War returns to Iran with Israel, US strikes

An Iranian military commander has warned the United States and Israel against any attack on Iran as it prepares for the state funeral of Supreme Leader Ayatollah Ali Khamenei, who was assassinated in airstrikes on the first day of the war, Reuters reports.

“We warn the enemies of Iran, especially the US and the Zionist regime (Israel), to avoid any miscalculation and to think about the harsh retaliation our armed forces would make to any threat and aggression against our country, Ali Abdollahi, commander of Khatam al-Anbiya Central Headquarters, said in a statement carried by state media.

Funeral processions for Khamenei will begin on July 4 in Tehran and conclude on July 9 with his burial in his hometown of Mashhad, with additional ceremonies planned in Qom and Iraq in between these dates.

Prime Minister Shehbaz Sharif will visit Iran, starting July 3, for the funeral of the assassinated supreme leader of Iran, Ayatollah Ali Khamenei, Foreign Office spokesperson Tahir Andrabi confirms.

“The prime minister will convey condolences on behalf of the people and government of Pakistan […] while extending solidarity to the brotherly nation in their hour of profound grief,” Andrabi said.

Deputy PM and Foreign Minister Ishaq Dar, cabinet members and senior officials will accompany the premier on his visit.

Iran says that any US interference in the Strait of Hormuz would trigger a “decisive and rapid” response, adding that the continued presence of US air assets across the waterway endangered regional security, Reuters reports, citing state media.

Khatam al-Anbiya Central Headquarters, which coordinates Iran’s armed forces operations, has said all tanker and commercial vessels must follow routes designated by Tehran for safe passage through the strait, adding that deviations or failure to comply with navigation protocols would face an immediate response.

Syria’s foreign minister has travelled to Beirut to meet Lebanese government leaders, in his first visit there since US President Donald Trump raised the possibility of Syrian forces combating Hezbollah in Lebanon, according to Reuters.

Syrian President Ahmed al-Sharaa, however, has previously denied what he called rumours about any Syrian presence entering Lebanon.

The Syrian minister, Asaad al-Shibani, has met Lebanese President Joseph Aoun on his first stop, and then headed for a meeting with the parliament speaker, Nabih Berri, an ally of Hezbollah.

At least five supertankers carrying a total 10 million barrels of Saudi oil loaded from Ras Tanura have exited the Strait of Hormuz, with Saudi Aramco switching to spot pricing to speed sales in Asia, according to trade sources and shipping data, Reuters reports.

Saudi Aramco resumed loadings from Ras Tanura, the world’s largest oil port, on Friday after a halt of nearly four months.

The Saudi national oil company is ramping up loadings and shipments to Asia, adding to a prompt glut that has depressed Brent crude to about $70 a barrel from close to $120 in March following the interim US-Iran peace deal.

In addition to using its Bahri tanker fleet to deliver the cargoes, the world’s top oil exporter has offered the crude to its Asian customers on a spot pricing basis to attract demand as competition among suppliers heats up, say several trade sources who have declined to be named due to the sensitivity of the matter.

Senior Chinese lawmaker He Wei will attend the funeral of assassinated Iranian supreme leader Ayatollah Ali Khamenei in Tehran, the Chinese foreign ministry announced, Reuters reports.

He is the vice chairman of China’s top lawmaking body, the Standing Committee of the National People’s Congress.

British business confidence fell to its lowest since 2022 as the Iran war, which pushed up costs, saps expectations for future sales, a survey of accountants showed, Reuters reports.

The Institute of Chartered Accountants in England and Wales said that its quarterly Business Confidence Monitor fell to its lowest since the fourth quarter of 2022 in the three months to June.

“Even if the peace deal holds, the weakening in forward-looking sales indicators points to a difficult second half of the year for the UK economy, as the aftereffects of the Iran conflict continue to weigh on activity,” Suren Thiru, chief economist at the ICAEW, said.

Iran’s Parliament speaker Mohammad Bagher Ghalibaf has called on the Iranian people to attend the funeral ceremony of former supreme leader Ayatollah Ali Khamenei, Press TV reports.

“We must rise and carry the nation’s call for vengeance to the world,” he said in his message.

Qatari Emir Sheikh Tamim bin Hamad Al Thani and Syrian President Ahmad al-Sharaa discussed regional developments, including the ongoing US-Iran negotiations, during a phone call on Wednesday, Anadolu reports.

The report said the two leaders also reviewed bilateral relations and discussed ways to strengthen cooperation between their countries.

They exchanged views on regional developments, particularly progress in negotiations between the US and Iran under a memorandum of understanding reached by the two sides, as well as efforts to advance diplomatic solutions aimed at enhancing regional security and stability.

The Qatari emir stressed the importance of continued coordination and consultation among regional countries, while supporting regional and international efforts to promote de-escalation and preserve regional security and stability.

Brigadier General Mohammad Akraminia says Iran’s military is on high alert ahead of the multi-day funeral for Khamenei, Al Jazeera reports, citing IRNA.

He said Iranian forces had stepped up their deployment for the arrival of senior officials and religious and political figures from various countries.

