Where things currently stand
• US officials in Qatar: Delegations from both the US and Iran are in Doha, holding separate meetings today with Qatari officials. US envoy Steve Witkoff and President Donald Trump’s son-in-law Jared Kushner met with Qatar’s emir.
• Indirect US-Iran talks: Low-level, technical talks are also underway as US and Iranian officials talk indirectly through Qatari and Pakistani mediators, a diplomatic source told CNN. Vice President JD Vance said talks in Doha are “going well” and that discussions about the nuclear issue would start soon.
Tehran’s warning: Foreign Minister Abbas Araghchi threatened an “immediate powerful response” by Iran to any Israeli attack, and he repeated demands for the US to restrain its ally. He issued the threat after Israeli Defense Minister Israel Katz warned that Iranian Supreme Leader Mojtaba Khamenei was “marked for death” in comments reported by an Israeli news agency.
US Navy searching for helicopter crew member after "emergency water landing" in Arabian Sea
The US Navy is searching for a missing aircrew member after an MH-60S Sea Hawk helicopter went down on Wednesday in the Arabian Sea, the service announced.
The helicopter assigned to the USS George H.W. Bush “conducted an emergency water landing in the Arabian Sea. There is no indication the emergency was caused by hostile action,” a post on X from US Naval Forces Central Command said. “Three of the helicopter’s four crew members have been recovered and are in stable condition aboard George H.W. Bush. US Navy assets in the region are currently searching for [the] other aircrewman still missing.”
It’s unclear what caused the crash; the social media post said the incident is under investigation.
Top US commander discusses Strait of Hormuz with regional counterparts
The US military commander overseeing forces in the Middle East spoke with other regional military officials Wednesday to discuss “the current regional security environment,” including the Strait of Hormuz, US Central Command announced.
The conversation comes amid ongoing talks through mediators in Qatar aimed at resolving differences between the US and Iran.
Vice President JD Vance said today the talks are “going well,” though it’s “still pretty early.”
CENTCOM noted that the discussion was the first time leaders from Syria and Lebanon had participated in a US-led defense conference. Lebanon and Israel signed a US-brokered agreement last week as a first step in a broader peace deal. Israel continued strikes n Lebanon on Tuesday, saying it targeted a Hezbollah operative in southern Lebanon.
Vance says Doha talks "going well"
Vice President JD Vance said talks in Doha are “going well” and that discussions about the nuclear issue would start soon.
“It’s still pretty early, but talks are going well,” he told CNN’s Adam Cancryn on Wednesday after remarks to US service members in Virginia.
“Well, right now, the technical negotiators are sitting down with the Iranians, with the Qataris, and with others in Doha, you know, talking, talking about some of the details here,” he said. “We’re worried about the nuclear issue, we’re going to start talking about that, so right now the talks are going well.”
Speaking at Naval Air Station Oceana in Virginia Beach, Vance thanked the US military, saying ongoing negotiations with Iran have been able to proceed, “not out of weakness” but “out of strength.”
And he cast the US war with Iran as fundamentally different from the wars in Afghanistan and in Iraq, where he served as a Marine during a 2005 deployment, arguing that any military orders from President Donald Trump would come with clear objectives.
“[Trump’s] negotiating from a position where Iran’s nuclear program has been destroyed and their conventional military has been destroyed too, and what I notice about the people who are attacking the administration for negotiating is that they’re the very same people who, for example, encouraged us to just go a little bit further and just drop a few more bombs in places like Afghanistan,” he said.
“Now, the president of the United States maintains a lot of options today in 2026, but if he ever asks you to go and drop bombs, it’s going to be for something specific.”
US-Iran agreement right now appears to be "hung up in its own clauses," expert says
With indirect technical talks still ongoing between the US and Iran in Qatar, an expert says the countries appear to be still mired in disputes over agreements they had originally said they reached when signing a memorandum of understanding (MoU) on June 17.
“Right now, we’ve seen (the agreement) hung up in its own clauses and the implementation commitments of each side,” said Sina Toossi, a senior nonresident fellow at the Center of International Policy.
“There are a round of talks, but they’re not over the nuclear issue,” he told CNN’s Becky Anderson on “Connect the World.”
“It seems to be over the commitments of the MoU, namely the Lebanon and Hormuz issue,” he added.
Toossi said he thinks the talks in Doha will be centered around keeping the agreements of the MoU intact and not discussing Iran’s nuclear capabilities.
