Trump indicated the pause was intended to create diplomatic space for negotiations, signaling a possible shift toward a negotiated resolution in the strategically vital waterway, a key global oil transit route.

The decision comes amid heightened tensions linked to the ongoing Iran conflict, which has disrupted shipping flows and contributed to increased energy costs. Despite the pause in operational activity, the continued enforcement of the blockade suggests that pressure on the situation will be maintained while talks proceed.

The Strait of Hormuz, through which a significant share of the world’s oil supply passes, has remained at the center of geopolitical and economic concerns, with recent incidents underscoring the risks to commercial shipping and global energy markets.

US officials have not disclosed details of the proposed agreement or the parties involved, and no timeline has been provided for the duration of the pause.

Chefs and restaurant operators told Reuters that soaring air freight costs and reduced tourist arrivals were squeezing margins, forcing businesses to scale back operations and rethink sourcing strategies in a city where imported ingredients are central to much of its high-end culinary identity.

At Mexican restaurant Lila Molino in Dubai’s Alserkal Avenue district, chef Shaw Lash said staples such as avocados and tomatillos essential to her menu have become harder to source and significantly more expensive since the conflict escalated in late February.

“The reality is cargo has gotten more expensive, gas prices have gone up, the Strait of Hormuz is still blocked,” Lash said. “This is really creating a problem for us as far as our supply.”Lash said she had reduced production, cut payroll costs and shifted toward smaller ingredient purchases while focusing more on grocery products and take-home fajita kits, which have helped offset weaker dine-in demand.

The UAE imports more than 80% of its food consumption, making it highly vulnerable to disruptions in maritime trade. Although a ceasefire between the United States, Israel and Iran took effect on April 8, the Strait of Hormuz through which much of the region’s imports pass remains effectively closed, creating delays and pushing transport costs sharply higher.

Dubai’s full-service restaurant market was valued at about $9.5 billion last year, according to market researcher Mordor Intelligence, which had projected 20% growth for 2026 before the war began. Industry operators now say those expectations are under pressure.

A survey by Juniper Strategy and the Global Restaurant Investment Forum found UAE foodservice operators reported an average 27% drop in demand compared with a year earlier, while supplier cost increases averaged 13%. The study covered 30 industry leaders operating around 400 restaurants between April 1 and April 8.

Tourist-heavy districts and business zones were under the greatest pressure, while restaurants in residential neighborhoods showed stronger resilience and, in some cases, growth.The Dubai Department of Economy and Tourism said some operators were managing a “period of disrupted footfall” and adapting through promotions, alternative service formats and community-driven offers to maintain customer traffic.

At fusion restaurant Jun’s Dubai, chef Kelvin Cheung said sourcing imported seafood such as Norwegian scallops and premium Japanese fish had become significantly more expensive because sea routes were no longer reliable.“Your only option was then to fly air freight, which would increase our costs by about thirty, thirty-five percent,” he said.

Cheung has shifted toward locally sourced fish and launched a six-course menu priced at 225 dirhams ($61) to maintain affordability while preserving customer traffic. He said the restaurant had retained all staff despite the slowdown.Air freight rates on some routes have risen by as much as 70%, driven by higher jet fuel prices and disruptions to oil shipments from the Gulf.

Tourism, a major driver of spending in Dubai’s luxury retail and dining sectors, has also weakened.“That massive influx of tourists who provide that extra boost of economy, of spend, across all industries is what we’re missing now,” Cheung said.

Food writer Courtney Brandt said the war had intensified structural weaknesses already present in Dubai’s restaurant market, including high fixed costs, dependence on tourism and oversupply in the premium dining segment.“We were due for a correction,” she said, noting that international restaurant groups with stronger financial backing may weather the downturn more easily than independent operators.

Some fine-dining restaurants, including venues inside the luxury Atlantis hotels on Dubai’s Palm Jumeirah, have temporarily closed for refurbishment, while others continue to launch new concepts, suggesting confidence in a medium-term recovery.Operators say business has started to improve gradually since the ceasefire and the reopening of schools, with signs of consumer confidence slowly returning across the city.

