Belarus leader hosts US envoy for talks, latest step in his effort to improve ties with Washington

TALLINN, Estonia (AP) — Authoritarian President Alexander Lukashenko on Thursday hosted a U.S. envoy for talks in the Belarus capital of Minsk, the latest step in the isolated leader’s effort to improve ties with the West.

Lukashenko met with President Donald Trump’s special envoy for Belarus, John Coale, according to the presidential press service. State news agency Belta quoted Lukashenko saying topics on the agenda include restoring the normal functioning of the U.S. Embassy in Minsk, which suspended operations in 2022, the "release of so-called political prisoners,” as well as sanctions and other economic issues.

The last time U.S. officials met with Lukashenko, in December, Washington announced easing some sanctions, and 123 prisoners were released and sent to Ukraine and Lithuania.

A close ally of Russia, Minsk has faced isolation for years. Lukashenko has ruled the nation of 9.5 million with an iron fist for more than three decades, and the country has been sanctioned repeatedly by Western countries — both for its crackdown on human rights and for allowing Moscow to use its territory in the full-scale invasion of Ukraine in 2022.

Lukashenko’s rule was challenged after a 2020 presidential election, when tens of thousands poured into the streets to protest a vote they viewed as rigged. They were the largest demonstrations since Belarus became independent following the 1991 collapse of the Soviet Union.

In an ensuing crackdown, tens of thousands were detained, with many beaten by police. Prominent opposition figures either fled the country or were imprisoned.

Five years after the mass demonstrations, Lukashenko won a seventh term last year in an election that the opposition called a farce.

More recently, Belarus has begun to free some political prisoners to try to win favor with the West. Since Donald Trump returned to the White House this year, Lukashenko has released dozens of prisoners, including Nobel Peace Prize laureate Ales Bialiatski and key dissident figures Siarhei Tsikhanouski, Viktar Babaryka and Maria Kolesnikova.

Trump spoke to Lukashenko by phone in August 2025 after one such release and even suggested a face-to-face meeting in what would be a big victory for the Belarusian leader, who has been dubbed “Europe’s Last Dictator.”

Coale told reporters after the talks on Thursday that a possible trip for Lukashenko to the U.S. was discussed.

Belarusian opposition leader in exile Sviatlana Tsikhanouskaya told The Associated Press in written comments Thursday that U.S. envoy Coale's “mission is to help secure the release of political prisoners.”

“These are innocent people, held illegally by the regime. This is not an easy task," she said, adding that Lukahsenko “does not keep his word — he releases some prisoners while arresting new ones.”

"But I believe the United States has enough leverage to make a real difference and free them all,” Tsikhanouskaya said.

There are currently more than 1,100 political prisoners in Belarus, according to the country's most prominent human rights group, Viasna.

“Of course, we welcome these efforts. We see them as humanitarian and very important,” Tsikhanouskaya said. “But at the same time, we must insist on real, systemic change in Belarus — an end to repression and the holding of free and fair elections."

In this photo released by Belarusian presidential press service, Belarusian President Alexander Lukashenko, right, and U.S. Presidential envoy John Coale, second right, talk during their meeting in Minsk, Belarus, Thursday, March 19, 2026. (Belarusian Presidential Press Service via AP)

In this photo released by Belarusian presidential press service, Belarusian President Alexander Lukashenko, right, and U.S. Presidential envoy John Coale talk during their meeting in Minsk, Belarus, Thursday, March 19, 2026. (Belarusian Presidential Press Service via AP)

LONDON (AP) — The Bank of England held its main interest rate at 3.75% on Thursday as the sharp oil and gas price hikes following the start of the Iran war have stoked renewed concerns about inflation.

The decision was widely anticipated after the United States and Israel started bombing Iran less than three weeks ago. All nine members of the Monetary Policy Committee voted to keep borrowing costs on hold, the first unanimous decision for more than four years.

Until the war erupted on Feb. 28, it was a seen as nearly certainty that the Bank of England would cut interest rates as inflation in the U.K. was expected to fall towards the 2% target in the coming months. In last month's rate-setting meeting, four of the nine rate-setters voted for a cut.

“We have held interest rates at 3.75% as we assess how events unfold,” Bank Gov. Andrew Bailey said. "Whatever happens, our job is to make sure inflation gets back to its 2% target.”

The Iran war has done much to upend the bank's predictions as well as the wider global economic forecasts, not least in how it will affect prices.

The longer the Iran war and the associated closure of the Strait of Hormuz go on, the greater the economic pain will be. A fifth of the world’s crude oil goes through the strait.

The most tangible impact has been in oil and gas markets, with prices rising sharply higher since the start of the war. Prices have surged again Thursday after Iran, in retaliation for an Israeli attack on a key Iranian gas field, intensified its attacks on oil and gas facilities around the Gulf, including Qatar's Ras Laffan, the largest liquefied natural gas export facility in the world.

“War in the Middle East has pushed up global energy prices," Bailey said. “You can already see that at the petrol pump and, if it lasts, it will feed into higher household energy bills later in the year.”

With these new inflationary pressures stalking the global economy, central bankers are having to reassess their projections in 2026, both for inflation and growth.

On Wednesday, the U.S. Federal Reserve also held its key interest rate and cautioned about the increasingly uncertain outlook.

For the Bank of England, it's likely to mean that inflation will not fall to its target rate of 2% as soon as expected and will lead to higher prices for the rest of the year — hardly the backdrop for further interest rate reductions anytime soon.

Following Thursday's unanimous decision and the tough language employed by Bailey, financial markets have actually moved to price in higher U.K. interest rates this year.

“While another interest rate cut remains possible if the Iran war ends quickly, with skyrocketing oil and gas prices locking in an imminent inflation spike, the chances of further policy loosening this year is rapidly receding," said Suren Thiru, chief economist at accounting body ICAEW.

Keeping interest rates higher than they otherwise would have been can help keep a lid on inflation. High interest rates weigh on the economy by making it more expensive for businesses and consumers to borrow, thereby bearing down on economic activity and consequently price pressures.

FILE -A man walks in front of the Bank of England, at the financial district in London, Feb. 5, 2026 (AP Photo/Kin Cheung, File)