The limited movement highlighted continued caution among shipping companies, which welcomed the agreement but are awaiting further details, including safety measures and possible mine clearance operations in the strait.

Global oil prices fell about 4 percent on Monday as markets reacted to expectations that the United States and Iran would formally sign a memorandum of understanding in Switzerland outlining steps to resume shipping.The Strait of Hormuz, a vital route for global energy supplies, has seen sharply reduced traffic since the conflict between the United States, Israel and Iran began on February 28.

The LNG tanker Disha, carrying a cargo from Qatar’s Ras Laffan, had remained west of the strait before crossing, according to data from Kpler and LSEG. The shipment is expected to be delivered to India’s Dahej terminal, a source familiar with the matter said.

Shiptracking data showed about 155 oil and chemical tankers were in the Middle East Gulf area on June 15, down from 201 at the end of May.Shipping analysts said confidence would likely return gradually as vessels resume regular movements through the waterway.

Anoop Singh, global head of shipping research at Oil Brokerage, said wider shipping activity would need time to recover and freight rates could remain elevated while operators assess risks.The Japanese Shipowners’ Association said it welcomed the agreement but wanted more concrete information before recommending that vessels return to normal operations.

Japanese shipping companies also said they would only resume navigation after safety conditions were fully confirmed.The Strait of Hormuz handles a significant share of global oil and LNG shipments, making its reopening a key factor for energy markets and international trade.

The latest exchange of fire marked the most direct confrontation between the two adversaries since an April ceasefire, underscoring the fragility of diplomatic progress and highlighting the risk that violence elsewhere in the region could reignite the conflict.

Iran’s military headquarters announced that armed forces operations against Israel had been halted after what it described as a “painful response” to Israeli attacks on Lebanon. The statement, however, warned that Tehran would resume military action if Israeli operations continued, including in southern Lebanon.

A source briefed on the matter told Reuters that Israel had also decided to suspend attacks on Iran, although Israeli officials maintained that the military remained prepared to continue operations if required.

The confrontation began after Iran launched missiles toward Israeli territory late on Sunday, which Tehran said was retaliation for Israeli strikes on Hezbollah strongholds on the outskirts of Beirut. Israel responded with attacks on Iranian targets, including a petrochemical facility in the southwestern city of Mahshahr.

Israeli officials said the site was used to produce and export raw materials for Iran’s ballistic missile program. A provincial Iranian official told local media that sections of the complex had sustained damage.

Iran’s Islamic Revolutionary Guard Corps said it retaliated by targeting a similar petrochemical facility in the Israeli port city of Haifa.

The flare-up reverberated through global markets. Oil prices surged as much as 5% before retreating after Iran signaled that its initial military response had concluded. The U.S. dollar also eased after reaching its highest level in nearly two months.

The renewed violence has complicated Trump’s efforts to secure a broader agreement with Tehran. The conflict, launched by the United States and Israel on Feb. 28, has remained largely frozen since an April 8 ceasefire paused full-scale warfare.

In a social media post, Trump said Israel and Iran were seeking “an immediate CEASEFIRE” and that final negotiations toward peace were progressing. He added that a U.S. blockade of Iranian ports would remain in place until a comprehensive agreement was reached.

An Israeli official confirmed that Trump spoke with Prime Minister Benjamin Netanyahu on Monday as Washington sought to prevent the latest escalation from derailing diplomacy.

Despite indications of restraint, officials on both sides maintained a hardened stance. An Israeli military official said the armed forces were prepared to continue operations “for as long as it takes” and confirmed strikes on newly rebuilt Iranian air-defense systems in addition to the petrochemical facility.

Iranian officials likewise signaled readiness for a prolonged confrontation. A military source quoted by the semi-official Tasnim news agency said Tehran could renew attacks, including against U.S. interests in the region, if circumstances warranted.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said talks with Washington were taking place in an atmosphere of “extreme suspicion” and accused Israel of attempting to sabotage diplomatic efforts through its military actions in Lebanon.

In Tehran, state media reported explosions and said air-defense systems had shot down a drone over the capital. No significant casualties or major damage were immediately reported.

The conflict also drew in Yemen’s Iran-aligned Houthis, who announced plans to prevent Israeli maritime navigation through the Red Sea and claimed responsibility for missile launches against Israel.

An Israeli military official said Iran had fired nearly 30 ballistic missiles toward Israel since Sunday evening, while the Houthis launched an additional two missiles.

