US and Iran Engage in Military Conflict, Oil Prices Surge

Israeli Finance Minister Bezalel Smotrich said Israel has no plans for now to join the renewed U.S. military campaign against Iran, arguing the current situation already serves Israel's interests. He said Israel saw little benefit in becoming directly involved while Washington continued to apply military and economic pressure on Tehran. "The current situation, where there's a war between Iran and the US, is actually the best scenario for us," Smotrich said. US President Donald Trump said the United States would strike the area where Iran's nuclear centrifuges are believed to be located "pretty soon," referring to reports they may have been moved to Pickaxe Mountain near Natanz. Trump said there was "not a thing they can do about it" and added the area would be hit "very heavily." He did not provide further operational details or a timeline. Iranian Foreign Minister Abbas Araqchi told his French counterpart that the "unconventional and unprofessional" actions of two French diplomats in Tehran were "unacceptable," according to a statement posted on his Telegram account. US President Donald Trump said Washington would provide significant support to Lebanon, describing bilateral ties as "very good" and saying the country would be "properly treated, with respect." Trump said Lebanon had suffered for decades and pledged increased US assistance. Lebanese President Joseph Aoun thanked Trump for what he called a "historic achievement" following the signing of the framework agreement. Kuwait's Foreign Ministry said it summoned Iran's ambassador to protest what it described as Tehran's targeting of the Kuwaiti tanker Kaifan while it was transiting the Strait of Hormuz a day earlier. The ministry said several crew members were injured in the attack and condemned the incident, which comes amid escalating tensions in the Gulf. Kuwait's military said its air defence systems were confronting "hostile missile and drone attacks" as part of what it called "heinous Iranian aggression," adding that any explosion sounds were due to interception efforts. Meanwhile, Bahrain sounded air raid sirens again, with the Interior Ministry urging citizens and residents to remain calm and move to the nearest safe place. US oil prices surged to $85 a barrel after Iran said it had struck an Amazon data center in Bahrain and water desalination plants in Kuwait in retaliation for US strikes. The claimed attacks raised concerns about broader disruption to critical infrastructure and energy supplies across the Gulf. U.S. Treasury Secretary Scott Bessent said the United States has frozen cryptocurrency wallets linked to Iran's Islamic Revolutionary Guard Corps (IRGC). Financial markets news account Walter Bloomberg reported on X that the frozen wallets were worth about $130 million. France said it had summoned Iran's charge d'affaires after French embassy staff were detained and physically intimidated by Iranian security forces in Tehran two days earlier. The Foreign Ministry called the incident a "flagrant violation" of international law and the Vienna Conventions, and demanded that Iran investigate the incident, punish those responsible, and ensure the safety of French diplomatic personnel and premises. Kuwait said it was intercepting an Iranian attack, while air raid sirens sounded across neighboring Bahrain amid heightened regional tensions. Authorities did not immediately provide details on the nature of the attack or any damage. Iranian President Masoud Pezeshkian said communication with Supreme Leader Ayatollah Ali Khamenei has been increasing every day. Speaking at the National Industry and Mining Day ceremony, Pezeshkian said government measures were being organised according to the supreme leader's instructions and stressed that Iran would "continue the path with strength" with Khamenei's support. France has summoned Iran's chargé d'affaires after alleging that French embassy staff in Tehran were detained and physically intimidated by Iranian security forces. The French Foreign Ministry said the incident took place two days earlier and called on Iranian authorities to investigate the matter, hold those responsible accountable and ensure the safety of French diplomatic personnel and embassy premises. "France expects the Iranian authorities to shed light on this incident, punish the perpetrators, and ensure the security of its premises and personnel, in accordance with their international obligations," the ministry said. Two oil tankers carrying Saudi crude bound for China and India reversed course in the Red Sea on Tuesday after Yemen's Iran-aligned Houthi movement warned of a naval blockade against Saudi Arabia. Shipping data from LSEG showed the vessels turned around and headed back towards the Suez Canal following the announcement. The Houthis declared the blockade on Monday, opening a potential new front in the wider conflict linked to the US-Iran confrontation. The move has heightened concerns over global energy supplies and international trade, extending risks beyond the Gulf region. Iranian President Masoud Pezeshkian said communication and coordination with Supreme Leader Ayatollah Ali Khamenei have strengthened as the country faces growing regional tensions. Speaking at the National Industry and Mining Day ceremony, Pezeshkian said the government's actions are now being carried out in line with the supreme leader's guidance. “Now, with increased communication and greater access to our beloved leader, all measures have been organised based on his instructions,” he said. Pezeshkian added that the Iranian people “need the support of the supreme leader,” saying, “We will continue the path with strength.” At least three Palestinians were injured after Israeli settlers