Pakistan: Islamabad conveys a revised Iranian peace proposal to the US amid stalled war talks 
On 18 May, Reuters reported that Islamabad has conveyed a revised Iranian peace proposal to the US in an effort to revive stalled negotiations over the war. Sources reported on Pakistan warning that time is running out as both sides continue shifting their demands. Later, Iran confirmed that Pakistan had conveyed its views to Washington. President Donald Trump warned Iran that “time is of the essence” and was expected to discuss possible renewed military action with advisers. Iran also warned it would respond strongly to any further attacks. Despite reduced hostilities, drone strikes linked to Iran have targeted Gulf states hosting US bases, including an attack that caused a fire at a UAE nuclear plant. Rising tensions have pushed oil prices sharply higher, worsening global inflation concerns. 
(“Pakistan hands US revised Iranian proposal for ending war,” Reuters, 18 May 2026)

The UAE and Saudi Arabia report drone incidents; a strike causes a fire near the Barakah nuclear power plant 
On 17 May, Reuters reported that a drone strike caused a fire near the Barakah Nuclear Power Plant in the United Arab Emirates during ongoing regional tensions linked to the Iran conflict. UAE officials said the drone hit an electrical generator outside the plant’s inner area, causing a small fire. Authorities confirmed that there were no injuries, no radiation leak, and no impact on the plant’s operations. UAE officials also said that two other drones were intercepted, while Saudi Arabia reported intercepting three drones that entered from Iraqi airspace. UAE authorities described the incident as a “terrorist attack” and said investigations were continuing to identify those responsible. No group had claimed responsibility at the time of reporting. The International Atomic Energy Agency (IAEA) said the nuclear plant remained safe and called for restraint around nuclear facilities. The incident took place during continuing tensions in the Gulf region and stalled diplomatic efforts related to the Iran conflict. Reports also noted that concerns over attacks on energy infrastructure contributed to an increase in global oil prices.
(“UAE and Saudi Arabia report drone incidents as Iran war deadlock drags on,” Reuters, 17 May 2026)

Iran and the US: Tehran includes reparations for war damage and troop withdrawal in the latest peace proposal
On 19 May, Reuters reported that Iran’s latest peace proposals was shared with the United States, via Pakistan, involved ending hostilities on all fronts, including Lebanon, the withdrawal of US forces from areas close to Iran, and reparations for destruction caused by the US-Israeli war, as indicated by Iranian state media. Deputy Foreign Minister Kazem Gharibabadi said that Tehran also seeks the lifting of sanctions, release of frozen funds, and an end to the US marine blockade on the country. Minor changes have appeared with regard to the previous proposal, which was rejected by President Donald Trump last week. On 18 May, Trump said that the leaders of Qatar, Saudi Arabia, and United Arab Emirates had requested that the US hold off on the attack because a favorable deal could be reached, and could potentially end the conflict, and limit Iran’s nuclear proliferation. A senior Iranian official indicated that Washington may be softening some of its demands, including allowing peaceful nuclear activity under the supervision of the International Atomic Energy Agency, but the US has not confirmed that it has assented to any of Iran’s demands.
(“Iran says peace proposal includes reparations for war damage, US troop withdrawal”, Reuters, 19 May 2026)

US-Iran War: Corporates face USD 25 billion losses, reports reuters
On 18 May, Reuters reported that the Iran war has already cost global companies at least USD 25 billion. Following the closure of Strait of Hormuz, businesses are struggling with disrupted supply chains and energy price hikes. Around 279 companies have reported the war to be the reason for taking defensive actions, including raising prices, cutting production, suspending dividends and seeking government assistance. Some even claim that the industry decline is similar to what they witnessed during the global financial crisis. Major firms such as Toyota and Procter & Gamble have warned of the financial pressure as the conflict enters its third month. A key factor contributing to this is the sharp rise in oil prices. The prices have crossed USD 100 per barrel, leading to higher shipping costs. Supply of key materials such as fertilizers, aluminium and polyethylene have been affected as well. Around one-fifth of the companies, particularly in Europe and Asia have reported a financial hit as Middle East energy remains central to them. Simultaneously, US tariffs have cost companies around USD 35 billion. Responding to the financial situation, firms have started cost cutting measures. With rising costs and uncertainty, the impact of the war continues to affect businesses.
("Iran war saddles global companies with $25 billion bill - and counting," Reuters, 18 May 2026)