War returns to Iran with Israel, US strikes

Qatar appears to be sending a liquefied natural gas tanker through the Strait of Hormuz, the first visible passage in about a week, as the major exporter eyes a rapid restart to output, Bloomberg reports.

Activity in Britain’s dominant services sector contracted for a second month running in June and by the most since early 2023 as the fallout from the Iran war continued to weigh on companies, a closely watched survey showed, accroding to Reuters.

The S&P Global Purchasing Managers’ Index for the services sector in June fell to 48.8 from May’s 49.3, representing the second fall in a row in activity and the weakest since January 2023.

Friday’s reading was slightly stronger than a preliminary flash estimate of 48.7. A reading below 50 signals contraction.

Tajik President Emomali Rahmon has arrived in Tehran to take part in the farewell rites for Ayatollah Khamenei, IRNA news agency reports.

Iraqi President Nizar Amidi has arrived in Tehran to participate in the ceremony paying respects to the martyred leader Ayatollah Khamenei, IRIB reports.

Prime Minister Shehbaz Sharif has departed for Iran on a day-long visit to attend the funeral of assassinated supreme leader Ayatollah Ali Khamenei, the PM’s Office says.

In a post on social media platform X, the PMO said the premier was accompanied by National Assembly Speaker Ayaz Sadiq, Deputy Prime Minister and Foreign Minister Ishaq Dar, Information Minister Attaullah Tarar, PPP Chairman Bilawal Bhutto Zardari, PPP Secretary General Nayyer Bukhari, and Sindh Chief Minister Murad Ali Shah.

PM Shehbaz will “participate in the funeral rites of Iran’s late Supreme Leader, Martyr Ayatollah Syed Ali Khamenei, in Tehran”, the PMO says.

“On behalf of the Pakistani people and government, the prime minister will express heartfelt condolences to the Iranian leadership and the bereaved families and reaffirm Pakistan’s complete solidarity with the brotherly Iranian nation in this hour of grief,” it adds.

Voyages through the Strait of Hormuz have more than quadrupled in the past week amid growing confidence in the US and Iran’s 60-day ceasefire, the Financial Times reports.

The number of traceable journeys by ships passing into and out of the Gulf each day has increased from between one and two for the majority of the conflict to eight on July 1, according to a moving seven-day average from maritime data platform Signal.

Hapag-Lloyd, the major container shipping line, told the FT on Thursday that four ships previously stuck in the Gulf were now out, while rival Maersk said two of its vessels had left the strait last week.

Before the conflict, roughly a fifth of the world’s oil and gas passed through the strait, with around 135 vessels per day making the transit.

Iran’s Acting Minister of Defence Seyyed Majid Ibn Reza has said that Tehran signed the memorandum of understanding with the US to help restore regional stability and at the request of its friendly neighboring countries, Press TV reports.

“However, given the United States’ long history of failing to honor its commitments, Iran has no trust in the other party,” he said.

“Iran’s armed forces remain on full alert and will respond proportionately to any violation of the agreement,” he said.

The chief of Iran’s Revolutionary Guards, Ahmad Vahidi paid his respects in Tehran before the body of assassinated supreme leader Ali Khamenei, his first public appearance since the start of the Middle East war, footage broadcast by Iranian media showed, AFP reports.

Vahidi — who has maintained a low-profile since the beginning of the war, probably to avoid being assassinated like his predecessor — laid his hand on the coffin and prayed, a photo shared by the Fars news agency showed.

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Senior US officials feared that Israel intended to assassinate Iran’s top negotiators as the Trump administration pursued a high-stakes deal to end the war there and reopen the Strait of Hormuz, current and former officials familiar with the matter said, according to The Washington Post.

Chairman Senate Syed Yousaf Raza Gilani arrived in Tehran with a high-level delegation to attend the funeral prayers and burial of Iran’s Supreme Leader Ayatollah Syed Ali Khamenei, state-run Pakistan Television (PTV) reports.

Iranian officials received the Pakistani delegation upon its arrival in Tehran.

Speaking to the media, Gilani described Ayatollah Khamenei as an influential and respected figure of the Islamic world. He said Pakistan and Iran shared longstanding historical, religious, cultural and fraternal ties, adding that the “visit would reaffirm both countries’ commitment to further strengthening bilateral relations”.

Lebanon’s National News Agency reports that an Israeli drone hit a vehicle in the town of Seddiqine in the Tyre district of southern Lebanon overnight.

