Iran has signalled cautious optimism over its recent memorandum of understanding (MoU) with the United States, even as the country mourns the death of former Supreme Leader Ayatollah Ali Khamenei. Senior Iranian officials acknowledged that implementing the agreement would be challenging but maintained that diplomacy remained possible despite deep differences between the two countries.

Speaking in Tehran on Monday, Iranian Parliament Speaker and senior negotiator Mohammad Bagher Ghalibaf described the implementation of the US-Iran memorandum as "difficult, but possible." His remarks came during a meeting with Mohammad Darwish, head of Hamas' leadership council, who travelled to Iran to attend Khamenei's funeral ceremonies.

Meanwhile, Tehran witnessed one of the largest public gatherings in recent Iranian history as millions of mourners lined the streets for Khamenei's state funeral. The procession began from Tehran's Grand Mosalla Mosque, where the late leader had lain in state, before moving along a 10-kilometre route through the capital. Officials expect the ceremony to last up to 12 hours before the body is taken to the holy city of Qom for further religious rites and final burial.

The funeral drew top Iranian political, military and religious leaders, along with foreign delegations from across the region. Khamenei's sons also attended the funeral prayers, while mourners showered flowers on the coffin and carried red flags bearing slogans associated with calls for justice and resistance.

Iranian President Masoud Pezeshkian described the funeral as more than a farewell, saying it represented a renewed commitment to continue Khamenei's political and ideological legacy. State media claimed the event had attracted millions of participants, calling it one of the country's largest public gatherings.

The funeral also reflected the continuing tensions in the region. Israeli Defence Minister Israel Katz warned that Israel would act against any future Iranian leader who sought the country's destruction. Separately, reports emerged of fresh Israeli military activity in southern Lebanon, where state media said explosions occurred during overnight operations.

In another development, reports suggested Pakistan could host the next round of US-Iran negotiations on July 11, although there has been no official confirmation from either Washington or Tehran.

Energy markets also remained in focus after OPEC+ announced its fifth consecutive monthly increase in oil production. Beginning in August, seven member countries will collectively raise output by 188,000 barrels per day as global crude prices continue to ease following the recent conflict involving Iran, Israel and the United States.

Despite the diplomatic opening with Washington, Iranian leaders maintained a firm public stance. Earlier in the day, Ghalibaf described the MoU as a political achievement for Iran and the so-called "Axis of Resistance," while warning that Tehran would continue to resist external pressure.

The funeral ceremonies come at a critical moment for West Asia, where regional powers are balancing renewed diplomatic engagement with persistent security tensions. Analysts believe the implementation of the US-Iran understanding, combined with leadership changes in Tehran, could significantly influence the region's political and strategic landscape in the coming months.

Iran began the official state funeral ceremonies for former Supreme Leader Ayatollah Ali Khamenei on Saturday, drawing massive crowds to Tehran's Grand Mosalla amid heightened regional tensions and continued uncertainty over the country's future diplomatic and security outlook.

The funeral, which commenced on July 3 and is scheduled to continue until July 9, has become one of the largest state ceremonies in Iran's recent history. Thousands of mourners dressed in black gathered at the Grand Mosalla, following Shia mourning traditions by beating their chests and chanting religious and political slogans. Many participants carried red flags, a symbol often associated in Shia tradition with martyrdom and calls for justice.

Iranian state officials, including President Masoud Pezeshkian, Chief Justice Gholam-Hossein Mohseni-Eje'i and Parliament Speaker Mohammad Bagher Ghalibaf, attended the memorial ceremony. Images broadcast by Iranian media showed emotional scenes as mourners paid tribute to the late leader.

The funeral has also attracted international delegations from more than 100 countries. However, several major powers, including Russia, China, India and Türkiye, opted to send lower-level representatives instead of their top leadership.

The ceremonies are taking place under extraordinary security arrangements. Iranian authorities have significantly increased security across Tehran, deploying advanced air defence systems, restricting drone and private aircraft operations, and expanding public transport services to accommodate millions of visitors. Hotels, schools, mosques and sports complexes have also been opened to host mourners arriving from across the country.

According to the announced schedule, Khamenei's funeral procession will move through several locations before concluding with his burial in Mashhad near the Imam Reza Shrine, fulfilling what Iranian media describe as his final wish.

Meanwhile, developments surrounding the funeral have coincided with renewed diplomatic rhetoric between Tehran and Washington. Speaking during an event in the United States, President Donald Trump claimed that the US had given Iran "a week off" to complete the funeral ceremonies on humanitarian grounds before expecting Tehran to return to negotiations. Iranian authorities have not officially responded to those remarks.

