Middle East crisis live: Trump claims Iran has agreed to nuclear inspections ‘long into future’, accusing Tehran of ‘false statements’

Key events

Iranian state TV has said there will be three days of public holidays in Tehran for the funeral ceremonies of the late supreme leader Ayatollah Ali Khamenei, AFP reports.

“The farewell ceremony and prayers for the martyred leader’s body will be held on Saturday and Sunday, 4 and 5 July, in Tehran’s Grand Mosalla, and the funeral will be held on Monday, 6 July, and Tehran province will be off for these three days,” IRGC commander Hassan Hassanzadeh, who is in charge of the funeral ceremonies, was quoted as saying.

Earlier, state media said Tehran would be on holiday on 4 and 5 July, while the whole country will follow suit on 6 July.

Iran and Oman form working group to study possible service costs for strait of Hormuz

Iran and Oman have issued a joint statement on the strait of Hormuz, saying that they will study the costs to be charged for services provided in administering the waterway.

Iran and Oman emphasised their “sovereign rights over their territorial waters” in the statement on Tuesday. However, the Omani foreign minister, Badr Albusaidi, said on X that both sides were committed to “toll-free safe passage”.

The Iran-Oman statement said that their foreign ministries would form a joint working group on the strait, to reach “agreement on the future administration of navigation in the Strait of Hormuz and the services that will be provided in this regard and the costs associated with them in accordance with international standards”. The statement also said the two countries would hold talks with other states in the region of the strait and other interested parties.

Last week, Iran’s foreign ministry said the country would impose what it called maritime service fees for crossing the strait, to come into effect at the end of the 60-day period without charges that is stipulated in the memorandum of understanding signed by Iran and the US.

The MOU also states that Iran and Oman, which border the strait, will discuss its “future administration and maritime services” with other Gulf countries.

The statement followed a visit to Oman by Iran’s foreign minister, Abbas Araghchi, and its chief negotiator, Mohammad Bagher Ghalibaf, who met met Oman’s Sultan Haitham bin Tariq and held talks with Albusaidi.

Pentagon seeking $80bn from US Congress to cover cost of war on Iran – reports

According to the Associated Press, the Pentagon has told senators it needs roughly $80bn, mostly to cover the cost of the US-Israel war on Iran.

The White House Office of Management and Budget has yet to make a formal request to Congress. But AP, following on from a story by the Wall Street Journal, reports that the US defence secretary, Pete Hegseth, has been making the rounds on Capitol Hill, including on Monday evening

The White House has already requested a remarkable $1.5tn boost in military spending for the Pentagon in 2027 – an increase of almost 50% on the funding levels for the current fiscal year.

The Republic Senate majority leader, John Thune, has said he’s expecting a supplemental spending request from the administration for the war, and when it arrives, “we’ll work through it and see where the votes are”.

UN secretary-general warns that war in Middle East has triggered 'mother of all energy shocks'

Antonio Guterres, the UN secretary-general, warned on Tuesday that impacts from the war in the Middle East are “likely to be long-lasting”.

“Conflict in the Middle East has unleashed the mother of all energy shocks,” Guterres posted on X. “For many developing countries, this is not just an energy crisis. It’s a debt, food & development shock. Any peace agreement would bring much needed relief, but the impacts are likely to be long-lasting.”

‘Compound shock effect’: why the Middle East crisis and El Niño could spell disaster in south-east Asia

When the US and Israel launched the war on Iran, south-east Asian nations were amongst the first and hardest hit, as the closure of the strait of Hormuz cut off supplies of energy and fertiliser.

Governments across the region, heavily reliant on the waterway, raced to find ways to reduce their fuel use: in the Philippines, many government workers were put on a four-day week. In Vietnam, employers were urged to allow staff to work from home. In Thailand, offices were urged to set air-conditioning units to 27C.

South-east Asian governments last week expressed hope that the Iran peace deal would bring freedom of navigation through the strait and economic stability.

However, that optimism looks fragile as on Saturday Iran indicated it would close the strait after Israeli strikes in Lebanon, and planned to introduce a system of maritime fees.

