President Donald Trump said on ​Monday (July 6, 2026) the United States would either ‌reach a deal with Iran or “finish the ​job,” renewing his threat ⁠of military action as Tehran projects defiance following the funeral of Supreme Leader Ayatollah Ali ‌Khamenei.

Indirect U.S.-Iran talks ended last week without any public sign ‌of headway toward a lasting ‌peace, ⁠despite a 60-day ceasefire intended to ⁠create space for diplomacy following the U.S. and Israeli strikes that triggered the conflict.

West Asia War updates on July 7, 2026

“We’re either ​going to make ‌a deal or we’re going to finish the job. OK. And it won’t be tough to finish ‌the job. I’d rather make a ​deal, because I don’t want to affect 91 million people,” Mr. Trump ⁠told reporters in the Oval Office.

“We can knock down their bridges in ‌one hour, we can knock out their energy supply…. They don’t have any money now. We haven’t given them any money.”

Mr. Trump spoke after Khamenei’s weekend funeral where, rather than looking ‌weakened by the war that began with ​U.S. and Israeli strikes on February 28, Iranians appeared to ⁠be defiant, united and determined to shape what ⁠comes next.

The 60-day ceasefire was intended by Washington to revive diplomacy ‌on stopping Iran developing a nuclear arsenal. 

Iranian Deputy Foreign Minister Kazem Gharibabadi said on Wednesday (July 1, 2026) that Tehran would use some of its frozen assets in Qatar to purchase goods needed by the country following talks in Doha.

Under the memorandum of understanding that halted the war between Iran and the United States, Washington agreed to make available Iran’s frozen or restricted assets as part of the agreement’s implementation.

It remains unclear how the mechanism for releasing and using the funds would work, or when it would take effect.

“During the meetings with Qatari officials, including the Central Bank, a number of issues related to the expenditure of part of the initial six billion dollars were reviewed,” Mr. Gharibabadi said, according to the IRNA state news agency.

“It was agreed that, based on the needs communicated by our country, the required goods would be purchased and made available to Iran.”

The amount Mr. Gharibabadi mentioned refers to part of Iranian oil revenues transferred from South Korea to restricted accounts in Qatar since 2023.

Last month, Iranian Foreign Ministry spokesperson Esmaeil Baqaei said Tehran alone would decide how to use the released assets, “in whatever way is most beneficial and favourable to the country”.

He also said the funds would “be available for Iran to freely use as it sees fit to supply the goods that the country needs”.

U.S. Vice President JD Vance had said in June that the assets had not yet been unfrozen under the agreement, but if they were, the U.S. and Qatar “have approval over that process”.

He also suggested the money would be used to purchase U.S. goods, including agricultural products such as soybeans.

Iran’s chief negotiator Mohammad Bagher Ghalibaf rejected that characterisation on Tuesday, saying $12 billion of the country’s $24 billion in frozen assets “are to be given” to Iran’s Central Bank “so that it can purchase any goods it needs, at any price and in any currency worldwide”.

The U.S. struck Iran on Friday (June 26, 2026) in response to a drone attack a day earlier on a cargo ship in the Strait of Hormuz. It’s the most significant test yet to an interim understanding reached a week ago by the two countries to begin working to end their months-long war and reopen the pivotal waterway.

U.S. President Donald Trump said the drone attack violated the ceasefire. The strikes came shortly after Mr. Trump told reporters, “You’ll find out,” whether the U.S. would respond.

U.S. Central Command said the military struck missile and drone locations and coastal radar sites in Iran.

“I don’t like the fact that they took a shot yesterday, actually four of them,” Mr. Trump said at the White House shortly before the U.S. struck back. When asked why there would be strikes when Mr. Trump has insisted talks with Tehran are going well, Mr. Trump said of Iran, “They’re a little bit different.” He then abruptly cut off questions and reporters were ushered out of his office.

Ebrahim Azizi, who heads the Iranian parliament’s national security commission, responded to Mr. Trump on social media earlier Friday, saying, “The Strait of Hormuz is governed by Iran, so: Respect the rules” and to “not mistake control for escalation.” “This is not a violation of the ceasefire; it is ceasefire management,” Mr. Azizi wrote.