Iranian officials, however, maintained a firm stance during the funeral proceedings. The country's Intelligence Ministry vowed that those responsible for Khamenei's death would eventually be held accountable, while senior officials reiterated their opposition to increased Western military activity in the Strait of Hormuz.

Regional developments also continued alongside the funeral. Israeli military operations in Gaza and the occupied West Bank remained active, while humanitarian agencies reported rising casualties in the conflict. Lebanon's military confirmed it had dismantled unexploded ordnance in southern Lebanon, and France announced the deployment of specialised naval mine-clearing vessels to help secure commercial shipping through the Strait of Hormuz.

At the same time, reports suggested that maritime traffic through the strategically important waterway is gradually recovering following recent disruptions, although shipping analysts described the situation as fragile.

Observers note that beyond its religious significance, the week-long funeral also serves as a demonstration of Iran's political resilience following the loss of its long-serving leader. The large public turnout and participation of international delegations are widely being viewed as an effort by Tehran to project stability at a time of heightened geopolitical uncertainty.

With funeral ceremonies continuing until July 9, attention will remain focused on both Iran's internal transition and the broader regional developments that continue to shape West Asia's security landscape.

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Trump Says Iran Wants to Resume Talks as Khamenei Funeral Begins Under Tight Security

As Iran commenced week-long funeral ceremonies for former Supreme Leader Ayatollah Ali Khamenei, US President Donald Trump claimed that Tehran is eager to return to negotiations with Washington following weeks of heightened military tensions.

Speaking during an event marking the launch of the United States' 250th anniversary celebrations, Trump said Iran was "dying to settle" and suggested that the United States had deliberately eased diplomatic pressure to allow the funeral proceedings to take place.

"We gave them a week off for a funeral because we're nice," Trump remarked, adding that Iran now wants to reach an agreement with the United States.

However, Iranian authorities have not publicly confirmed any renewed negotiations, and there has been no official response to Trump's latest comments.

Funeral Begins Amid Massive Security Arrangements

The funeral ceremonies for Ali Khamenei officially began on Saturday morning at Tehran's Imam Khomeini Grand Mosalla, where tens of thousands of mourners gathered hours before the gates opened.

Iranian state television broadcast images showing Khamenei's casket alongside those of several family members reportedly killed during the conflict. Large crowds carrying Iranian flags and red banners associated with calls for revenge filled the religious complex and surrounding streets.

Authorities have launched one of the country's largest security and logistical operations in recent years.

Among the measures announced:

• More than 2,500 ambulances and emergency teams deployed.

• Hundreds of drones and helicopters assigned for security monitoring.

• Public transport operating free for mourners.

• Airports temporarily closed during key funeral events.

• Millions of loaves of bread prepared for visitors attending ceremonies.

The funeral procession is expected to travel through several Iranian cities before Khamenei is buried in Mashhad on July 9, fulfilling his reported final wish to rest near the Imam Reza Shrine.

Mojtaba Khamenei Unlikely to Appear Publicly

Security concerns are expected to keep Iran's newly appointed Supreme Leader, Mojtaba Khamenei, away from public funeral events.

Mohammad Eslami, a research fellow at the University of Tehran, told Al Jazeera that Israeli security threats make any public appearance by Mojtaba highly risky.

According to Eslami, there are concerns that Israel could attempt actions designed to derail any emerging diplomatic understanding between Tehran and Washington, making public appearances by senior Iranian leadership particularly sensitive.

Iranian authorities have not officially confirmed Mojtaba Khamenei's funeral schedule.

Diplomatic Tensions Continue

Even as funeral ceremonies dominate headlines, diplomatic tensions remain high.

Israel has rejected a report published by The New York Times claiming that the United States had warned Israeli officials against targeting Iranian negotiators. Israeli Prime Minister Benjamin Netanyahu's office dismissed the report as "fake."

Meanwhile, Pakistan Army Chief General Asim Munir travelled to Tehran to attend the funeral and held talks with Iranian Foreign Minister Abbas Araghchi. Officials have not disclosed details of their discussions.

Qatar has also indicated that future rounds of US-Iran negotiations may resume after the funeral concludes, although no timetable has been officially announced.

Strait of Hormuz Slowly Returning to Normal

Maritime traffic through the Strait of Hormuz is gradually recovering after recent disruptions caused by regional hostilities.

Shipping analytics firm Kpler reported that vessel movements remain below normal but have stabilized within expected operating levels. Analysts nevertheless describe the recovery as fragile, warning that geopolitical uncertainty continues to affect commercial shipping decisions.

A Nation in Mourning

The funeral marks the end of more than four decades of Ali Khamenei's leadership, during which he shaped Iran's military, political and religious institutions. Across Tehran, mourning ceremonies continue alongside heavy security deployments as officials prepare for several days of public tributes.

