Iran has begun several days of public mourning for former Supreme Leader Ayatollah Ali Khamenei, who was killed in joint US-Israeli strikes in February.
Officials told AFP that the funeral in Tehran could draw as many as 20 million mourners and expect the public turnout to be a “referendum” for the Islamic Republic.
The regime’s ruling clerics are preparing days of mass funeral rites for Khamenei. Funeral events will begin over the weekend in Tehran, followed by mass processions next week i Qom and Masshad and ceremonies in Iraq.
"The large public turnout at the funeral procession of the martyred leader and the other martyrs will, in effect, be another referendum for the Islamic Republic," Qom Friday prayer leader Ayatollah Mohammad Saidi declared to state media.
Iran has warned Donald Trump and Israel not to launch strikes during the state funeral.
Ali Abdollahi, commander of Khatam al-Anbiya Central Headquarters, said the “enemies of Iran” should avoid a “miscalculation” or else face harsh retaliation.
Read MoreIran war has created growing rift between Trump and Saudi Crown Prince: report
Iran warns oil tankers to use approved routes in Strait of Hormuz or face a ‘forceful response’
Children were blown up at a busy Iranian school. Trump still claims America wasn’t responsible
Trump ‘briefed on options for return to war with Iran as peace process stumbles’
Key Points
- Preparations underway in Iran for Ali Khamenei's funeral
- Powerful general in Iran emerges from hiding
- Oil up slightly ahead of long US weekend
- Trump: Iran has agreed to 'everything' we need
Iran war impact ‘not as big as feared’ in economic boost for Burnham
11:00 , James ReynoldsThe war in Iran has done less damage to the UK’s public finances than was first feared, Andy Burnham will reportedly be told in what will be a boost to the incoming prime minister - but he is still facing a major black hole in the public finances as a result of unfunded defence pledges.
Mr Burnham is expected to be briefed by the Treasury in within days about the economic situation facing the UK, with sources telling the Financial Times that the conflict in the Middle East - which sent oil and gas prices spiralling and triggered an increase in inflation - has only dealt a modest blow to the £23.6bn “headroom” built by the chancellor at the last budget.
The news will come as a boost to Mr Burnham, who is widely expected to take over from Sir Keir Starmer in the coming weeks, and makes it less likely that he would be forced to put up taxes in the Autumn budget.
Read the full story:
Iran war impact ‘not as big as feared’ - but Burnham still faces defence black hole
Watch: Iran begins public mourning for Ayatollah Khamenei with funeral to draw 20 million
10:45 , James ReynoldsWatch: Body of late Iranian supreme leader Ayatollah Khamenei arrives in Tehran as thousands gather to pay tribute
10:15 , James ReynoldsWhat does Khamenei's funeral mean for Iran?
09:30 , James ReynoldsIran's ruling clerics are preparing days of mass funeral rites for Ayatollah Ali Khamenei as a show of public devotion to the Islamic Republic and proof that its revolutionary fervour still burns strong.
“The large public turnout at the funeral procession of the martyred leader and the other martyrs will, in effect, be another referendum for the Islamic Republic,” Qom Friday prayer leader Ayatollah Mohammad Saidi declared to state media.
To make their point, authorities hope to mobilise millions of supporters to flood Iran's cities, laying on transport, accommodation and food, to proclaim the might of their theocratic state after it survived what they saw as an existential war.
But behind the veneer of unity and devotion, public support for the Islamic Republic has worn paper thin, analysts say.
Across the country, many Iranians are tired of decades of sanctions throttling their economy and angry at the repression meted out in the name of a 1979 revolution that only older people in a mostly young population can remember.
When people poured onto the streets in December and January in demonstrations triggered by inflation, many were chanting for the death of Khamenei and authorities could only crush the unrest by shooting thousands of protesters.
After news of Khamenei's killing began to circulate in the first days of the war, Tehran residents reported sounds of cheering erupting from behind the windows of houses and apartments in parts of the city.
Ayatollah's son not expected to attend funeral
08:45 , James ReynoldsMojtaba Khamenei is not expected to attend his father’s funeral in Tehran on Saturday due to security risks, according to reports.
