War returns to Iran with Israel, US strikes

Iranian Foreign Minister Abbas Araghchi says in a post on X that Iraq is also preparing for the funeral of late Iranian supreme leader Ayatollah Ali Khamenei.

“Like Iran, Iraq is preparing for a mass funeral for Grand Ayatollah Khamenei — an event that will undoubtedly be remembered by history and further strengthen the bonds between our two nations,” he writes, adding that during a visit to Baghdad, he met the Iraqi president, prime minister, foreign minister and other senior officials.

Arsenio Dominguez, secretary-general of the International Maritime Organisation (IMO), says mandatory tolls or any system that undermines free navigation through international waterways would be illegal under international law, while suggesting a voluntary fund for the Strait of Hormuz, Al Jazeera reports.

Dominguez says he discussed “management of the strait” with Omani officials, including talks about the existing arrangement in the Straits of Malacca and Singapore.

The trilateral framework involving Indonesia, Malaysia and Singapore has operated since 2007, funded largely through voluntary contributions from user states and the shipping industry rather than compulsory tolls, to support navigational safety and environmental protection in the busy waterway.

“It’s learning from something that already exists, that is being tested,” he explains, adding that the aim is to find practical solutions to the crisis triggered by regional conflict, and that he intends to present various options to IMO member states “to see what is viable”.

The US Treasury Department has announced joint sanctions by the Terrorist Financing Targeting Centre (TFTC) against five entities and 16 individuals it claims are linked to Hezbollah’s financial network, Al Jazeera reports.

The TFTC, a multilateral body co-chaired by the US and Saudi Arabia that includes Gulf Cooperation Council member states, has established coordinated measures to target the al-Qard al-Hassan Association, which the Treasury alleges masquerades as a non-governmental organisation while providing financial services similar to an unlicensed bank.

The actions also target Bayt al-Mal, described by US officials as the group’s unofficial treasury and investment arm.

At least 4,278 people have been killed and 12,196 wounded by Israeli attacks across Lebanon since March 2, when the fighting between Israel and Hezbollah resumed, Al Jazeera reports citing the state-run National News Agency.

US crude oil production rose to 13.93 million barrels per day (bpd) in April, the highest on record, monthly data from the Energy Information Administration (EIA) shows, as producers ramp up output in response to higher oil prices owing to the Iran war, Reuters reports.

Production rose by 216,000 barrels per day in April, EIA data shows, with production in New Mexico touching a record high of 2.37 million bpd.

Crude production in Texas edged 36,000 bpd higher to 5.83 million bpd, the highest since November. Texas and New Mexico are home to the Permian Basin, which accounts for roughly half of US crude output.

Output from North Dakota, the third largest producing state, also rose to 1.13 million bpd, the highest since November.

US crude futures are trading around $70 a barrel. It had traded as high as $117.63 in April.

Strait of Hormuz traffic picked up on Monday, largely driven by vessels entering the Gulf, after a weekend lull as the United States and Iran traded strikes, AFP reports citing maritime tracking data.

Nineteen commodities vessels entered the Gulf on Monday, matching the number of entries by such ships recorded last Wednesday, when total crossings reached a wartime high of 70, Kpler data shows.

Of the ships entering since Monday, at least nine were supertankers, which had mostly avoided entering over the weekend.

Monday’s total of 40 transits in both directions is in line with last week’s wartime record number of crossings. However, these numbers are still far below peacetime traffic when around 120 ships crossed the strait each day.

Just 15 commodity vessels crossed on Sunday.

Iran and Oman are moving forward with plans to collect payment for ships transiting the Strait of Hormuz, despite public American objections, The New York Times reports, citing an Iranian official and four diplomats with knowledge of the matter.

If enacted, the plans will be a significant change from the prewar status in the strategic waterway, underscoring how the US-Israeli decision to attack Iran on February 28 has changed the Middle East in far-reaching and unanticipated ways.

Iranian officials have repeatedly declared their intentions to monetise the strait.

Oman has recently delivered a formal proposal to the United States and other Western allies that outlined a plan in which shipping companies would pay service fees to use the strait, according to the Iranian official and a regional diplomat.

A person familiar with the US position has confirmed that American negotiators had received the Omani proposal and said that they had concerns they intended to discuss with Omani officials. The officials and diplomats cited have all spoken on the condition of anonymity to discuss sensitive diplomacy.

Iran’s Foreign Minister Araghchi has visited an exhibition of objects left behind by the sailors of the Iranian frigate IRIS Dena, which was attacked by a US submarine, Al Jazeera reports.

