War returns to Iran with Israel, US strikes

A “very strong” verification system is needed in Iran following the Middle East conflict to ensure that the country does not develop nuclear weapons, the UN atomic watchdog chief said, AFP reports.

“I think the objective of this (recent US-Iran) agreement is to ensure that there is no development of nuclear weapons in Iran. The government of Iran has declared quite clearly that this is not their intention,” Rafael Grossi told reporters in Japan.

“But of course intentions are not enough. We have to have a very strong verification system in place… as soon as is practicable,” Grossi said.

Saudi Aramco resumed oil loading at its Ras Tanura terminal in the Gulf after a near four-month halt, shipping data from LSEG showed, in a sign that Middle Eastern producers are pushing forward with plans to boost exports despite a ship attack in the Strait of Hormuz, Reuters reports.

Two Very Large Crude Carriers controlled by Saudi’s shipping arm Bahri were seen loading crude at Ras Tanura, the world’s biggest oil port, while another waited nearby, the data showed. Each VLCC is capable of loading 2 million barrels of oil.

India has removed restrictions on supplies of commercial liquified petroleum gas imposed during the Middle East war when energy supplies were hit by the closure of the Strait of Hormuz, reports AFP.

The government ended the restrictions late Thursday on “non-domestic packed LPG and restored supplies to the levels prevailing prior to the West Asia crisis”, the petroleum ministry said in a statement.

“The supply of bulk LPG, which had been suspended at the onset of the crisis, has been relaxed by 50 percent of the pre-crisis consumption levels,” the statement added.

“The restoration follows the recent improvement in the LPG supply situation.” The decision follows improved energy cargo passing through the Strait of Hormuz after Iran and the US signed a deal that included opening the strategic waterway.

US President Donald Trump has said Thursday that Washington plans to use some frozen Iranian funds to purchase American agricultural products for Iran, describing the move as the opening of a “new market” for US farmers, reports Anadolu Agency.

Speaking while at the White House, Trump said Iran is facing food shortages and that the US would use “some of Iran’s money” to buy American wheat, soybeans and corn for the country.

“We have a new market coming up, and that’s called the lovely country of Iran,” he said.

“It’s a beautiful place. Would anybody like to go there? The Islamic Republic of Iran. They’re having a hard time with food, and we’re going to be taking some of their money and we’ll spend it, and we’re going to be buying wheat, soybeans and corn, a lot of it, and that process is going to be starting soon. It’s going to be pretty big,” he added.

Pakistan could once again tap Iranian crude oil supplies following a temporary easing of US sanctions on Tehran, reopening the possibility of sourcing discounted crude and refining it locally to produce higher-value petroleum products.

While industry experts say local refineries are technically capable of processing Iranian crude, commercial and operational challenges remain, particularly due to the high furnace oil yield and the absence of significant domestic demand for the fuel.

Pakistan Refinery Ltd (PRL) had previously imported Iranian crude under a long-term contract with the National Iranian Oil Company, but purchases halted after US sanctions were imposed. Since then, no Iranian oil has been imported into the country.

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US-mediated talks between Israel and Lebanon that were slated to end on Thursday will go on for another day, the State Department has said, according to AFP.

It said this fifth round of discussions that began this week and will resume on Friday morning.

“Israel and Lebanon talks remain ongoing as we continue to facilitate,” the department said in a statement.

Eight more South Korean vessels have exited the Strait of Hormuz, South Korea’s Oceans Ministry says, reports Reuters.

A total of five South Korean-operated ships remained in the area, with 47 crew members on board as of 9am Seoul time on Friday, the ministry said.

The ministry declined to disclose details on the vessels, citing requests from shippers and crew members.

The Israeli army claims it has killed several suspected Hezbollah fighters in two separate incidents around the so-called “security zone” its forces have established in southern Lebanon, AFP reports.

