AI Tsunami Plunges Millions into Unemployment

“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
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AI Tsunami Plunges Millions into Unemployment

“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)

The year 2025 brought no respite for Lebanese language editor and proofreader Hamida Al-Shaker. Before the year had run its course, her decades-long professional journey was abruptly cut short.

Nearly 60, Al-Shaker had never used artificial intelligence tools or held a conversation with ChatGPT, as millions now do. She was unaware that the technologies rapidly spreading across mobile phones and computers were already doing her job, faster and more efficiently than any human could.

That quiet technological advance proved devastating. A sweeping transformation in the labor market became a tsunami, pushing Al-Shaker and millions of workers worldwide toward unemployment, sparing no sector and few age groups. The impact has been particularly harsh on employees over 50 who failed to keep pace with the accelerating speed of technological change.

According to the website allaboutai, the adoption of artificial intelligence has already contributed to the loss of around 14 million jobs globally. And the wave is far from over. As many as 92 million jobs could disappear worldwide over the next five years.

At its core, artificial intelligence enables computer systems to mimic human thinking, make decisions, and execute complex tasks, from planning to practical application, particularly in editorial and knowledge-based work.

Shock and an uncertain future

Al-Shaker was unaware of this reality, a fact that led to a shock, followed by another, during 2025, which saw the widest spread yet of AI applications. The first shock came when she received a call from the human resources department informing her that her salary would be cut by 50 percent due to “financial difficulties facing the company.” Less than five months later, a second call informed her that she was being laid off, without explanation.

According to Al-Shaker, citing her department head, she was not alone. Half of the team lost their jobs due to the impact of artificial intelligence on client contracts, as companies increasingly turned to AI to draft their news, statements, and reports, either for free or at minimal monthly subscription costs, compared with the sums they previously paid to public relations and advertising agencies.

In this context, economic analyses published by Reuters indicate that annual subscriptions to advanced AI tools, even at the enterprise level, often do not exceed the cost of paying a single employee’s salary for a limited number of months. From a purely managerial perspective, this makes such decisions easy to justify financially.

As a result, Al-Shaker and her colleagues became just another figure in a cold equation. Companies boost profits and cut production costs, while growing numbers of workers are pushed out of the labor market, not because they lack competence, but because algorithms are cheaper than people.

Most affected sectors

Al-Shaker’s story is not an isolated case. It is part of a growing global phenomenon affecting workers across multiple sectors. Specialized reports indicate that jobs based on routine tasks or repetitive data processing are most vulnerable, as automation and generative AI tools expand. Among the most affected sectors are:

Customer service and call centers, where intelligent chat systems and text and voice analysis tools can now handle user inquiries with high efficiency, according to TechRT.

Data and administrative support tasks, such as data entry, file classification, and secretarial work, are being replaced by advanced automation tools, according to Complete AI Training.

Retail and supply chains, where self-checkout systems, smart warehouses, and inventory automation have reduced the need for cashiers and traditional warehouse workers, according to Pleeq Software and ninjatech.blog.

Manufacturing and production, where the spread of robots and automated control systems has intensified the impact of AI on manual labor jobs, according to All About AI.

Accounting and financial operations, where demand for basic roles has declined due to reliance on intelligent financial software capable of handling bookkeeping and routine processes, according to Complete AI Training.

Content creation and media, which have not been spared, are now threatened as AI is capable of writing, summarizing, and rewriting content, posing a challenge to a range of basic writing tasks.

Many workers who lost their jobs do not realize that they are victims of the so-called Fourth Industrial Revolution, which Klaus Schwab, founder and executive chairman of the World Economic Forum at the time, warned about years earlier.

Speaking at the World Government Summit in Dubai in 2016, Schwab said the world was “on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another.”

He added that the scale, scope, and complexity of the changes would be unprecedented, and that while their exact shape remained unclear, the response would have to be integrated and comprehensive across the public and private sectors, academia, and civil society.

Market demands and human skills

Much of what Schwab predicted has now come to pass, particularly in recent months, as companies worldwide accelerate their adoption of AI tools. Experience alone is no longer enough to remain competitive in the labor market. Traditional jobs are changing rapidly, and the required human skills have become more specialized and complex, with greater emphasis on working alongside intelligent systems and turning information into added value.

Professionals who understand how to integrate AI tools into their daily work without sacrificing quality or analytical depth are increasingly in demand, according to Maziad Hijaz‏, Editor-in-Chief at Hewar Group‏ in Riyadh.