Whether Trump's remarks signal a genuine opening for renewed diplomacy or remain political rhetoric will likely become clearer after Iran's mourning period concludes and both governments indicate their next diplomatic steps.

The coffin of former Iranian Supreme Leader Ayatollah Ali Khamenei was taken to the site in Tehran where he was killed in a US-Israel airstrike earlier this year, as Iran intensified preparations for his six-day state funeral. The visit to the assassination site was reportedly conducted without prior public announcement, according to Iranian state media.

Congress leader Salman Khurshid and Peoples Democratic Party (PDP) chief Mehbooba Mufti were among the Indian political leaders who travelled to Tehran to pay their respects during the mourning ceremonies. Visuals released by the Iranian Embassy showed the two leaders offering tributes alongside senior Iranian officials and foreign delegations.

Iran has scheduled public farewell ceremonies from July 4 to July 9 across several cities, with Tehran hosting the opening events. The first day will allow members of the public to pay their final respects, while funeral prayers and a procession through the capital are planned before the coffin is taken to Mashhad for burial.

Iranian authorities estimate that between 12 million and 20 million people could participate in the funeral ceremonies, potentially making it one of the largest state funerals in the country's history. Representatives from more than 100 countries are expected to attend, with India, China, Russia, Türkiye, Bangladesh and several other nations sending official delegations.

Security has been tightened across Tehran ahead of the ceremonies. Police checkpoints, military deployments and traffic restrictions have been imposed in the capital, while public and private offices are scheduled to remain closed during key stages of the funeral. Iranian authorities have also announced partial airspace restrictions as part of the security arrangements.

Amid the mourning period, Qatar indicated that the next round of US-Iran talks could resume after the funeral concludes, signalling a possible revival of diplomatic engagement following months of heightened regional tensions.

Iran has also lodged a complaint with the United Nations, accusing Israel of threatening Supreme Leader-designate Mojtaba Khamenei. Separately, Tehran announced that inspectors from the International Atomic Energy Agency (IAEA) would not be granted access to the Fordo, Natanz and Isfahan nuclear facilities, a move likely to increase international scrutiny over its nuclear programme.

The Strait of Hormuz also remained in focus, with Iran warning the United States against interference in the strategic waterway while directing commercial vessels to follow designated maritime routes. At the same time, shipping traffic through the strait has shown signs of recovery following the ceasefire between the United States and Iran, although volumes remain below pre-conflict levels.

Ayatollah Ali Khamenei, who led Iran for more than three decades, was killed in a US-Israel airstrike on February 28, according to Iranian authorities. His death marked a major turning point in the country's political leadership and has triggered one of the largest state mourning events in Iran's recent history.

Officials said the funeral ceremonies are intended to demonstrate national unity and resilience, while further diplomatic developments are expected after the conclusion of the mourning period.

An official Indian delegation paid its final respects to Iran's former Supreme Leader, Ayatollah Ali Khamenei, during a state mourning ceremony at Tehran's Grand Mosalla complex ahead of his funeral. The visit underscored India's diplomatic engagement with Iran and its longstanding civilisational ties with the West Asian nation.

Thousands of mourners gathered at the Grand Mosalla from early morning to pay their last respects to Khamenei. Religious leaders, senior Iranian officials, foreign dignitaries and international delegations attended the ceremony under heightened security arrangements following recent regional tensions.

Representing the Government of India were Minister of State for External Affairs Pabitra Margherita and Bihar Governor Lt Gen Syed Ata Hasnain. The delegation offered floral tributes, observed a moment of silence and conveyed condolences to the Iranian leadership on behalf of India.

According to the Ministry of External Affairs, India's participation reflects the deep historical, cultural and diplomatic relationship between the two countries. India and Iran have maintained cooperation across sectors including energy, trade, connectivity, maritime security and regional affairs despite changing geopolitical circumstances.

The funeral ceremonies are being conducted under extensive security, with Iranian authorities deploying additional personnel across Tehran. The multi-day state funeral is expected to conclude with Khamenei's burial in Mashhad after religious observances in different cities.

The passing of Ayatollah Ali Khamenei marks a significant moment in Iran's political and religious history. His funeral has drawn representatives from several countries, reflecting his influence on regional affairs and the importance many governments attach to maintaining diplomatic engagement with Tehran.

India has continued to maintain diplomatic relations with Iran while balancing its broader strategic interests in the region. Officials said participation in the state funeral is consistent with established diplomatic protocol and reflects India's respect for bilateral ties with the Islamic Republic.

The Indian delegation is expected to conclude its visit after attending the official mourning events. Further diplomatic engagements, if any, have not been announced.