Iran’s National Emergency Organization said 15 people were injured in the latest Israeli strikes, including 14 in Mahshahr County. No fatalities were reported. Israel’s ambulance service said there were no reported casualties from the missile attacks on Israeli territory.

The latest exchange has reinforced the central role of Lebanon in regional diplomacy. Israel has continued military operations against Hezbollah despite the Iran ceasefire, arguing that the Lebanese front is separate from its conflict with Tehran.

Hezbollah has maintained attacks against Israel and insists it will not disarm unless Israeli operations cease. Tehran has repeatedly stated that any comprehensive peace agreement with Washington depends on an end to fighting in Lebanon.

U.S. Ambassador to Lebanon Michel Issa said Lebanese-Israeli negotiations were scheduled to resume in Washington, offering a potential diplomatic channel as efforts continue to prevent the conflict from expanding further.

The war has also reshaped regional trade routes. Iran continues to block most shipping through the Strait of Hormuz, a critical artery for global energy supplies, while Washington has maintained a blockade on Iranian ports.

Trump has said any final settlement must ensure Iran does not develop a nuclear weapon. Tehran has demanded the lifting of international sanctions, access to frozen assets and recognition of its influence over the strategically important waterway.

In a joint statement issued after meetings in Paris, the G7 officials said it was “imperative” to restore normal transit through the strategic waterway, which handles a substantial share of global oil and liquefied natural gas shipments.

The statement was released following discussions among finance chiefs from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, as tensions linked to the Middle East conflict continue to disrupt international trade and energy flows.

The ministers also emphasized the need to address widening global current account imbalances and reaffirmed their commitment to multilateral coordination in responding to threats facing the world economy.

The G7 warned against arbitrary export restrictions and stressed the importance of maintaining stable and predictable energy markets at a time of heightened geopolitical uncertainty and supply chain volatility.

The Strait of Hormuz, located between Iran and Oman, remains one of the world’s most strategically significant maritime chokepoints. Any disruption to traffic through the corridor can have immediate consequences for oil prices, shipping costs and inflationary pressures across major economies.

The latest G7 statement reflects growing international concern over the economic fallout from escalating regional tensions and the broader impact on global trade, energy security and financial markets.

Bank of Japan data released Friday showed the corporate goods price index (CGPI), which measures prices companies charge each other for goods and services, rose 4.9% in April from a year earlier, sharply exceeding market forecasts for a 3.0% increase.
The annual increase was the fastest since May 2023 and accelerated significantly from March’s 2.9% rise.

The figures underscored the growing impact of higher import costs on Japan’s economy following disruptions to oil shipments through the Strait of Hormuz amid the Iran conflict. Japan remains heavily dependent on imported energy, particularly crude oil from the Middle East.

The yen-denominated import price index jumped 17.5% in April from a year earlier, marking the steepest increase since December 2022 and reflecting both elevated global energy prices and the weaker yen’s effect on import costs.

On a monthly basis, wholesale prices rose 2.3% in April after increasing 1.0% in March, the data showed.
Petroleum and coal product prices climbed 5.3% from a year earlier as crude oil and jet fuel costs rose, while chemical goods prices surged 9.2%, the strongest increase since September 2022. Naphtha prices soared 79.4%, according to the report.

The data came a day after a Bank of Japan policymaker called for raising interest rates “at the earliest stage possible” to contain inflationary pressures stemming from higher fuel costs and supply disruptions linked to the Middle East conflict.

Economists said the breadth of price increases would be closely monitored by policymakers assessing whether inflation pressures are becoming more entrenched across the broader economy.

“If price rises are contained to oil-related goods, there is little need for the BOJ to respond,” said Masato Koike, senior economist at Sompo Institute Plus.
“But if they broaden to a wide range of goods, the BOJ will likely have to raise rates,” he said.

The inflation surge adds to pressure on the central bank as it seeks to normalize monetary policy after years of ultra-low interest rates and stimulus measures aimed at reviving growth and inflation.

India, which holds the BRICS presidency this year, is hosting the two-day meeting involving founding members Brazil, Russia, China and South Africa alongside newer entrants including Iran and the United Arab Emirates.

The summit comes as the war involving Iran and escalating instability around the Strait of Hormuz continue to disrupt shipping lanes and fuel markets, increasing pressure on energy-importing economies across Asia.