attacked the town of Raba, east of Jenin in the occupied West Bank, according to the Palestinian news agency Wafa. Ghassan Bazour, head of the Raba village council, told Wafa that a group of settlers assaulted Yassin Hassan Silawi and two of his sons at their home in the northeastern part of the town, leaving them with injuries. Bazour alleged that the settlers, who he said came from an outpost established in the Jabal al-Salami area, also attempted to steal sheep from the family's farm. He added that Raba has faced repeated attacks by Israeli settlers in recent months. Israel has not immediately commented on the reported incident. Iranian President Masoud Pezeshkian has accused the United States of violating its commitments under the Memorandum of Understanding (MoU), saying Tehran had made greater-than-expected progress during the negotiations. Speaking at the National Industry and Mining Day ceremony, Pezeshkian said Iran had advanced the talks step by step, with a key objective of reopening the Strait of Hormuz for oil exports and addressing other critical issues. “In these negotiations, we moved forward step by step, and our main position was to open the Strait of Hormuz for oil exports and other vital issues, but the other side violated [the deal],” he said. “The achievements of the Islamic Republic in this direction far exceeded expectations, and we were able to manage various issues well in a short time,” he added. Pezeshkian also said Iran’s Supreme Leader had privately stressed the need to end the country’s long-standing “neither war nor peace” situation. US President Donald Trump appears to have no consistent strategy for ending the escalating conflict with Iran, according to Michael Stephens of the Royal United Services Institute for Defence and Security Studies (RUSI). Speaking to Al Jazeera, Stephens criticised Trump's brief proposal to impose a 20% surcharge on shipping through the Strait of Hormuz, calling the idea "not workable and illegal." The proposal was later withdrawn. "We’re at a situation where both the Iranians and the United States are blaming each other for violations of international law whilst breaking international law and no one seems to want to budge," Stephens said. "I don’t know what a good end state for the United States is anymore." Stephens also argued that before the US attack on Iran, the Strait of Hormuz remained open and Yemen's Houthi rebels were not threatening to block the Bab al-Mandab waterway. "So we’re now talking about problems that did not exist before March… That seems to be overtaking the main problem, which was always the nuclear weapons issue," he said. The United Arab Emirates has condemned Iran's attacks on neighbouring countries, calling them a "flagrant violation" of their sovereignty and a threat to regional security and stability. In a statement, the UAE's Foreign Ministry reaffirmed the country's "full solidarity" with the affected nations and expressed support for all measures aimed at protecting their security and stability. The statement came after Iran launched strikes targeting US military assets in Jordan, Bahrain and Kuwait in retaliation for recent American attacks. Separately, Iran's Islamic Revolutionary Guard Corps (IRGC) said "massive fires" had broken out on two tankers in the Strait of Hormuz following explosions. Senior Hamas leader Khaled Meshaal has congratulated Khalil al-Hayya after his election as the head of the group's political bureau. In a statement, Meshaal said al-Hayya had earned the confidence of Hamas's General Shura Council through what he described as a democratic consultative election process. "At the conclusion of the democratic consultative process for electing the Head of the Political Bureau of the Movement, I extend my sincere congratulations and blessings to my dear brother, Dr Khalil al-Hayya, on gaining the confidence of the Movement’s General Shura Council and his election as Head of its Political Bureau," Meshaal said. He also expressed "complete respect for the election results" and pledged to "stand from this moment behind the leadership" of al-Hayya. Hamas announced on Monday that al-Hayya, the group's former deputy political chief and a member of its five-person leadership council, won the internal run-off election against Meshaal. Iranian attacks on power and water desalination plants in Kuwait triggered fires, the country's Electricity Ministry said. Repair work is currently underway to restore the affected facilities. The Israeli military said it has killed a Hamas cell commander whom it accused of participating in the October 7, 2023, attack on southern Israel. According to the military, Osama Kamal Shadah Abu Tim was killed in an airstrike on Sunday. Israel alleged that Abu Tim took part in the abduction of Israelis from Kibbutz Nir Oz during the October 7 assault. The military also claimed he was involved in planning and directing attacks against Israeli forces and civilians. Hamas has not immediately commented on the Israeli claims. Oil prices fell more than 1% on Tuesday as investors balanced renewed hopes for diplomacy between the United States and Iran against continued military escalation in the region. Brent crude futures dropped $1.21, or 1.4%, to $88.01 a barrel by 08:15 GMT, as reports suggested mediators were pushing for a 10-day ceasefire that could revive the interim agreement negotiated in June. Analysts at ING said optimism over possible de-escalation had weighed on oil prices, although they cautioned that significant differences remain between Washington and Tehran. The market also continued to monitor ongoing hostilities, including fresh attacks and threats by Yemen's Iran-backed Houthi rebels to impose a naval blockade on Saudi Arabia. US President Donald Trump