The crushing reality of an escalated conflict has hit the streets of Iran, not just in the form of structural destruction, but through an unprecedented economic collapse. Months after heavy US and Israeli airstrikes targeted key infrastructure, the domestic market has spiraled into hyperinflation. The situation has deteriorated to a point where working-class families in major urban centers like Tehran, Isfahan, and Mashhad are forced to buy basic staples, including bread, on installment plans.

Ground Reality in Tehran

The local currency, the rial, has plummeted to historic lows, obliterating the purchasing power of average citizens. On the ground, the financial volatility changes by the hour.

"I bought groceries on credit from a neighborhood shop, and when I returned the next day to pay, the bill had doubled," said Mehdi, a 52-year-old government employee living in the capital.

His situation is far from isolated. Reports filtering out of neighborhood markets in Ahvaz and Isfahan indicate that salaries are dry by the middle of the month. To survive, residents are increasingly turning to local shopkeepers to purchase supermarket packages and bread on EMI (equated monthly installments), a phenomenon previously unheard of for basic food items.

Essential Commodities Skyrocket

The statistical reality of the market is staggering. Driven by supply chain blockages and the destruction of domestic logistics, the prices of everyday essentials have grown exponentially.

According to local commercial accounts, cooking oil prices have surged by a massive 430% since the escalation of the conflict. Similarly, the price of eggs has risen by 345%, rice by 287%, and milk by 139%. The sharp spike has completely altered the Iranian household budget, shifting the daily focus from physical safety to basic caloric survival.

Medical Infrastructure Crumbling

Beyond the kitchen table, the crisis has firmly gripped Iran’s healthcare sector. Industrial output has grounded to a halt, heavily impacted by targeted strikes on the country's petrochemical installations and manufacturing zones.

A medical professional operating out of a major hospital in Isfahan confirmed that local pharmacies have begun rationing medicines. The Health Ministry has reportedly issued directives to physicians nationwide, advising them to prescribe only critical, life-saving drugs due to depleted stockpiles.

Amin Afshar, head of Iran’s Hemophilia Association, issued a stark warning stating that emergency reserves for bleeding disorders have entirely run out, compounded by severe difficulties in securing imports under the current blockade.

Tragedies Surface as Network Restored

The human cost of the war is only now fully coming to light following the gradual restoration of internet services, which had been severely restricted since the war intensified. As connectivity returned in late May, social media platforms were flooded with delayed accounts of casualties and destruction.

Among the widely shared accounts was that of Hamed Mirzaei, who discovered the fate of his family weeks after the event. A strike targeting Tehran’s Resalat Square earlier this spring claimed the lives of 12 of his family members, including his wife and parents. Due to the total communication blackout, Mirzaei only learned of the tragedy once basic network access was re-established.

Deepening Roots of Discontent

The current economic freefall is an amplification of an existing crisis. Iran was already battling severe economic headwinds before the military escalation. In December 2025, major demonstrations erupted across Tehran’s Saadi Street and the Grand Bazaar, expanding rapidly into Shiraz and Mashhad.

Those protests, triggered by inflation crossing 42% and food costs rising over 70%, had already forced the resignation of the Central Bank chief, Mohammad Reza Farzin. The subsequent war has turned an already fragile economy into a humanitarian crisis.

Shifting Stance on Dialogue

With the ruling establishment managing to survive the military onslaught contrary to initial opposition expectations, the political discourse on the ground is shifting. Many citizens who previously viewed external conflict as a catalyst for internal political change are pivoting toward diplomacy.

Lida, a 44-year-old environmental specialist from Tehran, noted that the sheer scale of infrastructural damage and human loss has made continued conflict unsustainable. Local analysts point out that a painful reckoning is underway across the political spectrum, with a growing consensus that diplomatic dialogue remains the final viable route to prevent total state collapse.

Israel launched strikes on military targets in western and central Iran early Monday, according to the Israeli military, after Iran fired a wave of missiles at northern Israel — a significant escalation that has reverberated across the region and pushed oil prices higher.

Strikes reported across Iran
The Israeli armed forces said the strikes hit military installations in western and central provinces. State media in Iran and local broadcasters reported explosions in Tehran, Tabriz and Isfahan in the early morning hours, and the Islamic Revolutionary Guard Corps (IRGC) said Israel used air-launched ballistic missiles in the attacks, the IRNA news agency reported.

Iranian emergency services and the Iranian Red Crescent said they were on standby to deal with any fallout. “Rapid response teams, logistical, relief and medical facilities are standing by following this morning’s strikes,” the Red Crescent said on X. There were no immediate independent confirmations of casualty figures.