Indian foreign ministry spokesperson Randhir Jaiswal said the discussions would focus on “global and regional issues of mutual interest,” while diplomats indicated energy security, trade flows and geopolitical coordination would be central themes.

Iranian Foreign Minister Abbas Araghchi arrived in New Delhi late Wednesday, according to Iran’s embassy, while Russian Foreign Minister Sergey Lavrov held talks with Indian Foreign Minister Subrahmanyam Jaishankar shortly after arriving in the Indian capital.

Jaishankar said discussions with Lavrov covered “trade and investment, energy and connectivity” as well as broader multilateral issues, adding that political coordination among BRICS members had become increasingly important in a “volatile global environment.”The conflict in Iran has heightened concerns in India, which depends heavily on Middle Eastern crude oil and fertilizer imports.

Disruptions to Gulf shipping routes have contributed to volatility in oil and gas prices, complicating New Delhi’s economic outlook.Originally established in 2009 as a coalition of major emerging economies seeking greater influence in institutions traditionally dominated by Western powers, BRICS has expanded rapidly in recent years as member states sought to strengthen political and economic coordination across the Global South.

The bloc now includes Egypt, Ethiopia, Iran, the United Arab Emirates and Indonesia, though officials have not confirmed whether all member states are represented at the meeting.Despite efforts to project unity, internal divisions remain pronounced.

Differences over the Middle East conflict, relations with Western powers and regional rivalries have complicated attempts to present a unified diplomatic position.Indian officials declined to confirm whether the ministers would issue a joint communique at the end of the summit.

Prime Minister Narendra Modi is expected to meet participating foreign ministers ahead of a broader BRICS leaders’ summit scheduled later this year.

In an interview aired Sunday on 60 Minutes, Netanyahu said he intended to reduce the financial component of U.S.-Israeli military cooperation to zero over time, arguing that Israel should begin preparing for a new framework in bilateral defense relations.
“I want to draw down to zero the American financial support, the financial component of the military cooperation that we have,” Netanyahu told CBS.

Israel currently receives approximately $3.8 billion annually in U.S. military assistance under a decade-long agreement signed in 2016 covering the period from 2018 through 2028.

Netanyahu said it was “absolutely” the right moment to reconsider the structure of the alliance, adding that he did not want to wait for future congressional negotiations before initiating changes.

The remarks come at a time of growing political debate in the United States over support for Israel following the Gaza war and the widening regional conflict involving Iran.

Recent polling by the Pew Research Center found rising unfavorable views of Israel among Americans, with public confidence in Netanyahu declining sharply compared with the previous year.

Netanyahu attributed the erosion in support largely to the influence of social media, claiming foreign actors had manipulated online platforms in ways that damaged Israel’s international standing.

While declining to identify specific countries, he said several states had used social media campaigns to influence public perceptions during the conflict.

The Israeli leader also acknowledged that Israeli planners initially underestimated Iran’s ability to disrupt shipping through the Strait of Hormuz, a critical global oil transit route through which roughly one-fifth of the world’s petroleum supplies normally pass.

The conflict with Iran, which escalated after joint U.S.-Israeli military action earlier this year, contributed to a surge in global oil prices and renewed inflationary pressure in the United States.

“It took a while for them to understand how big that risk is, which they understand now,” Netanyahu said regarding the strategic implications of potential Iranian interference in the waterway.

Asked about the possibility of regime change in Iran, Netanyahu said weakening Tehran’s leadership could dismantle the regional network of armed groups aligned with the Iranian government, including Hezbollah, Hamas and the Houthis in Yemen.

“If this regime is indeed weakened or possibly toppled, I think it’s the end of Hezbollah, it’s the end of Hamas, it’s probably the end of the Houthis,” Netanyahu said.
However, he stopped short of predicting such an outcome, saying leadership change in Iran was “possible” but “not guaranteed.”

Mohammad Jafar Asadi, a senior figure in Iran’s military central command, said evidence showed that Washington was not committed to its promises or agreements, according to remarks published by Iran’s Fars news agency.“A renewed conflict between Iran and the United States is likely,” Asadi said, adding that previous developments had demonstrated that the United States could not be trusted to uphold commitments.

His comments came hours after President Donald Trump said he was dissatisfied with a new Iranian negotiating proposal delivered through mediator Pakistan on Thursday.“At this moment I’m not satisfied with what they’re offering,” Trump told reporters, blaming delays in diplomacy on what he described as “tremendous discord” inside Iran’s leadership.

