War returns to Iran with Israel, US strikes

Iranian parliament speaker Mohammad Bagher Ghalibaf has rejected claims by Washington that Iran will use its unfrozen assets to purchase US agricultural products.

“Interesting. The only crop we’re harvesting is what you planted: decades of mistrust,” he writes on X. “It’s organic, abundant, and homegrown. But apparently, the US only exports GMO soybeans, broken promises and trash talks.”

US Secretary of State Marco Rubio has said Lebanon-Israel talks are going well, as they continue into their third day.

“I think we had a very good day yesterday. I think we were very close in our hopes of getting a commitment of interest, of intent, between the two countries, and I think begin to outline a promising future,” Rubio tells reporters.

He adds that for the first time in 30 years, the Lebanese government is speaking with Tel Aviv, and that the US is not negotiating with Hezbollah.

The foreign ministers of Iran and Oman have stressed the need for continued bilateral coordination on maritime traffic in the Strait of Hormuz during a phone call, Reuters reports citing Iranian state media.

Iranian Foreign Minister Abbas Araghchi and his Omani counterpart, Badr Al-Busaidi, have discussed recent regional developments, including maritime arrangements in the strait and temporary measures set for a 60-day period, a statement on Araghchi’s Telegram account says.

The two sides have also welcomed recent talks held in Muscat and have agreed to continue diplomatic consultations and technical coordination on issues of mutual interest.

US Secretary of State Marco Rubio has stated that the Islamabad Memorandum of Understanding (MoU) is not a final agreement, adding that it “creates the construct and outlines for a negotiation”.

“There’s no doubt that as part of that negotiation, specific terms like years and limits will be discussed, and that includes the mechanisms by which it’s verified and enforced,” he replies to a reporter asking if the MoU discusses for how many years Iran cannot develop nuclear weapons.

Israel must withdraw on its own from Lebanon’s entire territory or be forced to flee in defeat, the commander of the Iranian Revolutionary Guards’ Quds Force Esmaeil Qaani has warned, Reuters reports citing state media.

US Secretary of State Marco Rubio has noted that while President Donald Trump has “options” in case Iran does not honour the Islamabad Memorandum of Understanding, Washington wants to prioritise diplomacy.

“The president has multiple options at his disposal if Iran goes back on their word or decides they don’t want to make a deal. Let’s hope that’s not the case; we don’t want it to be the case. We’re going to give diplomacy every chance to work,” he explains to Iran.

US Secretary of State Marco Rubio tells journalists that the reported $300bn reconstruction fund for Iran was not discussed during today’s Gulf Cooperation Council meeting.

“The reconstruction … is way down the road and that’s something that will be dealt with at the appropriate time in this process,” he adds.

Asked about whether Qatar has transferred frozen Iranian assets to Tehran, US Secretary of State Marco Rubio says he is unaware of any such activity taking place.

“As of right now, we are not aware of any money, nor have we agreed for any money to be transferred,” he responds to a reporter.

Further asked if the frozen assets are still with Doha, Rubio replies in the affirmative.

US Secretary of State Marco Rubio has reiterated his opposition to proposed Iranian fees on vessels moving through the Strait of Hormuz, stating, “Fees and tolls are the same thing to me.

“If you’re paying someone to go there, I don’t care if you call it a fee, or a toll, or a donation; it’s a toll, and that’s how we’re going to define it,” he tells reporters. “That’s an international waterway. There isn’t a nation on Earth that supports having to pay money to go through the straits.”

Rubio questions how a tolling or fee mechanism would work and what the consequences would be for refusing to pay. He suggests vessels would be targeted for failure to pay fees.

“That sort of system is not only unwise, it’s unworkable.”

Asked about the situation in the Strait of Hormuz, US Secretary of State Marco Rubio says that Washington is solely interested in vessels being able to traverse the waterway.

“We’ve reached a point now on this where you’re hearing, for example, the Iranians say one thing, and something else is actually happening,” he tells a press conference.

“Here’s what I would tell everybody: it is now obvious to us, and I think should be obvious to all of you that the Iranian system is going to continue to produce all sorts of maximalist rhetoric,” he adds.

Rubio adds that the US is “not interested in press conferences” by the Iranians, but rather if vessels in the waterway are moving.

“If ships are moving as they should be moving, then that’s what we’re going to judge and that’s what we’re going to react to,” he states. “If, on the other hand, this rhetoric is backed by actual ships being threatened and ships not moving, it’s a violation of the agreement and we’re going to have a problem with it.”

Japan has eased its travel advisory levels for seven Middle Eastern countries, including the United Arab Emirates and Saudi Arabia, following the signing of the US-Iran MoU, according to Kyodo news agency, Reuters reports.

US Secretary of State Marco Rubio says he has had a “really, really good meeting” with Gulf countries.

“[Gulf countries] have shared with us some very concrete concerns, ideas … when I say concerns, the biggest concern is that they really just want to be informed every step along the way as we enter these negotiations at both the technical and political levels,” he tells reporters.

“We want them to be involved. Qatar is there as a mediator. We want all the views of all of these countries to be reflected, we will not be making any decisions or commitments that in any way undermine the prosperity, stability or security of our partners.”

Rubio adds that the US will create a system where there is constant contact with Gulf countries.

The cost of Israel’s wars in the Gaza Strip, Lebanon, Syria and Iran since October 7, 2023 has reached nearly 700 billion shekels, or $205bn, Anadolu reports citing Israeli media.

The figure has been included in a report by Nir Goldberg published on Zman Yisrael, the Hebrew-language service of The Times of Israel, which assesses the economic effect of the conflicts on public finances, production losses and US military support.

Citing Bank of Israel data, the report outlines the cost of the wars to the government has exceeded $118bn.