Hijaz told Asharq Al-Awsat that artificial intelligence has become an essential part of daily work in terms of speed and volume, while review, editing, and analysis remain entirely human responsibilities to ensure quality.

He added that the sector now requires new skills, and those who fail to adapt will be left behind. These include utilizing AI tools for writing and analysis, developing data literacy, employing predictive analysis, and transforming information into compelling narratives. Combining human skills with AI tools is what ensures excellence.

Firas Barakat, a strategic communications expert in Saudi Arabia, said AI represents a pivotal turning point in labor markets, enhancing efficiency while reshaping the nature of jobs and required skills.

Speaking to Asharq Al-Awsat, Barakat said AI has undoubtedly caused the loss of traditional roles involving routine tasks, but at the same time, it is a major engine for generating new jobs in advanced fields such as data analysis, cybersecurity, smart systems management, and digital solutions engineering, roles that did not exist just a few years ago.

History repeats itself

Technology expert Hassan Yahya, based in the United States, offered a historical perspective. He said this is not the first time the world has been stunned by technological advances, noting that similar fears over job losses have accompanied every major innovation.

He pointed to 1959, when General Motors introduced the industrial robot Unimate, triggering widespread warnings about threats to employment.

Yahya said that AI is already affecting millions of jobs, with projections from the World Economic Forum indicating that 92 million jobs will disappear over the next five years. However, more than 170 million new jobs are expected to be created, meaning a fundamental transformation of work rather than mass unemployment.

He added that eliminating jobs without replacing them does not serve companies or economies, making the creation of new roles inevitable. However, this requires learning how to work with AI, as ignoring the shift could leave many people outside a rapidly changing labor market.

Cost-cutting and profit maximization

The experiences of employees cannot be separated from a recurring economic equation that is evident in thousands of companies worldwide. Instead of retaining experienced staff with associated salaries, insurance, and end-of-service benefits, many firms are opting to replace them with AI.

A World Economic Forum report found that 41 percent of global companies plan to reduce their workforce by 2030 due to increased reliance on AI and automation.

Hijaz said AI adoption has also reshaped relationships with clients, accelerating work and significantly improving quality. He cited a Deloitte study showing that integrating AI into public relations reduced content production time by 25 to 35 percent while improving accuracy.

A market worth billions

The gains are split between business owners and AI companies, whose financial returns contrast sharply with the reality faced by thousands of displaced workers. In mid-2025, a Reuters report stated that OpenAI, the developer of ChatGPT, had reached annual revenues of around $10 billion by the end of the first half of the year, on track to exceed $12.7 billion by year's end, driven by surging demand for its services.

This growth is not limited to OpenAI. A Forbes report showed that other global technology companies with AI divisions are generating billions of dollars in additional annual revenue, making AI one of the most important profit sources for major tech firms, even as some lay off staff to improve cost efficiency.

Key players

The main players in the sector include OpenAI, best known for ChatGPT and a leader in large language models, with a strategic partnership with Microsoft.

Google DeepMind follows, having developed powerful models such as Gemini and AlphaGo, and leading in scientific, medical, and research-oriented AI.

Microsoft itself has become a global force in AI, investing billions in OpenAI and integrating AI across Windows, Office through Copilot, and Azure AI.

NVIDIA focuses on developing the chips and processors that power AI, while Meta offers open-source models such as LLaMA. Amazon Web Services leads in cloud-based AI, and Anthropic has emerged as a strong competitor in the field of language models.

The global AI market was estimated at around $747.9 billion in 2025 and is projected to grow to $2.74 trillion by 2032, according to AffMaven.

Concerns over consequences

The stark contrast between multibillion-dollar AI revenues and the growing risk facing millions of workers raises a central ethical and economic question. Why do companies benefit from technology to cut costs and boost profits while often postponing or ignoring their social responsibility toward displaced employees?

Economists warn that such savings are frequently achieved without genuine retraining efforts or alternative job creation, deepening global unemployment rather than addressing it.

Islam Al-Shafii, an economist based in New York, cited remarks by US Federal Reserve Chair Jerome Powell on Dec. 20, warning of waves of layoffs linked to AI or companies halting job postings for the same reason.

Al-Shafii said the current fear of AI remains precautionary, as it has not yet fully replaced humans. The real risk, he said, is that work previously requiring five employees can now be done by one person using AI.

He added that while some professions remain relatively safe for now, such as skilled trades, concerns persist over safety and decision-making, with international organizations expressing reservations.

