Ali Khamenei buried in Mashhad after days-long funeral

Iranian officials have threatened severe retaliation, while analysts warn that disputes over sanctions, maritime routes and the future of the agreement could push both sides into another major confrontation.

Mohsen Jalilvand, a professor of international relations, said the continued US military presence in the region and Tehran's insistence on controlling shipping through the Strait of Hormuz have significantly increased the risk of war.

"When both sides continue to stand by their positions, and there are no signs of retreat, it is only natural that the likelihood of a broader confrontation increases," he told the news website Fararu.

"Overall, I see the outlook moving less toward an agreement and more toward escalating tensions and a greater possibility of a major conflict."

‘Abandon MoU’

Senior officials and hardline media reacted angrily after the latest US attacks, which the Iranian Health Ministry said killed 14 people and injured 78 others. Several senior figures demanded tougher retaliation or called for formally abandoning the memorandum with Washington.

Parliament Speaker and Iran's chief negotiator Mohammad-Bagher Ghalibaf wrote on X that "America still has not learned that bullying and breaking its commitments no longer come without a cost."

"Let me be clear: if you strike, you will be struck. Stop struggling in vain—you will only sink deeper. The Strait of Hormuz will be reopened only under Iranian arrangements, not American threats."

Alaeddin Boroujerdi, a member of parliament's National Security and Foreign Policy Committee, told state broadcaster IRIB that Iran's response would be "more severe" and warned that continued confrontation would ultimately harm the United States.

The hardline Kayhan newspaper argued that repeated US attacks, the revocation of Iran's oil export waiver and what it described as violations of the agreed shipping arrangements in Hormuz had rendered the agreement meaningless.

"When Iran's armed forces tighten their grip on the world's energy artery in the Strait of Hormuz and play the Bab al-Mandab card, the West's economic lifeline will be cut, and Trump will beg for a ceasefire more desperately than ever," the newspaper wrote.

Kayhan urged the Foreign Ministry to formally declare the memorandum void so the armed forces could "settle Trump's account once and for all."

Tensions with Oman

The latest escalation followed Iranian attacks on vessels using a route south of the Strait of Hormuz, on the Omani side, while under US naval escort rather than the shipping corridor designated by Tehran.

Deputy Foreign Minister Kazem Gharibabadi accused Washington of pressuring Oman to open an alternative southern shipping lane despite what he said was an agreement that Iran would regulate maritime traffic during the memorandum's 60-day implementation period.

"From our perspective, America's insistence on creating a parallel route disrupted implementation of the memorandum," Gharibabadi said. “The Revolutionary Guards' response was entirely lawful and legitimate."

Iran's Khatam al-Anbiya Central Headquarters warned that any party providing military support for US attacks on Iran would constitute a legitimate target.

“The only safe shipping route through the Strait of Hormuz is the one designated by the Islamic Republic," the statement said.

Oman, however, told the International Maritime Organization on Thursday that it opposed the imposition of transit charges on ships using the strait and reiterated that "the right of transit passage through straits used for international navigation is guaranteed under international law."

Gharibabadi said Iranian officials had informed Omani and Qatari authorities—and indirectly Washington—that the southern route was "completely illegal," violated Clause 5 of the memorandum and "must be closed."

Public exhaustion

Although Tehran and most major Iranian cities have not been targeted since the ceasefire, apart from areas along the southern coastline, the renewed fighting has had an immediate economic impact.

The Iranian rial weakened sharply on Thursday, with the US dollar rising from about 1.6 million rials to more than 1.8 million rials. According to the Central Bank of Iran's latest figures, point-to-point inflation has reached nearly 83 percent.

Despite growing fears of renewed conflict, many Iranians appear more subdued than during previous crises after experiencing two wars within a year. Online discussions suggest widespread exhaustion and emotional numbness rather than panic.

"Is it just my algorithm, or does nobody actually care that the war has started again?" one X user wrote.

Another user, Sina, wrote: "Do we really have to hear fighter jets and explosions over Tehran before we believe the war has resumed?"

A third user commented: "Iranian cities were bombed last night. That means we're officially at war. But our minds are so exhausted, and we've suffered so much, that we're collectively choosing denial."

A reader commenting on Khabar Online wrote: "I just came to say we're exhausted. By God, we're exhausted. How much more tension and pressure can we take? Are you really going to bring another war down on our heads?”

The latest US strikes hit southern Iran on Thursday, with a provincial official saying an attack on a pier in Sirik killed three people and wounded 15 others. Iranian media also reported explosions near Bandar Abbas, while a Bushehr official said projectiles struck areas around the province's nuclear power plant.

The attacks followed a broader US campaign against Iranian military infrastructure along the country's southern coast.

US Central Command said it struck around 90 military targets, including coastal surveillance systems, air defenses, anti-ship missile positions, drone and missile storage sites, logistics infrastructure and dozens of Islamic Revolutionary Guards Corps naval vessels, saying the operation was intended to reduce Iran's ability to threaten shipping in the Strait of Hormuz.