Defence spending accounts for around $71.2bn of the total, while compensation payments reach $9.6bn, various civilian expenditures stand at $16.7bn and interest costs linked to higher public debt amount to $5.5bn.

The report put the value of US weapons, ammunition and military equipment supplied to Israel at around $26bn.

It adds that the economic burden is not limited to public spending, estimating that lost output in the Israeli economy between October 2023 and the end of 2025 reached around $51.9bn.

Read more here.

Iranian Oil Minister Mohsen Paknejad says Iran remains ready to play an active and constructive role in strengthening energy cooperation among BRICS (Brazil, Russia, India, China, and South Africa) members to ensure secure and affordable energy supplies, IRNA reports.

Addressing the 11th BRICS energy ministers’ meeting at Gurugram in Haryana, India, Paknejad has described US-Israeli attacks on Iran’s oil, gas, refining and petrochemical infrastructure as a blind war against global energy security, saying they had caused damage to facilities, casualties among oil industry workers, environmental consequences, disruptions to supply chains and economic hardship for thousands of families in the Persian Gulf region.

He has warned that the consequences of such actions have contributed to energy market instability, rising raw material prices, and increased living costs worldwide, stressing that such attacks constitute a clear violation of international law and the United Nations Charter.

On the occasion of Muharram 9, Iran’s President Masoud Pezeshkian notes that “Imam Hussein (peace be upon him) taught us to stand firm against oppression, the temptations of power, and the pursuit of self-interest”.

In a post on X, he wrote, “One can give one’s life, but not one’s freedom; one can stand alone, but not abandon the truth. We must neither commit injustice, nor accept it, nor remain silent in its face.”

Some ⁠57 ⁠ships carrying an estimated 1,100 seafarers have transited ⁠the Strait of Hormuz since June 23 ⁠under a United Nations (UN) evacuation plan launched this week, data released from the ‌UN’s shipping agency shows, Al Jazeera reports.

These are the first numbers to be released by the International Maritime Organisation (IMO) ⁠for the initiative, ⁠which it is hoped will enable hundreds of ships with some 11,000 ⁠seafarers to leave the Strait.

According ⁠to current IMO ⁠data, 12 ships sailed through during the morning of June ‌25, 32 on June 24 and 13 ‌on June ‌23.

Days after Iran began striking targets across the UAE in March, Dubai’s top officials gathered hundreds of business leaders to discuss how the Gulf tourism and financial hub could limit the economic damage, Reuters reports.

The meeting, unusual for its size and timing, helped spur measures including a central bank liquidity package, said five people present, who declined to be named because it was private.

Attendees were asked three questions: What should we do to get tourists back? What should we do to get investors back? And how can we support your business? two of the people said, adding that the crown prince of Dubai had circulated between tables, asking business leaders for their input.

Dubai has since pledged 2.5 billion dirhams ($681 million) in support, focused mainly on sectors such as tourism and retail, which have been hit hardest by the conflict.

While a preliminary US-Iran peace deal is easing the immediate strains, restoring business confidence in Dubai will take time and may require more incentives, six company leaders and analysts told Reuters.

Read more here.

Israeli forces remain deployed in all the areas they recently occupied, AlJazeera reports, citing a Lebanese military source.

The statement came after the Reuters news agency reported a US State Department official as saying Israel had withdrawn from parts of the area as an act of “good faith” towards Lebanon’s government.

Senior Israeli and Lebanese officials denied that there had been any Israeli withdrawal from occupied southern Lebanon, after a US official said Israel had pulled some of its troops back in a good faith gesture toward Lebanon’s government, Reuters reports.

The “pilot zone” proposal has been part of the latest round of Israeli-Lebanese talks in Washington, which have gone on even as they appear to be eclipsed by Iran’s move to make Lebanon central to its own talks with the United States.

Dutch and British gas prices were flat on morning as the market waited for further developments in the Strait of Hormuz, Reuters reports.

The benchmark Dutch front-month contract at the TTF hub was flat at 40.90 per megawatt hour (MWh) or around $13.63/mmBtu, by 0829 GMT, ICE data showed.

The British June contract was up 0.30 pence at 97.48 pence per therm.

“We expect the TTF day-ahead to trade broadly sideways today, supported by the absence of fresh geopolitical developments and a stable fundamental outlook,” said LSEG analyst Yuriy Onyshkiv.

US President Donald Trump voiced frustration with several Nato allies over insufficient support during the war with Iran, Anadolu reports.

Speaking alongside Nato Secretary General Mark Rutte at the White House, Trump was asked whether he still believed some European allies had treated the US unfairly and what they could do to improve relations.

Trump said he had been “disappointed” by the response of several key Nato members, including Italy, the UK, Germany and France.

“I was disappointed with Italy. I was disappointed with the UK,” he said. “We were disappointed with Germany and France. We’re disappointed with most of them.”

Israel has withdrawn from some of the southern Lebanese territory it has occupied in its war with Hezbollah, a US State Department official said, adding that Lebanon’s armed forces should now step in, Reuters reports.

There was no immediate comment from Israel. A senior Lebanese security official said they were unaware of any withdrawal of Israeli troops from Israel’s so-called “buffer zone” in southern Lebanon.

The State Department official did not say how much territory Israel withdrew from or where exactly the pullback occurred. Israel and Lebanon have been holding US-brokered talks in Washington aimed in part at halting fighting between Israel and the Iran-backed Hezbollah militia.

China’s state-owned refiners are considering resuming Iranian oil purchases, but competing alternative supplies and falling domestic fuel demand will temper their interest, Reuters reports.

PetroChina and Sinopec are examining the banking, insurance and shipping considerations needed to resume their Iranian transactions, said three of the sources, officials at Chinese state oil companies who spoke on condition of anonymity as the subject is sensitive.