A tentative diplomatic opening between Washington and Tehran was thrown into disarray on Friday, as Iranian forces blocked an oil tanker in the strategic Strait of Hormuz and the Lebanese group Hezbollah launched a barrage of attacks on Israeli positions. The escalating military friction directly contradicted President Donald Trump’s assertion that a deal to end the US-Iran war would be signed imminently in Europe.
President Trump declared late Thursday that a US-Iran agreement was expected to be finalized on European soil within days, a statement that briefly sent Asian markets soaring. Japan’s Nikkei 225 surged over 3%, and South Korea’s Kospi index jumped nearly 8% on the news. However, Tehran swiftly dismissed the claim, with officials describing reports of a finalized deal as purely speculative.
Egypt’s foreign ministry added its voice to the diplomatic push, urging both nations to “seize the available opportunity” to end the war and establish a new phase of regional stability. The appeal underscored the international anxiety surrounding the volatile situation.
Hormuz Flashpoint and Hezbollah Offensive
Despite the talk of diplomacy, kinetic action painted a starker picture. Iranian state media reported that the country’s armed forces prevented an oil tanker from transiting the Strait of Hormuz, citing a lack of prior coordination. The incident occurred as explosions were reported in the coastal areas of Sirik and Bandar Abbas.
A US official confirmed that American forces shot down two Iranian one-way attack drones that appeared to be targeting commercial ships in the strait. The official, speaking on condition of anonymity, emphasized that traffic flow through the critical waterway was maintained.
Simultaneously, Hezbollah claimed responsibility for 24 separate attacks on Israeli military forces and sites in southern Lebanon and the Bekaa Valley. The group said it used drones, missiles, and rockets to repeatedly strike concentrations of Israeli soldiers and armored vehicles, specifically highlighting four consecutive strikes on the al-Rajman area near Tayr Harfa.
Regional and Economic Fallout
The conflict’s economic shockwaves continue to spread. New data revealed that the UK economy contracted by 0.1% in April, its first monthly decline since August. The Office for National Statistics attributed the drop largely to a blow to the entertainment and services sector following the cancellation of Formula 1 races and other major Gulf sporting events due to the war.
Tehran also announced a postponement of the state funeral for late supreme leader Ali Khamenei, killed in the opening strikes of the war. The ceremony is now expected to take place between late June and early July, with city officials anticipating up to 20 million mourners.
