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Middle East crisis live: US and Iranian envoys arrive in Islamabad for conditional peace talks | US-Israel war on Iran

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Interim summary

For those of you just joining us, welcome to our live coverage of events in the Middle East with talks between Iranian and US officials scheduled to begin in Islamabad. Stay tuned here for all the updates – but first, a quick recap.

  • The US delegation has touched down ahead of high-stakes talks with the United States on Saturday, joining Iran’s delegation which had arrived earlier. The US side is led by the vice-president, JD Vance, alongside the special envoy, Steve Witkoff and Jared Kushner.

  • Iran’s delegation is headed by the powerful parliamentary speaker Mohammad Bagher Ghaliba, reportedly accompanied by Abbas Araghchi, Iran’s foreign minister; Ali Akbar Ahmadian, secretary of Iran’s defence council; Abdolnaser Hemmati, governor of Iran’s central bank; and several members of the Iranian parliament. Ghalibaf said earlier on Friday that two previously agreed measures – a ceasefire in Lebanon and the release of Iran’s blocked assets – “must be fulfilled before negotiations begin”. Israel and the US have denied that the ceasefire extends to Lebanon.

  • The planned talks come as Trump threatened fresh strikes if talks fail, adding that the Iranians “have no cards” and the only reason they are alive “is to negotiate”. Trump told the New York Post that the US is loading its warships with the “best weapons” in case talks with Tehran fail. “And if we don’t have a deal, we will be using them and we will be using them very effectively,” he said.

  • Meanwhile, Lebanon and Israel have agreed to meet in Washington on Tuesday to discuss a ceasefire and to set a date to begin talks. The conversation on Tuesday will be mediated by the US and take place at the state

  • Lebanon’s health ministry has updated the death toll from Israel’s most brutal strikes on the country in years on Wednesday to 357 killed. It brings the total killed in Lebanon since Israel renewed its offensive on 2 March to more than 1,953 people. The number of people wounded stands at 6,303, the health ministry added.

  • US intelligence reports that China is preparing to send new air defence systems to Iran over the new few weeks, CNN reports, citing anonymous sources. The US state department, White House and Chinese embassy in Washington did not immediately respond to requests for comment from Reuters.

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Shah Meer Baloch

In an address to the nation before the talks, Pakistani prime minister Shehbaz Sharif said the upcoming US-Iran talks in Islamabad were “make or break,” warning the next phase will determine whether a lasting ceasefire can be secured.

An Iranian delegation led by speaker Mohammad-Bagher Ghalibaf landed in Islamabad on Friday night, with Pakistani jets escorting the Iranian planes as they entered the country’s airspace. Pakistan’s army chief, Asim Munir, and foreign minister, Ishaq Dar, received the Iranian delegation led by Ghalibaf.

Ghalibaf said in a statement after reaching Islamabad: “Iran has come in good faith, but doesn’t trust the US. Iran is ready for an agreement if the US presents a genuine deal and recognises Iran’s rights.”

A statement by the foreign minister, Dar, expressed hope for constructive talks. Dar said Pakistan would continue to facilitate sustainable and long-lasting solution between the parties. He said he hoped the both parties would engage in constructive talks.

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European stock markets hit record high and oil price falls to three-month low after US-Iran peace deal – business live | Business

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European stock markets hit record high

European stock markets have hit a record high at the start of trading, as relief over the US-Iran peace deal ripples across global markets.

The pan-European Stoxx 600 index has jumped by 0.9% to 639 points, over the previous record high set just before the Iran war started, with shares rising in London, Frankfurt, Paris, Madrid and Milan.

Mining and travel companies are driving the rally, while oil company shares are sliding.

That follows sharp gains in Asia-Pacific markets overnight, where Japan’s Nikkei surged by 5% on hopes that the strait of Hormuz will reopen within days.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, says global equity markets are starting the week firmly on the front foot after President Trump announced that a deal with Iran had been reached, adding:

double quotation markThe move has given investors a clear reason to dial back some of the geopolitical risk premium that has hung over markets, especially as the Strait of Hormuz is expected to reopen and oil prices move sharply lower.

Energy prices have been one of the clearest transmission channels from Middle East tensions into inflation, bond yields and equity sentiment, and there is likely to be a concerted effort to get prices down even further once this deal is finalised.