Breaking monopolies

Yahya argued that confronting these changes requires breaking three major monopolies: the monopoly of university degrees in hiring, as companies like Google and Dell focus on skills rather than diplomas; the technological monopoly, as AI empowers individuals to execute ideas without large teams; and the language monopoly, as AI allows interaction in native languages, opening the digital economy to millions.

The digital economy is expected to exceed $24 trillion by 2025, accounting for approximately 21 percent of the global economy and growing faster than traditional sectors.

Capitalism under strain

Al-Shafii warned that advanced capitalist societies, which rely heavily on tax revenues from employees, could face systemic strain if jobs are replaced by AI. Without a sufficient tax base, governments may struggle to fund essential services, which can potentially lead to social instability and collapse.

He noted that business owners who once built factories in East Asia for cheap labor are now returning home to rely on robots for production.

United Nations concern

The issue has also reached the United Nations, particularly at its headquarters in New York. Al-Shafii stated that there is a deep concern over AI, but institutions often focus on gains while overlooking the associated losses.

He noted that AI supports many sustainable development goals and cybersecurity efforts, but its negative aspects, including cyber fraud and surveillance risks, have yet to be fully addressed. UN Secretary-General Antonio Guterres has repeatedly warned against militarizing AI and entrusting humanity’s future to algorithms.

Threat or opportunity?

Concerns over AI extend beyond job losses to issues of transparency and information security. Hijaz said AI requires greater responsibility to ensure accuracy and disclosure.

Asked whether AI is a threat or an opportunity, he said it is an inevitable development that must be harnessed. Like the computer and the internet before it, initial fears will likely give way to empowerment.

He added that creativity remains a uniquely human value that AI cannot replace, and that technology enhances rather than eliminates it.

Not a replacement

Translation professor Mohammed Khair Nadman told Asharq Al-Awsat that AI tools now save around 60 percent of time in translation and writing, supporting but not fully replacing human work. He warned that AI can still make serious errors, making human oversight essential.

M. A. Hadi, MD, Head of the Department of Pathology at a hospital in the United States, said that the current wave of misinformation fueled by easy access to online medical content and artificial intelligence "will not last long if simple regulations are put in place".

He explained that reading medical information online or collecting data through AI does not make someone a physician, just as reading news does not make a journalist, nor learning about car engines makes one a mechanic. "In the same way," he noted, "having extensive legal knowledge through AI does not qualify someone to be accepted in court as a lawyer."

Dr. Hadi added that while such knowledge can empower individuals to ask better and more informed questions, it does not replace professional expertise. "AI can help people engage more effectively with professionals and may even push experts to become more transparent and ethical, reducing the space for fraud, middlemen, and bad practices," he said.

Quoting the Arabic proverb "give your bread to the baker, even if he eats half of it", Dr. Hadi stressed that while the "do-it-yourself" mindset has always existed and can be useful, real work must still be done by qualified experts. "Artificial intelligence will likely make professionals better, as general knowledge continues to expand," he said, "but professional training, experience, and licensing cannot and should not be granted to laypeople, even if they are well-read or AI-assisted."

He warned that partial or incomplete knowledge can be more harmful than helpful when applied in practice, concluding that, ultimately, "the evidence is in the results."

A final attempt

Al-Shaker, living in crisis-hit Lebanon without a private sector pension system, believed her regional company job was secure. After losing it, she tried to catch up, creating a LinkedIn account, registering on job platforms, taking free online courses, and sending dozens of resumes, often receiving automated or no responses.

Her story reflects the dilemma of an entire generation pushed out of the market, not due to lack of competence, but because the rules changed abruptly.

She ended with a bitter question: Nearly two centuries after the Industrial Revolution sparked the call, “Workers of the world, unite,” will there now be a call saying, “Employees of the world, unite?”



Lockerbie Specter Returns in Netflix Drama: Who Was Bombmaker Marwan Khreesat?

Marwan Khreesat (Facebook)
Marwan Khreesat (Facebook)
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Lockerbie Specter Returns in Netflix Drama: Who Was Bombmaker Marwan Khreesat?

Marwan Khreesat (Facebook)
Marwan Khreesat (Facebook)

In the shadow world of Palestinian factional operations and intelligence wars that defined the 1970s and 1980s, few names were as mysterious or controversial as Marwan Khreesat.

Linked to what became known as the “engineering of airborne death,” Khreesat was described in Western intelligence accounts as a skilled bombmaker for the Popular Front for the Liberation of Palestine-General Command, or PFLP-GC, led by Ahmed Jibril.