The announcement came a day after talks in Pakistan ended without agreement, underscoring persistent divisions over terms to end a conflict launched on Feb. 28 by the United States and Israel. The blockade is aimed at pressuring Iran to reopen the Strait of Hormuz and accept a broader settlement addressing its nuclear and missile programs, as well as its regional activities.

Trump indicated that diplomatic channels remain open, saying Iran had reached out to explore a possible resolution. “We’ve been called by the right people and they want to work a deal,” he told reporters outside the White House.

Iran signaled conditional openness to negotiations. Judiciary chief Gholam Hossein Mohseni Ejei said discussions must proceed on the basis of “principles and logic,” while other officials warned that Tehran would respond if the situation escalates.

The blockade drew sharp reactions from Iran, which threatened countermeasures targeting ports across the Arabian Gulf and Gulf of Oman, raising the risk that the two-week ceasefire declared earlier could collapse before its April 22 expiry.

At the core of the dispute remain differences over Iran’s nuclear program and control of the Strait of Hormuz, a critical global energy corridor through which roughly one-fifth of the world’s oil supply typically passes. Its closure has already disrupted markets and driven up oil prices.

U.S. Vice President JD Vance, who led the American delegation in the recent talks, said Iran had not provided assurances it would refrain from pursuing nuclear weapons capability. Tehran has long denied such intentions while defending its right to civilian nuclear development, including uranium enrichment.

Iran’s negotiating position, articulated by Parliament Speaker Mohammad Bagher Qalibaf, emphasized sovereignty over the strait, an end to hostilities, and compensation for wartime damage.

Iranian officials also dismissed the blockade as exaggerated, with parliamentary spokesperson Ebrahim Rezaei describing it as “more bluffing than reality.”
Pakistan has indicated it may facilitate further dialogue, with Foreign Minister Ishaq Dar expressing willingness to host another round of talks, though no timeline has been confirmed.

Both sides have maintained firm public positions, with Trump warning that any Iranian attempt to challenge the blockade would be met with force, while Iranian foreign ministry spokesperson Esmaeil Baqaei said the measure risked further destabilizing the global economy.

The negotiation are aimed at ending a six-week conflict between the United States and Iran that has killed thousands across the Middle East and disrupted global energy supplies, contributing to rising inflation and slower economic growth.

The arrival of the U.S. delegation marks a key step in diplomatic efforts to de-escalate the conflict, with Washington and Tehran expected to begin negotiations shortly in the Pakistani capital.

Pakistan has implemented heightened security measures in Islamabad as it hosts the talks, which are seen as a critical opportunity to stabilize the region and address broader economic fallout linked to the war.

Speaking to UK broadcasters before departing Qatar, Starmer described NATO as a longstanding defensive alliance that has underpinned transatlantic security for decades, while acknowledging that European members must increase their financial contributions.

His remarks came in response to renewed criticism from U.S. President Donald Trump, who has threatened to withdraw from the alliance following disagreements with NATO partners over participation in the U.S.-Israel war against Iran.“It is in America’s interests. It’s in European interests,” Starmer said, emphasizing the alliance’s role in maintaining collective security.

The British leader’s visit included stops in Saudi Arabia, the United Arab Emirates, and Bahrain, where discussions centered on sustaining a temporary ceasefire between the United States and Iran and addressing disruptions in the Strait of Hormuz, a critical maritime corridor for global energy supplies.

Starmer said he held a phone call with Trump late on Thursday, during which he conveyed regional concerns, particularly regarding the continued closure of the strait. Although the waterway was expected to reopen under the ceasefire agreement announced earlier this week, recent Israeli strikes on Lebanon and disputes over compliance have delayed progress.

He added that the United Kingdom is working to assemble a coalition of more than 30 countries to coordinate diplomatic and military efforts aimed at restoring safe navigation through the chokepoint.

