US-Iran Strikes Escalate; Trump Says Iran Seeks Talks
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- IEA said on Friday (July 10, 2026) the U.S.-Iran escalation could upend its forecast of a significant oil market surplus next year, noting global supply jumped in June when the Strait of Hormuz reopened but still lagged pre-war levels.
- Iran held a funeral for former Supreme Leader Ali Khamenei in Mashhad on Friday, more than four months after his killing in an airstrike, with his flag-covered coffin carried into the shrine of Imam Reza as crowds waited outside.
- Mojtaba Khamenei, Ali Khamenei's son and successor, made no public appearance at the funeral despite the massive gathering in his father's hometown.
- Thursday's U.S.-Iran strikes were the largest of the exchange, with sirens sounding at least three times in Bahrain — home to the U.S. Navy's 5th Fleet headquarters — and missiles targeting Kuwait and Qatar.
- Trump said Iran has asked to continue talks and the U.S. agreed, though two days of attacks have repeatedly threatened the ceasefire and raised fears of a return to all-out war.
Why it matters: The IEA said Friday the U.S.-Iran escalation jeopardizes its forecast of a significant oil surplus next year, noting June's Strait of Hormuz reopening only partially restored pre-war supply. With Bahrain (home to U.S. Navy's 5th Fleet), Kuwait, and Qatar now struck, the conflict has spread well beyond direct U.S.-Iran exchanges.