Why it happened
Initial reports indicate the Israeli strikes were retaliatory. Earlier on Monday Iran launched missiles at northern Israel — the first such barrage since the April ceasefire — citing repeated Israeli actions in Lebanon that Tehran said violated the truce. Iranian officials described the missile fire as a response to what they called ongoing Israeli aggression.

According to regional analysts and Western officials, the sequence of attacks marks one of the sharpest direct exchanges between Israel and Iran since the broader round of hostilities began in spring. “This is a rapid escalation in a conflict that has largely been proxied through militia groups until now,” a Western diplomat familiar with the situation said, speaking on condition of anonymity.

US and allies respond
The United States reported shooting down two Iranian drones over the Strait of Hormuz in the past 48 hours, citing threats to international shipping, and CENTCOM said those actions were taken to protect commercial vessels. US President Donald Trump, in a telephone interview with the Financial Times, said Israeli Prime Minister Benjamin Netanyahu would have “no choice” but to accept any deal the United States negotiates with Iran. “He won’t have any choice. I call the shots,” Trump said, adding the strikes would not derail US-Iran negotiations.

Regional disruptions
Several countries moved quickly to protect civil aviation and shipping. Iran closed western airspace until further notice; neighbouring Iraq closed its airspace for 72 hours and Syria for 12 hours. Saudi authorities issued alerts in parts of Riyadh province after reports of an explosion near Al Kharj, though Iranian state media denied firing on the Saudi base.

Markets reacted immediately. Brent crude rose about 3.6% within an hour of the strikes being reported, trading near $96–97 a barrel, while West Texas Intermediate climbed more than 3%.

Ground-level picture
Residents in Tehran and Isfahan reported hearing explosions early on Monday; social media carried video clips of shockwaves and emergency responders at sites around the affected cities. Local hospitals and civil defence agencies were placed on alert as authorities assessed damage.

Analysts warned the risk of miscalculation is high. “When both sides begin striking each other’s territory directly, there’s a narrower margin to prevent wider conflict,” said a regional security analyst in New Delhi. “Escalation can spread quickly through allied militias and third-party actors.”

What happens next
Diplomatic channels are expected to be active in coming hours and days. Western capitals and regional powers are likely to call for restraint while assessing whether the strikes were targeted at military infrastructure only or intended to undermine Iran’s wider capabilities.

Iran has long demanded guarantees over its right to enrich uranium and the release of frozen assets as part of talks with the US; Tehran also accused shifting US positions of stalling negotiations. How the strikes influence those talks remains unclear — President Trump said they would not alter his push to conclude a deal.

For ordinary people in the region the immediate concern is safety and disruption: flights, cross-border trade and oil shipments may face short-term interruptions, and any sustained exchange could compound an already fragile security situation.

Sources and attribution
Details in this report are based on statements from the Israeli military, Iranian state agencies including IRNA, the Iranian Red Crescent, CENTCOM briefings, and statements from US officials and media interviews. Local eyewitness accounts and market data on crude prices were also consulted.

US President Donald Trump has struck a patient posture on negotiations with Iran, saying he is in “no hurry” to finalise any agreement, even as Iran’s Islamic Revolutionary Guard Corps claimed it shot down a US military drone that allegedly entered Iranian territory.

The downing claim, reported by Iran’s Tasnim news agency on Sunday, adds a fresh layer of tension to already fragile diplomacy.

Drone Downing Claim

The IRGC said its air defence unit identified and targeted a US MQ-1 drone that intruded into Iranian airspace. According to the statement, the drone was shot down using advanced missile systems. Iran alleged the unmanned aircraft belonged to the US military and was attempting a “hostile operation”.

There was no immediate confirmation or response from US Central Command on the claim.

Trump’s Patient Stance

Speaking to Fox News, Trump made it clear he is not rushing toward a deal. He said the US would either make a “great deal” or “just go back and finish it off military”. He expressed preference for a negotiated outcome, saying it would “save a lot of lives” and allow the reopening of the Strait of Hormuz “immediately upon signing”.

“It takes a long time. I’m in no hurry,” Trump said. “If you’re gonna be in a hurry, you’re not gonna make a good deal. And slowly but surely, we’re getting, I think, what we want.”

He described Iran’s leadership as “very tough negotiators”.

Three Sticking Points

Diplomatic efforts continue through Pakistani mediators and other regional actors. But Iranian officials say several major hurdles remain before any agreement can be finalised.

First, Tehran wants its frozen assets returned immediately upon any deal announcement. Washington prefers a gradual, performance-based process.

Second, Iran has reframed its demand for financial compensation into what it calls a “construction fund” worth approximately $300 billion. The US has not committed to this.