Eighty-seven bodies were recovered at sea after a torpedo attack in international waters off Sri Lanka’s coast.

Araghchi says, “What happened is undoubtedly a war crime that will be recorded in history,” as the frigate “was attacked without any military action, without weapons, and without any prior warning”.

“This action is in no way considered a naval victory, but only shows the enemy’s helplessness,” Araghchi adds.

He further says, “Attacking an unarmed target far from the battlefield is not courageous; rather, it is a sign of cowardice”, although he has not explicitly mentioned the US.

He adds that the legal department of Iran’s Ministry of Foreign Affairs, in cooperation with the Navy, will “collect the documentation of this crime and we will carry out all the necessary legal follow-ups”.

Many Gulf stock markets ended lower today after doubts over ⁠whether US-Iran talks in Doha will make any progress to end the four-month-old war, Al Jazeera reports.

Saudi Arabia’s ‌benchmark stock index has edged 0.1 per cent higher on Tuesday. Dubai’s main share index has dropped 0.6pc, with top lender Emirates NBD (ENBD) retreating 1.8pc.

In Abu Dhabi, the index has fallen 0.4pc. The Qatari index has ⁠eased 0.1pc, weighed down by a 2.2pc fall ⁠in the Gulf’s biggest lender, Qatar National Bank.

Israeli Prime Minister Benjamin Netanyahu has visited troops in southern Lebanon, vowing that his country’s forces will stay in the area as long as Iran-backed Hezbollah remains a “threat”, AFP reports.

“Our position is clear: we will not leave southern Lebanon until the threat has disappeared. And as long as Hezbollah, armed, is here and threatening us, we will stay here,” Netanyahu has said, according to a statement from his office.

He adds that “Lebanon recognises Israel, Israel recognises Lebanon, and we say to Iran and to Hezbollah: leave this place, you no longer belong here …

“There are two sovereign states that want to live in peace”.

Iranian foreign ministry spokesperson Esmaeil Baqaei has said that the International Atomic Energy Agency (IAEA) is still not being granted access to inspect the Islamic republic’s nuclear sites, according to state news agency IRNA.

Baqaei has also criticised the nuclear watchdog for its “shortcomings” and urged Director General Rafael Grossi to “focus on his professional responsibilities instead of what he described as ‘campaign-style publicity’“, IRNA adds.

China’s Foreign Minister Wang Yi has called for maintaining the momentum of negotiations between the US and Iran in a meeting in Beijing with his Saudi counterpart, Reuters reports citing the state-run news agency Xinhua.

“The current ceasefire remains fragile, but talking is better than fighting, and dialogue is better than confrontation,” Wang says, adding that Beijing is willing to work with Saudi Arabia to ease tensions in the region and promote lasting peace.

Giant portraits of Ayatollah Ali Khamenei, Iran’s late supreme leader assassinated in US-Israeli airstrikes, hang from Tehran’s Grand Mosalla as workers race to prepare for his grand funeral ceremony, AFP reports.

His funeral, initially delayed at the height of the Middle East war, will take place as Iran and the United States uphold a fragile ceasefire after signing a preliminary deal to halt the conflict.

Khamenei, a spiritual figure for many Shias, was killed aged 86 at his compound in the centre of the Iranian capital on February 28, the first day of the war.

His public funeral will begin on Saturday, with his body lying in state at the colossal complex in central Tehran that hosts major Friday prayers, official ceremonies and religious gatherings.

The bodies of his slain relatives will also be presented.

Iranian foreign ministry spokesperson Esmaeil Baqaei says the Iranian football team was treated in “the most politicised” manner during the 2026 FIFA World Cup, co-hosted by the United States, Canada and Mexico, Al Jazeera reports.

He says that the matter of issuing visas had been a serious problem from the beginning, and a significant number of members of the technical staff and federation officials were denied visas.

“The issue of the Iranian national football team staying at a place other than the venue of the games itself also became problematic,” he says.

Baqaei has also slammed Markwayne Mullin, the US Secretary of Homeland Security, for announcing he “maybe even danced a happy dance” to celebrate Iran’s exit from the tournament.

Iran’s state-owned banking technology provider says cyberattacks have disrupted card-based banking services at Bank Melli, Bank Saderat and Bank Tejarat, Reuters reports.

This has prompted a temporary suspension of all card-related operations at the three banks to prevent further unauthorised access, the company tells state TV, with cybersecurity teams working to restore normal operations.