In a separate interview, Starmer expressed frustration over the economic impact of geopolitical tensions, citing volatility in energy prices. He drew comparisons between the influence of Trump and Russian President Vladimir Putin on global markets, stating that fluctuations in energy costs were placing pressure on households and businesses.

The Strait of Hormuz handles a significant share of the world’s oil shipments, and prolonged disruption has raised concerns among governments and markets about supply stability and price volatility.

Willie Walsh, director general of the International Air Transport Association, told reporters in Singapore that while crude prices had fallen below $100 per barrel following a U.S.-Iran ceasefire announcement, jet fuel costs were likely to remain elevated due to constraints on refining output.

“If it were to reopen and remain open, I think it will still take a period of months to get back to where supply needs to be given the disruption to the refining capacity in the Middle East,” Walsh said, adding that the region is critical to global supply of refined products beyond aviation fuel.

The Strait of Hormuz, which carries about a fifth of the world’s oil trade, has been heavily disrupted during the recent conflict, squeezing fuel availability and driving up costs across the aviation sector.

Airlines in Asia have responded by cutting flights, carrying additional fuel from origin airports and adding refueling stops, measures that have increased operational costs for carriers already dealing with a sharp rise in jet fuel prices.

The impact has been most acute in import-dependent markets such as Vietnam, Myanmar and Pakistan, where supply constraints have tightened further after China and Thailand halted jet fuel exports and South Korea capped shipments at previous levels.

Walsh said a resumption of crude flows could encourage exporters such as China and South Korea to restart shipments of refined products, easing pressure on the market over time.

However, he noted that higher refinery margins, known as crack spreads, would be needed to incentivize increased jet fuel production.

“There is capacity available once we get the crude oil flowing, but it’ll take a little bit of time,” Walsh said.

“I welcome the ceasefire agreement reached overnight, which will bring a moment of relief to the region and the world,” Starmer said in a statement, adding that efforts must now focus on sustaining the truce and reopening the vital maritime route.

Starmer said Britain would work with partners to support and uphold the ceasefire and turn it into a lasting agreement, while seeking to protect global economic stability by restoring access through the Strait of Hormuz, a key artery for oil and gas shipments.

The visit comes amid heightened diplomatic activity following the ceasefire, with London positioning itself in efforts to stabilise energy flows and reduce disruption to global markets.

Starmer, who has faced criticism from U.S. President Donald Trump for not backing recent U.S. and Israeli strikes on Iran, has in recent days convened multinational discussions on securing the reopening of the strait.

According to the British government, the prime minister’s discussions in the Gulf will focus on diplomatic measures to reinforce the ceasefire and prevent further escalation that could threaten international trade.

The trip had been scheduled prior to the ceasefire announcement, but now takes on added significance as global attention turns to ensuring uninterrupted passage through one of the world’s most strategically important waterways.

British Foreign Secretary Yvette Cooper also held talks with U.S. Secretary of State Marco Rubio on Tuesday, discussing coordinated diplomatic steps to reopen the strait, including a UK-led meeting last week that brought together more than 40 countries to address the issue.

Under a month-long order introduced last week, shops must close by 9:00 p.m. on weekdays and 10:00 p.m. on weekends, with a temporary extension to 11:00 p.m. during the Coptic Easter period. Authorities say the meaaures are necessary as rising global fuel prices drive up Egypt’s energy import bill.

Prime Minister Moustafa Madbouly said the country’s monthly energy costs more than doubled between January and March to $2.5 billion, reflecting Egypt’s dependence on imported fuel to meet domestic demand.

The restrictions have sharply altered life in Cairo, a city known for its late-night economy. Streets that typically remain active into the early hours now empty soon after closing time, with police patrols enforcing compliance.Small businesses have been among the hardest hit.

Shopworker Ali Haggag said his clothing store has lost more than half its revenue since the measures took effect, as evening foot traffic a major source of sales —has been curtailed.Economists warn the impact could be widespread in Egypt’s informal sector, which accounts for roughly two-thirds of employment.

