US and Iran Wrangle Over Talks With No End to War in Sight

Good morning. The US and Iran wrangle over talks with no end to war in sight. Travelers hoping for a drop in long-haul summer airfares face a brutal reality check, and British Airways is proposing a bonus for pilots who burn less fuel. Listen to the day’s top stories.

The White House insisted that peace talks with Iran are ongoing, even as Tehran publicly rejected US overtures and issued fresh conditions of its own to end the conflict. Donald Trump claimed Iran was desperate to make a deal. The US deployment of troops to the region is fueling fears that the president is gearing up for exactly the sort of risky ground invasion that he once campaigned against.

BlackRock President Rob Kapito said investors may be underestimating the risks stemming from the war, which are likely to weigh on growth and drive inflation higher even if the conflict ends soon. Stocks and bonds both edged lower and oil climbed. Check out our Markets Today live blog for all the latest news and analysis relevant to UK assets.

The Iranian parliament is working on a draft bill that would impose a fee on vessels seeking safe passage through the Strait of Hormuz, according to the semi-official Fars news agency. Read our explainer on what it would take to reopen the waterway.