Third, Iran is seeking sanctions relief, particularly on its oil and petrochemicals sector, while negotiations are still underway. Again, Washington has given no indication of agreement on this front.

Iran maintains the deal is not yet finalised, contrary to what the US has been signalling publicly.

Revised Conditions

According to a New York Times report, Trump has sent a revised proposal to Tehran with further tightened conditions. The report did not specify the changes, but sources indicate stricter terms related to Iran’s nuclear programme, enriched uranium stockpiles, and the strategic Strait of Hormuz.

Trump separately claimed that Iran has agreed not to make or buy nuclear weapons. “First, Iran agreed not to make nuclear weapons. Then I asked them if they would buy them, and they also agreed,” he said in an interview.

Regional Tensions Escalate

Meanwhile, violence has intensified along Israel’s northern front. Israeli forces have launched what they described as a “large-scale operation” in southern Lebanon’s Shebaa Heights and Wadi al-Salouqi area. Several people have been killed in Israeli air attacks on the town of Deir ez-Zahrani, according to Lebanon’s National News Agency.

An Israeli soldier was also killed in battle in southern Lebanon on Saturday, the Israeli military confirmed.

As diplomacy drags on in the Iran case, the wider region remains on edge. Trump’s patient approach may buy time for negotiations, but with military posturing on both sides and a drone downing claim now on the table, the margin for error appears slim.

Trump Says Iran Talks in 'Final Stages' as Tehran Defines Hormuz Boundaries, Mandates Vessel Permits

US President Donald Trump has said negotiations with Iran are in their "final stages", even as Tehran moved to assert tighter control over the strategic Strait of Hormuz by defining its supervisory boundaries and mandating permits for all vessels passing through the waterway.

Speaking to reporters on Wednesday, Trump said he was willing to give diplomacy "one shot" but warned that Washington could take "nasty" action if talks fail. "Ideally I'd like to see few people killed, as opposed to a lot," he said, adding that the situation was "right on the borderline."

Warning from Washington

The US President's comments come weeks after a ceasefire paused the US-Iran conflict. White House Deputy Chief of Staff Stephen Miller has delivered a blunt ultimatum to Tehran's leadership, though Trump suggested Washington could wait a few days to "get the right answers" from Iranian officials.

Trump also claimed that Israeli Prime Minister Benjamin Netanyahu "will do whatever I want him to do," signalling tight US control over its ally's posture in the ongoing tensions.

Tehran defines Hormuz boundaries

In a move that could escalate maritime tensions, Iran's newly-launched Persian Gulf Strait Authority (PGSA) has formally defined the management supervision area of the Strait of Hormuz. According to a post on X, the supervision area stretches from the line connecting Kuh Mobarak in Iran and the south of Fujairah in the UAE in the east, to the line connecting the end of Qeshm Island in Iran and Umm al-Qaiwain in the UAE in the west.

The management body has made it clear that "frequencies in this range for passing through the Strait of Hormuz require coordination with the Persian Gulf Waterway Management and a permit from this entity."

Economic shockwaves widen

The blockade of the Strait of Hormuz has already disrupted more than 20 per cent of global fuel supplies, and the economic fallout is being felt far beyond West Asia. In Kenya, deadly protests over soaring fuel prices have claimed at least four lives so far, with demonstrators taking to the streets across the East African nation as petrol and diesel costs have surged.

Sri Lanka's tea industry is also under mounting pressure. Tea workers in the central hill region say rising living costs are making survival increasingly difficult. "We don't know whether we can cope. If this war continues, many people will face hardship," tea estate worker Jacintha Malar told Reuters from Hatton.

Saudi Arabia turns to fuel oil

Saudi Arabia is expected to rely more heavily on fuel oil to meet soaring summer electricity demand after disruptions linked to the Iran conflict reduced natural gas supplies. The kingdom has reportedly increased imports of fuel oil for power generation as extreme summer heat pushes up air-conditioning use. Saudi Aramco boosted fuel oil imports to around 1.7 million tonnes in April, an 86 per cent increase compared with the same period last year, according to analysts cited by Reuters.

Military posturing in Tehran

As threats of renewed conflict persist, Iran has intensified public displays of military strength in the capital. Members of the Islamic Revolutionary Guard Corps are now frequently seen training civilians to use Kalashnikov-style assault rifles, while military parades featuring armoured vehicles have become increasingly common. A ballistic missile similar to those used in recent attacks on Israel was showcased during a mass wedding ceremony in Tehran.

Iran has also claimed it possesses advanced domestically developed weapons that have not yet been combat-tested. Meanwhile, officials confirmed that Tehran is "reviewing" the US response to its latest proposal, with Pakistan acting as mediator for message exchanges between the two sides.

