US begins naval blockade of Iran as Israeli troops 'surround' key south Lebanon town

Our live blog has now ended and will be back tomorrow at 9am BST. You can read more of The New Arab's coverage of the US-Israeli war on Iran here.

South Korean President Lee Jae Myung said that rising tensions around the Strait of Hormuz made it hard to be optimistic about the fallout from the Iran war, warning that high oil prices and supply-chain strains were likely to persist for some time.

Lee told a cabinet meeting on Tuesday the government should treat prolonged disruption in global energy and raw materials markets as a given and reinforce its emergency response system.

"For the time being, difficulties in global energy and raw materials supply chains and high oil prices will continue," Lee said.

"I ask that we pursue the development of alternative supply chains, medium- to long-term industrial restructuring, and the transition to a post-plastic economy as top-priority national strategic projects."

Lee also urged ministries to move quickly to deploy a supplementary budget passed in response to the war.

Iran slammed a US blockade around its ports on Monday as a "grave violation" of its sovereignty, as Washington and Tehran's belligerent rhetoric rattled a fragile truce.

"The imposition of a maritime blockade constitutes a grave violation of the sovereignty and territorial integrity of the Islamic Republic of Iran," Iran's ambassador to the United Nations Amir Saeid Iravani wrote to UN Secretary General Antonio Guterres, in a letter seen by AFP.

The "unlawful" blockade also "constitutes a serious violation of the fundamental principles of the international law of the sea," Iravani added.

HSBC Holdings Chair Brendan Nelson said on Tuesday that a Middle East peace deal was essential to ensure a substantial resumption of global energy flows, withoil-driven inflation looming as a major risk to the world economy.

Nelson, speaking at the HSBC Global Investment Summit in Hong Kong, added that as long as uncertainty persists, energy prices would remain elevated.

Oil prices have surged since the Iran war began, and prices remain close to $100 a barrel as investors position themselves for prolonged tensions over the crucial Strait of Hormuz, through which a fifth of global oil and gas typically passes.

Nelson warned that current global growth, trade and inflation projections should be "approached with considerable caution" given that the impacts of the Iran conflict are yet to be fully understood.

"The longer the disruption continues, the more the indirect effects from higher energy costs will lift inflation and depress growth," Nelson said.

Australia's Qantas Airways said on Tuesday it has raised its fuel cost outlook and has not started its planned share buyback, citing sharply higher and volatile jet fuel prices after the war in the Middle East cut oil supply.

The airline said jet fuel prices have more than doubled, lifting its estimated fuel bill for the second half of fiscal 2026 to between A$3.1 billion and A$3.3 billion ($2.20 billion to $2.34 billion), up from its prior forecast of A$2.2 billion.

The surge underscores how quickly geopolitical shocks are feeding through to airline cost bases, with jet fuel prices soaring as refineries have been forced to cut output due to the loss of crude oil supply from the Middle East.

While Qantas has hedged much of its crude exposure, it remains significantly exposed to the spike in jet fuel spreads, it said.

Oil prices are likely to hit their peak "in the next few weeks" once ship traffic resumes through the Strait of Hormuz, US Department of Energy Secretary Chris Wright said on Monday.

Prices are expected to continue rising until "meaningful" ship traffic resumes through the strait, Wright told the Semafor World Economy Forum in Washington, despite previous comments he made that oil prices would likely come down soon.

"We're going to see energy prices high - and maybe even rising - until we get meaningful ship traffic through the Strait of Hormuz," Wright said. "That'll probably hit the peak oil price at that time.

That's probably sometime in the next few weeks." US President Donald Trump said on Sunday that the price of oil and gasoline may remain high until November's midterm elections, a rare admission of the potential political fallout from his decision to attack Iran six weeks ago.

US Vice President JD Vance said that Washington made a lot of progress in talks with Iran, according to an interview on Fox News' Special Report with Bret Baier on Monday.

The International Monetary Fund, World Bank and International Energy Agency on Monday urged countries to avoid hoarding energy supplies and imposing export controls that could worsen what they called the biggest shock ever to the global energy market.

