War returns to Iran with Israel, US strikes

Mohsen Qomi, the deputy for international affairs of the supreme leader’s office, has said that missile and drone power are the backbone of the country’s deterrence against a powerful enemy, Tasnim reports.

Qomi stated: “These two questions, namely ‘why the enmity’ and ‘how to win’ are of fundamental importance for understanding contemporary developments in Iran, the Islamic world, and the resistance front.”

He emphasised: “It is this independence that is intolerable to America. The problem is not just Iran; America has problems with any country that wants to be independent.”

He made the remarks at the unveiling ceremony of the collection of translated works of former supreme leader Ayatollah Khamenei in Bengali.

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Commodities are in a “super-squeeze” that will worsen if the Strait of Hormuz remains effectively shut, according to HSBC Holdings Plc, Bloomberg reports.

“The longer the strait is closed, the more inventories are run down, the more likely it is that we reach ‘tipping points’ in the markets for some commodities,” analysts including Paul Bloxham said in a June 1 report.

A dentist was killed along with his son and daughter in an Israeli drone attack on their car while they were travelling in southern Lebanon on the Nabatieh-Khardali road, the National News Agency (NNA) reports, according to Al Jazeera.

Their car was reportedly targeted while they were returning home from Sidon.

France’s Foreign Minister Jean-Noel Barrot has said that nothing could justify Israeli troops remaining deep inside Lebanon, AFP reports.

“Nothing can justify the continuation of military operations and Israel’s prolonged occupation deep inside Lebanese territory,” Jean-Noel Barrot told France TV.

Iran has not yet responded to a proposed final agreement with the United States aimed at ending the conflict between the two countries, and discussions on the final text are continuing in Tehran, a source close to the Iranian negotiating team told Mehr news agency, according to Reuters.

The source said Iran was reviewing the proposal cautiously because of what it sees as a history of US non-compliance and longstanding mistrust.

“Based on previous experiences, Iran is seeking tangible and real benefits,” the source said.

Israel and Hezbollah clashed overnight despite US President Donald Trump’s announcement that both sides had agreed to halt fighting ahead of US-hosted talks between Israel and Lebanon today.

The overnight clashes came after Lebanon said Hezbollah had accepted a US proposal for a “mutual cessation of attacks” after Trump said he persuaded the warring sides to de-escalate.

Under the arrangement, Israeli strikes on Dahiyeh, Beirut’s southern suburbs, would cease in exchange for Hezbollah refraining from launching attacks against Israel, according to a statement from the Lebanese embassy in Washington.

A fourth round of US-hosted direct negotiations between Israel and Lebanon is set for today and tomorrow. Military delegations held security talks last week.

Israeli forces have continued their attacks across southern Lebanon, firing artillery near Nabatieh and striking the villages of Shukin and Kafr Tibnit, Al Jazeera staffers report.

Israeli drones also carried out three strikes on the town of Tallet Tol in the Nabatieh district, according to reports.

Gold edged higher, supported by lower Treasury yields and a partial ceasefire between Hezbollah and Israel, while investors awaited details on the status of US-Iran peace talks amid conflicting news, Reuters reports.

Spot gold rose 0.5 per cent to $4,507.56 per ounce by 0420 GMT. US gold futures for August delivery gained 0.7pc to $4,538.

“It seems that because of the ceasefire between Israel and Hezbollah, we’re seeing a bit of an uptick in terms of gold prices,” said GoldSilver Central Managing Director Brian Lan, adding that lower Treasury yields were further supporting the metal.

US President Donald Trump signed an order to cut tariffs on agricultural equipment, the White House said, as farmers and manufacturers face pressure from surging costs over the Middle East war, AFP reports.

Trump’s proclamation reduces the duty rate on machinery like harvesters, alongside certain other equipment, from 25 per cent to 15pc.

Foreign companies can also qualify for a 10pc duty rate if their manufacturing equipment contains at least 85pc US steel or aluminum, the White House added in a fact sheet.

Dan Shapiro, a former US ambassador to Israel, has said that Israel’s far-right Finance Minister Bezalel Smotrich “was not invited to the Israel Day Parade in New York. He crashed it.”

“He should have stayed away. His extremist views do harm to the US-Israel relationship,” Shapiro, who represented the US in Israel from 2011 to 2017, added in a post on X.

Equities fluctuate as investors assessed the likelihood of a Middle East peace agreement as US-Iran talks stuttered, while Donald Trump and Israel’s Benjamin Netanyahu gave mixed signals over ending Israel’s attacks in Lebanon, AFP reports.

While Wall Street ends with more tech-led records, traders took a breather in Asia following a recent strong run-up, with attention also turning to the release of US jobs data at the end of the week.

With uncertainty continuing to hang over the crisis, Asian equity traders moved cautiously after a healthy, tech-fuelled run-up that has pushed some markets to record highs.

