War returns to Iran with Israel, US strikes

The UN trade and development agency has warned that while the reopening of the Strait of Hormuz will bring immediate relief to energy markets, vulnerable economies remain at risk from prolonged increases in food and fuel costs, Reuters reports.

Food and transport systems are likely to take longer than energy markets to recover, as disrupted supply chains need more time to reset following more than 100 days of severe disruption to shipping through the strategic waterway, a UN Conference on Trade and Development said in a new report.

Although Brent crude has fallen sharply back to around $73 a barrel, close to pre-conflict levels, following the interim US-Iran agreement, UNCTAD said higher fuel, gas and fertiliser costs could continue to feed through into agricultural production, transport costs and household budgets.

Vulnerable economies remain particularly exposed to oil and fertiliser price shocks, while persistently high food prices could place further pressure on poorer households. UNCTAD said a 5 per cent increase in food prices can significantly raise the risk of childhood wasting.

The agency identified 61 vulnerable economies exposed to oil and cereal import shocks linked to the Strait of Hormuz disruption.

The Qatari foreign ministry’s spokesperson has also said that the direct line of communication for de-confliction in the Strait of Hormuz has been used to contain confrontations over the past few days, Reuters reports.

He added that Qatar was coordinating with Oman on the strait and on the safe passage for vessels.

The official further said that the $6 billion of Iranian frozen funds have not been transferred to Tehran. They are subject to the 2023 agreement and earmarked for the purchase of humanitarian goods, he added.

The Qatari foreign ministry’s spokesperson has said that the US envoy Steve Witkoff and Trump’s son-in-law Jared Kushner will be in Qatar to meet mediators to discuss the US-Iran negotiations, Reuters and AFP report.

“To the best of my knowledge, there are no direct meetings scheduled between the two parties in the coming days,” foreign ministry spokesman Majed Al Ansari told reporters in Doha, adding that the American team would meet with mediators.

“To my knowledge, there is no high-level meeting between the two sides.”

The remarks contrast with a White House official’s statements from yesterday that said a high-level meeting was planned to be held in Doha this week.

Brigadier General Ali Jahanshahi, commander of Iran’s Ground Forces, has said the deployment and readiness of the ground forces on the borders, accompanied by the IRGC and the Security Command, have “eliminated any audacity of the enemy to carry out ground operations against” Iran, ISNA reports.

While visiting the units of his force in the border areas, he said, “Today, even countries that once considered the establishment of American military bases a factor in their security have come to the conclusion that the presence of these bases is a source of insecurity and instability.”

Referring to the readiness of the rapid reaction units, special and assault forces of this force, Jahanshahi stated: “With the presence and vigilance of the ground force warriors and the powerful armed forces, the borders of our beloved Iran enjoy the necessary security.”

Iran’s acting defence minister has said non-regional countries are not permitted to exploit the Strait of Hormuz, Tasnim reports.

“The deployment of foreign forces does not contribute to stabilising security; rather, it increases misunderstanding, lack of trust, and insecurity,” the minister was quoted as saying.

Major stock markets in the Gulf have been subdued in early trade today as investors awaited potential US-Iran negotiations in Doha amid a fragile ceasefire in the four-month-old war, Reuters reports.

Saudi Arabia’s benchmark stock index eased 0.2pc, dragged down by a 0.5pc fall in oil giant Saudi Aramco.

Brent crude futures for August delivery, which expire today, were down 1pc, or 75 cents, at $72.4 a barrel, as of 11:53am PKT. These levels are around $20, or 22pc, lower than last month’s closing.

Dubai’s main share index was down 0.1pc, with top lender Emirates NBD losing 0.7pc. In Abu Dhabi, the index fell 0.2pc. The Qatari index edged 0.1% higher, helped by a 1.5pc rise in Qatar Gas Transport.

Iranian and US negotiators were expected in Doha this week, but Iran said yesterday no meeting had been planned as weekend missile exchanges tested the interim ceasefire.

Iran President Masoud Pezeshkian has asserted that Tehran did not and will not accept under any circumstances the demands “imposed by the enemies”, Tasnim news agency reports.

During a detailed session with scholars at a seminary in Qom, Pezeshkian stressed that the government, throughout all stages of the negotiations with the US, sought to secure the rights of the Iranian people from a position of dignity and strength and to preserve national interests.

Regarding the questions raised about the course of negotiations, Pezeshkian explained: “The Islamic Republic of Iran will not back down under any circumstances from the rights of the people, the fundamental principles, and the national interests. The country’s primary reliance is on God Almighty, the people, and the leadership of the regime.”

He was further quoted as saying: “All stages of the negotiations took place within the framework of the general policies of the regime, in full and continuous coordination with the Leader of the Revolution (Supreme Leader Mojtaba Khamenei), and within the context of the country’s legal mechanisms.”

He criticised some factions for seeking, through defamation of the negotiating team and questioning of national decisions, to create conditions to weaken the “achievement”.

Ebrahim Azizi, the chairman of the Iranian Parliament’s National Security and Foreign Policy Commission, has reiterated Tehran’s claims over the Strait of Hormuz and called for an end to Israel’s occupation of southern Lebanon, Al Jazeera reports.

“The strategic Strait of Hormuz is an inseparable part of Iran’s national sovereignty, and its management is solely in the hands of the Islamic Republic of Iran,” he was quoted as saying by the IRIB state broadcaster.

“Lebanon’s sovereignty will be secured not by disarming the resistance, but by ending the occupation and aggression,” he added.