Millions of people are set to attend the delayed six-day funeral for Ayatollah Ali Khamenei, which begins this weekend in the capital of Iran.
But his son will probably avoid the weekend ceremony due to threats from Israel and uncertain ‘surveillance risks’, according to Ayatollah Kakim Elahi, the current leader’s representative in India.
Elahi told India today that the younger Khamenei “wants to come out” and meet people, but security will not allow it.
"They said 'it is very dangerous and we cannot provide security for him'. I think he will not come out," he added.
Mojtaba Khamenei is understood to have been severely injured in the strike on a government residence in Tehran that killed his father, wife and 14-month-old daughter on 28 February.
International delegates participate in a farewell ceremony for Iran's late Supreme Leader Ayatollah Ali Khamenei
08:30 , Alisha Rahaman Sarkar
Iran speaker ties Khamenei's revenge to ending US and Israeli 'oppression'
08:00 , Alisha Rahaman SarkarIranian parliament speaker Mohammad Bagher Ghalibaf has claimed that avenging former supreme leader Ali Khamenei meant freeing Muslims from oppression at the hands of the US and Israel.
"Without a doubt, avenging the martyred leader of the revolution means nothing other than freeing all Muslims from the oppression of the United States and the Zionist regime," Ghalibaf said during a meeting with senior Amal Movement official Khalil Hamdan.
Ghalibaf also said the "great lesson" from Khamenei's leadership is the need for Muslims and Shi'ites to remain united.
Iran war has created growing rift between Trump and Saudi Crown Prince: report
07:30 , Alisha Rahaman SarkarA widening rift has opened up between Saudi Arabia and the United States because of the war in Iran, a report claims.
Officials told the Wall Street Journal the partnership between Washington and Riyadh is souring over disputes on how President Donald Trump has handled the war, which began after joint US-Israel strikes on Iran in February.
The US is reportedly now considering reducing its military presence in Saudi Arabia and instead putting its forces in countries it feels were more supportive during the war, including Israel and Jordan, according to the WSJ.
More here.
Iran war has created growing rift between Trump and Saudi Crown Prince: report
Iran's Revolutionary Guard deploys special forces to track ships
07:00 , Alisha Rahaman SarkarThe Islamic Revolutionary Guard Corps has reportedly deployed special forces along Iran's Persian Gulf coastline to identify vessels transiting the Oman-side route through the Strait of Hormuz before they enter the waterway.
According to the sources, the Guard operatives are also attempting to obtain, through Omani sources, the schedules and transit coordination details of ships using the southern route through the Strait of Hormuz, Iran International reported.
The sources said the Guard special forces are equipped with land-based, naval and aerial intelligence-gathering systems and have recently been assigned to identify in advance any vessel planning to use the southern route and issue warnings about its passage.
06:30 , Alisha Rahaman SarkarIran warns oil tankers to use approved routes in Strait of Hormuz
06:00 , Alisha Rahaman SarkarIran’s joint military command has warned that all oil tankers moving through the Strait of Hormuz must use its approved routes or face a “forceful response.”
The statement from the Khatam al-Anbiya military command was aired on Iranian state television.
It wasn’t immediately clear what sparked the threat from Iran.
“Any failure to comply, deviation from the designated route, or disregard for the navigation protocols of the Islamic Republic of Iran in the Strait of Hormuz will be met with an immediate and forceful response from the armed forces, endangering the security of the violating vessels,” the statement said.
It also said the continued presence of US fighter jets over the strait “causes insecurity in this waterway and threatens regional security.”
Preparations underway in Iran for Ali Khamenei's funeral
05:30 , Alisha Rahaman Sarkar
Powerful general in Iran emerges from hiding
05:00 , Alisha Rahaman SarkarA powerful general who leads Iran's paramilitary Revolutionary Guard emerged from hiding as Tehran prepared Friday for the dayslong funeral for the late Supreme Leader Ali Khamenei.
Photos published online by Iranian state media showed Gen Ahmad Vahidi attending a meeting about the funeral of Khamenei, 86, then sitting alongside his casket as Iran's theocracy held a smaller service for him Thursday night near the supreme leader's former home in downtown Tehran.
