The Iran-Israel war entered its third week on March 16, 2026, with fresh diplomatic overtures, military tensions, and economic ripple effects continuing to unsettle West Asia and global markets.
U.S. President Donald Trump confirmed that Washington is engaged in direct discussions with Tehran aimed at ending the conflict. Speaking aboard Air Force One, he said, “Yes, we’re talking to them,” but cautioned that Iran was “not ready” for a deal, though he added that the sides appeared to be “getting pretty close.”
Trump also accused Iran of weaponising artificial intelligence to spread disinformation about its battlefield performance and alleged that some Western media outlets were coordinating with Tehran—without offering evidence—to circulate AI-generated “fake news.” He warned, “AI can be very dangerous, we have to be very careful with it.”
On the economic front, Iran’s effective closure of the Strait of Hormuz has driven oil prices sharply higher and disrupted international shipping. Trump is actively seeking to form a coalition of nations to reopen the vital waterway and indicated he hopes to announce progress later this week. Reports suggest he is even considering the seizure of Iran’s Kharg Island oil terminal as one option to restore flow. He has pressed about seven countries to deploy warships for protection duties but has so far received no firm commitments.
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The U.S. president further warned that NATO faces a “very bad” future if its European allies fail to assist in reopening the strait.
In Tokyo, Japanese Prime Minister Sanae Takaichi told parliament that Japan has made no decision to send naval escort vessels to the region, despite Trump’s calls for allies to safeguard tankers. “We are continuing to examine what Japan can do independently and what can be done within the legal framework,” she said.
Indian External Affairs Minister S. Jaishankar described direct talks with Iran as the most effective route to resume shipping through the strait. In an interview with the Financial Times, he stressed there was no “blanket arrangement” in place for Indian-flagged vessels.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu released a video of himself casually drinking coffee and speaking with an aide, explicitly aimed at dispelling rumours—amplified by Iranian state media and social platforms inside Iran—that he had been killed or wounded.
Earlier in the day, Dubai International Airport temporarily suspended flights after a drone incident sparked a fire in the vicinity. The Dubai Civil Aviation Authority described the move as a precautionary step to ensure passenger and staff safety, according to a statement shared on X by Dubai’s media office.
The developments reflect the complex interplay of military pressure, diplomatic manoeuvring and economic stakes as the conflict between Iran and Israel continues, with the United States attempting to balance negotiations and coalition-building efforts.
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