For decades, he remained an elusive figure, moving between world capitals. West Germany arrested him, then released him in circumstances that fueled speculation. Israel’s Mossad pursued him. He eventually died in Amman at about 70, taking many of his secrets with him.

To some, he was a fedayeen who used his electrical skills against the Israeli occupation. To Western investigators, he was linked to aviation attacks that shocked the world.

His death did not end the questions.

Khreesat’s fingerprints, at least in the investigative sense, continued to hover over the Lockerbie case. More recently, his name returned to international attention as a Netflix docudrama revisited the hidden battles, intelligence operations, and unresolved questions of that era.

The electronics expert inside the PFLP-GC

Khreesat’s story began with technical skill.

A talented electrician and technician, he became involved in armed activity early, driven by his nationalist background. As radical Palestinian factions expanded, he joined the PFLP-GC, which had split from the Popular Front for the Liberation of Palestine and focused on specialized cross-border military operations.

Ahmed Jibril, born in 1938 in a village in the Jaffa district, founded the faction in 1968 after breaking away from the Popular Front for the Liberation of Palestine.

He quickly recognized Khreesat’s ability to work with electrical circuits and plastic explosives such as C-4 and Semtex.

Khreesat was not a front-line fighter.

He worked instead in secret, specially equipped laboratories, designing sophisticated explosive devices triggered by changes in air pressure or by digital timers.

That technical skill turned ordinary objects into devices capable of defeating airport security systems.

From El Al to Operation Autumn Leaves

Khreesat’s expertise did not suddenly emerge in the 1980s. It had been developed years earlier in the laboratories of the region’s shadow wars.

One early episode came in Rome in the summer of 1972.

The PFLP-GC used what the source describes as an emotional deception involving two British women, who were persuaded to carry a household record player presented as a farewell gift before boarding an El Al flight to Tel Aviv.

Hidden inside the record player was a charge of powerful plastic explosives fitted with a barometric trigger.

The device was designed to detonate automatically when the aircraft reached a high altitude over the Mediterranean, sending the wreckage — and potentially the evidence — into the sea.

The bomb exploded about 20 minutes after takeoff, tearing a large hole in the aircraft.

But airport security had insisted the record player be placed in the baggage hold rather than the passenger cabin. That reduced the blast’s impact and allowed the pilot to make a safe emergency landing in Rome.

The incident became an early warning to international intelligence services: an engineer was turning ordinary household electronics into sophisticated airborne bombs.

The most serious threat to Khreesat’s operations came 16 years later.

In the autumn of 1988, West German authorities penetrated a PFLP-GC cell in Frankfurt led by Hafez Dalkamoni as part of what became known as Operation Autumn Leaves.

German police arrested Khreesat and seized explosives concealed inside modified Toshiba radios and cassette players.

The devices were designed to explode automatically once an aircraft reached a specific altitude, triggered by changes in atmospheric pressure.

Then came the mystery.

German authorities released Khreesat only days after his arrest.

The decision triggered years of speculation. Later Western intelligence reports and suspicions suggested he may have been acting as a “double agent,” passing sensitive information to Jordanian, US or other security services.

Lockerbie and the question that would not disappear

On Dec. 21, 1988, Pan Am Flight 103 exploded over the Scottish town of Lockerbie, killing 270 people.

The technical similarities drew immediate attention.

The bomb used in the attack had also been concealed in a Toshiba cassette player, echoing devices seized from Khreesat in Germany just two months earlier.

Although the international judicial process later convicted Libyan Abdelbaset al-Megrahi, Khreesat’s name never fully disappeared from the investigation.

Decades later, it returned to public view through The Bombing of Pan Am 103, a major docudrama produced by the BBC and Netflix.

The series examined the criminal investigation and the joint pursuit by Scottish investigators and the US Federal Bureau of Investigation.

It also revived the theory of an “Iranian-Palestinian connection.”

Khreesat appeared in that context through references to fragments linked to the bomb and comparisons with devices he had designed that were seized in Germany.

The old question returned with it:

Was Marwan Khreesat the man who actually built the bomb that destroyed Pan Am Flight 103 over Scotland?

The secret file left behind

Khreesat spent his final decades largely silent at his home in the suburbs of Amman, refusing repeated approaches from Western media.

In later years, however, he began publishing memoirs and documents online, attacking some Palestinian leaders and at times boasting about earlier operations against Israeli interests.

After his death, the story took another turn.

