War returns to Iran with Israel, US strikes

The start of peak summer fuel demand, combined with the lack of new oil exports from the Middle East and depleting stocks, could push the oil market into the “red zone” in July-August, the head of the International Energy Agency warns without elaborating, according to Reuters.

The world entered the oil supply crisis caused by the Iran war with a surplus of oil, which helped to absorb the shock, but now stocks are eroding, Fatih Birol says in a speech at Chatham House in London.

Iran has defined the area of the Strait of Hormuz that will fall under its framework to manage the Strait of Hormuz.

The defined area spans from “the line connecting Kuh-i-Mubarak in Iran to the south of Fujairah in the UAE at the eastern entrance of the Strait, to the line connecting the tip of Qeshm Island in Iran to Umm Al-Quwain in the UAE at the western entrance”, according to the Persian Gulf Strait Authority (PGSA).

“Transit through this area for the purpose of passing through the Hormuz strait requires coordination with, and authorisation from, the Persian Gulf Strait Authority,” it adds in a post on X.

Hezbollah claims it has carried out a series of attacks targeting Israeli forces across southern Lebanon, Al Jazeera reports.

The group claims it launched a “wide-scale fire raid” overnight on Israeli military positions across southern Lebanon, adding that the attack followed Israeli drone strikes and “heavy missile barrages” on Dibil, Rashaf and areas around Hadatha, which it says killed and wounded civilians.

The group further claims it targeted Israeli soldiers near Deir Siryan with artillery shells and rockets this morning, later targeting Israeli soldiers and vehicles in Qouzah with artillery.

Iranian lawmaker Mahmoud Nabavian has threatened that any aggression by the US or Israel “will be met with a global crisis”.

“By cutting submarine cables, Iran could disrupt global internet, digital economies, and banking for years,” he writes on X. “Iran’s sovereignty is non-negotiable.”

Oil prices have risen over one per cent, after Reuters earlier reported that Iran’s Supreme Leader has issued a directive that the country’s enriched uranium should not be sent abroad.

Brent crude futures have gained $1.39, or 1.3pc, to $106.41 a barrel by 1037 GMT, and US West Texas Intermediate futures has increased $1.56, or 1.6pc, to $99.82. Both were trading lower before the report.

Both benchmarks dropped around 5.6pc on Wednesday to their lowest in more than a week after Trump said talks with Iran were in the final stages.

Full oil flows through the Strait of Hormuz will not return before the first or second quarter of 2027, even if the Middle East conflict ended now, the head of the United Arab Emirates’ state oil firm ADNOC has said, Reuters reports.

“Even if this conflict ends tomorrow, it will take at least four months to get back to 80 per cent of pre-conflict flows, and full flows will not return before the first or even second quarter of 2027,” ADNOC CEO Sultan Al Jaber said during an Atlantic Council event.

Confirming Prime Minister Shehbaz Sharif’s visit to China later this month, the Chinese foreign ministry spokesperson has also said that Beijing would work with Islamabad to “make positive contributions to the early restoration of peace and stability in the Middle East”, reports AFP.

A top UAE official denounced Iran’s claim of control over Emirati waters in the blockaded Strait of Hormuz as a “pipe dream,” following an announcement by an Iranian body overseeing the strait.

“The regime is trying to establish a new reality born from a clear military defeat, but attempts to control the Strait of Hormuz or infringe on the UAE’s maritime sovereignty are nothing but pipe dreams,” said the United Arab Emirates’ presidential advisor Anwar Gargash in a post on X.

Russian Foreign Ministry spokeswoman Maria Zakharova has said that the Iran crisis can only be resolved through diplomatic channels that take Iranian interests into account, according to Reuters.

Speaking at a briefing to reporters, Zakharova said that only Iran itself should decide the fate of its uranium reserves.

The UAE has completed nearly 50 per cent of a second pipeline that will bypass the Strait of Hormuz, the head of Abu Dhabi National Oil Company (ADNOC) said, as Gulf producers seek alternative export routes amid the prolonged closure of the key waterway, Anodolu reports.