Tensions in the Middle East have escalated sharply after reports emerged that Iran’s Parliament is preparing a controversial bill that could offer a reward of more than ₹500 crore to anyone involved in the assassination of US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu.

According to reports, Iran’s National Security Commission is drafting legislation titled “Retaliatory Action of the Islamic Republic’s Military and Security Forces.” The proposed bill reportedly comes amid heightened tensions following the deaths of several Iranian military and political figures, including close associates of Iran’s top leadership. Iranian lawmaker Mahmoud Nabavian reportedly stated that the Parliament may soon vote on the proposal, which would reward individuals responsible for targeting Trump and Netanyahu. The remarks have intensified global concerns over the rapidly deteriorating situation in the region.

The development comes at a time when President Trump claimed he had postponed a military strike on Iran that was reportedly expected on Tuesday. Trump said leaders from Gulf nations including Qatar, Saudi Arabia and the United Arab Emirates requested additional time to allow diplomatic talks and de-escalation efforts to continue. Trump shared the update through a post on his social media platform Truth Social, saying that discussions were still ongoing and that there remained a narrow window for negotiations. However, he also warned Iran to reach an agreement quickly or face severe consequences.

In one of the strongest statements issued so far, Trump reportedly told Iran that “time is running out” and warned that if a deal is not reached soon, “nothing will be left.” The comments have further fueled speculation about possible US-Israel coordinated military action against Iran. Reports also suggest that dozens of cargo aircraft carrying weapons and military equipment have arrived in Israel from American military bases in Germany. Sources claim that Trump and Netanyahu have held discussions regarding possible future military operations targeting Iranian positions.

Meanwhile, tensions in the strategically crucial Strait of Hormuz have continued to rise. Reports indicate that nearly 1,500 commercial ships are currently stranded in the region amid fears of maritime blockades, missile attacks and drone strikes. More than 20,000 sailors are believed to be onboard these vessels, raising concerns over global oil supply disruptions and international shipping security. The regional situation worsened further after Saudi Arabia claimed its air defence systems intercepted and destroyed three drones that allegedly entered its airspace from the direction of Iraq. Both Kuwait and Qatar condemned the incident and described it as a threat to regional stability and national sovereignty.

Another development drawing international attention is the emergence of videos from Iran allegedly showing young girls receiving AK-47 rifle training. The footage reportedly shows participants learning to assemble and disassemble assault rifles amid growing fears of a wider regional conflict involving the United States and Israel. Security analysts believe the latest rhetoric and military movements indicate one of the most dangerous phases in Middle East geopolitics in recent years. Experts warn that any direct confrontation involving Iran, the United States and Israel could have serious consequences for global oil markets, maritime trade and regional stability.

Diplomatic channels remain active, but international observers say the situation remains highly volatile. Gulf nations are reportedly pushing for urgent negotiations to avoid a broader war that could destabilize the entire region.

Trump says ceasefire holds with Iran despite US warship attacks, Chinese tanker hit in Hormuz

US President Donald Trump has indicated that the ceasefire with Iran remains in effect despite overnight clashes in the Strait of Hormuz, as Tehran confirmed a Chinese oil tanker came under attack with no casualties reported among crew members aboard.

The US military carried out retaliatory strikes on Iranian targets on Thursday, targeting sites it said were responsible for attacking American naval destroyers in what Pentagon officials described as unprovoked hostilities by Tehran.

Trump said US forces inflicted “significant damage” on Iranian positions after three American destroyers came under missile and drone fire, while also signalling he remained open to negotiations with the Iranian leadership.

No damage to US vessels

“There was no damage to the three destroyers, but major damage was dealt to the Iranian attackers,” Trump wrote on Truth Social, adding that drones fell “like a butterfly dropping to its grave.”

He warned that Washington would respond “a lot more violently” in future if Tehran does not quickly agree to a deal. The President described the strikes as a “love tap”, adding that “the ceasefire is going. It’s in effect.”

Iran’s top joint military command, however, accused Washington of violating the ceasefire by targeting an Iranian oil tanker and another ship entering the Strait of Hormuz, and by striking civilian areas.

Chinese vessel attacked

China’s Foreign Ministry confirmed that a Chinese oil tanker was attacked in the strait, with Chinese citizens on board. No crew members were reported injured in that incident, though Beijing expressed deep concern over the escalating tension.

Al Jazeera reported that China has announced an increase in retail petrol and diesel prices from May 9, with petrol rising by 320 yuan (approximately ₹4,440) per metric ton and diesel by 310 yuan (roughly ₹4,302) per metric ton.

