War returns to Iran with Israel, US strikes

The State Bank of Pakistan (SBP) has held the key policy rate at 11.5 per cent, the bank’s governor has told a press conference, as renewed US-Iran hostilities threaten to push energy costs and inflation higher in the import-dependent country.

The central bank decision came weeks after the ceasefire agreement between Washington and Tehran collapsed.

SBP Governor Jameel Ahmad said there will be some reduction in inflation in July, adding that he hoped inflation will start falling in the next two months if the conflict does not escalate.

Turkmenistan has condemned the deadly Ukrainian strike on an Iranian commercial vessel in the Caspian Sea on Saturday, Al Jazeera reports.

The foreign ministry described it as “unacceptable”.

“Turkmenistan, as a Caspian littoral state and a country with permanent neutrality recognised by the United Nations, emphasises that the Caspian Sea is a sea of peace, harmony and good-neighbourliness,” it said in a statement.

Iran’s foreign ministry has said it was not currently involved in negotiations with the United States, despite a halt in recent fighting between the two sides, AFP reports.

“At present, we are not engaged in any negotiations with the United States,” said the ministry’s spokesman Esmaeil Baqaei at a weekly press briefing, denying reports that Iran had requested talks.

The Israeli military has claimed that it intercepted two drones near the Jordanian border and was investigating where they had been launched from, AFP reports.

“A short while ago, the IDF intercepted two UAVs identified in the area of the Jordan border,” the military said.

“The UAVs did not cross into Israeli territory. The origin of the launch is under review.”

Jordan’s armed forces have said they intercepted and downed two drones, adding that there were no casualties or material damage, Reuters reports.

The statement did not identify who launched the drones.

Gold prices have climbed as a pause in strikes between US and Iranian forces dragged crude oil prices lower, helping ease inflation concerns and worries about the risk of higher interest rates in a week where policymakers at the Fed are due to meet, Reuters reports.

Spot gold gained 0.9pc to $4,089.03 per ounce by 08:05am GMT (1:05pm PKT) while US gold futures for August delivery rose 0.5pc to $4,090.80.

“Precious metals have started the week on the front foot, helped by a pause in Middle East hostilities. Oil has slumped and both the dollar and US Treasury yields have eased,” said independent analyst Ross Norman.

The U.S dollar index dropped 0.2pc, making greenback-priced bullion more affordable for buyers overseas.

Ukraine’s President Volodymyr Zelensky says Moscow is deepening military coordination with Tehran as well as North Korea and China, Al Jazeera reports.

In an interview with Sky News, Zelensky has said North Korea could send 30,000 troops to Russia while Iran may provide additional missiles.

Asked whether he’s concerned about a potential Iranian attack on Ukraine, Zelensky says Tehran is already involved in the war by supplying weapons to Russia.

“We can’t trust these people because at the very beginning, without any escalation from our side, Iranians gave weapons,” he has said.

“We have to do everything not to open a new front [but] Iranians and North Koreans already attacked us.”

Iran’s foreign ministry has said that it summoned the French ambassador to Tehran to protest what it described as “interference in Iran’s internal affairs” by two diplomats who were briefly detained earlier this month, AFP reports.

“Yesterday, the French ambassador in Tehran was summoned to the Ministry of Foreign Affairs, where it was stressed that the French government must cease such actions and such interference in Iran’s internal affairs under misleading labels,” said the ministry’s spokesman Esmaeil Baqaei in a weekly press briefing, adding that the diplomats had carried out activities “that were in no way justified”.

Iran has not asked to resume talks with the United States to end the war, and the situation in the Strait of Hormuz has not changed, Iran’s foreign ministry spokesperson Esmail Baqaei says, according to Reuters.

The Israeli government “will do whatever it takes to prevent the transfer of [nuclear] technologies” to the countries in the Middle East, Iran’s foreign ministry spokesman says, Al Jazeera reports.

Replying to a question on the Saudi-US nuclear deal at a news conference, Esmaeil Baqaei said: “Peaceful use of nuclear energy is everyone’s right.”

“The reason for the pressure on Iran was Iran’s use of its right. We leave the judgement to the world.”

Baqaei says Tehran primarily “holds the US responsible for the military aggression” against the country, Al Jazeera reports.

“Of course, we cannot ignore the participation of regional countries,” he said.

The official added: “We expect these countries not to continue cooperating with the US in actions against Iran.”

Negotiations between Iran and Oman on the key waterway were held on Friday and Saturday, according to the foreign ministry spokesperson Esmail Baqaei, Al Jazeera reports.