The Israeli military claims one of its soldiers was “seriously injured” during what it described as an “encounter” in southern Lebanon, Al Jazeera reports.

In a statement, the military said: “The soldier was evacuated to receive medical treatment at a hospital, and his family was notified.”

United States President Donald Trump has said it is “ridiculous” for the country to continue its “one-sided” relationship with Nato, less than a week before a summit in Ankara, AFP reports.

“They were not there for us!!!” Trump wrote on his Truth Social platform, adding that Washington’s relationship with Nato “is not reciprocal”.

Trump has repeatedly lashed out at European allies over their response to the war on Iran.

The body of Iran’s supreme leader Ali Khamenei, who was assassinated in US-Israeli strikes, arrived at Tehran’s Grand Mosalla religious complex ahead of his funeral, AFP reports, citing state media.

“The body of the martyred Leader of the Islamic Revolution has arrived at the Imam Khomeini Grand Mosalla,” IRNA wrote on Telegram, using the complex’s official name.

An Iranian lawmaker says Tehran should reconsider its nuclear doctrine following Israel’s latest threat to assassinate Supreme Leader Mojtaba Khamenei.

In a post on X, Ebrahim Rezaei, spokesman for the Iranian parliament’s National Security Commission, said the threat made by Israeli Defence Minister Israel Katz provided “a valid and compelling reason for reconsidering the nuclear doctrine as well as Article Eight of the Islamabad Accord”.

Pakistan’s Permanent Representative to the United Nations Ambassador Asim Iftikhar Khan has said that it is the country’s “consistent belief that the only way to settle the situation in the region, conclusively and comprehensively, is through diplomacy, dialogue and negotiations”.

He made the remarks during a UN Security Council meeting called by Bahrain.

“From the outset, Pakistan has maintained a principled position with respect to the inadmissibility of any use of force outside the bounds of international law – the unwarranted strikes against Iran and those targeting the GCC countries. Pakistan has been categorically condemning attacks against the GCC countries and once again expresses its full solidarity with our brothers and sisters in Bahrain and Kuwait,” it said.

“Pakistan’s leadership remains engaged with the parties, our partners and the regional countries. We continue to facilitate dialogue and confidence-building measures to prevent any escalation and to sustain the diplomatic engagement,” he said.

“From our perspective, the fact that the talks are continuing and the parties are on the negotiating table is a significant positive outcome. The channels of communication remain open, and we are persisting in our efforts geared towards ushering peace, security and tranquility that benefits the entire region and all countries without exception,” he added.

A former US-Iran negotiator has said that the US needs to move more quickly to maintain momentum in talks with Tehran once the funeral for former Supreme Leader Khamenei has concluded, Al Jazeera reports.

Alan Eyre, also a distinguished diplomatic fellow at the Washington-based Middle East Institute think tank, said the two sides need to be speaking more frequently and for longer than they have been.

“This is a pretty desultory process so far. I understand they have to take time off for the funeral of Ayatollah Khamenei, but after that is over, I hope that the US side really picks up the pace,” Eyre said.

Preparations for the funeral of Iran’s slain supreme leader Ali Khamenei are in full swing, with authorities expecting millions and a coterie of foreign dignitaries to attend the official ceremony, AFP reports.

Prime Minister Shehbaz Sharif will attend the funeral in Tehran.

China, Afghanistan and Iran’s neighbours in the Caucasus region say they aill also be sending representatives.

Workers were readying Tehran’s Grand Mosalla religious complex, while security teams stopped passing cars and curious bystanders looked on.

“We are planting flowers and watering the shrubs for the farewell ceremony of our martyred guide,” says worker Hossein Moghadassi, clad in a hat and a scarf to cover his face as the temperature soared.

“People will come from all over Iran. There will be huge crowds.”

Oil prices rose slightly on Friday before a long holiday weekend in the US as wary optimism held over efforts to make peace in the Middle East between the United States and Iran, Reuters reports.

Brent futures were up 17 cents, or 0.24 per cent, to $72.10 a barrel as of 0155 GMT. West Texas Intermediate was up 14 cents, or 0.20pc, to $68.83 a barrel.

During the prior session the two benchmarks hit their lowest levels since before the US-Israeli war on Iran began in late February. Brent for the week was down 0.02pc and WTI up 0.12pc, the smallest weekly movements for both in months.