Iran and the United States failed to strike a deal yesterday to end the war in the Middle East, but there was no immediate return to hostilities, and the region clung to hope that a fragile truce would hold.
US Vice President JD Vance left Pakistan after the talks – the highest-level meeting between the two sides since the 1979 Islamic Revolution – and warned that Washington had made Tehran its “final and best offer” for a deal, AFP reported.
“We leave here with a very simple proposal,” he said. “We’ll see if the Iranians accept it.”
Meanwhile, Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, said his negotiating team “put forward constructive initiatives, but ultimately the other side was unable to gain the trust of the Iranian delegation in this round of negotiations”.
The failure of the talks will raise concerns that a return to fighting could drive world energy prices higher and further damage shipping and oil and gas facilities in the Gulf.
But Saudi Arabia’s energy ministry said yesterday its key east-west oil pipeline was back in service after it was damaged in earlier strikes, and Qatar’s transport ministry said it was lifting some restrictions on Gulf shipping.
Pakistan, which hosted the talks and whose leadership had ushered the rival sides to the table, said it would keep facilitating dialogue and urged both countries to continue respecting the temporary truce.
“It is imperative that the parties continue to uphold their commitment to a ceasefire,” Pakistani foreign minister Ishaq Dar said.
Namibia
As the war in the Middle East rages on, with new Israeli strikes on Lebanon that have killed over 300 civilians, Namibia’s latest fuel price hikes, N$2.50 per litre for petrol and a steep N$4.00 per litre for diesel, continue to send fresh tremors through the economy.
The situation has raised red flags over a looming inflation spike that could erode household purchasing power and strain already fragile business margins. With transport accounting for roughly 14% of Namibia’s consumer basket, economists warn the increases are not merely a direct cost burden for motorists but a powerful inflationary trigger capable of cascading across the entire economy.
“The main transmission belt is through higher fuel prices and, hence, increased pressure on transportation costs,” commented local economist Klaus Schade. “This can in particular affect the transportation of goods over long distances, for instance from South Africa.”
What makes the domestic economy particularly vulnerable is Namibia’s historic and structural dependence on imports, particularly from neighbouring South Africa. This means higher fuel costs quickly translate into rising prices for food, construction materials, and consumer goods. Logistics operators, already grappling with thin margins, are expected to pass on increased diesel costs to clients, amplifying inflationary pressures across the entire supply chain.
The diesel price hike, in particular, poses a disproportionate threat. Diesel powers freight transport, agriculture, and mining, which are key sectors underpinning the domestic economy. As these industries absorb higher input costs, consumers are likely to feel the pinch through rising prices on supermarket shelves and service bills.
However, Schade notes that the extent of the inflationary impact will depend heavily on how long elevated fuel prices persist.
“Since a ceasefire was agreed upon, oil prices have dropped, and fuel prices might follow slowly as well,” he said. “Prices not only depend on the reopening of the Strait of Hormuz but also on the damages caused to oil infrastructure in the region.”
In the immediate term some businesses have indicated they will hold prices steady, at least temporarily, in an effort to retain customers and absorb part of the shock.
“The impact on inflation very much depends on the response of transport operators and their clients,” Schade said.
Despite short-term mitigation measures, the current fuel price shock has once again exposed Namibia’s deep vulnerability to global energy markets. Even potential future oil production or refining capacity in Namibia would not insulate the country from international price dynamics.
“Even if Namibia exploits its own oil reserves and invests in an oil refinery, prices would still be determined by global oil prices,” Schade cautioned.
The current global energy crisis is increasingly being viewed as a catalyst for structural domestic reform, particularly in the energy and transport sectors. Economists argue that Namibia must accelerate investment in renewable energy and reduce its reliance on imported fossil fuels.
“Overall, the oil price shock and supply disruptions should be a wake-up call,” Schade stressed, suggesting that “Namibia needs to move towards e-mobility and the use of green hydrogen.”
He pointed to urban transport systems, such as public buses, delivery fleets, and emergency vehicles, as low-hanging opportunities for electrification.
-Additional reporting by Nampa/AFP