Strikes conclude an hour later

 The U.S. strikes on Iran concluded about an hour after U.S. Central Command announced the military action on social media, a U.S. official with knowledge of the situation told The Associated Press. The official spoke on condition of anonymity to discuss an ongoing military operation.

The British military said on Thursday (June 25, 2026) that a container ship was hit by a projectile off the coast of Oman, coming hours after Iran threatened vessels to stop using the route. The United Kingdom Maritime Trade Operations centre said no injuries were reported.

The development came during a fragile time for the U.S. and Iran as they work to negotiate a permanent end to the war. Iran has increasingly challenged the region and the U.S. over its control of the Strait of Hormuz, even with the current interim deal it reached with the U.S. last week.

The attack on the cargo ship happened while a United Nations maritime agency was beginning an operation to move stranded ships out of the strait this week, using an alternative route, hugging the shores of Oman rather than sailing through the central part of the strait.

The International Maritime Organisation halted the evacuations after the attack and said on Friday (June 26, 2026) they won’t resume until there are guarantees that the other ships won’t be attacked.

About 115 ships were able to move out of the strait in recent days, leaving about 500 still in the area, said Arsenio Dominguez, the agency’s secretary-general.

The opening of the alternative passage through the strait was expected to relieve pressure on the world economy and remove Iran’s main source of leverage in ongoing peace talks with the U.S.

The U.S. and Iran are still negotiating terms of the deal, including issues such as getting ships through the key strait and addressing the future of Iran’s stockpile of highly enriched uranium. Under the interim deal, the two sides have 60 days to work out the details.

Cargo ship attack poses a test for shipping

Shipping analysts said the drone strike cast a shadow over what had been a growing stream of trapped vessels finally leaving the Gulf and an increasing flow of tankers carrying crude oil.

“A week of widening commercial confidence in the Strait of Hormuz has hit its first significant test,” said marine data company Windward on X. It said that while the strait remains operationally open with 43 transits recorded after the incident, “the pace of normalisation has slowed.” On Wednesday (June 24, 2026) 78 vessels transited the strait, the highest since the war began, although below the pre-war averages of 130 or more per day.

At least two tankers reversed course while attempting to transit the strait on the UN-backed route near Oman after Iran insisted vessels use only the Teheran-approved routes, according to marine data and analytic firm Lloyd’s List Intelligence.

More than two dozen ships were still transiting the strait’s southern route after the attack, Lloyd’s said Friday (June 26, 2026).

Iran on Saturday (June 20, 2026) said that it closed the Strait of Hormuz because of Israel’s attacks in Lebanon and warned that while negotiators were going to Switzerland for talks with the United States on their interim agreement, not much likely will happen if the fighting doesn’t stop.

U.S. President Donald Trump, in response, threatened to impose U.S. tolls in the crucial waterway if a final deal with Iran isn’t reached in 60 days, saying the money would be for “services rendered as the Guardian Angel to the countries of the Middle East”. His social media post underscored that the agreement calls for toll-free travel for 60 days.

The announcements indicated a rough start to technical-level U.S.-Iran talks that key mediator Pakistan said will begin Sunday (June 21, 2026), with Qatari mediators also participating.

Iran’s joint military command said the strait was closed because of the U.S.’ “clear breach of its commitments” by failing to end the war. The interim deal is meant to stop fighting on all fronts.

Shortly after that, Iran’s state broadcaster said that the negotiating team was leaving for Switzerland, a trip delayed from Friday.

State media said that the team includes parliamentary Speaker Mohammad Bagher Qalibaf, Foreign Minister Abbas Araghchi and central bank and oil officials, among others. The deal calls for Iran’s assets to be unfrozen.

The US. .disputed Iran’s announcement on the strait.

“Iran does not control the Strait of Hormuz. Traffic continues to flow, and US forces are monitoring the situation to ensure this remains the case,” said Capt Tim Hawkins, a spokesperson for US Central Command.