Vahidi has become a major player in formulating Iran's tough stance in negotiating a possible permanent end to the war with the United States, experts say.
He is believed to be part of a small clique in direct contact with Iran's new Supreme Leader Mojtaba Khamenei, who remains in hiding after being reportedly wounded in the Feb. 28 Israeli strikes that killed his father, the elder Khamenei.
Vahidi himself hasn't been seen publicly since Feb. 8, weeks before the Iran war began.
Video published by Iranian state media showed the mourning ceremony for Khamenei near the husseiniyah at his compound in Tehran.
Oil up slightly ahead of long US weekend
04:23 , Alisha Rahaman SarkarOil prices rose slightly today before a long holiday weekend in the U.S. as wary optimism held over efforts to make peace in the Middle East between the US and Iran.
Brent futures were up 17 cents, or 0.24 per cent, to $72.10 a barrel. West Texas Intermediate was up 14 cents, or 0.20 per cent, to $68.83 a barrel.
US markets will close on Friday ahead of the US Independence Day holiday on Saturday.
Iran war has created growing rift between Trump and Saudi Crown Prince: report
01:30 , Maira ButtA widening rift has opened up between Saudi Arabia and the United States because of the war in Iran, a report claims.
Officials told the Wall Street Journal the partnership between Washington and Riyadh is souring over disputes on how President Donald Trump has handled the war, which began after joint US-Israel strikes on Iran in February.
The US is reportedly now considering reducing its military presence in Saudi Arabia and instead putting its forces in countries it feels were more supportive during the war, including Israel and Jordan, according to the WSJ.
The White House, meanwhile, has insisted relations between the US and Saudi are still strong.
Iran war has created growing rift between Trump and Saudi Crown Prince: report
Polymarket reports some European leaders say Hormuz toll as 'inevitable'
Friday 3 July 2026 00:30 , Maira ButtPolymarket, a prediction market, has reported that some European leaders are saying that a toll in the Strait of Hormuz is now seen as “inevitable”.
It was not immediately clear which leaders believe this or what the reports were based on, in the short post shared on their social media page on X.
It speculated that there is now a 44 per cent chance that Iran will implement such a toll by the end of August.
President Donald Trump has insisted that he will now agree to the imposition of a toll over the vital shipping route. But reports have suggested that Iran and Oman may seek to implement a charge for commercial ships.
Polymarket reports some European leaders say Hormuz toll as 'inevitable'
Friday 3 July 2026 00:30 , Maira ButtPolymarket, a prediction market, has reported that some European leaders are saying that a toll in the Strait of Hormuz is now seen as “inevitable”.
It was not immediately clear which leaders believe this or what the reports were based on, in the short post shared on their social media page on X.
President Donald Trump has insisted that he will now agree to the imposition of a toll over the vital shipping route. But reports have suggested that Iran and Oman may seek to implement a charge for commercial ships.
Watch: Vance says US 'in great position' with Iran war as Tehran says peace talks on hold
Thursday 2 July 2026 23:30 , Maira ButtTrump: Iran has agreed to 'everything' we need
Thursday 2 July 2026 22:52 , Maira ButtPresident Donald Trump has claimed that Iran has agreed to “just about everything we need”, according to Reuters.
Discussions and negotiations are ongoing in an effort to secure a permanent ceasefire between the countries.
UK politician says Reza Pahlavi should 'not be given platform' to rule in Iran
Thursday 2 July 2026 22:30 , Maira ButtBritish member of Parliament Bob Blackman has hit out at Reza Pahlavi, the eldest son of the last shah of Iran and Crown Prince of the Pahlavi dynasty.
Pahlavi was positioned as a replacement to supreme leader Ayatollah Ali Khamenei but appears to have been unable to mobilise enough support or resources to return to Iran amid the ongoing war.
In a post on X on Thursday, Blackman wrote: “Reza Pahlavi should not be given a platform to justify replacing one form of authoritarian rule with another.
“A return to the monarchy in Iran is not welcome, especially as he has failed to condemn the previous Shah’s dictatorship and for claiming support from the IRGC.”
He said he would be putting his support behind Iranian dissident politician Maryam Rajavi instead.