Seoul, which has been at the forefront of the rally this year, dropped almost two per cent, while Tokyo was off more than one percent, having also hit fresh new peaks.

Shanghai, Sydney and Wellington were down, though there were gains in Hong Kong, Singapore, Taipei, Manila and Jakarta.

Lebanon’s National News Agency (NNA) reports that Israeli warplanes launched an air strike on the town of al-Mansouri in the Tyre district early this morning. The air strike coincided with artillery shelling of the town.

US Congresswoman Ilhan Omar accused Israel of acting with “near-total impunity,” saying it has repeatedly been able to “commit genocide and other atrocities” without being meaningfully held accountable.

In a post on X, she said Israel is “exporting the Gaza playbook to Lebanon,” and claimed the conflict there is “killing thousands and displacing over a million people.”

She added: “NO MORE US AID TO ISRAEL.”

President Donald Trump told ABC News he thinks he will have an agreement with Iran to extend the ceasefire and reopen the Strait of Hormuz “over the next week”.

“Looking good, looking good,” he told ABC News’ chief Washington correspondent Jonathan Karl in a telephone conversation.

“There was a little glitch today, but I turned that one around very quickly, as you probably noticed earlier,” Trump said.

The glitch, according to the president, was that the Iranians were upset about Israel’s attacks on Lebanon.

“So, I spoke with Hezbollah, and I said no shooting, and I talked to Bibi [Israeli Prime Minister Benjamin Netanyahu], and said, no shooting, and they both stopped shooting each other,” Trump said.

UN chief Antonio Guterres said that peacekeepers will be needed in Lebanon after the mandate of the current mission expires at year-end —an option likely to face opposition from the United States and Israel, AFP reports.

In a report to the Security Council seen by AFP, Guterres proposes three options ranging from nearly 2,000 to more than 5,500 UN personnel to monitor the ceasefire and support the Lebanese armed forces.

“Under all proposed options, a uniformed United Nations presence working to facilitate de-escalation, dialogue, liaison and coordination, and support for the Lebanese Armed Forces, would be necessary… towards the overarching objective of a long-term solution to the conflict,” the report says.

Oil prices held on to most of the previous session’s sharp gains in early trade on uncertainty over the status of ceasefire talks between the United States and Iran and the potential reopening of the Strait of Hormuz, Reuters reports.

US President Donald Trump said on Monday talks with Iran were ongoing, while Tasnim news agency reported that Tehran had suspended indirect negotiations with Washington.

Brent crude futures inched up 6 cents, or 0.06 per cent, to $95.04 a barrel at 0001 GMT, while US West Texas Intermediate fell 17 cents, or 0.18pc, to $91.99 a barrel.

Iran’s chief negotiator with the US and parliamentary speaker, Mohammad Bagher Ghalibaf, spoke earlier with his Lebanese counterpart, Nabih Berri, regarding Israel’s invasion of Lebanon, Al Jazeera reports.

In a post on X, Ghalibaf said: “In my conversation with my brother, Mr Nabih Berri, the speaker of the Lebanese parliament, I emphasised that if the crimes of the Zionist regime in Lebanon continue, we will not only halt the dialogue process, but also stand firmly against them.”

“Long live the resistance! Long live the defence of the motherland! Long live the brotherhood of the Iranian and Lebanese people!” he added.

The Israeli military said air defences intercepted two projectiles that crossed from Lebanon into northern Israel, hours after US President Donald Trump said fighting would end, AFP reports.

“Following the sirens that sounded at 01:35 (2235 GMT) in several areas in northern Israel, the IAF intercepted two projectiles that crossed from Lebanon into Israeli territory,” the military said on Telegram.

It also said it identified a “suspicious aerial target” that later fell in Israeli territory near the Lebanese border, adding that no injuries were reported.

Iranian Foreign Minister Abbas Araghchi has had a phone conversation with his Turkish counterpart, Hakan Fidan, according to Iran’s IRNA state news agency.

“During the call, Foreign Minister Seyed Abbas Araghchi and his Turkish counterpart Hakan Fidan exchanged views on the latest regional developments, including the Zionist regime’s aggressive attacks on Lebanon,” IRNA reports.

Iranian Foreign Minister Abbas Araghchi has discussed regional developments in a phone call with his French counterpart, Jean-Noel Barrot, according to Iran’s IRNA state news agency.

“During the call, the two ministers exchanged views on the latest developments in the region, including Israeli military attacks against Lebanon and the consequences of these acts of aggression,” IRNA reports, noting that the conversation comes amid heightened tensions in Lebanon following continued Israeli strikes.

Energy prices have decreased amid easing tensions in the Middle East following US President Donald Trump’s statements related to Lebanon, according to Anadolu.

Brent futures, after exceeding $97 per barrel earlier today, have dropped to below $95, while West Texas Intermediate prices have fallen to $91.9 as of 1820 GMT.