Sainsbury’s, Britain’s second largest supermarket group, expects more food inflation to come through as a result of the Middle East conflict, its boss said, Reuters reports.

“There is pressure in the system for sure and there will be some inflation to come through,” CEO Simon Roberts told reporters after Sainsbury’s updated on first quarter trading.

“We always said it would take until the mid-summer to see the extent to which … that will feed through, particularly in fresh food,” he said.

But Roberts said he was encouraged that so far this year food inflation had not risen “as significantly as some had expected” and noted that Sainsbury’s own inflation in its first quarter was lower than that in the previous quarter.

As US President Donald Trump faced backlash, especially from pro-Israel politicians and advocates, for signing the memorandum of understanding (MoU) with Iran, his deputy, JD Vance, went on a media blitz defending the agreement to end the months-long war.

Vance, who led the talks with Iran in Switzerland, used tough language against Israel over the latter’s public opposition to the MoU.

Unlike Vance, Secretary of State Marco Rubio avoided openly criticising Israel, America’s closest ally, and instead railed against the Iranian government.

Seemingly diverging comments from Vance and Rubio over the past week have sparked speculation on whether there are differences within the Trump administration.

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An Israeli drone has attacked a house in the Haddatha area in the Bint Jbeil district of the Nabatieh governorate of southern Lebanon, according to the National News Agency (NNA).

It added that another drone dropped a stun grenade on the eastern side of the town of Bereshit in the Bint Jbeil district.

According to Oman’s Foreign Ministry, Badr bin Hamad Albusaidi told France’s Monte Carlo Doualiya radio that “responsibility for ensuring the strait and internationally recognised shipping lanes are free of any mine-related hazards primarily rests with Iran” as per the US-Iran MoU, Al Jazeera reports.

He also affirmed Oman’s openness to contributing to regional and international efforts whenever requested.

Foreign Minister Juraj Blanar has urged Israel to respect agreements made between the US and Iran, according to the Slovak news agency TASR, Al Jazeera reports.

Blanar, speaking alongside Spanish Foreign Minister Jose Manuel Albares during a news conference in Bratislava, stressed the need for diplomatic solutions to conflicts in the Middle East, including the Gaza Strip and tensions involving Iran.

“We don’t want Lebanon to be another part of Gaza, and therefore, it is necessary for Israel to also abide by the agreements that were concluded between the United States of America and Iran,” Blanar said.

Iran’s foreign minister has discussed the memorandum of understanding and its implementation during a phone call with his French counterpart, according to Iranian state media.

Abbas Araghchi and Jean-Noel Barrot “reviewed and exchanged views on the latest regional and international developments” regarding the US-Iran MoU, with “the aim of ending the war imposed by” the US and Israel against Iran, according to the IRIB broadcaster.

The report comes after Iran’s deputy foreign minister criticised comments by French President Emmanuel Macron, who said Paris was working with Oman on demining the Strait of Hormuz.

A statement issued by the German foreign ministry has dubbed the agreement between the US and Iran to halt attacks against each other and continue negotiations “an important step”.

“It creates an opportunity for diplomacy in what remains a highly fragile situation,” the statement issued after a meeting between German Foreign Minister Johann Wadephul and US Secretary of State Marco Rubio said.

It added that the priority now was to reach a “sustainable solution” that ensured safe and free passage through the Strait of Hormuz and addressed Iran’s nuclear programme, “which must never again pose a threat”.

Two members of Iran’s Revolutionary Guards were killed and two others wounded in a shooting in the western province of Kermanshah, state media reported, according to Reuters.

The attackers opened fire outside the Guards members’ home and authorities were investigating to identify those responsible, state media reported.

Oman’s foreign minister says Muscat “does not support imposing transit fees” on ships transiting the Strait of Hormuz while also appearing open to charges for “maritime, environmental and navigational services,” Al Jazeera reports.

Badr bin Hamad Albusaidi made the statement during an interview with French radio station Monte Carlo Doualiya, according to highlights posted by his office.

Albusaidi said charges for services “can be discussed voluntarily with the beneficiary countries and companies”. He also explained that “some services may include enhancing navigational safety, protecting waters from pollution, and increasing preparedness to deal with accidents or emergencies”.

Sri Lanka has cut fuel prices by up to six per cent, the first such move since the Middle East war triggered a surge in energy prices in the import-dependent nation, AFP reports.

The state-run Petroleum Corporation said it will lower diesel by 25 rupees a litre to 382 rupees ($1.15), while petrol was lowered by 20 rupees to 414 rupees.

The cuts follow a sharp fall in international energy prices after the United States and Iran agreed to hold talks to bring an end to their conflict.

Sri Lanka had raised petrol and diesel prices by almost 50pc after the US and Israel launched attacks on Iran on February 28.

MarineTraffic, a global provide of ship tracking, says vessel movements in the Strait of Hormuz continued over the weekend despite security concerns, including attacks on two ships on Friday and Saturday, Al Jazeera reports.

It said 108 verified transits were recorded over three days.

The United Arab Emirates (UAE) has announced that its citizens can travel to Lebanon again, ending a two-month ban imposed due to security concerns triggered by the US-Israeli war on Iran, Al Jazeera reports.

Emiratis travelling to Lebanon must register with the UAE’s Ministry of Foreign Affairs before departure, it said.

The UAE had banned its citizens from travelling to Iran, Lebanon and Iraq on April 30 and called on all nationals in those countries to immediately leave and return home.