IEA chief Fatih Birol told reporters after a meeting with IMF and World Bank leaders that several countries were holding onto stocks and imposing export restrictions, and appealed to all countries to let energy stocks flow to the markets. He did not name the countries.

"Do no harm," said IMF Managing Director Kristalina Georgieva, noting that she was meeting with countries that were being hit hard in Asia and Sub-Saharan Africa and some South Pacific islands that were worried about supplies.

"The first principle should be: don't impose export restrictions that are only making the disequilibrium worse," she said, adding that the war would have a more severe impact on growth and inflation if it continued for a prolonged period.

The U.S. military on Monday began a blockade of ships leaving Iran's ports and Tehran threatened to retaliate against its Gulf neighbours' ports after weekend talks in Islamabad on ending the war broke down. Oil prices jumped back over $100 per barrel, with no sign of a swift reopening of the Strait of Hormuz, which carries 20 percent of the world's oil and liquefied natural gas.

An Israeli airstrike was reported on the town of Al-Tayri in south Lebanon, according to Al Jazeera.

New York police detained around 50 people taking part in a rally Monday by a Jewish organisation that promotes Palestinian rights, an AFP correspondent saw.

Gathering under the banner of the group Jewish Voice for Peace, the detainees were part of a group of about 200 protesters who blocked a major avenue in Manhattan for just under an hour to protest US military support for Israel.

They had gathered near the offices of Senate Democratic leader Chuck Schumer and his colleague Kirsten Gillibrand, whom they accuse of voting against a measure aimed at blocking US arms sales to Israel.

UN Secretary-General Antonio Guterres on Monday called on "all parties" to respect freedom of navigation in the Strait of Hormuz, after Iran and subsequently the United States blocked flows through the critical waterway.

The strait, through which a fifth of global oil and gas flows, has become a key flashpoint as the US and Iran attempt to gain leverage over each other during ceasefire negotiations.

Disruptions in the strait "have already had direct effect well beyond the immediate region, with increased global economic fragility and insecurity in many sectors," the UN chief's spokesman Stephane Dujarric said in a statement.

"We need to remember that some 20,000 seafarers have been caught up in this conflict and are currently stranded on ships, facing increasing hardships daily," Guterres' spokesman also said.

Guterres also called for peace talks to continue.

"At the same time, the ceasefire must absolutely be preserved. All violations must cease," the spokesman said.

April could shape up to be a tougher month than March for energy markets and the economy due to the Middle East war, the head of the International Energy Agency said Monday.

While the month of March saw the delivery of cargo from the region "loaded well before the crisis started," Fatih Birol said, "during the month of April, nothing has been loaded."

"The longer the disruption is, the more severe the problem becomes," he told reporters after a meeting at the International Monetary Fund.

German Chancellor Friedrich Merz urged Israeli Prime Minister Benjamin Netanyahu on Monday to end fighting in southern Lebanon and engage in direct peace talks with the Lebanese government, according to a spokesman.

Merz also expressed his "grave concern" about developments in the Palestinian territories in a telephone conversation with Netanyahu and demanded that there "must be no de facto partial annexation of the West Bank", the German government spokesman said.

Hezbollah leader Naim Qassem on Monday urged Lebanon to cancel a planned meeting with Israel in Washington the following day, reiterating his group's rejection of direct negotiations with Israel.

"We reject negotiations with the usurping Israeli entity... We call for a historic and heroic stance by cancelling this negotiating meeting," Qassem, whose Iran-backed group has been at war with Israel since 2 March, said in a televised address.

The Lebanese and Israeli ambassadors to the United States are scheduled to meet in Washington on Tuesday to discuss holding direct negotiations between the two countries.

A US official said on Monday that there was continued engagement between the United States and Iran and cited forward motion on trying to get to an agreement.

US President Donald Trump said Monday that Iranian representatives had called to make a peace deal after talks in Pakistan ended at the weekend without agreement.