The military said that 55 merchant ships transited Saturday with more than 17 million barrels of oil.

Lebanon said 18 people were killed on Friday (June 19, 2026) in Israeli airstrikes in the south, while Israel’s military reported its first soldiers killed there since the sealing of a U.S.-Iran deal to halt the war in West Asia, including in Lebanon.

Israel had said it was striking Hezbollah targets overnight and into the morning, while the Iran-backed militant group said it was attacking Israeli forces around the southern town of Nabatieh.

“The intensive Israeli airstrikes carried out from midnight until this morning have prevented the evacuation of the martyrs and wounded, and have resulted in a preliminary toll of 18 martyrs and 33 wounded” in at least 10 villages and towns, the Lebanese Health Ministry said.

The strikes were the deadliest since Iran and the United States agreed to halt the wider war in West Asia on Monday.

The Israeli military, meanwhile, said Lieutenant Colonel Dor Gedalia Ben Simhon had “fallen in combat” along with three other soldiers it did not immediately identify.

In a separate statement it reported a reserve officer was severely wounded “as a result of an explosive drone impact in southern Lebanon”, with four other soldiers lightly injured in the incident.

Israeli hardliners’s reply to U.S.

The soldiers’ deaths prompted a furious reaction from far-right Israeli National Security Minister Itamar Ben Gvir.

“With all due respect to the Americans, Israel must make it clear to the entire world that the blood of our sons and the security of our citizens are not up for bargaining. All of Lebanon must burn,” Ben Gvir said in a statement.

U.S. officials including President Donald Trump have expressed frustration at Israel’s campaign in Lebanon, which it has pursued in spite of the US’s negotiations with Iran, as well as a separate ceasefire agreed in April that was meant to halt the fighting there.

The Israeli military had said in an earlier statement that it was carrying out strikes in response to “repeated violations of the ceasefire” by Hezbollah.

“During the night, the army struck and continues to strike Hezbollah terrorists and infrastructure in several areas in southern Lebanon,” it said.

Hezbollah said early on Friday (June 19) that it had targeted Israeli troops “with a barrage of rockets and mortar shells” near the Ali al-Taher hills, a strategic feature overlooking the town of Nabatieh.

It had also reported attacking Israeli tanks, saying forces “consisting of an armoured platoon and an infantry platoon (tried) to infiltrate towards the northern side of the Ali al-Taher hills”.

“The clashes are still ongoing,” it said.

Hezbollah drew Lebanon into the war in West Asia in early March by attacking Israel to avenge the killing of Iran’s supreme leader at the start of the U.S.-Israeli military campaign.

Israel retaliated with broad strikes across Lebanon and by launching a ground invasion in the south, which borders Israel and has long been under Hezbollah’s sway.

The hostilities have continued despite the U.S.-Iran agreement.

On Thursday (June 18), Hezbollah said it had been fighting Israeli forces attempting to advance from the town of Arnoun towards the outskirts of Kfar Tibnit, also near Nabatieh.

Israel must ​stop its hostilities in ‌Lebanon and the ​United ⁠States must put pressure on Israel, French ‌Foreign Minister Jean-Noel Barrot ‌said on ‌Friday (June 19, 2026).

Israel ⁠said on ⁠Thursday (June 18) it would not rule out carrying ​out attacks ‌beyond a military control zone in southern Lebanon ‌in a challenge ​to the terms of a ⁠U.S.-Iran pact that called for ‌the respect of Lebanon’s sovereignty.

Mr. Barrot, speaking to French broadcaster franceinfo, said ‌that France was still working ​to hold an international ⁠conference to mobilise support ⁠for the Lebanese army. 

Israel’s military said on Friday (June 19) its forces struck targets throughout southern Lebanon overnight as Hezbollah reported intense fighting in the area, threatening the nascent agreement between Iran and the United States to end their war.

Lebanon’s state-run National News Agency reported at least 16 people were killed in Israeli airstrikes, which the Israeli military said were ongoing.