“There were useful discussions on how to manage shipping in the Strait of Hormuz,” he said.

“The situation in the Strait of Hormuz has not changed, it remains closed and these negotiations have nothing to do with the US.”

Interior Minister Mohsin Naqvi says that tensions between the US and Iran have “eased again due to consistent efforts” by Chief of Defence Forces Field Marshal Asim Munir.

He made the remarks during a meeting with Jamaat-i-Islami chief Hafiz Naeemur Rehman, according to a statement by the interior ministry.

Naqvi and Rehman discussed the “overall situation in the country and regional matters”. They also exchanged views on “solutions to public issues”, the ministry said.

The Iranian foreign ministry’s spokesman, Esmaeil Baqaei, says the United States is “stuck and struggling” after its unprovoked attack on the country, Al Jazeera reports.

“The Americans are struggling in their current situation, they have caused this. They have done this and now they are stuck,” Baqaei told reporters. “Our decision [on the war] depends and relies on our national interests.”

He added: “We have never allowed America to determine for us the time of war or peace.”

The Iranian foreign ministry’s spokesman, Esmaeil Baqaei, says Washington thought “Iran would collapse in three days and surrender” after the start of the US-Israeli war, Al Jazeera reports.

“Now, months later, America is stuck in this place and they are proud of its crimes,” he told reporters in Tehran.

Baqaei said the US returns to the negotiation table whenever global energy prices increase.

Iran Foreign Ministry spokesman Esmaeil Baqaei has warned that Ukraine’s attack on an Iranian commercial ship in which a sailor was killed “will certainly not go unanswered,” Fars news agency reports.

“Zelenskiy’s elders should control him; this dangerous adventure will certainly not go unanswered,” he said at a press conference.

A bilateral discussion between the foreign ministers of Saudi Arabia and Oman discussed the ongoing security tensions in the Gulf region due to the US-Iran war, Al Jazeera reports, citing SPA.

The Saudi state agency reported that both countries shared their concerns about recent developments and spoke about ways “to ensure the safety and freedom of maritime navigation in the Strait of Hormuz”.

Oman also held in-person discussions with Iran over the weekend.

Iran’s Revolutionary Guards spokesperson has accused the US of “censoring” the scale of troop casualties in its war with Iran, Press TV reports.

“US censoring true scale of troop casualties; over 200 US troops estimated killed,” the spokesperson said.

The statement added: “US officials lie about targeting military targets in Iran; civilian infrastructure was targeted.”

Iran’s Revolutionary Guards navy stopped six vessels attempting to transit the Strait of Hormuz through routes not approved by Iranian authorities, AFP reports, citing state television.

“Last night, six vessels that attempted to transit through a route other than the designated one were stopped by the IRGC Navy with warning shots and turned back,” a state television correspondent reported from the Gulf.

Earlier state TV said one vessel was involved in an “incident”, without elaborating.

IRGC spokesperson says that the Strait of Hormuz has served as a deterrent in the US-Iran war, Press TV reports.

The statement further added, “Throughout Iran’s Nasr-2 Operation, US bases were dealt huge damage [and] paralysed. US forces were rendered blind as a result of [Iran’s] attacks on enemy radars”.

According to the statement carried by Press TV, Iranian attacks on US military infrastructure had “decreased US operational power”.

It also said that Ukraine’s recent strike against an Iranian ship “will not go unanswered”.

The State of Israel’s Arabic-language account on X says Prime Minister Benjamin Netanyahu has departed for Washington, DC, where he is due to meet US President Donald Trump, Al Jazeera reports.

According to the post, the visit is taking place at Trump’s invitation, with the two leaders expected to discuss “issues of concern to both countries”.

The visit comes as Netanyahu remains the subject of an International Criminal Court (ICC) arrest warrant.

UAE Foreign Minister Abdullah bin Zayed Al Nahyan has held a phone call with his Omani counterpart, Sayyid Badr bin Hamad bin Hamoud Al Busaidi, according to the former’s office, Al Jazeera reports.

They discussed “developments in the Middle East, regional updates, and ongoing efforts to achieve lasting security and stability in the region,” a statement from the UAE foreign ministry said.

“The two sides also reviewed the fraternal relations between the two brotherly countries and explored ways to enhance cooperation in a manner that serves the interests and prosperity of their peoples,” it added.

Six ships attempted to pass through an “illegal and unsafe” route in the south of the Strait of Hormuz after turning off their navigation and positioning systems, Iran’s state broadcaster IRIB reports.

One vessel suffered an accident, and the others returned to the Gulf under “decisive Iranian management”, IRIB said.