War breaking news. Trump: hope deal close. Khamenei: uranium must remain in Iran

BRUSSELS - The European Commission predicts a slowdown in the eurozone economy due to the war launched by the United States and Israel against Iran, but does not expect (for now) an economic recession. According to forecasts published today, Thursday 21 May, the situation - barring prolonged uncertainty - is expected to improve in 2027, both in terms of growth and inflation. Meanwhile, Italia continues to be one of the most fragile countries in the monetary union.

"The conflict in the Middle East has caused a severe energy shock, further testing Europe in an already unstable geopolitical and trade environment," commented Economy Commissioner Valdis Dombrovskis. The EU must learn lessons from past crises by maintaining temporary and targeted fiscal support as well as further reducing its dependence on imported fossil fuels.

After robust growth in the first quarter, Germany is expected to experience economic 'stagnation' in the current quarter due to the war in Iran. This was stated by the Bundesbank in its monthly bulletin. From April to June, 'the effects of the conflict in the Middle East are expected to weigh more broadly and tangibly on the German economy,' the German Monetary Authority warned.

Germany's inflation accelerated to 2.9 per cent in April, driven by soaring energy prices. This leads to a loss of purchasing power and dampens private consumption, the institution explained.

Iran's Supreme Leader issued a directive that uranium for nuclear weapons production should not be sent abroad, according to two senior Iranian sources, stiffening Tehran's stance on one of the main US demands in the peace talks. Ayatollah Mojtaba Khamenei's order could further irritate US President Donald Trump and complicate negotiations to end the US-Israeli war against Iran.

"We have become accustomed to Iranian bullying for long decades, to the point that it has become part of the political landscape in the Arabian Gulf". The UAE's presidential advisor Anwar Gargash wrote this on X. "Today, after Iranian aggression, the regime is trying to consolidate a new reality born out of a clear military defeat. But attempts to control the Strait of Hormuz or to violate the maritime sovereignty of the Emirates are nothing but illusions," he added. Gargash went on to emphasise that 'those who want to live with their Arab environment must understand that trust has been compromised and that it cannot be restored with slogans, but only through responsible language, respect for sovereignty and a concrete commitment to the principles of good neighbourliness'.

The latest proposal delivered by the US to Iran through Pakistani mediators would have "reduced some of the differences" between the two countries even though internal discussions within the Iranian leadership are still ongoing. This is written in Tehran's media, adding that - in this regard - the visit of General Asem Munir, head of the Pakistani army, to the Iranian capital is also seen as an opportunity to help reduce the differences and provide the basis for the official announcement of the formal acceptance of the memorandum of understanding.

Russia is determined to assist Iran and the US in implementing the decisions that may be reached during the negotiations, Russian Foreign Ministry spokeswoman Maria Zakharova said today.

"Russia is fully committed to providing the necessary assistance to Tehran and Washington in implementing the decisions that may be made during the negotiations," Zakharova told reporters.

While negotiations with the United States remain in the balance, Brigadier General Ahmad Vahidi, who leads Iran's Revolutionary Guardians, has become a key player in shaping Iran's tough stance. Experts believe that Vahidi is part of an inner circle in direct contact with the Iranian Supreme Guide, Ayatollah Mojtaba Khamenei. Vahidi himself has not appeared in public since 8 February, weeks before the start of the war. On Thursday, Iranian media circulated contradictory reports about a meeting between Vahidi and the Pakistani Interior Minister in Tehran, who allegedly brought a message about negotiations with the US and met with other senior Iranian officials.

Iran is preparing a response to a message sent by the US, and discussions are underway in Tehran, the country's state media report. The text sent by Washington has filled in some gaps, regime media say, adding that today's visit to Tehran by Pakistani army chief Asim Munir aims to fill in the remaining gaps and reach the point where a memorandum of understanding could be formally accepted.