has also warned of retaliation following the deaths of several American service members, adding to geopolitical uncertainty. France has warned that fuel prices remain highly uncertain as the conflict between Iran and the United States continues to escalate, raising concerns over energy markets. Government spokesperson Maud Bregeon said the rise in fuel costs is directly linked to the worsening situation in the Middle East and acknowledged the financial strain it is placing on households. "The trend as we speak is upwards. I am not able to tell you what will happen in the coming days or weeks," Bregeon told public broadcaster France 2. She said the French government has introduced support measures for the sectors most affected by higher energy costs, as well as assistance for vulnerable citizens. Eligible recipients will be able to access the aid until the end of August. An Iranian delegation held talks with Pakistan's military leadership on Tuesday as diplomatic efforts resumed following the collapse of an interim agreement between Tehran and Washington. Iranian Interior Minister Eskandar Momeni met Pakistan Army Chief Field Marshal Asim Munir in Islamabad, according to officials familiar with the discussions. Momeni is also expected to hold talks with Prime Minister Shehbaz Sharif, though authorities have not disclosed details of the meetings. The diplomatic outreach comes as fighting between the United States and Iran intensifies. The US military carried out another round of strikes targeting Iranian military infrastructure, while Iran claimed responsibility for attacks on commercial vessels in the Strait of Hormuz, forcing at least one tanker crew to abandon ship. Washington said its latest operations targeted Iranian command centres, missile and drone launch sites, maritime assets and air defence systems. Iran, meanwhile, reported explosions in multiple provinces and has continued warning commercial shipping against using routes it considers unsafe. The collapse of last month's interim deal has further heightened tensions, with shipping through the Strait of Hormuz slowing sharply and concerns growing over global energy supplies and regional security. Bahrain's Defence Forces said they intercepted and destroyed several Iranian missiles on Tuesday, following Tehran's claim that it had targeted a US military base in the Gulf kingdom. In a statement, Bahraini authorities urged residents to remain vigilant, avoid approaching any suspicious debris left behind by the attack, and immediately report such objects to officials. The General Command of Bahrain's Defence Force condemned the attack, saying the deliberate use of missiles and drones against civilians and private property constituted a "blatant violation of International Humanitarian Law." Earlier, Iran said it had launched drone strikes on the US Sheikh Isa Air Base in Bahrain and warned that its military operations would continue, according to the country's state news agency. The White House has said US military strikes on Iran will continue until President Donald Trump decides otherwise, even as diplomatic engagement between Washington and Tehran remains underway. Meanwhile, Iran's Islamic Revolutionary Guard Corps (IRGC) said two oil tankers caught fire after explosions while attempting to pass through what it described as the "unsafe southern route" in the Strait of Hormuz. The IRGC said rescue teams were deployed to evacuate the crews from both vessels. It also urged global shipping companies not to rely on what it called "false information from the US military" and advised them to avoid routes it considers dangerous in the strategically vital waterway. Syrian authorities have announced the seizure of a weapons shipment allegedly being smuggled into Lebanon, marking the second such operation reported within a week. According to Syria's Customs and Ports Authority, officials intercepted a vehicle carrying 226 bombs concealed inside the shipment and destined for Lebanon. The latest announcement follows another reported seizure last week, when Syrian authorities said they confiscated a cache of long-range missiles, rockets and drones near the Iraqi border. Officials claimed the operation thwarted an attempt to smuggle weapons to Hezbollah in Lebanon. Hezbollah, the Iran-backed Lebanese militant group, has denied the allegations, insisting it has no operational presence in Syria. The group dismissed the accusations as "fabricated narratives with no basis in fact" aimed at damaging its reputation Issuing a joint statement, foreign ministers of the Association of Southeast Asian Nations (ASEAN) expressed "serious concerns" about the US-Iran conflict that appears to have no end in sight. With the closure of the Strait of Hormuz risking energy security, ASEAN's officials stated, "We are deeply concerned that these developments severely undermine the ongoing efforts of key mediators and diminish the prospects for a peaceful resolution through dialogue and diplomacy." The continued fights between the US and Iran will have "further implications" for the region's trade, energy and food security, ASEAN minister warned on Tuesday. Goldman Sachs has warned that crude oil prices could surge to $120 per barrel towards the end of 2026 if the Iran war extends and the Strait of Hormuz continues to be closed for longer. "Escalation in the Middle East and the decline in estimated Persian Gulf flows to below 45% of pre-war levels have pushed oil prices back up," Goldman's commodity analysts said in a note, as quoted by Bloomberg. Saudi Arabia condemned the Houthis' plan to impose a maritime blockade on the kingdom. The Iran-backed group says the move is a response to a Saudi siege on Yemen, raising fears of further disruption to global oil supplies and trade.