Summary
- Despite Trump’s pleading to Netanyahu not to respond, Israel launched missiles at Iran striking military targets inside the country.
- Iran fires missiles on Israel, after IDF unleashed deadly airstrike on Beirut earlier Sunday.
- Despite Trump saying on Sunday that he would tell Israeli Prime Minister Benjamin Netanyahu not to strike back, an Israeli official warned that “There will be a forceful response.“
- Sunday is day 100 since President Trump launched Operation Epic Fury.
- Ghalibaf warns after IDF escalation in Lebanon: US & Israeli bases, assets in region are ‘legitimate targets’.
- Talks stuck on unfreezing assets: “Twenty-four billion dollars is not much for America if he wants to reach an agreement with Iran,” Iranian Gen. Mohsen Rezaei told CNN. “This is our own, not America’s money.”
- Defying Washington, Iran has been collecting $1.5 million to $2 million per vessel passing through the Strait of Hormuz (Fars).
* * *
Oil Spikes After Israel Strikes Military Targets Inside Iran, Ignoring Trump’s Pleas
Ignoring Trump’s pleas not to respond to Iran’s earlier strike, the Israel Defense Force has confirmed that it has launched strikes in the last few minutes against military targets in Western and Central Iran.
The Israeli Air Force struck military targets belonging to the Iranian terror regime in western and central Iran a short while ago.
— Israel Defense Forces (@IDF) June 8, 2026
According to unconfirmed reports, explosions were heard in at least 6 cities across Iran, including Kermanshah, Urmia, Tehran, Mehrabad, Tabriz, Isfahan.
Israeli strikes on Najafabad, western Iran. pic.twitter.com/5QezAUbp2k
— DD Geopolitics (@DD_Geopolitics) June 8, 2026
Iran’s decision is a slap in the face for Trump who earlier had communicated with Israel’s Netanyahu, pleading the PM not to strike back.
The move, which will make Trump look even more powerless as he can’t control either Iran or Israel, sent oil surging over $3 in late Sunday trading, with WTI last just around $94 and Brent below $97.
* * *
Trump Presses Israel To Hold Back
President Trump said on Sunday he would tell Israeli Prime Minister Benjamin Netanyahu not to strike back after Iran fired a salvo of missiles at Israeli targets in retaliation for an attack on the outskirts of Beirut, news outlet Axios reported.
Iran has long said any peace deal with the U.S. would depend on a ceasefire also holding in Lebanon, which Israel invaded in March in pursuit of Iran-backed Hezbollah fighters who fired rockets and drones across the border in solidarity with Tehran. But Israel earlier on Sunday launched strikes in the Beirut area for the first time since the U.S. announced a truce plan for Lebanon last week.
The Israeli military later said it had identified missiles launched from Iran and that its defense systems had intercepted them. Details on whether Israel suffered any damage were not yet available.
Trump, who was spending the weekend at his golf club in Bedminster, New Jersey, had been briefed about the escalation between Iran and Israel, a U.S. official told Reuters. The White House did not immediately respond to a request for comment.
“It’s certainly not going to help negotiations,” Trump told Fox News after the Iranian missile launches. “What I would suggest to Iran: You’ve shot your missiles, that’s enough, get back to the table and make a deal.”
Asked about the earlier Israeli strike on Beirut, he said: “I’m not happy about it.” Trump also told Axios he would call Netanyahu and press him not to retaliate.
Iran’s chief peace negotiator, parliamentary speaker Mohammed Baqer Qalibaf, said U.S. bases and Israeli assets are legitimate targets because of hostile acts including the “violation of agreements over Lebanon.” “They showed that they only understand the language of power,” he wrote on X.
۱/ نه به آتشبس پایبندند نه به گفتگو باور دارند، و با محاصرهٔ دریایی و نقض توافقات دربارهٔ لبنان نشان دادند که فقط زبان قدرت میفهمند.