His daughter, Suha Khreesat, made claims to British media, again pushing his name into the headlines.

In a 2018 interview with Britain’s Daily Mirror, marking the 30th anniversary of the Lockerbie bombing, she said her father had played no part in the deaths of the victims.

But she also said he had left behind a “large secret file, documents and recordings” kept by her mother, his wife.

She said the material proved that Ahmed Jibril — who later died in Damascus at about 83 — had carried out the Lockerbie operation under a major direct financial deal with the Iranian government.

Marwan Khreesat died, leaving behind a legacy as murky as the intelligence wars in which he operated.

He was a bombmaker whose technical skills challenged security services across two continents, a figure whose story fused electronics, covert operations, and regional power struggles.

And decades later, his name still shadows the Lockerbie file — preserved in intelligence documents, revived in investigations and retold on screens, revisiting one of the era’s most enduring mysteries.


At a Gaza Zoo, War Takes Its Toll on the Animals

A female lion sleeps inside a cage at a zoo in Nuseirat, in the central Gaza Strip, August 12, 2026. (Reuters)
A female lion sleeps inside a cage at a zoo in Nuseirat, in the central Gaza Strip, August 12, 2026. (Reuters)
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At a Gaza Zoo, War Takes Its Toll on the Animals

A female lion sleeps inside a cage at a zoo in Nuseirat, in the central Gaza Strip, August 12, 2026. (Reuters)
A female lion sleeps inside a cage at a zoo in Nuseirat, in the central Gaza Strip, August 12, 2026. (Reuters)

As children walked into the zoo near Gaza's Nuseirat refugee camp, they found a lion barely looking back at them through the bars of its cage and chimpanzees sitting listlessly in their enclosure.

Many of the animals were malnourished, weakened by shortages of food, medicine and vaccines. But they were still alive, largely thanks to the efforts of zoo owner Mahmoud Gomaa.

He originally ran the attraction in the southern city of Rafah, but said he had to flee when Israeli troops attacked and occupied part of the area in 2024.

As the conflict raged, he moved the surviving animals from town to town before finding a place in Nuseirat ‌in central Gaza earlier ‌this year.

There, he reopened the zoo, hoping to give traumatized youngsters ‌something ⁠to enjoy after ⁠nearly three years of destruction.

ZOOKEEPER RETURNED TO FIND ANIMAL BONES

"In the beginning of the war people were looking for a way to survive ... and I was looking for a way to save the animals more than saving myself," Gomaa told Reuters.

There were a number of zoos in Gaza before the conflict between Israel and Hamas erupted, displaying exotic and wild animals including lions and eagles, municipal records show.

Anyone trying to keep one open now faces enormous challenges, ⁠vets and animal experts said, not least in getting food in ‌a territory struggling to feed its human population.

"Owners ‌are currently feeding them frozen meat," veterinarian Nidal Fadel said. "This is a catastrophe and a wrong nutritional plan ‌because in nature they eat fresh prey."

Palestinian children play outside a zoo damaged during the war, in Gaza City, August 15, 2026. (Reuters)

The animals themselves are bearing the brunt ‌of the war — sometimes directly.

When Gomaa fled Rafah, he said he had to leave behind three lions, several crocodiles and some African ostriches.

A few months later, Gomaa returned and only found the bones of the crocodiles and the ostriches. Those three lions, which he had locked in their cages, had ‌disappeared.

There is also the trauma caused by the sound and sight of the conflict raging around them.

"Lions can detect sounds and ⁠disturbances that humans may not ⁠notice," said Amir Khalil, a veterinarian who has led several trips to Gaza by the animal welfare organization Four Paws and rescued other zoos' animals.

"Bombing and constant conflict create enormous stress and fear for them," he added.

In Nuseirat, the surviving lion barely looked up at the visitors. But the children had better luck with some of the other animals, letting parrots ride on their shoulders and petting smaller monkeys.

It was a rare chance to relax in an enclave still facing regular airstrikes, despite a fragile ceasefire. Israel's military, which says its attacks are aimed at militant targets, did not immediately respond to questions about the conflict's impact on civilian facilities like zoos and their animals.

"Today there is no avenue for children to play," said visitor Karam Al-Mazin, 42.

"There is nothing except rubble, stones and tents, so children today are bored and are in a difficult situation."