“Do we want to go and just blast the hell out of them and finish them forever or do we want to try and make a deal?” Trump said, adding that he would prefer to avoid military escalation “on a human basis.”The war, launched by the United States and Israel in late February, has been paused since April 8 after a ceasefire took hold following weeks of strikes across the region.

One round of peace talks in Pakistan failed to produce a breakthrough.Iran’s judiciary chief, Gholamhossein Mohseni Ejei, said on Friday that Tehran had never avoided negotiations but would not accept peace terms imposed by outside powers.

The White House has not disclosed details of the latest Iranian proposal. Axios reported that U.S. envoy Steve Witkoff had proposed amendments that would return Iran’s nuclear program to the center of negotiations, including demands that Tehran not move enriched uranium from bombed facilities or restart activity there during talks.

News of the proposal briefly pushed global oil prices down by nearly 5%, though prices remain significantly above pre-war levels because of continued disruption in the Strait of Hormuz, one of the world’s most critical energy shipping routes.Iran has maintained effective control over the strait since the conflict began, severely disrupting flows of oil, gas and fertilizer exports, while the United States has responded with a blockade targeting Iranian ports.

Washington said late Friday it had approved major arms sales to regional allies, including a $4 billion Patriot missile deal with Qatar and nearly $1 billion in precision weapons systems for Israel.In Washington, lawmakers are also debating whether Trump violated the legal deadline for seeking congressional approval for the military campaign.

Administration officials argue that the ceasefire paused the 60-day clock requiring congressional authorization, while opposition Democrats dispute that interpretation.Trump told congressional leaders that “there has been no exchange of fire between United States Forces and Iran since April 7” and said hostilities had effectively “terminated.”Inside Iran, the economic impact of the war continues to deepen.

New U.S. sanctions targeting Iranian currency firms and disruptions to trade have worsened inflation, which has reportedly surged above 50%.“For many people, paying rent and even buying food has become difficult,” one Tehran resident said, reflecting growing public anxiety over the prolonged crisis.Supreme leader Mojtaba Khamenei on Friday urged business owners to avoid layoffs and called for what he described as “economic and cultural jihad” in response to mounting economic pressure and external threats.

In a written message read on Iranian state television, Khamenei said Iran’s scientific and military capabilities, including its nuclear and missile programs, formed part of the country’s sovereign identity and would be defended like its territorial integrity.

“Ninety million proud and honorable Iranians inside and outside the country regard all of Iran’s identity-based, spiritual, human, scientific, industrial and technological capacities from nanotechnology and biotechnology to nuclear and missile capabilities as national assets,” he said.

He added that Iranians would protect those capabilities “just as they protect the country’s waters, land and airspace.”Khamenei has led Iran since Feb. 28, following an airstrike that killed his father, former Supreme Leader Ali Khamenei, during the early phase of the U.S.-Israel conflict with Iran.

In his statement, he also sharply criticized the U.S. military presence in the Gulf region, saying the only place Americans belonged in the Arabian Gulf was “at the bottom of its waters.”“By God’s help and power, the bright future of the Arabian Gulf region will be a future without America,” he said, adding that regional prosperity should be determined by neighboring states rather than outside powers.

His comments came as the Strait of Hormuz remains effectively under Iranian control following weeks of confrontation, severely disrupting global energy shipments through the strategic waterway that previously handled about one-fifth of world oil supply.

The remarks followed reports that Washington is advancing plans for an international naval coalition to reopen the strait and secure maritime transit after the conflict.According to a U.S. State Department cable seen by Reuters, Washington has invited partner countries to join a proposed coalition called the Maritime Freedom Construct (MFC), aimed at restoring shipping access and building what it described as a post-conflict maritime security framework for the Middle East.

“The MFC constitutes a critical first step in the establishment of a post-conflict maritime security architecture for the Middle East,” the cable said.France, Britain and other allied governments have discussed contributing to such an initiative but indicated they would only participate in efforts to reopen the Strait of Hormuz after active hostilities end.

Oil prices have remained volatile amid fears of prolonged disruption to Gulf shipping routes, with energy markets closely watching whether diplomatic efforts can reduce tensions between Washington and Tehran.

