.

Mr. Trump called on Tehran to join the U.S. on the “path to peace.”

“They can’t have a nuclear weapon, it’s very simple,” he said. “You can’t have peace in the Middle East if they ‌have a nuclear weapon.”

Iran has resisted making major concessions on its nuclear programme, though insisting it is ​for peaceful purposes. The U.S. and Israel in the past have accused Tehran of trying to develop a nuclear bomb. Earlier on Thursday (February 19, 2026), Russia warned against an “unprecedented escalation of tension” around Iran and urged restraint amid the U.S. military buildup in the region, which a senior American official said should be complete by mid-March.

Threat of war

Mr. Trump has sent aircraft carriers, warships and jets to the region, raising the prospect of another ‌attack on the Islamic Republic. The United States and Israel bombed Iran’s nuclear facilities and some military sites last June. U.S. Secretary of State Marco Rubio will meet Israeli Prime Minister Benjamin Netanyahu to discuss Iran on February 28, the senior U.S. official said.

Washington wants Iran to entirely give up uranium enrichment, a process used to create fuel for atomic power plants but that can also provide material for a warhead.

The U.S. and ally Israel also want Iran to give up long-range ballistic missiles, stop supporting groups around the West Asia and stop using force to quell internal protests.

Iran ‌says it refuses to discuss issues beyond the atomic file, calling efforts to limit its missile arsenal a red line. Satellite pictures have ​tracked both Iranian work to repair and fortify sites since last summer, showing work at both nuclear and missile sites, as well as preparations at U.S. bases across the West Asia over the ⁠past month.

Iran’s joint exercise with Russia came days into an extended series of Iranian naval drills in the Gulf of ⁠Oman, with Iranian state television showing special forces units deployed on helicopters and ships.

In a sign of growing concern over the increased tensions, Poland on Thursday (February 19, 2026) became the latest European country to urge its citizens to ‌leave Iran, with Prime Minister Donald Tusk saying Poles may only have hours to evacuate. Mr. Trump began threatening strikes on Iran again in January as Iranian authorities crushed widespread protests with deadly violence that left thousands dead ​across the country.

Tensions remained high in West Asia on Thursday (February 19, 2026) as the U.S. continued to bolster its military presence in the region, Iran conducted naval drills along with Russia in the Persian Gulf and Supreme Leader Ayatollah Ali Khamenei indirectly urged Iranians to resist any external aggression.

“There are many reasons and arguments that one could make for a strike against Iran,” White House Press Secretary Karoline Leavitt said in Washington, adding that “Iran would be very wise to make a deal with President Trump.”

U.S. media reported on Wednesday (February 18, 2026) that President Donald Trump would decide whether to strike Iran or not as soon as this weekend. The U.S. has deployed one aircraft carrier and dozens of fighter jets, warships, guided destroyers, fuel tankers and missile defence systems to the region. A second aircraft carrier is expected to reach the Mediterranean Sea next week.

Iran’s Supreme Leader Ayatollah Ali Khamenei posted a verse from Quran in social media on Wednesday (February 18, 2026), indicating that an attack could be imminent and urging Iranians to resist. “So should anyone aggress against you, assail him in the manner he assailed you,” it read.

The Islamic Revolutionary Guard Corps (IRGC) announced on Wednesday (February 18, 2026) that Iranian and Russian forces have successfully carried out a mock operation to rescue a hijacked vessel during combat naval drills near the Bandar Abbas port in the Persian Gulf. This is the second live-fire drill IRGC is carrying out since tensions between the U.S. and Iran spiked last month.

Iran and the U.S. held a second round of talks on February 17, 2026 in Geneva under Oman’s mediation. Iran’s Foreign Minister Abbas Aragchi had said both sides had made “progress” in talks and agreed on “guiding principles” for future talks. But the Americans were less optimistic. Vice-President J.D. Vance said in an interview that “gaps remain” between the two sides.

Iran has said it would negotiate only about its nuclear programme, while the U.S., according to Secretary of State Marco Rubio, wants to put Iran’s missile programme and its support for regional non-state allies also on the agenda. The U.S. also wants Iran to end uranium enrichment completely.

Mohammad Eslami, head of the Atomic Energy Organisation of Iran, said on Wednesday (February 18, 2026) that Iran would not abandon its right to nuclear enrichment. ”Iran’s nuclear programme is proceeding according to the rules of the International Atomic Energy Agency, and no country can deprive Iran of the right to peacefully benefit from this technology,” Mr. Eslami said at an event in Tehran, according to state media.

In June, the U.S. joined Israel to attack Iran’s nuclear facilities. Mr. Trump then claimed that the U.S. “obliterated” Iran’s nuclear programme. Mr. Trump last month threatened to use force amid protests in the country. He later asked Iran to make a deal over its nuclear programme or face “profound consequences”.

Iran has said it was not seeking to build a bomb, but has ruled out giving up its nuclear programme entirely.