The new pipeline is expected to double ADNOC’s export capacity through Fujairah, a UAE port on the Gulf of Oman located beyond the Strait of Hormuz.

The construction of the project has been accelerated due to the Iran war, with the pipeline expected to become operational in 2027.

20 Iranian sailors onboard a vessel seized by the US have returned to Tehran from Islamabad, Iran’s IRNA outlet is reporting, according to Al Jazeera.

“The release was achieved after intensive consultations between the Iranian Foreign Minister and his Pakistani and Singaporean counterparts,” the report added.

Israel has launched multiple drone attacks on a road connecting the towns of Tora and Jennata in southern Lebanon’s Tyre district, Lebanon’s National News Agency (NNA) reports.

The Israeli army also targeted the town of Qabrikha in the Marjayoun district with artillery shelling.

The Chinese foreign ministry has said that Beijing “supports Pakistan in playing a fair and balanced mediating role in promoting peace and ending the war”, reports AFP.

The ministry said this while confirming Prime Minister Shehbaz Sharif’s visit to China from May 23-26, during which leaders from both sides “will have an in-depth exchange of views on bilateral relations and issues of common concern”.

Iran’s internet blackout has entered its 83rd day after passing 1,968 hours, according to NetBlocks.

Indian shares have advanced supported by a drop in oil prices as investors assessed signs that the US may be nearing a deal with Iran to end the Middle East conflict, while key corporate earnings are also on the radar, Reuters reports.

The benchmark Nifty 50 rose 0.63 per cent to 23,806.6 and the BSE Sensex gained 0.53pc to 75,720.79, as of 9:55am IST.

All 16 major sectors logged gains. The broader small-caps and mid-caps rose 1pc and 0.7pc, respectively. Other Asian markets gained 3pc.

“Markets have gained momentum as investors turn optimistic over a possible resolution of the ongoing Middle East conflict,” said Aakash Shah, technical research analyst at Choice Broking.

Momentum indicators suggest bearish pressure is easing, with healthy buying interest emerging at lower levels, though the broader trend remains cautious due to lingering global uncertainties, Shah said.

Lebanon’s Health Ministry said the death toll from what it described as the “Deir Qanoun en-Nahr massacre” has risen to 14 killed and three wounded, Al Jazeera reports.

Among those killed was a family of 11, including three children, their parents and grandparents.

Iran has already restarted some of its drone production during the six-week ceasefire that began in early April, CNN reports citing two sources familiar with US intelligence assessments.

US intelligence indicates Iran’s military is rebuilding much faster than initially estimated, the report added, citing four sources.

US President Donald Trump on Wednesday said the United States was ready to proceed with further attacks on Tehran if Iran did not agree to a peace deal, but suggested Washington could wait a few days to “get the right answers.”

British no-frills airline EasyJet said Thursday that its losses deepened in the six months to end-March after the Middle East war sent jet fuel prices soaring, AFP reports.

The headline loss after tax came in at 377 million ($506m) for first half of its financial year, a rise of 27 percent from the period a year earlier, as the US-Iran conflict also upended travel plans, the carrier said in a statement.

Revenue jumped 12 per cent to 3.954 billion, as passenger numbers rose six percent over the reporting period.

EasyJet said “it has been impacted by the Middle East conflict through higher fuel costs and lower forward visibility”.

An Israeli air strike has been reported on the outskirts of the town of Tulin in southern Lebanon, according to Al Jazeera.

Additional overnight strikes were also reported on the towns of Kfardounine, Froun, Sarbine and Tayr Debba.

Israeli strikes also hit areas near the town of al-Namirieh in southern Lebanon.

The attacks come despite the extension last week of the so-called “ceasefire” agreement between Israel and Lebanon.

Saudi Arabia is projected to increase its use of imported fuel oil to generate electricity this summer, following a drop in natural gas supplies from oilfields that were shut down after conflict with Iran restricted the country’s oil exports, Reuters reports.

This rising reliance on fuel oil comes as summer heat drives up the demand for air conditioning, dealing a blow to the kingdom’s goals of shifting towards cleaner energy.