War returns to Iran with Israel, US strikes

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.

The final session of negotiations between Lebanon and Israel has begun at the US State Department in Washington, DC, according to Al Jazeera.

The Danish Parliament has approved the deployment of contributions to a multinational mission in the Strait of Hormuz, Anadolu reports citing broadcaster DR.

Lawmakers have decided that Denmark will send officers, interpreters and drones to the region as part of a UK- and France-led multinational mission aimed at safeguarding freedom of navigation in the strait, as well as the EU’s naval operation.

The contribution consists of a staff officer element, a drone capability and an interpreter unit, totalling around 10 personnel.

Cyber capabilities may also be included in the Danish military effort.

India has restored non-domestic packed liquified petroleum gas (LPG) supplies to pre-Iran crisis levels, the government has said in a statement, adding that sectoral restrictions on such supplies have been withdrawn, Reuters reports.

Israel says it will only withdraw its forces from southern Lebanon after Hezbollah is disarmed, as the two countries engaged in US-mediated talks in Washington, AFP reports.

“We will not withdraw our forces from southern Lebanon as long as Hezbollah remains a threat, are not disarmed and are not demilitarised,” David Mencer, a government spokesman, says in a briefing to journalists.

Italian Foreign Minister Antonio Tajani says he held a phone call with his Iranian counterpart, Abbas Araghchi, in which he denied that Italy authorised the use of its airbases for US attacks against Iran, Al Jazeera reports.

“Italy has never taken part in any military initiative and has never authorised the use of bases for war actions against Iran, in the strictest respect of the treaties with the United States,” Tajani writes on X.

Most stock markets in the Gulf have ended lower, pressured as oil prices touched pre-war levels, after a preliminary deal between the US and Iran paved the way for the reopening of the Strait of Hormuz, Al Jazeera reports.

Oil prices, a key catalyst for Gulf financial markets, have extended losses to near levels last seen before the start of the Iran war, as expectations of higher Middle East supply outweighed demand concerns.