War returns to Iran with Israel, US strikes

Iran’s defence ministry spokesman has vowed that the country will respond to any act of aggression by enemies, hailing its “self-sufficient defence capability”, state broadcaster Press TV reports.

“The Islamic Republic of Iran pursues the path of diplomacy with authority, but in the face of any aggression or crossing of red lines, it will give a decisive, effective and proportionate response. Past experiences have proven this reality to the enemies,” Brigadier General Reza Talaei-Nik tells journalists.

The spokesman adds that Iran will continue to strengthen its national power, develop deterrence and maintain sustainable security with the support of its people, domestic capabilities, valuable defence experiences and the guidance of supreme leader Ayatollah Mojtaba Khamenei, the broadcaster reports.

The United States is revoking a general license that authorised the sale of Iranian oil, Reuters reports citing a US official, warning that Iran’s actions in the Strait of Hormuz were “wholly unacceptable” and would be met with consequences after attacks on tankers in the strategic waterway.

A US official says negotiators continue to work in good faith toward a final agreement with Iran despite the latest escalation.

Saudi Arabia has issued a statement strongly condemning the attacks on Saudi and Qatari tankers today, holding Iran responsible.

In a statement from the foreign ministry, Riyadh affirms that the “unacceptable attacks constitute an assault on the security and safety of international maritime navigation and on the security of global energy supplies”.

“The Kingdom further emphasises that Iran’s continued perpetration of these attacks constitutes a grave violation of international law, international norms, and United Nations Security Council Resolution 2817, which guarantee freedom of maritime navigation and the safe passage of ships through international waterways,” the statement adds.

Saudi Arabia reiterates its demand that Iran immediately cease all actions that “threaten regional security, the safety of international shipping, and global energy supplies”.

It also holds Iran fully responsible for these attacks, as well as for all resulting damage and consequences.

The body of late Iranian supreme leader Ayatollah Ali Khamenei has arrived in the Iraqi city of Najaf, ahead of a funeral procession tomorrow, state broadcaster Press TV reports.

Qatar has summoned Iran’s deputy ambassador and delivered a formal protest note following the targeting of a Qatari liquefied natural gas (LNG) tanker near the Strait of Hormuz, Al Jazeera reports.

In a statement posted on X, the foreign ministry said the incident constituted a “serious violation of international navigation safety”, a “direct threat to the security of global energy supplies” and a “clear and explicit breach of the rules of international law”.

The ministry has demanded that Tehran “immediately cease any practices that undermine regional security” and endanger international shipping and energy supplies.

Israeli attacks across Lebanon since March 2 have killed 4,320 people and wounded 12,203, Al Jazeera reports citing Lebanon’s health ministry.

Israeli Prime Minister Benjamin Netanyahu has said in a CNN interview that despite occasional disagreements with US President Donald Trump on Iran, they see “eye to eye” on the big things related to handling Tehran.

Netanyahu says it is too early to say what would happen after Washington and Tehran signed an interim peace deal.

“The President believes that he can stop Iran’s nuclear program,” Netanyahu told CNN, but added that he has his doubts. “On the big things we see eye to eye, and occasionally we don’t, but we’re true allies.”

Iranian President Masoud Pezeshkian has departed Iran to attend the funeral procession of late supreme leader Ayatollah Ali Khamenei in the Iraqi city of Najaf, the semi-official Tasnim news agency reports.

“The president, during this short trip, will not only attend the ceremony welcoming the pure remains of the martyred Leader of the Islamic Revolution, but also hold a meeting and discussion with the Prime Minister of Iraq,” the agency adds.

Global oil output and trade flows should rebound fully by the end of this year from the disruptions caused by the Iran war, Reuters reports citing the US Energy Information Administration (EIA).

Global benchmark Brent crude oil prices will average around $74 a barrel in the spot market during the third quarter of this year, down from an average of $85 in June, the EIA says.

Vessel movement through the waterway has risen in recent days following a preliminary deal between the US and Iran. Although passage through Hormuz is not yet totally safe, the EIA has raised its annual oil production expectations while lowering its oil and motor fuel price forecasts.

The EIA expects most of the oil output previously shut-in across the Middle East to return online by the first quarter of 2027. That will lift global supply and reduce withdrawals from stockpiles, which should help keep prices under control in the months ahead, the agency says.

Lower crude oil prices will contribute to a drop in US retail gasoline prices, the EIA adds, expecting that motor fuel prices will average about $3.80 a gallon in the third quarter, down from $4.21 a gallon in the second quarter.

Oil prices have jumped after three tankers were attacked near the Strait of Hormuz in the past 24 hours, AFP reports.

“Crude oil rose by more than 2 per cent after renewed attacks on commercial shipping in the Strait of Hormuz reignited concerns over global energy supplies and cast doubt on the durability of the US-Iran agreement,” says Axel Rudolph, chief technical analyst at investing and trading platform IG.

As of 1530 GMT, both Brent North Sea Crude and West Texas Intermediate have risen by 1pc, at $72 a barrel and $69 a barrel, respectively.

Fuel costs for US airlines jumped 85 per cent in May to nearly $6.7 billion as the Middle East conflict drove up prices, Reuters reports citing the US Department of Transportation (USDOT).

USDOT says airlines spent $3.62 billion on fuel in May 2025 compared with $6.66bn in the same month this year.

The cost per gallon of fuel in May was $4.09, up $1.88 over May 2025, the department adds.

Jet fuel costs in recent weeks have fallen sharply as tensions ease between Iran and the United States.

US President Donald Trump has called Italian Prime Minister Giorgia Meloni a “nice person” but criticised her for failing to help in the conflict with Iran, his latest remarks in a diplomatic dispute that is straining bilateral ties, Reuters reports.