"I can tell you that we've been called by the other side. They'd like to make a deal. Very badly, very badly," Trump told reporters outside the Oval Office, without identifying which officials had called.

The head of the International Energy Agency, Fatih Birol, said on Monday he hopes another oil stockpile release is not needed but "we stand ready to act" if the energy shock resulting from the war with Iran requires it.

Birol reiterated at an Atlantic Council event that the war has resulted in the worst global energy disruption ever and said that more than 80 oil, gas facilities including production, terminals and refineries have been damaged by war with Iran.

US President Donald Trump said in a post on Truth Social on Monday that 34 ships went through Strait of Hormuz on Sunday

Israel's military said Monday that it had struck around 150 Hezbollah targets in Lebanon over the past 24 hours, as the country prepares for peace talks with Lebanese officials in Washington.

"In the past 24 hours, approximately 150 Hezbollah terrorist organisation targets were struck in numerous areas across southern Lebanon," the military said, adding that the targets included "military structures, anti-tank missile launch points, and terror command centers".

Israel summoned Italy's ambassador Monday to protest after Foreign Minister Antonio Tajani condemned Israel's "unacceptable attacks" on civilians in Lebanon during a visit to Beirut, an Italian diplomatic source said.

Tajani, a senior member of Prime Minister Giorgia Meloni's government, visited Beirut on Monday for talks with Lebanese President Joseph Aoun and Foreign Minister Youssef Raggi.

Tajani wrote on X that he was there to "convey Italy's solidarity following Israel's unacceptable attacks against the civilian population".

He called for dialogue between Lebanon and Israel and a "necessary and lasting ceasefire" adding: "Another escalation like in Gaza must be avoided at all costs."

Italy's government summoned Israel's ambassador last week after saying Israeli forces fired warning shots at a convoy of Italian UN peacekeepers in southern Lebanon, damaging at least one vehicle but causing no injuries.

A prolonged crisis in the Strait of Hormuz could trigger a global agrifood catastrophe by disrupting fertiliser and energy exports, driving up food prices and squeezing crop yields, the U.N. Food and Agriculture Organization said on Monday.

FAO Chief Economist Maximo Torero said poorer countries were most exposed because planting calendars meant delays in access to key inputs could quickly translate into lower output, higher inflation and slower global growth.

Turkey said on Monday that NATO allies should use their July summit in Ankara to reset ties with U.S. President Donald Trump and prepare for a potential reduction of U.S. involvement in the alliance.

Foreign Minister Hakan Fidan said that Turkey believed Trump would attend the NATO leaders' summit on July 7-8 due to his "personal respect" for President Tayyip Erdogan, but added he understood Trump was otherwise reluctant come to the meeting.

"NATO countries need to turn this Ankara Summit into an opportunity to put ties with the United States on a systematic basis," he said.

"If there will be a U.S. withdrawal from some NATO mechanisms, there needs to be a plan and programme to phase this out so nobody is left in the open," he added.

NATO Secretary General Mark Rutte has said he understood Trump's frustrations with the alliance, but that the "large majority of European nations" had been helpful to Washington's war effort in Iran.

Qatar's foreign minister told his Iranian counterpart on Monday that Iran and the United States should engage positively with mediation efforts, warning that maritime routes must not be used as "bargaining tools".

Qatari Foreign Minister and Premier Sheikh Mohammed bin Abdulrahman Al Thani "stressed the importance of all parties responding positively to the ongoing mediation efforts," in a call with Abbas Araghchi.

"He also emphasised the need to open maritime routes, guarantee freedom of navigation, and refrain from using them as a tool for pressure or bargaining," according to a statement released by the foreign ministry.

The International Committee of the Red Cross said it was deeply concerned by attacks on medical workers in Lebanon.

Lebanon’s state news agency said an Israeli strike on Monday killed one person and damaged Red Cross vehicles in Tyre, a day after a volunteer died from wounds sustained in a drone strike in Bint Jbeil, both in the country's south.

Agnes Dhur, head of the ICRC delegation in Lebanon, said in a statement on Monday: "The loss of those who dedicate their lives to saving others is gravely concerning, given the impact on the civilians who depend on their help."