The company’s public relations head points out that ATM services, point-of-sale terminals and mobile applications linked to card systems were all affected.

Iran will respond to any US violation of the memorandum of understanding aimed at ending the war in the Middle East, its foreign ministry spokesperson says, as delegations from both sides are expected in Qatar for indirect talks on the deal, AFP reports.

“We will not leave any action unanswered. As Iran’s powerful armed forces have demonstrated, any act of aggression against the objectives of the Islamic Republic of Iran will be met with an immediate and decisive response,” Esmaeil Baqaei tells reporters at a weekly press conference.

“Such actions would constitute a violation of Article 1 of the memorandum of understanding. Naturally, if such violations are repeated and continue, the continuation of this process will encounter difficulties.”

Iranian foreign ministry spokesperson Esmaeil Baqaei says the Iranian side has no plans to meet US officials “at any level in the next few days”, Al Jazeera reports.

“What will probably be done in Doha tomorrow is a discussion on the implementation of clauses of the Memorandum of Understanding, including the clause related to the release of Iran’s restricted assets with the Qatari parties,” he tells reporters.

“Therefore, I emphasise that we have not planned any meeting with the American side at any level for the next few days,” Baqaei adds.

Iran will hold talks with mediator Qatar tomorrow regarding its frozen assets, the Iranian foreign ministry has said, denying that any meeting with the United States is planned in the Gulf state.

“What is expected to take place in Doha, probably tomorrow, will be discussions regarding the implementation of provisions of the memorandum of understanding, including the provision concerning the release of Iran’s restricted assets, and these discussions will be held with the Qatari side,” AFP quoted foreign ministry spokesman Esmaeil Baqaei as telling reporters at a weekly press conference.

Iranian foreign ministry spokesperson Esmaeil Baqaei has reiterated Tehran’s stance on the war in Lebanon, according to Al Jazeera.

The US’s commitment to ending the war on all fronts, especially in Lebanon, is important in line with the first paragraph of the Memorandum of Understanding, he says, addressing reporters at a press briefing.

“America must adhere to its commitments and, if necessary, force the Zionist regime (Israel) to implement its commitments,” Baqaei adds.

“Our criterion for measuring America’s adherence to its commitments is the text of the Memorandum of Understanding.”

Addressing a press briefing, Iranian foreign ministry spokesperson Esmaeil Baghaei has said, “Mine clearance in the Strait of Hormuz, in accordance with the memorandum of understanding, is a matter that concerns Iran, and there is no need for any other party to intervene in this issue,” according to the Fars news agency.

A spokesman for the Qatari foreign ministry says the issue of frozen Iranian funds is directly linked to the progress of negotiations between Tehran and Washington, according to Al Jazeera.

On the Strait of Hormuz, he says a hotline dedicated to de-escalation was used to contain last week’s exchanges of fire between the US and Iran.

He adds that Qatar is coordinating with Oman regarding the safe passage of ships through the vital waterway, and Qatar considers freedom of navigation through the strait paramount.

The UN trade and development agency has warned that while the reopening of the Strait of Hormuz will bring immediate relief to energy markets, vulnerable economies remain at risk from prolonged increases in food and fuel costs, Reuters reports.

Food and transport systems are likely to take longer than energy markets to recover, as disrupted supply chains need more time to reset following more than 100 days of severe disruption to shipping through the strategic waterway, a UN Conference on Trade and Development said in a new report.

Although Brent crude has fallen sharply back to around $73 a barrel, close to pre-conflict levels, following the interim US-Iran agreement, UNCTAD said higher fuel, gas and fertiliser costs could continue to feed through into agricultural production, transport costs and household budgets.

Vulnerable economies remain particularly exposed to oil and fertiliser price shocks, while persistently high food prices could place further pressure on poorer households. UNCTAD said a 5 per cent increase in food prices can significantly raise the risk of childhood wasting.

The agency identified 61 vulnerable economies exposed to oil and cereal import shocks linked to the Strait of Hormuz disruption.

The Qatari foreign ministry’s spokesperson has also said that the direct line of communication for de-confliction in the Strait of Hormuz has been used to contain confrontations over the past few days, Reuters reports.

He added that Qatar was coordinating with Oman on the strait and on the safe passage for vessels.

The official further said that the $6 billion of Iranian frozen funds have not been transferred to Tehran. They are subject to the 2023 agreement and earmarked for the purchase of humanitarian goods, he added.