Pakistan issued a heat wave warning for parts of the country, which threatens to strain the power grid and risks further blackouts, as the nation grapples with energy shortages due to the conflict in the Middle East.

Pakistan’s central bank raised its benchmark interest rate for the first time in almost three years, hiking it more than economists expected, as conflict in the Middle East disrupts energy supplies and fuels inflation.

The US and Iran failed to kick off a second round of peace talks this weekend despite a last-minute push by Pakistan, delivering a blow to Islamabad’s efforts to broker a settlement to end the two-month-old war.