The 60-day Deadline for an Iran Peace Deal is Expiring. Here's Where Things Stand

A woman holds an Iranian flag as part of a pro-government campaign in downtown Tehran, Iran, Monday, Aug. 17, 2026. (AP Photo/Vahid Salemi)
A woman holds an Iranian flag as part of a pro-government campaign in downtown Tehran, Iran, Monday, Aug. 17, 2026. (AP Photo/Vahid Salemi)
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The 60-day Deadline for an Iran Peace Deal is Expiring. Here's Where Things Stand

A woman holds an Iranian flag as part of a pro-government campaign in downtown Tehran, Iran, Monday, Aug. 17, 2026. (AP Photo/Vahid Salemi)
A woman holds an Iranian flag as part of a pro-government campaign in downtown Tehran, Iran, Monday, Aug. 17, 2026. (AP Photo/Vahid Salemi)

The deal that US President Donald Trump signed at Versailles in June set an ambitious 60-day deadline for ending the war with Iran and reaching an accord on its nuclear program.

The deadline was Monday, and the two sides are further apart than they were then, The Associated Press said.

Talks, such as they are, have focused on reopening the Strait of Hormuz and lifting a US blockade on Iran, both of which were supposed to have happened under the interim deal. There has been no sign of any compromise on the strait, or that detailed nuclear talks have even begun.

The US, meanwhile, has no good options for getting out of the war it started alongside Israel.

Acceding to Iran's latest demands would mean giving it control over a critical international waterway that carried a fifth of the world's traded oil and gas before the war — and would be tantamount to admitting defeat. Escalating the deeply unpopular war would further draw down US supplies of advanced missile interceptors, jolt the world economy, and drive up gas prices ahead of US congressional elections.

So both sides have dug in, hoping the other will blink first. So far, neither has.

The interim deal collapsed weeks later

The June deal, known as the Memorandum of Understanding, called for a halt to all military operations and set a 60-day deadline for an agreement to permanently end the war and resolve the longstanding dispute over Iran's nuclear activities.

It called for the Strait of Hormuz to be reopened but gave Iran a vaguely defined role in facilitating traffic, leaving open the possibility it could charge fees after the 60-day deadline. Iran has seized on that clause to claim control over the waterway.

A week after the deal was signed, Iran began firing on vessels using a route along the coast of Oman, on the other side of the strait, that is overseen by the US military and intended to bypass Tehran's control.

The US responded by striking Iran, which retaliated by attacking Arab countries hosting American forces, like Jordan, Kuwait and Bahrain. The US canceled waivers issued as part of the deal that had allowed Iran to sell its oil internationally and Trump restored a blockade of Iran's ports.

Each side accused the other of violating the June agreement, of which almost nothing remains.

The fighting eventually died down. A related truce in Lebanon between Israel and the Iran-backed Hezbollah has mostly held, even as Israeli troops occupy large areas in the country's south. Lebanon's "territorial integrity and sovereignty" were to have been ensured under the June deal.

Iranian officials say they stopped negotiating with the US in June, while acknowledging that messages have been relayed by intermediaries. Trump says the talks have continued, occasionally claiming progress after pulling back from threatening major strikes.

Pakistan, which played a key role in brokering the June agreement, noted last week that the deadline was Monday while expressing hope it would be extended.

“We are not closing the chapter,” Foreign Ministry spokesman Tahir Andrabi said. “Pakistan is making all-out efforts to bring the two parties to the negotiating table.”

Iran's leaders think they can force Trump to give up the strait

Earlier this month, Iran issued a list of demands for reopening the strait, including the lifting of the American blockade, the withdrawal of US forces from around Iran and the payment of reparations for damage inflicted in the war started by the US and Israel on Feb. 28.

Even then, Iran has said it would control the strait — and potentially charge fees — through an agreement it is negotiating with Oman, and that the strait will not go back to being an open, toll-free waterway as it was before the war.

Iran-backed Houthis in Yemen have meanwhile begun attacking oil tankers in the Red Sea, threatening another crucial trade route that had been used to relieve some of the pressure from the strait being closed.

Trump has rejected Iran's demands — saying it's Tehran that should pay war reparations and claiming the US controls the strait. He appears to be banking on economic pressure — in the form of the blockade and longstanding sanctions — to bring Iran's rulers to their knees.

Iran's economy has been battered by the war and isolation, and inflation has soared. The crisis could stoke renewed anti-government protests, like those that were brutally crushed in January.

Traffic through the Strait of Hormuz, which rose immediately after the interim deal, is back to a small fraction of what it was before the war. Rising prices of fuel and other goods are expected to climb further the longer this continues with effects far beyond the Middle East.

The clock is still ticking for both sides.