1,500 ships stranded

The humanitarian impact continues to grow. Arsenio Dominguez, Secretary-General of the UN Maritime Agency (IMO), stated that approximately 1,500 ships are now stranded in the Strait of Hormuz region, with nearly 20,000 sailors trapped alongside them.

Indian sailors stranded near Hormuz have told media outlets they are living in fear as the conflict intensifies. “We’ve seen war, missiles, everything. We’re mentally exhausted,” Al Jazeera quoted an Indian sailor stranded at an Iranian port for nearly 10 weeks as saying. The sailor said he was surviving on basic food supplies including potatoes, onions, tomatoes and bread.

India in touch with Iran

The Ministry of External Affairs said New Delhi remains in touch with Iranian authorities over the safe passage of Indian vessels. MEA spokesperson Randhir Jaiswal confirmed that 11 Indian ships have returned so far, while 13 Indian-flagged vessels remain in the region.

“We are following all developments in West Asia. Any attack on civilian infrastructure or civilians is totally unacceptable to us,” Jaiswal said.

Oil prices have jumped following the clashes, with Brent crude futures rising as much as 7.5 percent during Thursday’s volatile trading session before easing to $101.12 per barrel on Friday morning.

United States President Donald Trump plunged the Middle East into fresh uncertainty on Thursday, posting a cryptic AI-generated image of himself on Truth Social with the warning: “THE STORM IS COMING. NOTHING CAN STOP WHAT IS COMING.”

The message appeared just hours before a scheduled briefing where he is expected to receive new military options regarding Iran from CENTCOM Commander Admiral Brad Cooper.

According to a report by Axios citing two sources familiar with the matter, the briefing signals that Trump is seriously considering a return to major combat operations. The goal, officials indicated, would be to either break the diplomatic deadlock in nuclear negotiations or deliver what some describe as a final blow before any potential truce.

Oil prices cross $126

The mere anticipation of the briefing rattled global energy markets. Brent crude oil surged past $126 a barrel on Thursday, touching a high of $126.20—a level not seen since March 2022. The spike comes as the US maintains a stiff naval blockade around Iranian ports, with CENTCOM claiming it has forced at least 42 commercial vessels to reroute.

Iran’s President Masoud Pezeshkian responded defiantly on Thursday, calling the blockade “doomed to fail” and a violation of international law. “Any attempt to impose a maritime blockade is contrary to international law and is doomed to fail,” he said in a statement, adding that such measures only deepen regional instability.

CENTCOM briefing at a critical juncture

The briefing with Admiral Cooper comes at a particularly delicate moment. Reports emerged just 24 hours ago that Iran’s revised peace proposal could be submitted by Friday, according to CNN quoting sources familiar with ongoing mediation efforts.

But Trump on Wednesday already signaled a hard line, saying “there will never be a deal unless they agree that there will be no nuclear weapons.”

On the ground, the situation remains volatile. Israeli forces continued operations in southern Lebanon and Gaza, with the IDF claiming it killed a Hamas operative planning an “immediate” attack on troops. Meanwhile, the Israeli navy intercepted a Gaza-bound flotilla in international waters near Crete, detaining some 400 activists, a move the UN’s special rapporteur called “apartheid without borders.”

Iran’s economy under severe strain

Inside Iran, the war’s toll is increasingly visible. Official data released on Thursday showed annual inflation hitting a staggering 73.5% in the month ending April 20. The smallest banknote, worth 100,000 rials, now barely buys two loaves of bread. Unemployment has touched a record 25%, and pension payments are reportedly facing delays.

In a rare public statement, Iran’s Reformists Front called for an end to unequal internet access, arguing that cybersecurity policy should shift away from “broad shutdowns” toward more technical approaches.

The blockade and the strait

Trump, in a meeting with oil executives earlier this week, reportedly defended the blockade as more effective than bombing. Iran’s top military adviser, Mohsen Rezaei, warned on state television that Tehran “will not tolerate” an extension of the blockade.

“The Indian Ocean is extremely vast, and we can easily pass through it; we have already done so,” Rezaei said.

But US officials claim the restrictions are working. CENTCOM estimates Iran has lost over $6 billion in potential revenue from stranded oil shipments. In a further pressure move, US Treasury Secretary Scott Bessent revealed that Washington has seized nearly half a billion dollars in Iranian cryptocurrency assets.

What happens next

All eyes are now on the White House. The outcome of today’s CENTCOM briefing could determine whether the fragile ceasefire holds or collapses entirely. European Commission President Ursula von der Leyen warned on Thursday that the consequences of this conflict may echo “for months or even years to come.”

For now, Trump’s “storm” remains a warning. But with oil at $126 and a naval blockade in place, the region is already feeling the rain.