“The complexity of nuclear technologies is extremely high, and their equipment and infrastructure are not easily obtainable, particularly under conditions where supply routes are tainted by Zionist infiltration and sabotage,” Mr. Eslami noted. “For this reason, Iran was compelled to create the entire chain of research, design, construction, testing, and technological maturation internally; a path that has now borne fruit,” he added.

Iran will treat any attack “as an all-out ‍war against us,” a senior Iranian official said ​on Friday (January 23, 2026), ahead of the arrival of ‌a U.S. military aircraft carrier strike group ​and other assets in the Middle East in the coming days.

“This military buildup – we hope it is not intended for real confrontation – but our military is ready for the worst-case scenario. This is why everything is on high ​alert in Iran,” said the senior Iranian official, ⁠speaking on condition of anonymity.

“This time we will treat any attack – limited, unlimited, surgical, kinetic, whatever they call it – as ​an all-out war against ⁠us, and we will respond in the hardest way possible to settle this,” the official said.

U.S. President Donald Trump said on Thursday ‌(January 22, 2026) that the United States had an “armada” heading toward ‌Iran but hoped he would not have to use it, as he renewed ‍warnings to Tehran against killing protesters or restarting its nuclear program.

“If the Americans violate Iran’s ‍sovereignty and territorial integrity, we will respond,” said the Iranian official. He declined to specify what an Iranian response might look like.

“A country under constant military threat from the United States has no option but to ensure that everything at its disposal can be used to push back and, ⁠if possible, restore balance against anyone who dares to attack Iran,” the official said.

The U.S. ​military has in the past periodically sent increased forces ⁠to the Middle East at times of heightened tensions, moves that were often defensive. However, the U.S. military staged a major buildup last year ahead of its June strikes ⁠against Iran’s nuclear program.

Mobile phones in Iran were able to call abroad on Tuesday (January 13, 2026) after a crackdown on nationwide protests in which the internet and international calls were cut. Several people in Tehran were able to call The Associated Press and speak to a journalist there. The AP bureau in Dubai, United Arab Emirates, was unable to call those numbers back.

Iranians said, “text messaging appeared to remain down, and witnesses said the internet remained cut off from the outside world.” Iran cut off the internet and calls on Thursday (January 8, 2026) as protests intensified.

U.S. President Donald Trump has said that Iran wants to negotiate with Washington after his threat to strike the Islamic Republic over its crackdown on protesters that activists said had killed at least 646 people.

Iranian Foreign Minister Abbas Araghchi, speaking to the Qatar-funded satellite news network Al Jazeera in an interview aired Monday (January 12, 2026) night, said he continued to communicate with US envoy Steve Witkoff.

The communication “continued before and after the protests and is still ongoing,” Araghchi said. However, “Washington’s proposed ideas and threats against our country are incompatible.”

White House Press Secretary Karoline Leavitt said, “Iran’s public rhetoric diverges from the private messaging the administration has received from Tehran in recent days.”

“I think the President has an interest in exploring those messages,” Ms. Leavitt said. “However, with that said, the President has shown he’s unafraid to use military options if and when he deems necessary, and nobody knows that better than Iran.”

Meanwhile, pro-government demonstrators flooded the streets Monday (January 12, 2026) in support of the theocracy, a show of force after days of protests directly challenging the rule of 86-year-old Supreme Leader Ayatollah Ali Khamenei. Iranian State television aired chants from the crowd, which appeared to number in the tens of thousands, who shouted “Death to America!” and “Death to Israel!” Others cried out, “Death to the enemies of God!” Iran’s attorney general has warned that anyone taking part in protests will be considered an “enemy of God,” a death penalty charge.

Trump imposes tariffs on Iran’s trading partners

Mr. Trump announced on Monday (January 12, 2026) that countries doing business with Iran will face 25% tariffs from the United States. Mr. Trump announced the tariffs in a social media posting, saying they would be “effective immediately.” It was action against Iran for the protest crackdown from Mr. Trump, who believes that exacting tariffs can be a useful tool in prodding friends and foes on the global stage to bend to his will.

Brazil, China, Russia, Turkiye and the United Arab Emirates are among the economies that do business with Tehran. Mr. Trump said on Sunday (January 11) that his administration was in talks to set up a meeting with Tehran, but cautioned that he may have to act first as reports of the death toll in Iran mount and the government continues to arrest protesters.

“I think they’re tired of being beaten up by the United States,” Mr. Trump said. “Iran wants to negotiate.” Iran, through the country’s Parliamentary Speaker, warned Sunday (January 11) that the U.S. military and Israel would be “legitimate targets” if Washington uses force to protect demonstrators.

More than 10,700 people have been detained over the two weeks of protests, said the U.S.-based Human Rights Activists News Agency, which has been accurate in previous unrest in recent years and gave the latest death toll early Tuesday (January 13). It relies on supporters in Iran cross-checking information. It said 512 of the dead were protesters and 134 were security force members.

With the internet down in Iran, gauging the demonstrations from abroad has grown more difficult. The Associated Press has been unable to independently assess the toll. Iran’s government hasn’t offered overall casualty figures.