"Humanitarian and medical personnel must be protected. They must be allowed to reach and help the wounded, and return unharmed," she added.

Pakistan's Prime Minister Shehbaz Sharif said on Monday a ceasefire between the United States and Iran was "holding" and that efforts were underway to reach an agreement after weekend talks failed to do so.

"The ceasefire is still holding and, as I speak, full efforts are underway to resolve the outstanding issues," Sharif told a cabinet meeting in brief televised remarks.

U.S. President Donald Trump warned on Monday that any Iranian "fast-attack" ships that go near a U.S. maritime blockade on Iran would be eliminated.

"What we have not hit are their small number of, what they call, 'fast attack ships,' because we did not consider them much of a threat. Warning: If any of these ships come anywhere close to our BLOCKADE, they will be immediately ELIMINATED, using the same system of kill that we use against the drug dealers on boats at Sea. It is quick and brutal," Trump wrote in a post on Truth Social.

NATO allies said on Monday they would not get involved in U.S. President Donald Trump's plan to blockade the Strait of Hormuz, proposing instead to intervene only once fighting ends, in a move likely to anger Trump and increase strains in the alliance.

Their refusal to participate is yet another point of friction with Trump, who has threatened to withdraw from the military alliance and is weighing pulling some U.S. troops from Europe after several countries denied U.S. military planes use of their airspace for attacks on Iran.

The U.S. military will enforce a blockade in the Gulf of Oman and Arabian Sea east of the Strait of Hormuz and it will apply to all vessel traffic regardless of flag, the U.S. Central Command said in a note to seafarers seen by Reuters on Monday.

The note said the blockade would come into effect at 1400 GMT on Monday.

"Any vessel entering or departing the blockaded area without authorization is subject to interception, diversion, and capture," the note said.

"The blockade will not impede neutral transit passage through the Strait of Hormuz to or from non-Iranian destinations."

The blockade "encompasses the entirety of the Iranian coastline to include but not limited to ports and oil terminals", the note said, adding that humanitarian shipments including food, medical supplies, and other essential goods would be permitted, subject to inspection.

Russia has withdrawn almost all its staff from Iran's sole nuclear power plant, built and operated with help from Moscow, the head of Russia's atomic energy agency said Monday.

"We began the final rotation at the Bushehr station," Alexei Likhachev said, adding that 108 people were evacuated while just 20 -- top managers and those responsible for equipment safety -- remained at the station.

The Israeli military says it remains on heightened alert as the US naval blockade of Iranian ports is set to begin, adding that there are no changes to domestic guidelines, according to Israel media reports.

Indonesia's economy minister said Monday the Southeast Asian nation can outlast the impacts of Middle East war-fuelled oil price hikes for as many as 10 months without cutting fuel subsidies.

Minister Airlangga Hartarto told foreign media in Jakarta his government "is ready for five, six, or even ten months" on current projections.

"Diesel, as well as... propellant, will be subsidised until the end of the year," he said. "And the government has sufficient funds for it."

Global crude prices have soared to more than $100 per barrel since the United States and Israel unleashed a series of strikes on Iran on February 28, sparking a region-wide conflict and the effective closure of the crucial Strait of Hormuz.

Indonesia is an oil producer but nevertheless a net importer, and heavily subsidises fuel consumed domestically.

The subsidy covers about 30 to 40 percent of the cost for consumers and absorbs over five percent -- some 210 trillion rupiah or $12 billion -- of the annual budget in Southeast Asia's most populous nation and largest economy.

EU Commission President Ursula von der Leyen said on Monday that restoration of freedom of navigation in the Strait of Hormuz was of "paramount" importance.

Her remarks came after U.S. President Donald Trump said the United States would begin a blockade of maritime traffic entering and exiting Iranian ports and coastal areas after a breakdown in talks.

"The ongoing closure of the Strait of Hormuz is greatly damaging. The restoration of the freedom of navigation is of paramount importance for us," she said.

