War returns to Iran with Israel, US strikes

Iranian Parliament Speaker Mohammad Bagher Ghalibaf has vowed that the perpetrators behind the assassination of supreme leader Ayatollah Ali Khamenei will be punished, stressing that his martyrdom has “strengthened public resolve”, according to state broadcaster Press TV.

“The people, who have served as the driving force and steadfast supporters of their Revolution for the past 47 years, have, over the past four months, chanted ‘Death to America’ and ‘Death to Israel’ every night, expressing their hatred and revulsion toward those who martyred our Leader and demanding revenge,” he is quoted as saying.

He further stresses that the “final step of vengeance” will be achieved through the “liberation of Holy al-Quds (Jerusalem)” from Israel.

Israeli Foreign Minister Gideon Saar has confirmed that the next round of talks with Lebanon will take place in Rome, as the two countries work to build on a framework agreement reached last month with US backing, AFP reports.

“Less than two weeks ago, Israel, Lebanon and the United States reached a historic framework agreement. These talks are due to continue next week in Rome, Italy,” Saar said during a joint press conference with his German counterpart Johann Wadephul in Jerusalem, adding that “Israel has no territorial ambitions in Lebanon.”

Israeli forces are conducting patrols in the villages of the western sector of southern Lebanon with armoured vehicles, the country’s National News Agency (NNA) reports.

It added that the patrols were accompanied by heavy gunfire towards the sides of the roads and the woods opposite the roads.

German industrial production ticked up more than expected in May, official data showed, as Europe’s top economy defied the worst following the virtual closure of the Strait of Hormuz, Reuters reports.

Factory production rose 0.9 per cent on the month, statistics office Destatis said, beating expectations in a FactSet poll of analysts who had expected a rise of 0.3pc.

The automotive industry led the way with production volumes up 3.6pc, Destatis said, while production of industrial machinery also rose 1.3pc.

“Despite the war in the Middle East and soaring energy prices, industrial production is proving resilient,” ING analyst Carsten Brzeski said.

Christian-majority villages along Lebanon’s southern border have rejected Israeli Prime Minister Benjamin Netanyahu’s claim that they sought to join Israel, Al Jazeera reports.

Mayors, clergy and community leaders from villages across Lebanon’s border region told Anadolu news agency that they remain committed to their Lebanese identity.

“Residents of the border villages remain committed to the Lebanese state and its legitimacy, and have never deviated from this position despite the difficult conditions imposed by Israel’s assault,” the municipalities representing Christian border villages said in a joint statement.

The management at the holy shrine of Hazrat Ali (A.S.) in Najaf says it has finalised preparations for the funeral procession of the martyred Leader Ayatollah Ali Khamenei, in coordination with the relevant Iraqi authorities, IRNA reports.

According to the report, a comprehensive operational plan has been put in place to ensure security, logistics, public services, media coverage, and crowd management during the funeral ceremonies.

Haider al-Issawi, a member of the administrative organisation of Hazrat Ali’s (R.A.) shrine, says extensive coordination meetings and field inspections had been conducted to determine procession routes and mobilise the personnel and resources needed to facilitate the event, the report adds.

Iraqi authorities have announced that Khamenei’s body will arrive in Najaf in afternoon, where an official funeral ceremony will be attended by senior Iranian and Iraqi officials, it says.

It further says that the funeral procession is scheduled to begin at 6am local time on Wednesday, with millions of Iraqis expected to take part in the ceremony from Kufa to Najaf.

Later in the day, at 4pm local time, the procession will continue through parts of the holy city of Karbala before reaching the shrines of Imam Husain (RA) and his brother Abolfazl al-Abbas (RA), it adds.

European natural gas prices have risen following reports that an LNG carrier was attacked near the Omani coast while exiting the Strait of Hormuz, Al Jazeera reports.

European benchmark natural gas prices increased more than 4.5 per cent, moving to €46 ($52.5) per megawatt-hour as of 7:05 GMT (12:05pm PKT), after recouping losses from the previous session.

Iranian state television, IRIB, reported that the vessel came under attack after allegedly disregarding warnings.

Oil rises as traders’ nervousness about a lack of progress on peace talks between the United States and Iran offset any price impact of a slight recovery in shipping through the Strait of Hormuz, Reuters reports.

Brent crude futures gain $1.02, or 1.42 per cent, to $73.01 a barrel, while US West Texas Intermediate crude rises 93 cents, or 1.36pc, to $69.48 a barrel as of 0748 GMT.

“The deal is by no means signed yet, so something can still go wrong and any comments from either side could raise concern which is helping to underpin prices and it’s basically removing some of the recent intense focus on an increasingly oversupplied market,” Saxo Bank analyst Ole Hansen says.

“So if there’s any further escalation, then $75 would be the natural level to look at next ahead of $80,” Hansen adds.

Investors are monitoring talks between the US and Iran and their implications for shipping through the Strait of Hormuz.

