War returns to Iran with Israel, US strikes

Iran’s acting defence minister has called for the creation of a joint security mechanism among Islamic countries, stating that the presence of extra-regional forces has become a source of instability, during a telephone conversation with his Turkish counterpart, state-run Press TV has reported.

Brigadier General Majid Ibn Reza and Turkish Defence Minister Yasar Guler reviewed regional developments, the implementation of the June 27 ceasefire agreement between Iran and the US, and ways to enhance defense and security ties between Tehran and Ankara.

Ibn Reza said Tehran accepted the arrangement to “help restore regional stability” and at the request of friendly and neighboring countries. However, he expressed deep distrust in the US, citing a long record of failing to honor its commitments.

“Given the long history of US breach of promises, we have zero trust in the opposing side,” Ibn Reza said. “The Armed Forces of Iran remain on full alert, and any violation of the agreement will be met with a proportionate response.”

Major-General Amir Hatami, commander-in-chief of Iran’s armed forces, has vowed revenge against the US and Israel for killing former Supreme Leader Ali Khamenei in a February 28 air strike that started the war on Iran, Al Jazeera reports.

Hatami made the remarks on the sidelines of Khamenei’s funeral in Tehran.

“With a firmer resolve we declare to the enemies of the Iranian nation — America and the criminal Zionist regime — that we will avenge the blood of the martyred leader [Khamenei],” said Hatami.

Prime Minister Shehbaz Sharif has arrived in Tehran to attend the funeral of Iran’s former supreme leader Ayatollah Ali Khamenei, state-run PTV News reports.

The premier had departed for Iran to attend the funeral earlier in the day, the Prime Minister’s Office (PMO) said.

“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 said.

Emmanuel Moulin, France’s central bank chief, says that what is happening in the Strait of Hormuz is broadly good news for inflation and that the central bank does not see second-round effects at the moment, according to Reuters.

Moulin, speaking to Bloomberg TV, said French growth in June was soft and not very dynamic and a sharp increase in growth in the second quarter was not expected.

Oil prices have steady and little changed for the week as traders hold on to hopes that attempts to secure peace in the Middle East between the United States and Iran will succeed, Reuters reports.

Brent futures were up 17 cents, or 0.24 per cent, to $71.97 a barrel at 9:32 GMT (2:32pm PKT). West Texas Intermediate was up 2 cents, or 0.03pc, at $68.71 a barrel.

“The US-Iran dealmaking process remains fragile but continues for now, as the question of Strait of Hormuz tolls and administration remains contentious,” Citi analysts write.

“We expect the MoU (memorandum of understanding) to hold, not because trust has suddenly emerged, but because the incentives to break are poor for both sides.”

Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir has arrived in Tehran to attend the funeral of Iran’s former supreme leader Ayatollah Ali Khamenei, state broadcaster PTV reports.

CDF Munir was received by Iranian officials and Interior Minister Mohsin Naqvi, who was already present in Tehran.

Omani delegation arrives in Tehran to attend the farewell ceremony for Iran’s martyred Leader Ayatollah Khamenei, Press Tv reports.

India’s deputy foreign minister ​and a state governor are travelling to Iran to represent the country at the state funeral of Iran’s former Supreme Leader Ayatollah Ali ​Khamenei, Al Jazeera reports.

Governor of Bihar, Syed Ata ​Hasnain, and deputy foreign minister Pabitra ⁠Margherita will visit Iran, the Indian foreign ministry has said ​in a statement.

“The high-level representation in the ceremony underscores the importance of civilisational ties, including ​people-to-people connection, between the two ​countries, providing a robust foundation to political and ‌economic ⁠engagements,” it has said.

China will lower domestic retail prices for gasoline and diesel, reflecting a fall in international oil prices as Iran-US peace talks have eased concern about supply disruption through the Strait of Hormuz, Reuters reports.

The reduction in the official price ceiling, which sets the maximum retail selling price, follows two previous cuts in the space of a month.

It is China’s single biggest reduction in more than six years and lowers retail fuel prices to less than 2 per cent above the levels before US-Israeli airstrikes began the Iran war at the end of February.

Gasoline and diesel ceiling prices will fall by 950 yuan ($140.10) and 915 yuan per metric ton, respectively, to 8,175 yuan per ton and 7,170 yuan per ton, the National Development and Reform Commission (NDRC) said in a notice.

The NDRC reviews and adjusts retail gasoline and diesel prices every 10 working days.

Iran’s Parliament Speaker Mohammad Bagher Ghalibaf has warned that if the US and Israel do not fulfil their commitments to end the war, then Tehran will respond, Al Jazeera reports.

“We strongly demand full implementation of the agreements, and if the US and the Zionist regime fail to fulfil their commitments, Iran will resume proportionate actions,” Ghalibaf said, according to Iran’s ISNA news agency.

Ghalibaf, who also heads the country’s negotiating team in talks with the United States, added Washington cannot militarily confront Iran and said Israel’s threats are “baseless propaganda”.

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.