Iran War News LIVE Updates: Gas, oil prices rise after ship attack near Strait of Hormuz
The US has reportedly been helping commercial vessels cross the Strait of Hormuz. (File Photo, enhanced using AI)
European natural gas and global oil prices rose on Monday after reports that an LNG carrier was attacked near the Omani coast while exiting the Strait of Hormuz, heightening concerns over energy supplies through the strategic waterway. European benchmark gas prices jumped as much as 4.5% to 46 euros ($52.50) per megawatt-hour, while Brent crude rose 1.2% to nearly $73 a barrel, its highest level in a week. Iran’s state broadcaster IRIB reported that the vessel came under attack after allegedly ignoring warnings, adding to market jitters over the security situation in the Gulf.
The tanker caught fire after being struck by a projectile in the Strait of Hormuz early Tuesday, Britain’s maritime security agency said, marking the latest attack on commercial shipping through one of the world’s most critical energy corridors. Iranian state television claimed the liquefied natural gas tanker came under attack after ignoring warnings to use Tehran’s approved shipping route, but stopped short of officially claiming responsibility. The incident comes days after a temporary US-Iran arrangement on shipping through the strait expired, raising fresh concerns over the future of the fragile agreement.
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Ayatollah Ali Khamenei’s funeral underway
The attack unfolded as Iran continued funeral ceremonies for slain Supreme Leader Ayatollah Ali Khamenei in the holy city of Qom, where hundreds of thousands of mourners gathered before his burial later this week in Mashhad. The funeral has become a major political event, with anti-US slogans echoing through the crowds, while Khamenei’s successor, Ayatollah Mojtaba Khamenei, has yet to make a public appearance amid reports he remains in hiding following the strike that killed his father.
Aerial footage from the funeral procession of Iran’s late Supreme Leader, Ayatollah Ali Khamenei, on Monday showed hundreds of thousands of people marching through the streets of Tehran.
Iranian media reported that millions gathered in the capital to mourn Khamenei pic.twitter.com/PEoN8CYhdq
— Middle East Eye (@MiddleEastEye) July 7, 2026
Diplomacy remains on hold
Talks between Washington and Tehran are not expected to resume until after Khamenei’s burial, even as US President Donald Trump warned Iran to “make a deal, or we’re going to finish the job”.
Follow The Indian Express live blog for the latest updates on the Strait of Hormuz crisis, Iran-US negotiations, Khamenei’s funeral, Israel’s military operations and other major developments from West Asia.
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