Exclusive: Pardoned Iranian nuclear negotiator sues FIFA over team’s World Cup loss against Egypt
Thursday 2 July 2026 21:30 , Maira ButtAn Iranian political scientist once accused by the feds of working as an unregistered agent for Tehran has filed a $1 billion lawsuit against FIFA, association president Gianni Infantino, and an unknown number of anonymous FIFA officials after the nation’s World Cup team was eliminated from competition by a controversial on-field call.
Lotfolah Kaveh Afrasiabi, who, among other things, served as an official adviser to Iran’s nuclear negotiation team when talks were underway with former president Barack Obama, is petitioning for class-action status on behalf of up to 91 million “Iranian nationals and/or Iranian-Americans who supported the Iran football national team and who were emotionally scarred by the flagrant discrimination against their beloved team,” according to a civil complaint filed June 30 in Boston federal court.
Pardoned Iranian ‘influence agent’ sues FIFA over team’s World Cup loss
Pardoned Iranian nuclear negotiator sues FIFA over team’s World Cup loss against Egypt
Thursday 2 July 2026 20:30 , Maira ButtTwo weeks into the 60-day peace negotiation period between Iran and the United States and - despite President Donald Trump’s claims of success - little progress has been made.
Instead, both sides appear to be regressing: hostilities have flared and officials from both sides are no longer directly talking to each other as the clock keeps ticking and key issues, such as Iran’s nuclear programme, remain unresolved.
Over the weekend both Washington and Tehran traded strikes, threatening the already fragile ceasefire in the region, despite Trump’s initial optimism after signing the memorandum of understanding which ended the four-month war.
Jessie Williams reports:
Iran peace process descends into farce as ‘talks about talks’ end in stalemate
In pictures: Iran prepares for funeral of supreme leader Ayatollah Ali Khamenei
Thursday 2 July 2026 19:30 , Maira Butt
Iran hits out at 'performative posturing' by US
Thursday 2 July 2026 18:30 , Maira ButtIran’s foreign ministry spokesperson Esmail Baghaei has called out “performative posturing” by the US and accused it of “complete contempt” for peace.
“The United States has constantly demonstrated its complete contempt for genuine peace and security in West Asia,” he wrote in a post on X on Thursday. He was responding to a post by US Central Command on the country leading regional security dialogue with 12 nations in Bahrain.
“Such gatherings are nothing more than performative posturing, aimed at concealing America’s destabilising policies and lawless behaviour in the region.
“The countries of the region must remain vigilant and draw clear lessons from the most recent US and Israeli military aggressions and malign acts that breached regional peace and security.”
Europe has filled gaps left by US reductions, says top Nato commander
Thursday 2 July 2026 17:30 , Maira ButtEurope has filled the gaps left by US reductions to the Nato force model, a top Nato military commander told Reuters on Thursday.
President Donald Trump opted to reduce US contributions to the alliance after tensions over his aspirations to acquire Greenland and then complaints over what he perceived as a lack of Nato support in his war with Iran.
The Strait of Hormuz was largely closed for months upending global oil supply routes, with Nato largely taking a backseat in the conflict.
He said that Nato is looking at alternate capabilities with matching effect in areas where European allies do not currently have the capability to replace.
Iran prepares to bury slain supreme leader with week of mass mourning
Thursday 2 July 2026 16:30 , Maira ButtIran's ruling clerics are preparing days of mass funeral rites for Ayatollah Ali Khamenei as a show of public devotion to the Islamic Republic and proof that its revolutionary fervor still burns strong.
Iran's supreme leader was killed by US and Israeli strikes in their first attack of the war and the funeral events will begin over the weekend in Tehran, with mass processions planned next week in Qom and Mashhad and ceremonies in Iraq.
“The large public turnout at the funeral procession of the martyred leader and the other martyrs will, in effect, be another referendum for the Islamic Republic,” Qom Friday prayer leader Ayatollah Mohammad Saidi declared to state media.
Mojtaba Khamenei, son of slain supreme leader, not to attend funeral of father
Thursday 2 July 2026 16:00 , Maira ButtMojtaba Khamenei, Iran’s supreme leader, and son of slain supreme leader Ayatollah Ali Khamenei, will not attend the funeral of his father this weekend, amid security concerns, his representative in India said on Thursday.