Trump said his relationship with Meloni “became a little bad because she refused to help us” with Iran.

“She refused to get involved so it soured my relationship with her a little bit. But I like her. I think she’s a nice person, actually. But I think she made a mistake,” Trump told reporters in Turkiye where he is attending a Nato summit.

France and Britain will outline plans for a multinational maritime mission in the Strait of Hormuz at talks between Nato and Gulf Arab foreign ministers today, but diplomats say Iran’s rejection of the initiative makes it unlikely to break the deadlock over the vital waterway, Reuters reports.

The meeting on the sidelines of the Nato summit in Ankara will bring together ministers from Bahrain, Kuwait, Qatar and the United Arab Emirates.

The United Kingdom Maritime Trade Operations Centre (UKMTO) has received a report of another incident involving a tanker transiting the Strait of Hormuz.

“The tanker was struck by an unknown uncrewed aerial vehicle (UAV) and has sustained minor structural damage,” UKMTO says in a statement on X. “No casualties or environmental impact reported, and vessel is continuing to its next port of call.”

The agency adds that it is continuing to investigate and advises vessels to transit with caution and report any suspicious activity.

Lebanese President Joseph Aoun has condemned continued Israeli attacks on civilians and the killing of four people in the town of Nabatieh on Monday, Al Jazeera reports.

Aoun has posted on his X account after meeting representatives of the Free Patriotic Movement, a Christian group led by former foreign minister Gebran Bassil.

Bassil has conditionally backed Lebanon’s framework agreement with Israel, which has been condemned by Hezbollah for not addressing Israeli occupation of southern Lebanon.

President Aoun says no outside influence will be allowed to determine Lebanese interests and the course of negotiations with Israel.

A tanker was struck by an unidentified projectile while transiting the Strait of Hormuz, the United Kingdom Maritime Trade Operations Centre (UKMTO) says, according to Reuters.

The tanker is believed to have suffered “structural damage”, UKMTO adds, adding that there are no casualties or environmental impact.

US President Donald Trump says that Turkiye has been a “great ally for us” and hails their role in the US-Iran peace process.

“They know Iran very well and they know the problems with Iran,” Trump tells reporters alongside Turkish President Recep Tayyip Erdogan. “But they have been very instrumental along with a couple of other countries in helping [end the war].

“This is a nation that has been very good … extraordinary in many ways, with respect to our relationship, including trying to end the war with Iran,” Trump says.

He adds that the campaign in Iran is a “denuclearisation effort”.

“I don’t think he wants to see them (Iran) have a nuclear weapon either,” Trump says of Erdogan.

Germany’s foreign minister has urged Lebanese authorities to confront Hezbollah and reassert state control over the country’s south, where the militant group has been engaged in hostilities with Israeli forces, AFP reports.

During a visit to Jerusalem, Johann Wadephul, who backed Israel’s ground invasion of southern Lebanon earlier this year, has also praised the US-brokered agreement between Israel and Lebanon, pledging Germany’s support for what he described as a “historic” initiative.

“What is crucial is that Lebanon now needs determination on its side, to assert itself and ensure that Hezbollah no longer actually exercises control in southern Lebanon,” Wadephul says at a joint press conference with his Israeli counterpart.

Lebanon must “in particular ensure that no danger whatsoever to Israel emanates from Lebanese territory,” he adds.

Global natural gas consumption is expected to fall by 20 billion cubic metres this year, ⁠mainly because higher prices are curbing demand from power generators and industry after the US-Israel war on Iran tightened supplies, Al Jazeera reports citing the ⁠International Energy Agency (IEA).

Gas demand in Asia fell about 1 per cent year-on-year ‌in the first half of 2026 as higher prices encouraged fuel switching, particularly to coal in the power sector.

Europe’s benchmark TTF price and Asia’s Platts JKM benchmark have both recorded their highest average second-quarter prices since 2022.

TTF has risen 32pc year-on-year to average nearly $16 per million British thermal units (mmBtu), while ⁠spot liquefied natural gas (LNG) prices in Asia have increased by 45pc to ⁠an average of $17.50 per mmBtu.

The Iran war has sharply reduced LNG flows through the Strait of Hormuz, a shipping route that in peacetime accounted for about 20pc of ⁠global LNG supplies.

US President Donald Trump has once again taken a swipe at Nato for not assisting Washington during the Iran war.

“I said I don’t need that kind of help. We didn’t need any help at all,” Trump tells reporters during a bilateral meeting with Turkish President Recep Tayyip Erdogan in Ankara.

“In a way, I was testing the people, I was testing to see whether or not they’d be there, because I’ve long said that we help them, but I’m not sure they’d be there for us,” he adds, saying Italy, Germany and France turned Washington down.

A Qatari liquified natural gas (LNG) tanker has been struck in the Strait of Hormuz, Reuters reports after reviewing a mayday radio call from the vessel.

“Mayday mayday mayday. This is vessel Al Rekayyat, LNG vessel Al Rekayyat. We are being hit by drone on port side, top of engine room,” the Qatari tanker’s captain says in a recorded radio call. “Status: engine room fire and full of smoke. Unable to assess further damage.”

There has been no claim of responsibility.

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Qatar’s foreign ministry spokesperson, Majed Al Ansari, says the targeting of Qatari tanker Al Rekayyat near the Strait of Hormuz was an unacceptable attack on the security of international navigation and global energy supplies, Reuters reports.

Describing the incident as a clear violation of international law, he urged Iran to immediately halt actions threatening regional security and maritime navigation, and said Tehran bore full legal responsibility for the attack and any resulting damage or consequences.