Iran responded by announcing missile and drone attacks on what it called US military facilities in Bahrain, Kuwait and Qatar, saying it targeted air defense systems, fuel storage sites and other military infrastructure in retaliation for the US strikes.

Bahrain and Kuwait said their air defenses intercepted incoming missiles and drones, while Jordan activated nationwide air raid sirens after missiles and drones entered its airspace.

The US Embassy in Amman urged Americans to seek shelter indoors, and Qatar condemned Iranian attacks on Bahrain, Jordan and Kuwait while urging all sides to return to diplomacy.

Strait of Hormuz

The confrontation increasingly centered on the Strait of Hormuz, one of the world's most important energy corridors.

Bloomberg reported commercial traffic through the waterway had slowed to a near standstill, while CBS News, citing vessel-tracking data, said only three fuel tankers were observed transiting the strait on Thursday.

The IRGC Navy said shipping had recovered to about half of pre-war levels under routes designated by Iran but warned any US attempt to control maritime traffic would receive a "crushing response."

Oil prices climbed to their highest levels in about three weeks as traders weighed the risks to global energy supplies.

Diplomacy falters

President Donald Trump said the United States had struck Iran "much harder" after attacks on commercial ships and warned further Iranian action would trigger an even stronger response.

He also questioned whether Tehran could be trusted to uphold any future agreement despite saying Iran had again sought negotiations.

Axios reported the White House was preparing for the possibility of a military exchange lasting days or even weeks depending on Iran's next moves in the Strait of Hormuz.

Iran accused Washington of violating the memorandum of understanding reached after April's ceasefire and appealed to the UN Security Council, arguing the latest strikes breached both the agreement and the UN Charter.

Qatar urged both Washington and Tehran to honor the memorandum and return to dialogue, while Iraq said it was seeking to promote rapprochement between the two countries.

Funeral ceremonies continue

Military operations unfolded alongside the final stage of funeral ceremonies for former Supreme Leader Ali Khamenei.

After processions in Tehran, Qom, Najaf and Karbala, Khamenei's coffin was flown from Iraq to Mashhad for burial. Iranian authorities presented the ceremonies as a demonstration of regional solidarity, while IRGC-affiliated media published photographs it said showed Quds Force commander Esmail Qaani attending the funeral.

The past day's events showed how the confrontation has shifted beyond Iran's nuclear program, with the Strait of Hormuz emerging as the military and economic center of the conflict.

After funeral processions in Tehran and Qom, the coffins of Khamenei and several members of his family, who were killed in the February 28 US-Israeli attack, were taken on Tuesday to Najaf, home to the shrine of Imam Ali, one of the holiest sites in Shiite Islam.

They were transferred on Wednesday to Karbala, home to the shrine of Imam Hussein. Both cities carry deep religious symbolism for Shiites, especially in narratives of martyrdom, sacrifice and political defiance.

Political analyst Iman Aghayari told Iran International that the Islamic Republic was using the ceremonies to present Khamenei’s influence as extending beyond Iran’s borders.

He said Tehran also wanted to signal to Western governments that its influence in countries hosting allied armed groups “is not confined to those proxy forces, but is rooted among the people of those countries as well.”

A funeral staged across Shiite centers

A number of current and former Iraqi officials, including Prime Minister Ali al-Zaidi, along with Shiite and Sunni political, military and religious figures, welcomed the funeral delegation at Najaf airport.

The delegation was led by Khamenei’s eldest son, Mostafa Khamenei, and accompanied by President Masoud Pezeshkian, who cut short his visit and returned to Tehran early Wednesday following renewed US military strikes.

The Iraqi government declared Wednesday a public holiday to facilitate attendance and organized transportation for mourners traveling to Najaf and Karbala.

Iranian state media, citing Iraqi officials and the Popular Mobilization Forces, said more than two million people attended the ceremony in Najaf, while participation in Karbala was reported to be more than double that number.

The figures could not be independently verified.

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A claimed display of strength

Supporters of the Islamic Republic portrayed the ceremonies as proof of regional solidarity behind the so-called Axis of Resistance, Tehran’s network of allied governments, militias and political movements across the Middle East.

Esmail Qaani, commander of the IRGC’s Quds Force, said the funeral procession in Iraq would “make the red line of vengeance more prominent” and “further strengthen the united resolve of the Iraqi and Iranian peoples against American conspiracies.”

Defa Press, a news agency affiliated with Iran’s armed forces, described the ceremonies as “a transnational display of the Axis of Resistance’s power and confidence,” saying they showed political unity between Iran and Iraq.

Writing for the IRGC-affiliated Fars News Agency, political commentator Aghil Emami argued that the funeral proved the two nations’ loyalty to “shared ideals and the transnational leadership of the Islamic Revolution.”