“The army’s ground, naval and air forces have expanded their active presence across the country’s borders to help ensure security,” he told the IRNA news agency.

He added that Iran’s air defence force is maintaining continuous surveillance of the country’s airspace.

Amir-Saeid Iravani, Iran’s ambassador to the UN, has lodged a protest with the global body over Israel’s latest threat to assassinate the country’s Supreme Leader Mojtaba Khamenei, Al Jazeera reports.

In a letter to Secretary-General Antonio Guterres, the Security Council and the General Assembly, Iravani described the threat by Israeli Defence Minister Israel Katz as “part of a deliberate and systematic policy of state terrorism” targeting Iranian government officials.

He tied it to the “Israeli regime’s illegal acts of aggression against Iran, including the assassination of the late Iranian leader, Ayatollah Seyyed Ali Khamenei, and other senior political and military officials, carried out with the participation, coordination, and support of the United States”.

Iravani added that the UN Security Council has allowed Israel to act with impunity and warned that Tehran would respond to any hostile actions.

“Unfortunately, the failure of the Security Council to fulfil its responsibilities under the UN Charter has reinforced the climate of impunity and has made the Israeli regime more brazen in normalising state terrorism, which sets a very dangerous precedent and poses a serious threat to international peace and security.”

The United States has resumed some air shipments of US dollars to Iraq, several months after it suspended them in a bid to pressure the government to distance itself from Iran, the New York Times reported, citing two aides to Iraq’s prime minister, according to Reuters.

Mediators Qatar and Pakistan have concluded separate meetings with US and Iran in Doha today, the Foreign Office (FO) says.

It added that “positive progress” was made on issues related to the Islamabad MoU and the Lake Lucerne Summit.

“Parties have agreed to continue discussions over the coming period, with the next meeting to be set at the earliest possible time following the funeral processions of the former Iranian Supreme Leader,” FO said.

Kpler, a data and analytics firm, says traffic in the Strait of Hormuz held “steady” on Tuesday, July 1, “with 34 verified crossings recorded and traffic evenly split by direction,” Al Jazeera reports.

The report followed data from another maritime tracker, WindWard AI, which recorded 42 transits in the waterway on Monday.

Both figures mark a drop from last week, particularly on June 24, when 70 transits were recorded, the highest since the US-Israel war on Iran began. Traffic fell after the US and Iran exchanged tit-for-tat attacks over the weekend over a dispute on the waterway’s management.

Gharibabadi, Iran’s deputy foreign minister, has dismissed a US-led regional security dialogue held in Bahrain, where participants from 12 nations discussed the Strait of Hormuz, Al Jazeera reports.

“Hormuz is defined under Iran’s command, not CENTCOM,” he wrote, adding that “a military summit in Bahrain cannot establish legal order and security for the Persian Gulf”.

“The region’s security will be ensured through the end of interventions and the US withdrawal from the area, respect for countries’ sovereignty, and acceptance of new geopolitical realities – not under the military umbrella of America,” he said.

Iranian state media has reported that a foreign cargo ship using a “US-suggested route has run aground” in the Strait of Hormuz, Al Jazeera reports.

TankerTrackers.com, a maritime traffic monitor, says the ship had “actually been stuck in this same spot since March”.

It identified the vessel as Arista, and said while the ship is Comoros-flagged, it is part of an operation managed by Iranian oil magnate Mohammad Hossein Shamkhani, the son of the late senior Iranian security official Ali Shamkhani.

Iran’s acting defence minister has reiterated that the country’s military capabilities are a “red line” and will not be discussed during negotiations with the United States, Al Jazeera reports.

“The Islamic Republic’s defense, missile, and drone capabilities are a red line for our national security,” Majid Ebn al-Reza said.

“They are not negotiable — now or in the future,” he added. Al-Reza also said that Iran’s “missile and drone programmes will continue to advance”.

Oil prices dropped in early trade after Qatar said Iran and the US had made “positive progress” in indirect talks that concluded, focused on the Strait of Hormuz, which handled one-fifth of global oil supply before the war, Reuters reports.

Brent futures were down 73 cents, or 1.02 per cent, to $70.84 a barrel by 0102 GMT, while US West Texas Intermediate crude fell 83 cents, or 1.21pc, to $67.75 a barrel.

In the previous session, both benchmarks fell more than 1pc to their lowest levels in four months.

Sources said negotiators for the U.S. and Iran spent two days in Doha discussing maritime traffic in the Strait of Hormuz and unfreezing Iran’s funds.

One US service member is missing and three others wounded but in stable condition after an MH-60S Seahawk helicopter made an emergency landing in the Arabian Sea, the U.S. military says, adding there is no indication the crash was caused by hostile action, Reuters reports.

“US Navy assets in the region are currently searching for other aircrewman still missing. The cause of incident is under investigation,” the US Navy’s Fifth Fleet says in a statement, adding that the helicopter was deployed to the region on the USS George HW Bush aircraft carrier.

Helicopter water landings can be dangerous, even for experienced pilots, given the propensity of top-heavy aircraft to flip upside-down during submersion. US forces in the region are also on high alert amid periodic flare-ups in violence during the ceasefire between the US and Iran.