Wael el-Nahas said reduced operating hours translate directly into lower incomes for millions of workers dependent on nightly commerce.The crisis has also affected major industries. Cinema operators report steep losses as late-night screenings typically the most profitable have been eliminated.

Film producer Gaby Khoury said box office revenues have fallen by more than 60 percent, prompting delays in releases and production schedules.Tourism, a key source of foreign currency, faces similar pressures.

While high-end hotels and Nile-side venues are exempt, popular attractions in central Cairo, including markets and bazaars, must close early, limiting visitor spending.

Industry officials say the reduction of evening activity risks diminishing the city’s appeal to tourists.The curbs come alongside broader austerity measures introduced in recent weeks, including fuel price increases, reduced public lighting, and expanded remote work policies.

Authorities say the steps are needed to manage fiscal pressures as energy prices surge following the escalation of conflict involving Iran.The economic strain has coincided with currency depreciation and rising inflation.

The Egyptian pound has weakened by around 15 percent since the conflict began, while inflation reached 13.6 percent in March.

Despite the disruption, some businesses are adapting by reduction staffing hours or employing informal workarounds to continue operations. Others expressed cautious optimism that consumers will adjust to the new schedule.

Fisherman Ibrahima Mar, 55, said dwindling catches have upended a way of life sustained for generations in Rufisque, near Dakar. He described a steady depletion of fish stocks that has left traditional fishers struggling to survive. “The fish have been taken from our path,” he said, pointing to worsening conditions in recent years.

Analysts attribute the decline to a combination of illegal practices and large-scale industrial operations. Bassirou Diarra, Senegal country manager for the Environmental Justice Foundation, said vessels engaged in bottom trawling and other activities often operate under Senegalese flags but are linked to foreign ownership, including European and Asian interests.

“These practices not only reduce fish availability for local consumption but also limit economic returns to the country,” Diarra said, citing issues such as unauthorized fishing in protected areas, non-compliant equipment and lax licensing.

A 2025 report by the Environmental Justice Foundation estimated that 57% of exploited fish populations in Senegal are in a state of collapse, underscoring the scale of the crisis.

The decline has had ripple effects across coastal economies. According to census data, more than 82,000 people in Senegal depend on fishing, accounting for about 2% of the workforce. Ancillary sectors such as fish processing, transport and retail have also been affected.

Local fishing leaders say productivity has sharply declined. Mamadou Diouf Sene, head of the Rufisque Fishing Wharf Revenue Commission, said it now takes up to seven months to catch what previously required two months, reflecting the strain on marine resources.

The economic pressure has contributed to increased migration attempts, with some fishermen undertaking dangerous journeys to Europe in traditional wooden boats known as pirogues. Community members say these journeys often end in tragedy.

Environmental factors have compounded the problem. Researchers note that climate change is shifting small pelagic species, such as sardinella and horse mackerel, northward, further reducing local availability.

Authorities acknowledge enforcement challenges. Cheikh Salla Ndiaye of Senegal’s Directorate of Fisheries Protection and Surveillance said monitoring vast maritime areas remains difficult despite support from security forces.

Efforts to improve oversight are underway, with environmental groups such as Greenpeace introducing technologies including satellite tracking and mobile reporting tools to help identify illegal activity at sea.

The crisis has raised concerns about long-term food security and economic stability in Senegal, where fish remains a central component of both diet and cultural identity.

Jorgensen said the bloc is assessing “all possibilities” as it braces for sustained disruption, warning that energy prices are likely to remain elevated for an extended period. “This will be a long crisis energy prices will be higher for a very long time,” he said in the interview.

He added that for certain critical energy products, market conditions could deteriorate further in the coming weeks, underscoring concerns about supply constraints and volatility linked to the conflict.

The European Union has previously relied on coordinated measures such as strategic stock releases and demand reduction during periods of supply stress. Officials are now evaluating whether similar or more stringent interventions may be required if the crisis deepens.

The developments come as geopolitical tensions in the Middle East continue to disrupt global energy flows, raising risks for import-dependent economies and adding pressure to inflation across the region.