Remember: Washington and Tehran agreed to a 14-point agreement that included conditions to end the conflict in Lebanon, ensuring that Iran allows vessels to safely pass the Strait of Hormuz, and lifting sanctions and unfreezing assets imposed on Tehran.
Witkoff and Kushner meet with Qatar's emir
US envoy Steve Witkoff and President Donald Trump’s son-in-law Jared Kushner met with Qatari Emir Sheikh Tamim bin Hamad Al Thani in Doha today, according to the emir’s office.
In the meeting, they discussed the “progress of negotiations” between the US and Iran, as well as the current situation in Lebanon, a statement released by the emir’s office said.
Al Thani reiterated Qatar’s commitment to mediating between the US and Iran, while Witkoff and Kushner underlined the US support for the diplomatic process, the statement added.
A senior US official said that Witkoff and Kusher “have both had very good conversations with regional leaders,” adding that technical talks are ongoing and “good progress continues to be made.”
This meeting comes a day after Witkoff and Kushner met with Qatar’s prime minister, as they attend talks in Doha at the same time as Iranian officials are holding separate talks with mediator Qatar.
Iran’s Araghchi warns of “powerful response” after Israel says supreme leader “marked for death”
Iranian Foreign Minister Abbas Araghchi has warned that his country would launch an “immediate powerful response” to any Israeli attack and repeated demands for the United States to restrain its ally.
Araghchi stated that the terms of the Pakistan-mediated memorandum of understanding, which is intended to lay out a pathway to a long term agreement between Tehran and Washington, “are crystal clear and public for all to see.”
“POTUS (US President Donald Trump) has committed the US to muzzling its pets in Tel Aviv,” Araghchi posted on X. “If they ignore their master, Iran will school them. Any threat against our people and leadership will receive immediate powerful response,” he said.
His remarks came after Israeli Defense Minister Israel Katz warned that Iranian Supreme Leader Mojtaba Khamenei was “marked for death,” in comments reported by the Israeli news agency Ynet on Monday.
CNN has reached out to Katz’s office for comment.
Khamenei has not been seen publicly since he was inaugurated in early March, following the assassination of his predecessor and father, Ali Khamenei, in an Israeli strike in late February. At the time, Katz posted on X that “any leader appointed” by Tehran “to continue leading the plan to destroy Israel, threaten the US and the free world and the countries of the region, and oppress the Iranian people - will be an unequivocal target for elimination.”
Some background: Khamenei has largely communicated through statements read by news anchors on state-run Islamic Republic of Iran Broadcasting since he was inaugurated, and reports suggest he was injured in the bombing that killed his father.
But later this month, authorities will stage funeral ceremonies for Ali Khamenei from July 4 to July 9 in multiple cities across Iran and Iraq. The significance of those has raised speculation that he could make a public appearance.
Could shipping waterways in Southeast Asia be a blueprint for Strait of Hormuz fees?
Oman has outlined a plan for shipping companies to pay service fees to transit the Strait of Hormuz, pointing to the straits of Malacca and Singapore as a possible blueprint.
The straits of Malacca and Singapore are vital shipping lanes in Southeast Asia running between Malaysia, Singapore and the Indonesian island of Sumatra.
Users of the straits, including governments, institutions and companies, made voluntary financial contributions toward a fund established by Japan’s nonprofit Nippon Foundation in 2008. The payments help cover the cost of ensuring safe transits, such as outlays for maintaining buoys and lighthouses, as well as protection of the marine environment.
By July 2023, the fund had received contributions totaling only around $23 million, according to Singapore’s port authority, about a third of which came from the Nippon Foundation.
The Hormuz revenue would also be for purposes unrelated to the waterway itself, including rebuilding Iran, he noted.
Remember: Transit through international waterways, including the straits of Hormuz and Malacca, are protected by United Nations conventions. These waterways are distinct from the manmade Panama and Suez canals, where relevant authorities collect tolls to maintain infrastructure and provide other services.
Michelle Brouhard, head of policy at shipping intelligence firm Kpler, said there are other examples of natural straits that charge navigation and security fees, such as the Strait of Magellan in Chile. “I find it unlikely that Iran would agree to a voluntary fee unless they can arrange commitments from user states, like China,” she told CNN.