— محمدباقر قالیباف | MB Ghalibaf (@mb_ghalibaf) June 7, 2026
Ebrahim Rezaei, an influential hardline lawmaker who serves as spokesperson for the Iranian parliament’s national security committee, posted on X that Iran would deliver a “decisive and painful response” to Sunday’s Israeli strikes on Lebanon.
به حمله رژیم صهیونسیتی به ضاحیه پاسخ قاطع و دردآور خواهیم داد. این سگ هار را باید تأدیب کرد و سر جایش نشاند.
امشب آسمان سرزمینهای اشغالی را ببینید.— ابراهیم رضایی (@EbrahimRezaei14) June 7, 2026
Iran has not targeted Israel directly since a ceasefire in the wider war in April, although Hezbollah has done so.
In turn, an Israeli official, responding to the apparent threat, told Reuters that Israel would retaliate against any attacks on its territory from Iran, and consider it “an opportunity to renew the campaign”.
Washington and Tehran have shown little progress in reaching a deal to end the war that Trump launched in February with a campaign of air strikes alongside Israel against Iran. Trump has repeatedly threatened to restart the strikes unless there is an agreement soon.
“We’re very close to a deal, or I’m going to blow the hell out of them,” Trump told NBC News in an interview, broadcast to mark 100 days of the conflict. The comments were recorded on Friday and broadcast on Sunday as Trump visited his New Jersey golf course. Trump has said a similar version of the same news for much of the past month.
Meanwhile, Netanyahu said the Israeli strikes on Sunday on Beirut’s southern outskirts, a district known as Dahiyeh that has long been a Hezbollah stronghold, were ordered in response to Hezbollah firing toward Israel. The Israeli military earlier said it had intercepted two projectiles fired over the border. It issued an evacuation order for the southern Lebanese city of Tyre and surrounding areas ahead of possible strikes there.
Elsewhere in Beirut on Sunday, mourners held a military funeral for Brigadier General Wissam Sabra, a senior military officer killed in a strike on his vehicle in south Lebanon on Saturday.
The wider war has been stalemated since the U.S. and Israel paused their attacks on Iran in early April, with Tehran blocking most shipping through the Strait of Hormuz, the main transit route for Middle East oil. Washington has imposed its own blockade of Iranian ports.
Though Washington and Tehran have said they are close to a preliminary agreement that would reopen the strait, they have repeatedly traded strikes, with escalations in recent days that have included attacks on nearby Arab states hosting U.S. bases.
Early on Saturday, U.S. forces struck Iranian coastal radar sites in Goruk and Qeshm Island, both in the strait, after shooting down drones launched by Iran that U.S. Central Command said posed a threat to maritime traffic. Two more Iranian attack drones that were threatening shipping in the strait were shot down, the U.S. military said late on Saturday.
Iran’s Revolutionary Guards said they retaliated against U.S. bases in Kuwait and Bahrain. Kuwait’s army said it engaged seven ballistic missiles that passed over residential areas, resulting in material damage but no casualties.
Trump has said any agreement to end the war must prevent Iran from developing a nuclear weapon, and he is under pressure to deliver terms tougher than those agreed in 2015 under then-President Barack Obama in a deal Trump later repudiated.
Tehran’s demands include the lifting of U.S. and international sanctions, recognition of its sway over the strait and the release of billions of dollars in frozen assets. However, as reported earlier, Washington is weighing making Iranian assets available to Gulf neighbors to repair damage inflicted by Iran. Iran’s Deputy Foreign Minister Kazem Gharibabadi said on Sunday any such diversion of Iranian assets would be illegal, and Tehran would take measures in response.
* * *
Iran Launches Missiles On Israel In First Since April
Tehran makes good on its earlier threats, after the IDF conducted a deadly airstrike on the Lebanese capital of Beirut earlier Sunday. Day 100 of the war has seen a major renewal and escalation, again bringing Iran and Israel into a likely state of all-out war, per WSJ:
Iran fired missiles toward Israel on Sunday, after a deadly Israeli airstrike on Beirut hours earlier targeting the Tehran-backed militants Hezbollah, Israel’s military said.