Israeli Prime Minister Benjamin Netanyahu said on Monday that U.S. Vice President JD Vance called him on Sunday after leaving Islamabad, briefing him on weekend talks with Iran that failed to reach a deal.

Prime Minister Benjamin Netanyahu said Monday that Israel supports US President Donald Trump's decision to impose a naval blockade on Iran, adding that his government is in full coordination with Washington on the matter.

"Iran violated the rules (of the peace talks in Pakistan), President Trump decided to impose a naval blockade," Netanyahu said at a cabinet meeting, according to a video statement released by his office.

"We, of course, support this firm position, and we are in constant coordination with the United States."

Iran's and Saudi Arabia's foreign ministers discussed Iran-U.S. talks in Islamabad during a phone call, Iran's foreign ministry said on Monday.

The phone call comes after weekend talks failed to reach a deal to end the war, jeopardising ‌a fragile two-week ceasefire.

European crude oil prices climbed to a record high near $150 a barrel on Monday as the U.S. plan to blockade the Strait of Hormuz added to concern about tight supplies.

The price of Brent crude futures for June delivery LCOc1rose 6% to more than $100 a barrel as the U.S. Navy prepared to block ships to and from Iran via the Strait of Hormuz in a move that could restrict Iranian oil exports after Washington and Tehran failed to reach a deal to end the war.

This is far short of Brent's all-time high of $147 a barrel set in 2008.

However, the price of physical crude cargoes for immediate delivery is significantly higher as the effective closure of Hormuz has sent buyers in Europe and Asia scrambling to secure supplies. The outright price of North Sea Forties crude reached $148.87 a barrel on Monday, LSEG data showed, exceeding its 2008 peak. Repsol CEO Josu Jon Imaz commented on the premium at which physical cargoes are trading to the prices fetched on financial markets at an event on Monday.

"Physical transactions are under a lot of strain," he said.

Full operational control of the southern Lebanese town of Bint Jbeil will be achieved within days, with Iran-backed Hezbollah militants limited in their ability to attack northern Israel from the area, an Israeli military official said on Monday.

The official claimed only a small number of Hezbollah fighters remains in the Bint Jbeil area.

European Commission President Ursula von der Leyen said there can be no stability in the Middle East while Lebanon is in flames.

Israel "cannot live without an enemy" and its government is now trying to portray Turkey as one, Turkish Foreign Minister Hakan Fidan said on Monday.

Tensions between Turkey and Israel have steadily escalated since the Gaza war. The dispute entered a new phase over the weekend after President Recep Tayyip Erdogan warned his US counterpart Donald Trump of "possible provocations and sabotage" that could jeopardise an initial ceasefire arrangement in the US-Israeli war on Iran.

Israeli Prime Minister Benjamin Netanyahu vowed on Saturday that Israel would continue to confront Tehran and its regional allies.

"After Iran, Israel cannot live without an enemy," Fidan said in a televised interview with the state?run Anadolu news agency.

"We see that not only Netanyahu's administration but also some figures in the opposition - though not all - are seeking to declare Turkey the new enemy," he said. "This is a new development in Israel... turning into a state strategy."

Two oil tankers linked to Iran exited the Gulf on Monday via the Strait of Hormuz ahead of a planned U.S. blockade on Iranian ports and coastal areas, shipping data from Kpler and LSEG showed.

The tanker Auroura is laden with Iranian oil products while the New Future tanker is carrying diesel loaded from the Hamriyah port in the United Arab Emirates, Kpler data showed.

ASEAN foreign ministers called on Monday for the United States and Iran to continue negotiating a permanent end to their conflict, and to implement the ceasefire fully and effectively.

The ministers, who met virtually to discuss the war in the Middle East, also called for the restoration of safe, unimpeded and continuous passage of vessels and aircraft in the Strait of Hormuz.

Beyond immediate security concerns, ASEAN highlighted the broader implications of the conflict on regional stability, especially on energy and food supplies.

The ministers of the 11-member bloc stressed the need to prioritise energy access for member states during crises.