In the first case, the military claims soldiers “identified five Hezbollah terrorists who posed a threat to them” in Zawtar al-Sharqiyah, while in the second, they “identified an armed Hezbollah terrorist” around the strategic Ali al-Taher Ridge.

“Following the identifications, the Israeli Air Force and the ground forces fired toward the terrorists and eliminated them to remove the threat,” it adds.

The Persian Gulf Strait Authority (PGSA), which controls the Strait of Hormuz, warns that vessels using routes outside its framework will not receive safe passage.

“Any passage through routes outside the framework designated by PGSA will not be covered by safe passage guarantees and will not be entitled to insurance coverage or related liabilities,” the authority says on X. “The consequences arising from passage through unauthorised routes shall be the responsibility of the owner, operator, and vessel commander.”

Oil prices have edged up about 2 per cent after a cargo vessel was hit by an unknown projectile near Oman, sparking worries about how long it could take for oil flows in the Middle East to return to levels seen before the US-Israeli war on Iran, Reuters reports.

Earlier in the session, crude futures fell to their lowest levels since February 27, the day before the war began, as crude shipments through the strait rose to their highest since the start of the war.

Brent futures have risen $1.12, or 1.5pc, to $74.86 a barrel at 1740 GMT, while US West Texas Intermediate crude have risen $1.22, or 1.7pc, to $71.56.

International Maritime Organisation (IMO) Secretary-General Arsenio Dominguez says that the group’s evacuation plan for vessels stranded in the Strait of Hormuz, which launched earlier this week, has been suspended, Al Jazeera reports.

Earlier, the United Kingdom Maritime Trade Operations reported that a vessel was hit near Oman’s coastal waterways in the Strait of Hormuz.

“I have been informed of an attack today in the Gulf of Oman on a vessel which passed through the Strait of Hormuz. This vessel did not transit under [the] IMO’s evacuation framework,” he says in a statement.

“Following the launch of the IMO’s evacuation plan, through which several vessels have already been successfully evacuated, I have decided to temporarily pause its implementation in order to reconfirm that the necessary safety guarantees continue to be in place for the ships on our evacuation list and all those in the region.”

Italian Prime Minister Giorgia Meloni, in a joint press conference with French President Emmanuel Macron, has rebuked a claim made yesterday by Nato chief Mark Rutte that Italy had aided US attacks against Iran, Al Jazeera reports.

Meloni says that Italy never participated in the Iran conflict, but only provided “technical and logistical” support to the US Army.

Yesterday, Rutte told Fox News that 500 US planes had taken off from US bases in Italy to “support” the US’s ‘Operation Epic Fury’, Washington’s name for its joint war with Israel on Iran.

The International Monetary Fund (IMF) says energy and commodity prices have fallen since the US and Iran agreed to halt hostilities and reopen the Strait of Hormuz, but warned that Gulf trade flows will take time to return to normal, Al Jazeera.

IMF spokesperson Julie Kozack says the Fund will decide in its July 8 World Economic Outlook update whether to keep the three growth scenarios it issued in April, which were based on possible outcomes of the US and Israel’s joint war on Iran.

In May, as the Strait of Hormuz remained closed and oil prices stayed above $100 a barrel, Kozack said the global economy was moving away from the more stable “reference forecast” towards an “adverse scenario” of 2.5 per cent growth.

Italy and France have agreed to launch a coalition to support Lebanon after the United Nations’ Unifil peacekeeping initiative in the area expires at the end of the year, Reuters reports citing Prime Minister Giorgia Meloni.

Speaking in the French resort of Antibes after holding talks with French President Emmanuel Macron, Meloni adds they have also discussed a possible international conference on the issue.

The Gulf’s top diplomats say that dealing with Iranian missiles and armed groups aligned with Tehran is key to lasting peace, and that any trade and investment with Iran will be reversible and contingent on its respecting its deal with the US, AFP reports.