GIFT Nifty futures were trading at 24,002 points at 7:58 a.m. IST, indicating the benchmark Nifty 50 would open below Monday’s close of 24,092.70.The Nifty and the BSE Sensex had snapped a three-session losing streak on Monday, supported by a rebound in information technology stocks after sharp losses last week.

However, analysts said broader market momentum remained fragile due to persistent geopolitical uncertainty in the Middle East.Investor concerns have centered on the Strait of Hormuz, a critical shipping route that handles about one-fifth of global oil flows. Continued disruptions and uncertainty around the conflict have pushed Brent crude prices close to $109 per barrel.

Higher oil prices are a significant risk for India, the world’s third-largest crude importer, as they raise inflation pressures, increase the import bill and can weigh on economic growth as well as corporate profitability.

Efforts to end the Iran conflict appeared stalled after a U.S. official said on Monday that President Donald Trump was dissatisfied with Tehran’s latest proposal to resolve the war.Back in domestic markets, foreign portfolio investors sold Indian equities worth 11.51 billion rupees ($122.2 million) on Monday, extending their selling streak to a sixth consecutive session.

Domestic institutional investors remained net buyers for a third straight day, purchasing shares worth 41.24 billion rupees and helping cushion broader market declines.Among individual stocks, UltraTech Cement, India’s largest cement producer by capacity, is expected to remain in focus after reporting quarterly profit above analyst estimates, supported by stronger demand and favorable weather conditions for construction activity.

State-owned Coal India also posted better-than-expected March-quarter earnings, helped by higher coal prices and stronger demand.SBI Cards and Payment Services reported a 14% year-on-year increase in quarterly profit, adding to investor focus on earnings-driven moves across sectors.

Market participants are expected to remain cautious in the near term, balancing domestic earnings momentum against external risks from energy prices, global inflation concerns and sustained foreign capital outflows.

Companies producing items such as plush toys, footwear, apparel and household goods say the effects of tighter oil markets are already filtering through supply chains, with suppliers raising prices for key inputs derived from petroleum.

Executives report early signs of cost inflation that could eventually be passed on to consumers if disruptions persist.Aleni Brands, a Florida-based manufacturer of soft toys made from polyester and acrylic fibers, said its Chinese suppliers increased material costs by 10% to 15% within weeks of the conflict’s escalation.

Chief Executive Ricardo Venegas said the company is absorbing higher costs for now but may raise prices in 2027 if conditions persist.Petrochemicals derived from oil and natural gas are used in more than 6,000 consumer products, according to the US Department of Energy, including items such as lipstick, pajamas, detergents, synthetic fabrics and medical supplies.

While the majority of crude oil is used as fuel, a significant portion is refined into chemical compounds that underpin modern manufacturing.Industry experts say crude oil, composed primarily of hydrocarbons, is processed into core petrochemicals such as ethylene, propylene and benzene, which form the basis of plastics, nylon and polyester.

These materials are widely used across sectors ranging from textiles to electronics and healthcare.Consultants note that material costs represent a substantial share of manufacturing expenses.

Andrew Walberer, a partner at Kearney, said raw materials can account for up to 30% of production costs for products such as garments, amplifying the impact of commodity price swings.

Trade groups warn that sustained oil prices above $90 per barrel could accelerate inflationary pressures across supply chains. The Footwear Distributors and Retailers of America estimates that petrochemical-based materials make up roughly 70% of synthetic footwear, with oil price fluctuations directly influencing around 30% of those costs.

The group projects retail shoe prices could rise by 1.5% to 3% in the coming months.Manufacturers are also adjusting procurement strategies. Rinseroo, which produces portable washing attachments using petroleum-based components such as polyvinyl chloride, said it increased its order volumes from China after being warned of a potential 30% cost increase.

Founder Lisa Lane said the company is exploring cost-cutting measures while delaying further price hikes after earlier increases linked to tariffs.In the healthcare sector, Gentell said it plans to raise prices by about 15% as costs for petrochemical-based adhesives and energy rise.

Chief Executive David Navazio estimated overall company expenses have increased by roughly 20%.Analysts say the broader economic impact of the conflict is already visible in higher fuel prices, which are feeding into transportation and logistics costs.

This is pushing up prices for goods moved by diesel-powered freight networks, as well as air travel costs due to rising jet fuel prices.

With supply disruptions now extending into their second month, industry participants say prolonged instability could lead to sustained cost pressures across global manufacturing, particularly for products reliant on synthetic materials and plastic-based components.