He has not been seen in public since reports that he was seriously injured in the deadly US-Israeli attack that killed his father.
Israeli defence minister Israel Katz had recently boasted that the leader was “marked for death”. Iran’s foreign minister replied that the execution of such threats would be met with a “powerful response”.
A funeral for Mojtaba Khamenei‘s wife Zahra Hadid was held on Thursday.
Oil prices fall to pre-war levels as Strait of Hormuz shipping slowly recovers
Thursday 2 July 2026 15:30 , Daniel KeaneOil prices fell to levels last seen before the US-Iran war as the gradual resumption of shipping through the Strait of Hormuz continued to drain the risk premium that had pushed crude to its highs during the conflict.
West Texas Intermediate, the US crude benchmark, fell to around $68.00 a barrel on Thursday morning, while Brent crude, the international benchmark, dropped to $71.16.
The declines extended steep losses from the previous session, when Brent closed down 1.9 per cent at $71.57 and WTI settled 1.3 per cent lower at $68.58.
Read our full story below.
Oil prices fall to pre-war levels as Strait of Hormuz shipping slowly recovers
Pictured: Iran prepares for Ayatollah Khamenei's funeral
Thursday 2 July 2026 14:30 , Daniel Keane
Iran warns against US interference in Strait of Hormuz
Thursday 2 July 2026 13:30 , Daniel KeaneIran said that any US interference in the Strait of Hormuz would trigger a "decisive and rapid" response.
State media said that the continued presence of US air assets across the waterway endangered regional security, state media reported.
Khatam al-Anbiya Central Headquarters, which coordinates Iran's armed forces operations, 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.
India to send minister and governor to Ali Khamenei funeral
Thursday 2 July 2026 12:30 , Daniel KeaneIndia said that its deputy foreign minister and a state governor would represent the country at the state funeral of Iran's former Supreme Leader Ayatollah Ali Khamenei.
Governor of Bihar, Syed Ata Hasnain, and deputy foreign minister Pabitra Margherita will visit Iran on July 3, the Indian foreign ministry said in a statement.
"The high-level representation in the ceremony underscores the importance of civilizational ties, including people-to-people connection, between the two countries, providing a robust foundation to political and economic engagements," it said.
Tehran warns Trump and Israel not to attack during Khamenei’s funeral
Thursday 2 July 2026 11:33 , Daniel KeaneIran has warned Donald Trump and Israel not to launch strikes as the country prepares for the state funeral of Supreme Leader Ayatollah Ali Khamenei, who was killed in airstrikes on the first day of the war.
Ali Abdollahi, commander of Khatam al-Anbiya Central Headquarters, said the “enemies of Iran” should avoid a “miscalculation” or else face harsh retaliation.
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.
Iran to allow Afghan nationals to enter for Khamenei's funeral
Thursday 2 July 2026 10:00 , Shweta SharmaIran said it will open the border with Afghanistan to allow Afghan nationals to enter through the Dogharoun border crossing 24 hours before the funeral ceremony for late Supreme Leader Ali Khamenei, the governor of Taybad said on Thursday.
Special arrangements are being made to transfer Afghan nationals from the border to Mashhad to attend the ceremony.
He said they would then be taken back to the Dogharoun crossing after the funeral, after receiving their passports.
The governor said no Afghan nationals had entered Iran through the crossing so far, adding that visas had been issued to 2,500 people.
Trump says the US and Iran getting along very well
Thursday 2 July 2026 09:30 , Shweta SharmaOil prices fall to pre-war levels as Strait of Hormuz shipping slowly recovers
Thursday 2 July 2026 09:00 , Shweta SharmaOil prices fell to levels last seen before the US-Iran war as the gradual resumption of shipping through the Strait of Hormuz continued to drain the risk premium that had pushed crude to its highs during the conflict.
West Texas Intermediate, the US crude benchmark, fell to around $68.00 a barrel on Thursday morning, while Brent crude, the international benchmark, dropped to $71.16.
The declines extended steep losses from the previous session, when Brent closed down 1.9 per cent at $71.57 and WTI settled 1.3 per cent lower at $68.58.
