War returns to Iran with Israel, US strikes

Iran’s Foreign Minister Abbas Araghchi and his Chinese counterpart Wang Yi have discussed the contents of the memorandum of understanding, due to be formally signed by the US and Iran on Friday, in a phone call, Al Jazeera reports.

Araghchi “thanked Beijing for its support for the negotiation process as well as its support for the relevant memorandum of understanding”, according to a statement relayed by Iran’s semi-official Tasnim News Agency.

For his part, Yi “welcomed the memorandum of understanding … and praised the responsible and diplomatic approach of the Islamic Republic of Iran in resolving issues and advancing dialogue,” the statement adds.

Yi also “announced China’s readiness to facilitate its implementation, strengthen regional interactions and help resolve the ambiguities and challenges between the countries of the region”.

The two diplomats both “emphasised the need for the international community to support this memorandum of understanding” and the UN Security Council’s responsibility in ensuring it is implemented and adhered to in its entirety.

Addressing the situation in Lebanon, French President Emmanuel Macron says the G7 believes a ceasefire “has to be full and immediate – that’s absolutely necessary”, Al Jazeera reports.

The US-Iran deal must ensure that the sovereignty and territorial integrity of Lebanon is defended, he tells reports.

French President Emmanuel Macron says, “We have unanimously welcomed the very good agreement reached between the US and Iran, which was secured by President Trump.”

According to Al Jazeera, Macron has been holding a news conference at the G7.

“This is an agreement that we support because it’s an agreement that ends a situation of great instability, the consequences of which for our economies were terrible,” he adds.

The US-Iran peace agreement may have eased immediate fears in financial markets, but economists say the conflict has already left a significant mark on the global economy through higher energy prices, rising inflation, weaker growth and disruptions to commodity markets, Anadolu reports.

The agreement is expected to reopen the Strait of Hormuz, one of the world’s most important energy corridors, after months of disruption that rattled global markets and triggered the largest energy shock since the outbreak of the Ukraine war.

Reports by the World Bank, International Monetary Fund (IMF) and International Energy Agency (IEA) suggest the conflict’s consequences extend far beyond the Middle East, affecting everything from fuel and fertiliser prices to economic growth forecasts and food security.

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Indian Prime Minister Narendra Modi has told US President Donald Trump during a bilateral meeting that the safety of Indian seafarers working in the Strait of Hormuz area is of “utmost importance” to New Delhi, Reuters reports.

US President Donald Trump tells reporters he wants Israel to “protect themselves” but to “use good judgment” in their Lebanon campaign.

US President Donald Trump says that, despite being a memorandum of understanding, the document is “a very strong one”.

“This isn’t just like a two-paragraph [agreement], this is a longer, pretty detailed memorandum that goes into a regular contract,” he tells reporters.

Trump says he hopes Iran will sign it, but says that if they do not, he will “start the process again”, referring to military action.

Asked about how confident he is that the Iran memorandum of understanding will be signed on Friday, US President Donald Trump says Iran “want to sign”.

“I’ve gone into deals that were 100 per cent [ready to sign] and they don’t happen, I’ve gone into deals with no chance of getting them done and it happens, and it happens easily. So you never know with deals, but you’re going to find out pretty soon,” he tells reporters.

“I think it’ll be done, they want to sign,” he adds. “They want to get back to their normal lives.”

US President Donald Trump reiterates that his deal is a “wall against a nuclear weapon”.

“Nobody else did this but Trump,” he tells reporters about dealing with Iran. “For 46 years, Iran took advantage of the world; nobody did anything”.

Trump has also repeated his criticism of his predecessor Barack Obama’s 2015 agreement with Tehran, saying it was a “road to a nuclear weapon” and “one of the dumbest deals I’ve ever seen”.

Asked if he wants European nations to send minesweepers into the Strait of Hormuz, he responds, “We don’t need them, but if they want to send them, I think it’s good.”

US President Donald Trump has said oil prices are “soon going to be at the number that it was four months ago”.

Fielding questions during a bilateral meeting with Indian Prime Minister Narendra Modi, he adds that “we will have an Iran without a nuclear weapon, and I can tell you the prime minister feels strongly about that too.”

US President Donald Trump expects India to play a role in the Middle East.

He is speaking to reporters during a bilateral meeting with Indian Prime Minister Narendra Modi.

“I think India plays a big role in everything,” Trump replies to a question.

“As long as he’s the leader, India’s going to play a big role,” he says, pointing at Modi.

Oil prices have ticked upwards after US President Donald Trump said the US would “go back to shooting” and “dropping bombs” on Iran if the memorandum of understanding between both countries does not pan out, Al Jazeera reports.

Brent crude futures are up 54 cents, or 0.7 per cent, to $79.50 a barrel just after noon GMT, Reuters reports. US West Texas Intermediate has gained 49 cents, or 0.6pc, to $76.54.

Both prices still hover near three-month lows, however.

Chancellor Friedrich Merz has reiterated Germany’s intention to help support the Iran-US framework agreement, which could include a military mission in the Strait of Hormuz, Al Jazeera reports.

Speaking to reporters on the sidelines of the G7 summit in France, Merz says there are “a series of preconditions that are not yet fulfilled, so there is no immediate hurry”.

He notes that there are still two weeks of parliamentary sessions before the legislature’s summer break starts in July and says that “there is no time pressure at the moment.”