There are still details to be ironed out before markets can fully trust the agreement, but for now the direction of travel is clear: lower oil, calmer nerves and a renewed appetite for risk.

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Peace deal should keep mortgage rates down

Mortgage borrowers can breathe a sigh of relief at the news of a peace deal in Iran, says Adam French, head of consumer finance at Moneyfactscompare.co.uk.

double quotation markWhile we are far from being out of the woods yet, a lasting peace deal should dramatically reduce the risk of the Bank of England’s worst-case scenario for inflation and interest rates becoming a reality.

“Under that scenario, Base Rate could have risen to 5.25%, potentially pushing typical rates on new mortgages towards 6.75%. Instead, today’s news means mortgages rates, which have already been slowly falling for several weeks, have likely already passed their peak – at least until the next unwelcome crisis.

“Borrowers can be optimistic but with a word of caution, as inflation and economic data will continue to influence the outlook. However, a lasting peace should remove one of the biggest risks to mortgage costs and may help restore a more stable environment for hard-pressed remortgage borrowers and prospective buyers.”

Even before this morning’s drop in UK bond yields (see earlier post), average mortgage rates have dipped slightly.

Moneyfacts reports:

  • The average 2-year fixed residential mortgage rate today is 5.61%. This is down from 5.62% the previous working day.

  • The average 5-year fixed residential mortgage rate today is 5.58%. This is down from 5.59% the previous working day.

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Roy Hattersley, former Labour deputy leader, dies aged 93

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Paying tribute, Sir Keir Starmer said Lord Hattersley “was a giant of the Labour movement”.



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A £350 swimming pool fee ruined our easyJet holiday | Consumer rights

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My partner and I paid £2,150 for a week’s all-inclusive break in Marrakech with easyJet Holidays.

We chose the Jaal Riad Resort Hotel because of its pool and spa. When we arrived, we were told that use of the heated pool cost £24 a person an hour, the Jacuzzi £24 for 20 minutes, and the hammam was £16 for 20 minutes.

Nowhere were these extra fees listed when booking. EasyJet Holidays rejected my complaint and referred me to a line buried at the bottom of the list of facilities that said charges may apply. We were planning on using the pool regularly but could not afford it. If we had known, we would have booked elsewhere.
DP,
Cambridgeshire

Hidden charges can hugely inflate the cost of holidays. Resort fees are the most pernicious – some hotels charge up to £50 a person a day for facilities whether or not they are used.

Then there’s the daily tourist tax levied via the accommodation provider during the stay in some countries, and ancillary fees for upgraded wifi for sun loungers.

EasyJet Holidays makes a big deal of the pool – it’s a prominent photo on the webpage for the hotel.

No asterisk refers potential bookers to the crucial caveat that a couple, wishing to avail themselves once a day during a week’s stay, would have to pay almost £350 extra.

Even the eagle-eyed who alighted on the paragraph of small print at the bottom of the page, would be none the wiser.

Enjoy the pool! (T&Cs apply, may cost £24 an hour per person, please read small print) Photograph: Maria Korneeva/Getty Images

Only after declaring that the facilities are subject to height and weight restrictions, seasonal availability, opening times, and age and dress code, does it mention that they “may” attract additional charges. These are not listed.

This is potentially unlawful, according to consumer lawyer Gary Rycroft.

“The facilities were prominently marketed as part of the holiday experience, and extra charges were not clearly disclosed before purchase,” he says. “Under the Digital Markets, Competition and Consumers (DMCC) Act 2024, businesses must not omit material information that would influence a consumer’s decision about whether to enter into a contract.”

EasyJet is defensive. “We always strive to make it clear that use of hotel facilities may incur additional charges,” it told me.

The company said then that it was reviewing the description to “further highlight that the use of the spa facilities is chargeable”, although, at the time of writing, three weeks later, the webpage remained unchanged. It has also now offered a £500 goodwill payment.

As the holiday season begins, you need to read the small print to avoid nasty surprises.

We welcome letters but cannot answer individually. Email us at consumer.champions@theguardian.com or write to Consumer Champions, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number. Submission and publication of all letters is subject to our terms and conditions.



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