Iran says progress in US talks depends on five key demands. Here’s what they are
Iran’s chief negotiator Mohammad Bagher Ghalibaf has conditioned the implementation of the Iran-US agreement upon the fulfillment of 5 provisions laid out in the pact.
In his interview with Iran’s state broadcaster on Tuesday, Ghalibaf highlighted Articles 1, 4, 5, 10 and 11 as prerequisites.
Here’s what the articles are and how implementation has progressed:
Article 1: The US and Iran agree to the immediate and permanent termination of military operations on all fronts, including Lebanon.
- Although major military operations between the US, Israel and Iran have ended, fighting in Lebanon continues. Iran has repeatedly said that a full Israeli withdrawal from Lebanon is needed to reach a final deal with the US. Israel insists that it will not withdraw until Hezbollah is disarmed.
Article 4: The US is obliged to lift its naval blockade, while Iran restores vessel traffic at Hormuz to pre-war levels.
- The US has said it has lifted its blockade of Iran, but has kept its naval vessels in the region. Iran, meanwhile, has continued to require permits for passage through the strait and has struck vessels that haven’t followed a route it has designated. The situation has slowed the return of traffic to pre-war levels.
Article 5: Iran agrees to arrange passage through the strait without tolls for 60 days.
- Iran has not introduced a toll mechanism, but discussions over possible “voluntary fees” continue. The MoU does not rule out future charges; it only guarantees that none will be imposed during its 60-day period.
Article 10: US commits to waivers for the export of Iranian oil.
- The US treasury has issued a 60-day waiver allowing Iran to produce and sell crude oil, petrochemical and petroleum products in US dollars.
Article 11: US undertakes to make frozen Iranian assets available.
- This issue remains unclear. Ghalibaf said $12 billion of the $24 billion in frozen assets would be made available to Iran. US officials previously told CNN that no frozen funds would be released until Iran fulfills its commitments. Asked about the funds, Qatar’s foreign ministry said Tuesday that releasing them would require an agreement between the US and Iran.
US and Iran in indirect, low-level talks in Qatar. What else to know
US and Iranian officials are holding indirect, lower-level technical talks through Pakistani and Qatari mediators in Doha today, a diplomatic source told CNN.
Small snippets of information have been trickling out today and yesterday about these talks, offering glimpses about who is involved, what is being discussed and the mechanics of the diplomacy.
If you’re just dropping in, here’s what else to know:
- Earlier today, Iranian Deputy Foreign Minister Kazem Gharibabadi met with Qatar’s prime minister, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, who is acting as a mediator, to discuss formalizing the tentative Iran-US agreement. A trilateral session including Pakistani mediators took place afterward.
- That followed Tuesday’s meeting between Al Thani and US envoys Steve Witkoff and Jared Kushner where they discussed the ongoing talks and regional developments.
- The meeting also addressed the ceasefire in Lebanon “and emphasized the importance of stabilizing it,” Qatar’s Foreign Ministry said.
- Qatar also said technical talks between Iran and the United States are continuing, but there are currently no high-level meetings between the two.
- Meanwhile, in Lebanon: Despite a US-brokered agreement signed Friday between Israel and Lebanon, the Israeli military said it struck a Hezbollah operative in the Manzala area of southern Lebanon, near the “security zone” where Israeli forces were operating on Tuesday.
- Oman recently delivered a proposal to the US and other allies for shipping companies to pay service fees to use the Strait of Hormuz, according to a regional diplomat and a US source familiar with the matter.
- Iranian state media reported that a foreign container ship ran aground after not using the Tehran-approved route through the strait, Iranian media said. Overall traffic in the waterway remains steady, if well below pre-war flows.
- And oil prices recorded their steepest quarterly drop since the start of the pandemic between April and June, as traders cheered a US-Iran interim peace deal and the return of some oil flows through the strait.
Mohammed Tawfeeq, Eyad Kourdi, Dana Karni, Hira Humayun, Avery Schmitz, Zachary Cohen, Aileen Graef, Sana Noor Haq, Mustafa Qadri and Nic Robertson contributed reporting.
Traffic in Strait of Hormuz remains steady
Traffic passing through the Strait of Hormuz remains steady, with 34 vessels transiting the waterway yesterday, according to marine intelligence firm Kpler.