They reaffirmed their commitment to strengthening a regional mechanism linking member states with China, Japan, and South Korea to prevent and respond to food shortages, price shocks, and supply disruptions.

Russia ready to take in Iran's enriched uranium as part of any peace deal: Kremlin

French President Emmanuel Macron reiterated the importance of finding a way to restore peace in Lebanon.

Operations resumed on Monday at a major gas facility in Iraq's Kurdish region, the Emirati company running the complex said, after more than a month of disruption due to the US-Iran war.

Dana Gas announced "the resumption of production of the Khor Mor gas facility in the Kurdistan Region of Iraq, following a period of intermittent operations", according to a statement published by the Abu Dhabi stock exchange.

On February 28 the UAE company suspended natural gas supplies from the complex as war broke out, authorities in Iraq's autonomous Kurdistan region had said.

Kurdistan's electricity and natural resources ministries said the decision was made "due to the extraordinary circumstances and ongoing events in the region, and to protect employees at the Khor Mor field".

The Khor Mor complex, which supplies most of Kurdistan's power stations, has been hit several times in recent years in attacks blamed on pro-Iran armed groups in Iraq.

Spain has reopened its embassy in Iran's capital, Tehran, the Tasnim news agency reported Monday.

China on Monday called reports it had supplied or intended to supply weapons to Iran "baseless smears", after several outlets quoted US intelligence sources to that effect.

On Sunday US President Donald Trump threatened Beijing with a "staggering" new tariff of 50 percent if it were to provide military assistance to Tehran.

His comments came the same day US outlet CNN reported that US intelligence indicated China was preparing to deliver new air defence systems to Iran within the next few weeks, citing three people familiar with the assessments. Over the weekend, The New York Times quoted US officials as saying US intelligence suggested Beijing might have already sent a shipment of shoulder-fired missiles.

China denied the reports, saying Monday it had "always adopted a cautious and responsible attitude towards the export of military items, implementing strict controls in accordance with its own export control laws and regulations and its international obligations".

"We oppose baseless smears or malicious association," foreign ministry spokesman Guo Jiakun told a regular news briefing.

Turkey's foreign minister said on Monday he believed both Iran and the United States remain "sincere" about reaching a ceasefire despite the failure of Pakistan-mediated talks on the weekend.

"Both sides are sincere about the ceasefire," Hakan Fidan said in an interview with the official Anadolu news agency, adding that he has been in contact with the parties involved in the negotiations.

"I am thinking that if the nuclear issue comes down to an all-or-nothing situation especially regarding enrichment, we might face serious obstacles," Fidan said.

"Hopefully, we will try to overcome this with the support of some mediators," he added.

Israeli attacks have continued across southern Lebanon, with several reported dead since Sunday.

An Israeli raid on an orchard in Abbasiyeh in the Tyre district killed "a number of Syrian labour workers," the state-run National News Agency reported Monday.

Strikes on the village of Bazouriyeh in the same district killed one person and wounded nine others, as homes sustained significant damage, NNA said.

It added that a young man was also killed Monday morning in an airstrike on Nabatieh al-Fawqa, another in a strike around midnight on Sir al-Gharbiyeh, and two more in a strike on Choukin late Sunday night.

The naval blockade of the Strait of Hormuz announced by US President Donald Trump "makes no sense", Spanish Defence Minister Margarita Robles said on Monday.

"I too think it's something that makes no sense... It's one more episode in this whole downward spiral into which we've been dragged," she said in an interview on Spanish public television.

China said on Monday it hoped the United States and Iran would not reignite the Middle East war, after talks between Tehran and Washington in Pakistan failed to deliver a deal.

"China hopes the relevant sides will abide by the temporary ceasefire agreement, continue resolving disputes through political and diplomatic means, avoid reigniting war and create conditions for an early return to peace and tranquility in the Gulf region," foreign ministry spokesman Guo Jiakun told a news conference.

German Chancellor Friedrich Merz said the aftereffects of the war with Iran would be felt for a long time to come.