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Religious symbolism and political messaging

Holding funeral ceremonies in Iraq – home to one of the world’s largest Shiite populations after Iran – carried both religious and political value for the Islamic Republic.

Iranian state media and some Iraqi Shiite politicians and outlets framed the processions through the language of Imam Hussein’s martyrdom, presenting Shiites as a unified political community confronting what they called “American arrogance” across the region.

For Tehran, the symbolism was especially important after Khamenei’s death and amid uncertainty over the future of its regional network.

The ceremonies allowed Iranian officials and supporters to link Khamenei’s legacy to the shrines of Najaf and Karbala, while also trying to reinforce the religious legitimacy of the Islamic Republic and of his successor.

The hardline X account Rah-e Deylami argued that Iraq, once Iran’s wartime enemy in the 1980s, had become “one of the pillars of the Axis of Resistance thanks to the blood of the martyred leader” and his policies.

It also pointed to mourners carrying photographs of Mojtaba Khamenei, saying the funeral had become “a ceremony of allegiance to his worthy successor” and that “Khamenei’s Iraqi followers have come to declare that they will continue this path.”

Such claims are difficult to measure against actual public sentiment in Iraq, where attitudes toward Iran and Iran-backed groups have long been mixed and politically contested.

The scene, filmed in Karbala and circulated by Reuters, showed a large crowd surrounding a refrigerated truck marked with orange-and-white logos resembling those of Finland’s K Group, part of the retail giant Kesko. Men in dark clothing then pulled a coffin from the frosted rear compartment and carried it above the crowd.

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The footage was filmed during the Iraqi leg of Khamenei’s funeral processions, which moved through Najaf and Karbala before his planned burial in Mashhad on July 9.

The image quickly drew attention in Finland, where Finnish tabloid Ilta-Sanomat described the sight as “incredible” and said Finns may have had to “rub their eyes” when they saw what looked like familiar K-Market-style branding in the middle of Khamenei’s funeral. Helsingin Sanomat, Finland’s largest daily newspaper, also reported the story.

Yle, Finland’s public broadcaster, ran the story under the headline: “Was Khamenei’s coffin pulled from a K-Group vehicle in Iraq?” It said the Reuters video showed a cold transport truck with orange coloring and repeated K letters that appeared to resemble K Group logos.

Kesko told Yle it had no information about the vehicle and had only become aware of the case through the images.

The company said its deliveries are handled by partner-owned vehicles and that Kesko does not have its own fleet. It suggested one possibility was that a transport partner had sold a vehicle onward without removing K-Group markings.

“This may be a situation where one of our transport partners failed to remove decals referring to us when selling equipment onward,” Kesko told Yle by email.

The company said it would remind transport operators that such decals must be removed before vehicles are sold.

There is no indication that Kesko or K-Market had any involvement in Khamenei’s funeral procession or that the company owned or operated the truck.

The strange visual detail stood out because of the contrast: one of the Islamic Republic’s most symbolic funeral ceremonies, a coffin kept cold after months of delayed burial, and what appeared to be the branding of a Finnish grocery chain on the vehicle carrying it through Karbala.

Iran's foreign ministry said it handed the ambassador a protest note rejecting what it called "groundless and false" British statements that Tehran had sought to carry out security-related activities in the United Kingdom.

Britain summoned Iran's chargé d'affaires on Tuesday after George Stana and Nandito Badea were sentenced to 12 years and eight years in prison, respectively, for their role in the 2024 attack on Pouria Zeraati, an Iranian-British journalist who works for Iran International.

Zeraati was stabbed three times in the leg near his home in southwest London in March 2024.

British prosecutors said the two Romanian nationals were acting as proxies for the Iranian government. They had pleaded not guilty to wounding with intent but were convicted at London's Woolwich Crown Court.

Judge links attack to Iranian state

The British Foreign Office said the judge had concluded that the attack was carried out "in the interests of, and on behalf of, the Iranian state."

According to a police statement, the judge ruled that the "foreign power condition" under Britain's National Security Act was met in Stana's case because of "extensive planning and his lengthy involvement in the plot", indicating that he knew, or at least should have known, of the connection to the Iranian state.

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  Romanian men get combined 20 years over Iran International journalist attack

The police statement said the condition was not met in Badea's case because he was not aware of the Iran connection as the reason for the attack.

Tehran rejects British move

Iran's foreign ministry rejected Britain's statements as "groundless and false" and said they amounted to an attempt to divert attention from Britain's own conduct.

Britain's Foreign Office said the case followed "a longstanding pattern of hostile activity by the Iranian intelligence services on UK soil" and said Iran must stop such activity immediately. Iran's embassy in London has rejected what it called "unfounded, politically motivated and hostile allegations."

Iran's foreign ministry also called on Britain to stop hosting media outlets that Tehran said were "funded and directed by the Israeli regime." It said Britain should end such activity "as soon as possible."