Continued fighting in Lebanon could unravel the newly signed deal, which calls for an immediate halt to military operations “on all fronts, including in Lebanon,” where Israel has been battling the Iran-backed Hezbollah militant group, and for ensuring Lebanon’s “territorial integrity and sovereignty.” Israeli Prime Minister Benjamin Netanyahu, who faces elections later this year, has refused to withdraw, saying Israeli forces will remain in Lebanon until the threat from Hezbollah has been eliminated.

(With inputs from Reuters, AP)

Oil prices fell on ​Friday (June 19, 2026) as prospects brightened for more supply after oil tankers began moving through ‌the reopening Strait of Hormuz following a peace deal between ​the United States and Iran.

By 0328 GMT, ⁠Brent crude futures fell 43 cents, or 0.54%, to $79.42 a barrel and U.S. West Texas Intermediate crude slipped 17 cents, or 0.22%, to $76.43 a barrel, ‌with the front-month July contract expiring on Monday (June 22).

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The more actively traded August contract was down 30 cents at $75.55 a ‌barrel.

On Thursday (June 18), both benchmarks touched their lowest since early March ‌as ⁠several tankers, including three Saudi-flagged vessels carrying 6 million ⁠barrels of crude, sailed through the strait hours after the presidents of Iran and the United States signed an interim deal to end their war.

Analysts expect the ​deal to release more ‌than 85 million barrels of oil stranded in the Middle East Gulf into global markets. The agreement also includes the lifting of U.S. sanctions on Iranian oil, which would further swell supply.

“Traders ‌are still waiting for hard evidence that tanker traffic through ​the Strait of Hormuz is actually normalising before committing to the next leg lower,” said Tim Waterer, chief ⁠market analyst at KCM.

Roughly a fifth of the world’s oil and liquefied natural gas transited the strait prior to the war, and ‌analysts have suggested trade could return to normal in coming months if the U.S.-Iran deal holds.

West Asia producers are also gearing up to resume exports.

Kuwait Petroleum Corp said on Thursday (June 18) it had lifted with immediate effect all force majeure notices issued during the war.

Iraq’s oilfields are ready to resume production and output will gradually ‌return to normal, restoring previous rates, Oil Minister Basim Mohammed said.

However, Israel has ​continued its war against Hezbollah in Lebanon, raising questions about whether the U.S.-Iran peace agreement will hold.

In another ⁠disquieting sign for markets, U.S. Vice-President J.D. Vance pulled out of ⁠a planned trip to meet Iranian negotiators in Switzerland on Friday (June 19).

“This is not the geopolitical backdrop that would give ‌the market any confidence in resuming Hormuz transit,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.

Iran said on Thursday (June 18, 2026) that its missile programme would not be part of future negotiations with the United States, after the two sides agreed a framework deal for ending their war.

U.S. President Donald Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding early Thursday (June 18, 2026), ending a regional war that erupted on February 28 with U.S.-Israeli strikes.

The agreement lays the groundwork for detailed negotiations on Iran’s nuclear programme and sanctions relief for Tehran.

There is no mention in the deal of Iran’s missile programme, a longstanding concern for Washington and its ally Israel.

“Our missiles do not like at all to be talked about by anyone,” Foreign Ministry spokesperson Esmaeil Baqaei said in an interview with Iranian state television.

“Iranian missiles are only for firing, not for negotiations. Iran’s defence capability will not be discussed in any way, in any process or with any party,” he added.

During the nearly 40-day war, Iran’s missile infrastructure came under heavy U.S.-Israeli bombardment, but Tehran continued to respond with missile and drone attacks across the region.

Before the war, U.S. Secretary of State Marco Rubio had warned that Iran would need to negotiate over its ballistic missile arsenal, which Washington views as a threat to Israel and U.S. military bases in the region.

Iran has repeatedly refused to discuss what it describes as its defensive capabilities.

On Wednesday (June 18, 2026), Trump appeared to soften his position, saying it would be “unfair” for Iran not to have missiles.

“I’m saying that if other countries have them, it’s a little bit unfair for them not to have some,” Trump said. “A ballistic missile is not the same thing as what we are talking about when we talk nuclear.”