Oman and Iran to form team on 'administration of navigation' in Hormuz

Oman and Iran said in a statement that the two countries will ⁠form ⁠a ​team to reach an ⁠agreement on “administration of navigation ⁠in ​the Strait ‌of Hormuz” ‌and associated ‌costs and services, Reuters reports.

The two states will hold ⁠talks with ​coastal countries ​and other ​concerned parties, ​the ‌statement ​said.

The UN convention on the law of the sea (Unclos) allows for the freedom of navigation. But though Iran became a signatory to Unclo in 1982, very soon after the 1979 revolution, but it never ratified the treaty. From Iran’s perspective, it is not bound by the treaty’s transit passage rules.

Under the memorandum of understanding, Iran is required to ensure toll-free passage for commercial vessels for at least 60 days, with full restoration of traffic within 30 days.

However, Mohammad Bagher Ghalibaf, Iran’s chief negotiator, has long maintained that the “strait of Hormuz will not return to pre-war conditions” and Tehran would begin charging ships to uses the strait after the 60-day period. “Iran has the right to sovereignty over the strait of Hormuz and of course we will receive a fee for services,” Ghalibaf said in an interview on state television.

Trump says '19 Millions Barrels' of oil flowed out of Hormuz on Monday

Donald Trump again took to social media to post on Tuesday that “19 Millions Barrels of Oil flowed out of the Hormuz Strait yesterday, an all time RECORD”.

“Oil prices are tumbling down, and the World is a much safer place!!!” the US president wrote.

The Guardian has not been able to verify this statement.

Trump: Iran has 'fully and completely' agreed to highest level nuclear inspections

Donald Trump posted on social media on Tuesday that Iran has “fully and completely” agreed to the “highest level nuclear inspections long into the future (Infinity!!!)”.

“This will insure ‘Nuclear Honesty’,” Trump added. Had Iran not agreed to this, he wrote, “there would be no further negotiations!”

“Based on this and other major concessions being made by Iran, I have agreed to allow the Hormuz Strait to remain OPEN, with no further Naval Blockade,” Trump said. “However, all ships are remaining in place should it be necessary to reinstitute the Blockade, which seems, at this point, highly unlikely.”

Iran said on Tuesday that the UN’s nuclear watchdog will not be able to inspect key nuclear sites bombed by the US and Israel last year, AFP reports. “We have not had a meeting with the director general of the IAEA, nor do we have any plans for the agency to inspect Iran’s nuclear facilities damaged by the US and Zionist military aggression,” foreign ministry spokesperson ‌Esmaeil Baghaei said at a press briefing.

Baghaei had told ‌the official IRNA news agency on Monday that Iran’s interaction with the International ‌Atomic Energy Agency (IAEA) will continue in ​accordance with current procedures, subject to the approval ⁠of Iran’s parliament ​and the decisions ​of ​the Supreme National ​Security ‌Council.

Trump added in his latest social media post that the “Money and/or Sanctions that the U.S. Treasury is releasing goes into escrow, controlled by the U.S.A., and will be used for the purchase of food and medical supplies, exclusively from the United States, including Corn, Wheat, and Soybeans from our great American Farmers.”

“These are things that are desperately needed by Iran. This is a humanitarian crisis, and I feel it is necessary to help, NOW, before it is too late. Talks are going well! Thank you for your attention to this matter,” Trump wrote.

US secretary of state begins Gulf tour to discuss MOU, Hormuz

Marco Rubio, the US secretary of state, is scheduled to begin a tour of the Gulf on Tuesday to meet with leaders and discuss the memorandum of understanding with Iran and the strait of Hormuz, among other things.

For the next two days, he will be traveling to the United Arab Emirates, Kuwait and Bahrain, the state department said.

Iranian president, foreign minister arrive in Islamabad

Iranian president Masoud Pezeshkian and Iranian foreign minister Abbas Araghchi have arrived in Islamabad, AFP reports.

Pakistan has been acting as a mediator in peace talks between Tehran and Washington.

The pair were greeted by Pakistani president Asif Ali Zardari and Pakistani prime minister Shehbaz Sharif, according to state news agency IRNA.

Iran and Oman has formed a joint committee to discuss the strait of Hormuz

Iran and Oman has formed a joint committee to discuss the strait of Hormuz, Mohammad Bagher Ghalibaf, Iran’s chief negotiator, said on Telegram on Tuesday.