Iran accelerated the rebuilding of its military capabilities and resumed drone production in the weeks following the entry into force of the ceasefire with the US and Israel on 8 April. This was reported by CNN citing US intelligence sources. According to the US broadcaster, the speed and scope with which Tehran is rebuilding its drone and missile capabilities surprised the US intelligence community, which had expected a longer timeframe for restoring the arsenal. A US official, quoted by CNN, said that Iran could return to pre-conflict military levels 'in as little as six months', claiming that Tehran had 'exceeded all the timelines the intelligence community had predicted for reconstitution'.

The heated discussions on how to proceed with Iran were allegedly behind the 'prolonged and dramatic' telephone conversation on Tuesday between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu. The two leaders - three sources quoted by CNN reported - allegedly tried to reach convergent positions, but the conclusion of the phone call left the Israeli head of government 'furious'.

Trump and Netanyahu had already spoken two days earlier, on Sunday. The US president, on that occasion, had anticipated his intention to proceed with new targeted attacks against Iran at the beginning of the week, an operation that was to take on a new name: Operation Hammer. However, about 24 hours after that first conversation, Trump announced the suspension of the attacks, according to him, at the request of his Gulf allies, including Qatar, Saudi Arabia and the United Arab Emirates. Countries that, in the following days, would remain in close contact with the White House and Pakistani mediators to work on a framework that could facilitate diplomatic talks.

Iran has already restarted part of its drone production during the six-week ceasefire that began in early April, CNN reported today, citing two sources familiar with US intelligence assessments.

US intelligence indicates that the reconstruction of the Iranian army is proceeding much faster than initially estimated, the US broadcaster adds, citing four sources.

The Pakistani premier, Shehbaz Sharif, will be on an official visit to China from next Saturday to Tuesday. This was announced by the Foreign Ministry in Beijing. The Asian giant's diplomacy points out that it is a visit at the invitation of the Chinese premier, Li Qiang. Pakistan is continuing the difficult mediation between Iran and the United States. Iranian Foreign Minister Abbas Araghchi, US President Donald Trump and Russian leader Vladimir Putin have visited China in recent days.

The Chief of Staff of the Pakistan Army, Asim Munir, will visit Tehran today. This was announced by the Iranian news agency Isna. Islamabad is the main mediator between Iran and the US.

Iran has executed two people on charges of creating a group to undermine the country's security and belonging to a 'terrorist' organisation, according to the semi-official Iranian news agency Tasnim. The two men were also charged with 'armed insurrection through the formation of criminal groups, shooting and attempted murder in line with the objectives of the terrorist group'

Saudi Arabia urged Iran to urgently respond to the mediators' efforts to avoid escalation, Saudi Foreign Minister Faisal bin Farhan said.

"We expect Iran to respond urgently to efforts to achieve progress in the negotiations. We expect Iran not to miss the opportunity to avoid the dangerous consequences of escalation," the Saudi minister was quoted as saying by al Arabiya television station.

US President Donald Trump has expressed optimism that a peace agreement with Iran is getting closer.

Trump told reporters that the US and Iran are "right on the razor's edge" between reaching an agreement and resuming war. "If we don't get the right answer, it could happen very quickly. We have to get the right answer. They will have to be 100 per cent positive answers," he added.

US Defence Secretary Pete Hegseth assures that the US is 'ready for action', awaiting developments in negotiations between the US and Iran, assisted by the work of mediators. In a three-word post on X, the Pentagon chief reprised a clip of Vice President JD Vance's media briefing at the White House on Tuesday. 'We will not strike a deal that would allow the Iranians to acquire a nuclear weapon,' his words, 'so as President Trump just told me, we are ready for action. We don't want to go down that road, but the president is willing and able to do so, should it be necessary."

Tehran reports that it has 'received the US comments'. "We are evaluating them," Foreign Ministry spokesman Esmail Baghaei was quoted by the Nour News agency as saying. Pakistan continues to act as a mediator between Iran and the US for a diplomatic solution to the war. There have been several exchanges of messages between the two countries, via Islamabad, starting with the 14-point plan for ending the war presented by Tehran.