foreign-policy
Iran Fires on Tankers Near Hormuz as Khamenei Funeral Ends and Nuclear Talks Stall
Millions of mourners filled Tehran's streets over several days for the funeral procession of Iran's late Supreme Leader Ali Khamenei. On July 7, Iran's Revolutionary Guard fired missiles at commercial vessels near the Strait of Hormuz, striking at least two tankers — including a Qatari LNG tanker and a Saudi-flagged crude oil tanker. Qatar publicly blamed Iran for the strikes. A tanker was set ablaze after being hit by a projectile off the coast of Limah in Oman, according to UK Maritime Trade Operations. President Trump stated the US would win the conflict 'one way or the other' and said there would either be a deal with Iran or the US would 'finish the job.' Iran, in turn, threatened to abandon ongoing nuclear talks in response to Trump's statements. Peace talks are described as on hold, with provisions governing the Strait of Hormuz remaining a contentious unresolved issue.
Feb 2026Supreme Leader Ali Khamenei killed in US-Israeli airstrikes, triggering the broader US-Iran conflict.
Jul 6Millions join Khamenei's funeral procession in Tehran over what sources describe as three days of public mourning; Trump states the US will win 'one way or the other' and warns of finishing the job.
Jul 7 (early)Oil prices begin rising on reports of vessel attacks near the Strait of Hormuz; gold slips as the dollar strengthens on Gulf tensions.
Jul 7 (morning)Wall Street Journal reports Iran's Revolutionary Guard fired missiles at ships near Hormuz; Reuters confirms two tankers damaged; Financial Times reports a Qatari gas tanker was hit.
Jul 7 (midday)Qatar publicly blames Iran for striking the tanker; CBS reports Iran threatens to abandon nuclear talks over Trump's statements; a tanker is confirmed ablaze by UK Maritime Trade Operations.
Why It Matters
The Strait of Hormuz is one of the world's most critical chokepoints for oil and gas — trucks cannot replace Hormuz shipping, according to industry experts, and no alternative route handles the same volume. The tanker attacks have already pushed oil prices up roughly 1.5%, with US Treasury yields and the dollar both climbing. Alaska is reportedly facing fears of gas prices reaching $9 per gallon. Japan's crude supply from the Middle East, which had been disrupted, is only beginning to partially rebound as some stranded vessels exit the strait — a sign the waterway has not yet returned to normal operation. With diplomatic talks collapsed and military action ongoing, the 1.5% oil-price rise and Alaska's $9-per-gallon fears mark the early pressure on household fuel costs, and Japan's partial rebound suggests the disruption has not yet run its course.
What's Next
Confidencemoderate
Agreementmixed