Alaeddin Boroujerdi, a member of the Parliament’s National Security and Foreign Policy Committee, has issued the warning after reports of an attack on a tanker off the coast of Oman, according to AlJazeera.

According to the IRIB state broadcaster, Boroujerdi said that “any action in the Strait of Hormuz without coordination with Iran is doomed to failure”.

He insisted on Iran’s control of the waterway, saying the decision was “made at the highest levels of the system” and influenced by the US-Israel’s latest war against the country.

“The law on the management of the Strait of Hormuz will also be approved by the parliamentarians at the earliest opportunity, and the relevant bodies will be obliged to fully implement its provisions,” Boroujerdi says.

He adds that Iran “pursues any action related to the Strait of Hormuz within the framework of its national interests and security”.

Shell has slightly raised the second-quarter outlook for its integrated gas production in a trading update, but production is expected to be lower than the previous quarter because of the impact of the Middle East conflict on Qatari volumes, according to Reuters.

Trading results at Shell’s chemicals and products unit, which includes the group’s big oil trading desk, are expected to be in line with the previous quarter’s strong performance.

A total of 108 vessels crossed the Strait of Hormuz between 3 and 5 July, AlJazeera reports, citing data analyst company, Kpler.

In a post on social media platform X, the data tracking company says that traffic was “slightly weighted east to west and remained spread across predominantly Iranian and Omani routes”.

“While some crossings continued among IMO (International Maritime Organisation) and Dark/Unknown routes. This shows continued operations but fragmented routing patterns and cautious behavior,” it says.

“Sanctioned vessel activity was also present, with 14 crossings recorded. While the Strait remained open, a sizeable Dark/Unknown Route share and end-June IMO-confirmed attacks suggest that security, routing and insurance risks remain elevated,” it adds.

Gold prices ease, trading below a two-week high, with investors awaiting minutes of US Federal Reserve’s June meeting for insight into Chair Kevin Warsh’s monetary policy direction, according to Reuters.

Spot gold falls 0.9 per cent to $4,126.33 per ounce by 0458 GMT, while US gold futures for August delivery ease 0.7pc to $4,137.60.

“Gold price action looks like a little bit of a continuation of last week, some basing out, forming a support level, obviously waiting for a little bit of direction from the Fed minutes to get a bit more sense around what the Fed’s thinking is on the short-term interest rate policy,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.

Minutes of the Federal Open Market Committee’s June 16-17 meeting will be released on Wednesday.

Mangalore Refinery and Petrochemicals Ltd has chartered a vessel to load crude oil from Iraq, the first Indian state-owned refiner to do so since the partial reopening of the Strait of Hormuz, three shipping sources said, according to Reuters.

MRPL has booked the Aframax tanker Jasmin Joy to load crude from Iraq’s Basrah oil terminal on July 19-20, the sources said.

Indian state refiners have been struggling to secure ships to load crude from ports on the west of the Strait of Hormuz, a strategic waterway through which roughly a fifth of the world’s oil and gas supplies transited before the Israel-Iran conflict disrupted shipping in the region.

Iran’s Foreign Minister Abbas Araghchi said on X that millions of “proud Iranians rallied in unity” to honour assassinated supreme leader Ayatollah Khamenei and his legacy.

“Neither them nor our brave armed forces are moved by any threats,” he said. He added that the memorandum of understanding signed with the United States was clear.

“Negotiations on a final deal will not commence if threats continue. Honor your signature,” he said.

Hossein Royvaran, a Tehran-based analyst, says it is not yet clear why the tanker off the coast of Oman was targeted, noting that Iran has yet to issue an official statement on the incident.

According to Al Jazeera, he suggested one explanation was that the vessel had strayed into an area where Iranian teams were engaged in mine-clearing operations.

“The area near Oman is likely full of mines,” he said. “There is a possibility that these ships headed in directions where Iranian teams in that area are clearing mines, and the ships’ movement might have threatened those teams,” he said.

Two US officials have blamed Iran for the attack, telling the Axios news outlet that Iran’s military fired at least two missiles at commercial vessels transiting the Strait of Hormuz, according to Al Jazeera.

One of the officials said a second vessel was also struck and that both ships sustained significant damage, but there were no reported casualties.

Secretary of Iran’s Supreme National Security Council Mohammad Baqer Zolqadr calls Trump’s threat “delusional”, according to Reuters.

“Iranians are unfamiliar with the language of threats. So speak to the Iranian people with respect, otherwise we will respond in another language,” Zolqadr says in comments carried by state media.

An “unknown projectile” has struck and caused a fire on an oil tanker off the coast of Oman near the Strait of Hormuz, AFP reports, citing British maritime security agency UKMTO.

“A tanker has reported being hit by an unknown projectile on the port side causing a fire, whilst travelling southbound,” UKMTO says, adding that there are no reports of casualties or environmental impact.