Oil prices fall to pre-war levels as Strait of Hormuz shipping slowly recovers
Iranian parliament speaker urges mass turnout at ayatollah's funeral
Thursday 2 July 2026 08:30 , Shweta SharmaIranian parliament speaker Mohammad Bagher Ghalibaf on Thursday urged the public to attend the funeral of slain supreme leader Ali Khamenei, saying the ceremony should show what he called the nation's demand for blood vengeance to the world.
Ghalibaf said people should show that they would not remain silent in the face of arrogance and would not forget “the blood of their imam.”
He described the funeral as a reaffirmation of allegiance to Khamenei’s path and the values of the Islamic Republic.
US considering pulling back on military footprint in Saudi Arabia: report
Thursday 2 July 2026 07:59 , Josh Marcus
The U.S.-Iran war has scrambled relations across the Gulf, and it is reportedly driving a major wedge between America and Saudi Arabia, which angered the Trump administration earlier this year when it temporarily blocked U.S. forces from using its airspace to guide ships through the Strait of Hormuz.
Now, The Wall Street Journal reports, the U.S. is considering reducing its military footprint in the kingdom, a change which would represent a major break with decades of security arrangements.
Iran vow to deliver 'powerful response' to threats against people or leadership
Thursday 2 July 2026 07:45 , Shweta SharmaIran will deliver an immediate and powerful response to any threat against its people or leadership, Iranian foreign minister Abbas Araqchi said in an X post on Wednesday.
"POTUS has committed the US to muzzling its pets in Tel Aviv. If they ignore their master, Iran will school them," Araqchi said.
The US and Iran held technical talks in Doha on Wednesday as they seek to agree on the flow of shipping through the Strait of Hormuz and secure a lasting ceasefire, a source with direct knowledge of the talks and an Iranian official said.
Gaza marks 1,000 days of war
Thursday 2 July 2026 07:21 , Shweta SharmaPalestinians face an uncertain future as Gaza marked the 1,000th day of war since Israel launched an offensive in Gaza following a Hamas-led attack.
Other conflicts have emerged in the region, and fragile ceasefires show scars of persistent attacks.
Both Israelis and Palestinians are weary of the strain.
The fate of over 2 million Palestinians in Gaza, largely displaced and living amid ruins, remains uncertain.
Israeli forces controlled over half of the territory under the ceasefire that took effect on October 10, but Israel's government has expanded that and says it aims to hold 70%.
“Much more needs to be done so that even a semblance of normality can come back, and we are far, far away from this," the International Committee of the Red Cross regional director, Nicolas von Arx, said this week.
Israeli strikes have lessened considerably since the ceasefire took effect, but they continue almost daily.
Gaza's health ministry counted 1,053 Palestinians dead since the ceasefire as of Tuesday, including over 350 women and children.
The United Nations on Wednesday warned that the Israeli expansion in Gaza increases deadly risks for civilians in "areas lacking clear demarcation on the ground."
The health ministry said over 3,400 people have been wounded since the ceasefire.
The ministry is part of the Hamas-led government and maintains detailed casualty records seen as generally reliable by UN agencies and independent experts.
Iran war cut into construction spending in US: data
Thursday 2 July 2026 07:00 , Josh Marcus
Construction spending in May was down 4 percent year-over-year, according to new U.S. Census Bureau data, a change homebuilders are blaming on the macroeconomic impacts of the Iran war.
EJ Johnson, president of the Lance Johnson Building Company in Arkansas, had been expecting a strong selling season before the conflict kicked off in late February.
“Then we decided to go to war,” Johnson told Marketplace. “We're still moving houses, but we're not moving them at the rate that we should be today.”
Mediators note 'positive progress' in US-Iran talks in Doha
Thursday 2 July 2026 06:38 , Shweta SharmaQatar and Pakistani mediators concluded separate meetings with the US and Iranian negotiators in Doha on Tuesday, Pakistan’s foreign ministry said.
It said “positive progress” had been made on the issues related to the MoU.
“Parties have agreed to continue discussions over the coming period with the next meeting set at the earliest possible time following the funeral processions of the former Iranian Supreme Leader,” it said.