Though more vessels are navigating the strait since the US and Iran signed an agreement two weeks ago, the numbers are still much lower than the roughly 100 vessels which crossed the strait every day before the war,
Iran’s chief negotiator says war brought “divine blessing,” lays out Tehran’s red lines
Iran’s chief negotiator Mohammad Bagher Ghalibaf gave a lengthy interview with Iranian state broadcaster IRIB last night, saying the war brought Tehran a “divine blessing” as he outlined his view of the talks and Iran’s red lines.
Here are the main points:
Status of negotiations
- “Negotiations are over.” Discussions are now focused on implementing the US-Iran memorandum of understanding.
- Lebanon is Iran’s “first priority” and “one of our red lines.” Ending fighting there is a prerequisite to moving forward.
Strait of Hormuz as a “divine blessing”
- Through the war, God granted Iran “one of our greatest strategic instruments of power” in the Strait of Hormuz.
- “Sovereignty” and management “remain in Iran” and administration will be conducted in coordination with Oman and Gulf Arab states. There will be no retreat from this position.
- Iran agreed not to charge transit fees for 60 days at the insistence of Gulf Arab states to allow trapped ships to exit.
- Tehran wants “more shipping, not less,” because “the strait becomes more valuable the more ships pass through it.”
Nuclear program
- Iran remains committed to the nuclear Non-Proliferation Treaty, but it is “our right” to enrich uranium.
Naval blockade, sanctions and frozen funds
- The US blockade of Iranian ports “was lifted immediately” after signing the MoU, and Tehran has since exported more than forty million barrels of oil, compared to zero the week before.
- Iran is now selling oil at global market prices, after selling at discounted rates during sanctions. Proceeds are made available immediately. He acknowledged that the US could reverse its position “and we have our own responses prepared.”
- “Implementation has already begun” in releasing $12 billion of Iran’s assets for purchase of goods “from whomever we choose.”
Guarantees of adherence to MoU
- A UN resolution to endorse a final agreement with the US may not be enough, given the US has withdrawn from such endorsements in the past. “A strong battlefield, that is our guarantee.”
- Offensive capabilities, allied militant groups, and Iran’s missile power are “not negotiable.”
Oil prices see biggest quarterly decline since start of the pandemic
Brent crude recorded its steepest quarterly drop since the start of the pandemic between April and June, as traders cheered a US-Iran interim peace deal and the return of some oil flows through the Strait of Hormuz.
The price of a barrel of Brent crude fell from $103.97 on March 31 to $72.95 yesterday, a drop of around 43%. That followed a 71% increase in the first three months of the year, according to FactSet data.
The sharp reduction in oil prices over the quarter came even though several analysts warned that prices could push higher, as the biggest oil supply shock in history rippled through the global economy.
Crude oil prices are now back to the levels they were trading at before the United States and Israel attacked Iran on February 28, around $70 a barrel.
A combination of excess oil supply at the start of the war, subdued demand in response to higher prices, increased production from other parts of the world and governments drawing down on strategic oil stockpiles helped cushion the impacts of the disruption.
Prices have fallen sharply in recent weeks on expectations of a normalization of oil flows through the Strait of Hormuz. But oil traders may be “too optimistic over the speed of the supply recovery,” according to Warren Patterson, head of commodities strategy at Dutch bank ING.
The market “is treating this temporary ceasefire between the US and Iran as a permanent deal” and has “overshot to the downside,” he wrote in a research note Tuesday.
“Our assumption is that flows will only get close to pre-war levels towards the end of the third quarter, while current price levels imply a return to normal by the end of July.”
Iranian negotiator met Qatari prime minister for talks in Doha, state media says
Iran’s Deputy Foreign Minister Kazem Gharibabadi met the Qatari prime minister to discuss formalizing a tentative US-Iran agreement, according to Iranian state media.
Qatar has been an important mediator in the US-Iran conflict and is currently hosting delegations from both parties.
Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani – who also serves as Qatar’s foreign minister – spoke about “implementing the memorandum of understanding” to end regional hostilities, including those in Lebanon, the state-affiliated agency, Islamic Republic of Iran Broadcasting (IRIB) said Wednesday.
After the meeting between Gharibabadi, Al Thani and several other officials, a trilateral session between Iranian, Qatari and Pakistan negotiators also took placed, IRIB reported.
Working groups for “negotiating a final agreement have been established,” according to IRIB. “No negotiations within these frameworks have yet begun,” the agency added.
Remember: Iranian and US delegations are taking part in talks to implement a long term peace deal – including the unfreezing of assets. Both parties have stressed the teams will not meet directly, but instead participate in discussions mediated by Qatari authorities.