Former US vice president Mike Pence says that Washington’s agreement with Tehran is “much bigger than a mistake”.

“In this moment, the posture that we’re getting from the Iranians … my concern is what appears to be leaking out, these immediate concessions, particularly sanctions waivers right out of the gate that would essentially be a lifeline to the Iranian regime,” Pence, who served as VP during President Donald Trump’s first term, tells CNN.

“I think it’s ill-advised. We ought to keep the pressure on, keep the blockade on and if need be, let our armed forces get back to work,” he adds.

An Iranian official says that the funeral procession for the late supreme leader, Ayatollah Ali Khamenei, who was killed by US-Israeli strikes in February, will pass through Iraq before his burial in Iran, AFP reports.

In a video carried by state media, Tehran Mayor Alireza Zakani says the farewell ceremonies and funeral for Khamenei will be held from July 4 to 9.

“On 8 July 2026, they will take place in Iraq, and on 9 July 2026, God willing, in Mashhad” in Iran, where Khamenei will be buried, he addd.

Shipping monitor MarineTraffic reports that Iranian-linked tankers have reappeared on AIS (automatic identification system) near the boundary of the US naval blockade.

“According to Kpler and MarineTraffic data, at least four laden tankers reappeared on AIS on 16 June after loading crude at Kharg Island earlier this year,” MarineTraffic says on X.

“The VLCCs Hero II and Diona, each carrying around 2 million barrels of crude according to Kpler, were sailing southeast at 9.5–11 knots and appear to have moved past the Gulf of Oman-Arabian Sea blockade boundary with no next destination declared.”

MarineTraffic adds that the Suezmax Sonia I has also followed a similar outbound route, while another laden VLCC, Amber, has reactivated its AIS near the eastern mouth of the Strait of Hormuz.

“The legal backdrop remains unclear, but the near-simultaneous reactivation of these vessels suggests coordinated operator decision-making rather than isolated commercial moves,” the monitor says.

Pope Leo XIV has welcomed the agreement between Washington and Tehran “as an encouraging result of patient work in dialogue and negotiation”.

In a post on X, the pontiff expressed gratitude to the countries which worked to facilitate a meeting between the parties and make the agreement possible.

“I hope that the agreement may help strengthen mutual trust, security, and stability in the Middle East, promoting paths of dialogue and cooperation among peoples,” he adds.

Lebanese President Joseph Aoun has said that he is in favour of a ceasefire and “any state that helps us, including Iran”.

“The assurances we have received and what we emphasise is that Lebanon’s course is independent in the negotiations,” he notes in a statement.

“The negotiation is being conducted by the Lebanese state, which is sovereign in its decisions, and no one takes its place, and any settlement will be made through us, not at our expense.”

Iranian Foreign Minister Abbas Araghchi has stressed the importance of the US being responsible for implementing the memorandum of understanding, as well as the need for a halt to Israeli attacks on Lebanon, during a phone call with his Russian counterpart Sergei Lavrov.

According to the Iranian government, Lavrov “declared Russia’s full support for its implementation”.

Both top diplomats stressed the need for the backing of the UN Security Council and the international community of the agreement, while reaffirming closer ties between Tehran and Moscow to “stabilise regional peace”.

Danny Danon, Israel’s ambassador to the UN, says the US-Iran agreement is “very bad” for Israel, the United States and Gulf nations, Al Jazeera reports.

In comments to Israel’s Channel 14, Danon said that by trying to end the negotiating process as quickly as possible, President Trump allowed Iran to “improve” its position.

“But we have to wait. There is no decision yet — only a framework for the continuation [of negotiations],” he says.

US President Donald Trump has rejected reports that the memorandum of understanding (MoU) with Iran includes a $300 billion reconstruction fund.

“False,” he tells reporters during a bilateral meeting with Egyptian President Abdel Fattah Al-Sisi. “You can invest if you want. What am I going to do? Say nobody’s allowed to invest?

“We’re not putting up 10 cents,” he adds.

Trump stresses that the US is not investing and does not have a reconstruction fund. When pressed on Gulf countries providing funds, he responds: “If they do it, fine. I would say they won’t be doing it for a while, until they find out the behaviour” of Iran.

US President Donald Trump has warned Iran he is ready to resume military action if Tehran does not abide by its obligations, two days ahead of the signing of an accord to end the war between the foes, AFP reports.

“No it’s not final. It’s a memorandum of understanding,” Trump said at the G7, referring to the agreement expected to be signed in Switzerland on Friday.

“If I don’t like it we will go back to shooting at them,” he added alongside Egyptian President Abdel Fattah al-Sisi.

“If they don’t behave, we’ll go right back to dropping bombs right smack in the middle of their head.”

The CEO of French petroleum firm TotalEnergies, Patrick Pouyanne, says the Saudi refinery hit by drones early in the conflict is now operating at 70 per cent capacity, Al Jazeera reports.

Speaking at a ⁠hearing convened ⁠by the French lower house’s economic affairs commission ‌on the Middle East crisis, Pouyanne said the refinery will probably not be fully repaired until the beginning of 2027.

Alert sirens have been activated because of the intrusion of “hostile aircraft” into the airspace of the village Zar’it, a military update says, according to Al Jazeera.

An investigation is currently underway, it added.