Under the memorandum of understanding, Iran is required to ensure toll-free passage for commercial vessels for at least 60 days, with full restoration of traffic within 30 days.

However, Ghalibaf has long maintained that the “strait of Hormuz will not return to pre-war conditions” and Tehran would begin charging ships to uses the strait after the 60-day period. “Iran has the right to sovereignty over the strait of Hormuz and of course we will receive a fee for services,” Ghalibaf said in an interview on state television.

Hezbollah said Tuesday that Israeli soldiers had fired upon a group of civilians in the attack in southern Lebanon that killed two, Reuters reports.

On Telegram, Israel Defense Forces said its soldiers had struck “armed terrorists” that posed an immediate threat to Israeli soldiers.

Hezbollah says fatal Israeli attack violates ceasefire agreement

Hezbollah has issued a statement that the Israeli attack in southern Lebanon that kiled two is a violation of the ceasefire agreement with Israel, Reuters reports.

More to come.

Here’s some more on the two people killed by Israeli gunfire in southern Lebanon:

Israeli soldiers had opened fire at a group of people ​near a bulldozer clearing a ‌road in the al-Deir ‌neighbourhood of Nabatieh al-Fawqa, according to Reuters, citing Lebanon’s state news agency NNA.

The Israeli military told Reuters that it had struck “armed terrorists” who posed an immediate threat to Israeli soldiers in southern Lebanon.

Since Hezbollah opened fire on Israel in support of Iran on March 2, bringing Lebanon into the conflict, Israeli attacks in Lebanon have killed more than 4,100 people, including 773 women, ⁠children and healthcare workers, according to the Lebanese health ministry. ​The toll ​does not say how many combatants ​are among the dead.

Israeli attacks have also forced ​some 1.2m people from their ​homes in ​Lebanon.

On the Israeli side, at least 32 soldiers and four civilians have been killed in rounds of hostilities with Hezbollah.

Iranian ambassador warns any attacks on Lebanon will jeopardise talks

Hello and welcome to our live blog of the Middle East.

On Tuesday, Israeli gunfire killed two people in southern ⁠Lebanon, according to Reuters – the first reported fatalities resulting from Israeli ⁠fire in Lebanon ⁠in ​three days. Responding to the attack, the Iranian envoy said any violation of the memorandum of understanding will create challanges to the peace talks.

Strikes between Hezbollah and Israel have been a key point of contention during the talks between the US and Iran to reach a peace deal. Israel is now occupying part of southern Lebanon in a so-called “security zone.” Israeli prime minister Benjamin Netanyahu has claimed the zone is necessary to protect northern Israel from Hezbollah.

Here are some other key developments:

• JD Vance said the talks with Iran created a “good foundation for a successful final deal” to end the war. “The final deal is the house,” the US vice-president told reporters. “We set the foundation. We haven’t built the house, but we’ve laid a successful foundation to get to a good place for the American people.”

• When asked how soon IAEA inspectors could come to Iran, JD Vance said nuclear inspectors were called at 2am last night – but no one picked up the call. “As you can expect, not many people are answering their phone at two in the morning,” the vice president said.

• US secretary of state Marco Rubio will begin a trip to three Gulf countries on Tuesday amid negotiations with Iran to end the war in the Middle East, his spokesperson said. Visiting the United Arab Emirates, Kuwait and Bahrain, Rubio will discuss “the memorandum of understanding with Iran, efforts to secure full and free safe transit through the strait of Hormuz, and the importance of peace and stability in the region,” state department spokesman Tommy Pigott said in a statement.

• Tehran ⁠did not negotiate on its nuclear ⁠programme ⁠and did ​not accept any ⁠new commitments in Sunday’s talks with the ⁠US in ​Switzerland, ‌foreign ministry spokesperson ‌Esmaeil Baghaei told ‌the official IRNA news agency on Monday. Iran’s interaction with the International ‌Atomic Energy Agency (IAEA) will continue in ​accordance with current procedures, subject to the approval ⁠of Iran’s parliament ​and the decisions ​of ​the Supreme National ​Security ‌Council, ​Baghaei added.

More to come.