Cargo ship runs aground after using unapproved route, Iranian media says
Iranian state media says a foreign container ship ran aground after not using the Tehran-approved route through the Strait of Hormuz.
The cargo vessel was unable to continue its voyage due to the “shallow depth of the sea along the route it had chosen,” the Islamic Republic of Iran Broadcasting (IRIB) reported, in what may be an attempt to stress Iran’s command of Hormuz.
Iran’s navy also warned vessels against using routes outside those permitted by the newly created Persian Gulf Strait Authority (PGSA).
“The IRGC Navy continuously warns captains, owners, and officials of shipping companies around the world that any entry or exit through routes other than the designated route under Iran’s authority in the Persian Gulf may result in irreparable incidents,” it said on the IRIB Telegram channel.
The status of the critical waterway, the Strait of Hormuz, is a major sticking point between the US and Iran. Traffic has been picking up since the agreement was signed but remains well below pre-war levels.
Oman also shares control of the strait, and a ceasefire agreement between Tehran and Washington stipulated that Iran would help “define the future administration” of the waterway - a move that could give Tehran a formal role in managing safe passage for commercial vessels through the Strait of Hormuz.
US, Iranian officials hold indirect, lower-level talks in Doha, source says
US and Iranian officials are holding indirect, lower-level technical talks through Qatari and Pakistani mediators in Doha, a diplomatic source with knowledge of the talks told CNN.
US special envoy Steve Witkoff and President Donald Trump’s son-in-law Jared Kushner, who are not attending the talks themselves, met Qatar’s prime minister in Doha on Tuesday to lay the groundwork for Wednesday’s indirect negotiations, the source added.
The Strait of Hormuz pain has been China’s gain, The Asia Group says
China has emerged as the main beneficiary of the Strait of Hormuz closure, according to Washington D.C.-based strategic advisory firm The Asia Group.
In a report published this week, it said the stoppage of crude oil and other commodities from the Middle East has unevenly impacted economies in Asia, which relies heavily on imports for its fuel.
But China’s ability to diversify its energy supply and tap into emergency reserves has given it strategic advantages in an otherwise widely disruptive crisis, The Asia Group said.
China has helped cushion the global oil shock, seen its clean energy tech exports surge and framed the war in Iran as another example in which Chinese leadership could supersede the US in ending global conflicts.
If the energy shortages persist, China may still suffer further from higher material prices and a broader global economic slowdown, which would hit demand for Chinese exports at a time when the economy has become increasingly reliant on them to maintain growth.
Still, The Asia Group argues that China is well-positioned to weather further macroeconomic volatility.
Iran-Qatar talks today will cover US deal and frozen assets, Iranian official says
Iran-Qatar talks today will cover the implementation of Tehran’s agreement with the US, as well as its frozen assets, Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Tuesday.
He said that Iran’s negotiating team had no plan to meet with the American delegation in the coming days.
He added that $6 billion of Iran’s frozen funds have not been transferred to Tehran, but he said this would happen “according to the advancement of negotiations.”
Iran plans funeral ceremonies for slain Supreme Leader Ali Khamenei across Iran and Iraq
Iranian authorities plan to hold funeral ceremonies for slain Supreme Leader Ali Khamenei from July 4 to July 9 across Iran and Iraq, months after his death.
The delay has raised questions about the condition of his son and successor and criticism from detractors who say the state is trying to inflate attendance.
Iraq has confirmed that funeral processions for Khamenei will be held in Najaf and Karbala, two Shiite holy cities south of Baghdad. Iraq’s Popular Mobilization Units have invited local and foreign media to register for accreditation to cover the events.
More on the funeral schedule below:
- A tribute ceremony for foreign leaders and senior officials is planned in Tehran on July 3, with public farewell ceremonies set for July 4 and 5 at the capital’s Imam Khomeini Mosalla, according to a schedule published by Iran’s semi-official Fars News Agency.
- A funeral procession in the capital is scheduled for July 6.
- Further ceremonies are planned for July 7 in Qom, July 8 in Najaf and Karbala, and July 9 in Mashhad, which is considered Iran’s Shiite spiritual capital. The northeastern city is also Khamenei’s hometown, and he is to be buried there at the Shrine of Imam Reza, one of the holiest sites in Shiite Islam and a major pilgrimage destination.