“The ministers further emphasised that lasting regional peace and security requires addressing the full spectrum of Iran’s threats, including its ballistic missiles, drones, and support of proxies in the region,” they says in a joint statement following a meeting co-chaired by US Secretary of State Marco Rubio.

“Any trade and investment with Iran is conditional and reversible, contingent on Iran’s compliance with the MoU (memorandum of understanding) and the final agreement, cessation of its destabilising behaviour, and creation of the conditions necessary for economic engagement,” they add.

Shipping giant Hapag-Lloyd says all of its vessels stranded in the Gulf after the temporary closure of the Strait of Hormuz have now left the region, according to Al Jazeera.

A company spokesperson says the decision follows a security assessment and consultations with the relevant authorities.

“All Hapag-Lloyd vessels that were affected by the temporary closure of the Strait of Hormuz and had been waiting in the Persian Gulf to leave have now safely left the Gulf region,” the spokesperson says.

The company adds it will not release further details for security reasons.

The United States and its Gulf allies back ongoing talks over Lebanon and said those negotiations should not be conditional on the outcomes of other conflicts, adding that all non-state armed groups should be disarmed, AFP reports.

US Vice President JD Vance says Washington and Tehran have agreed to set up a direct channel with Iran’s Islamic Revolutionary Guard Corps (IRGC) to reduce the risk of further conflict, Al Jazeera reports.

In an interview with the British right-wing news site UnHerd, Vance says the arrangement will involve Iranian and US military officials meeting in Doha, Qatar, to work through disputes.

“They were like, ‘OK, fine, we’ll send somebody from the IRGC to go hang out in Doha with somebody from [US Central Command]’, and that’s how we’re going to settle a lot of these disputes”, Vance says, describing discussions with Iranian officials.

Vance adds that the United Arab Emirates had opened channels with Iran that had not existed before, including with the IRGC.

He says the UAE is “having conversations with the Iranians that have never happened before, including with the IRGC, about various types of economic incentives”.

Israeli Defence Minister Israel Katz says Tel Aviv opposes withdrawing from the “security zone” in Lebanon despite pressure to do so, adding that the military will remain in what he calls “security zones” in Lebanon, Syria and Gaza for as long as necessary and would not withdraw from them, Reuters reports.

Lebanon’s gross domestic product is expected to contract in 2026, given the “very challenging” economic, social and humanitarian situation caused by the resumption of the war, Reuters reports citing the International Monetary Fund (IMF).

IMF spokeswoman Julie Kozack tells a regular news briefing that the global lender is engaged closely with Lebanese authorities to look at economic crisis management measures to mitigate the impact of the war, but has not given details.

The IMF also continues to work with authorities on more comprehensive reforms that could be supported ultimately by an IMF programme, she says.

Iranian Foreign Minister Abbas Araghchi has hailed a “productive” phone call with his Omani counterpart, Badr Albusaidi.

“We re-emphasised that Iran and Oman will conduct dialogue ‘to define future administration and maritime services in [the] Strait of Hormuz’,” Araghchi writes on X. “We’re determined and will do so in discussion with our neighbours.”

The United Kingdom Maritime Trade Operations (UKMTO) Centre reports that a cargo vessel has been “hit on the starboard side by an unknown projectile, causing damage to the bridge” southeast of Dahit, Oman.

“Master has reported no casualties and no environmental impact,” a statement by UKMTO reads. “Authorities are investigating. Vessels are advised to transit with caution and report any suspicious activity to UKMTO.”

Lebanon’s health ministry says Israeli attacks have killed 4,230 people and wounded 12,179 others between March 2 and June 25, Al Jazeera reports.

Israel continues to occupy areas in southern Lebanon — some held for decades and others seized during the 2023-2024 war. During its latest invasion, Israeli forces advanced more than 10 kilometres into Lebanese territory.

A recently signed memorandum of understanding between the US and Iran calls for ending hostilities across multiple fronts, including Lebanon, as part of efforts to reach a lasting peace agreement between the two sides.