It marks the first time Iran has targeted Israel during its ceasefire with the U.S. that went into force in early April.
The attack came after Tehran threatened to hit Israel and American bases in the Middle East in response to the airstrike on the Lebanese capital, the first time Israeli warplanes have targeted Beirut since a ceasefire between Israel and Lebanon was announced by the U.S. last week.
So is the ceasefire dead yet?
BREAKING: Trump to Fox News:
What I would suggest to Iran: You’ve shot your missiles, that’s enough. Get back to the table and make a deal.
Source: @TreyYingst
— Clash Report (@clashreport) June 7, 2026
President Trump has continued to maintain adherence to it, and days ago suggested that a ‘moderate’ amount of firing doesn’t necessarily mean a broken ceasefire.
WATCH: Iranians celebrate missile strikes targeting Israel. pic.twitter.com/CzQKenllnN
— Clash Report (@clashreport) June 7, 2026
Israel earlier confirmed an airstrike on a Hezbollah headquarters in the Dahieh district of Beirut. Iran last week warned again hitting Beirut, saying it would assure US and Israeli bases and assets in the region would come under new attack. The earlier warning is reviewed as follows:
- Iran’s military said Israel had “crossed all red lines” in intensifying its attacks in southern Lebanon and targeting the south Beirut suburb of Dahieh.
- “If it expands its attacks in that area, or responds to Iran’s action, it will face more forceful blows, and devastating attacks will be launched” against Israel and its supporters, the military added.
Video of reported initial inbound projectile on Israel circulating…
A third round of sirens sound in northern Israel, after the IDF intercepted several Iranian ballistic missiles. No initial reports of injuries or damages.
A senior Israeli official tells Israeli media: “There will be a forceful response.” pic.twitter.com/BixzsXOrhs
— Ariel Oseran أريئل أوسيران (@ariel_oseran) June 7, 2026
US, Israeli Bases are ‘Legitimate Targets’: Iran Issues Fresh Threat
On Sunday Tehran ramped up its threats to renew ballistic missile and drone attacks on Israel and America’s Gulf allies, describing that the Israeli military’s ongoing deadly attacks on Lebanon could obliterate the extended ceasefire with the US
Iranian Parliament Speaker Mohammad Bagher Ghalibaf announced on X that the ongoing American naval blockade against the Islamic Republic, with Washington having given a green light to Israel for its attacks on Hezbollah and Lebanon, turns both countries’ bases and assets in the region into “legitimate targets.” The last days even saw a Lebanese general and other officers killed by IDF airstrike in south Lebanon.
“They neither abide by a ceasefire nor believe in negotiations,” Ghalibaf wrote.
Below is the latest Bloomberg summary on where stalled negotiations stand… to be expected it cites “little progress”:
“The US and Iran appear to be making little progress toward an interim deal to end the war Washington and Israel began 100 days ago, as fresh attacks pile pressure on a fragile ceasefire,” Bloomberg writes, and continues:
- The past week saw the worst flare-up in tensions since the truce started around April 8.
- Negotiations between Washington and Tehran are bogged down over the fate of billions of dollars of frozen Iranian assets and a parallel conflict between Israel and Iran-backed Hezbollah in Lebanon.
- US Central Command said early Sunday it downed two Iranian attack drones that threatened international maritime traffic in the Strait of Hormuz, the waterway crucial to global energy exports that’s also been at the heart of discussions.
- On Friday, six ballistic missiles fired at Bahrain and Kuwait were intercepted and another failed to reach their intended target, hours after four unmanned craft headed to Hormuz were shot down, Central Command said. The US struck Iranian coastal surveillance radar sites in Goruk and on Qeshm Island, it added.
Talks Stuck on Unfreezing Iran’s Assets
The U.S. and Iran remain stuck in preliminary talks to end the war, with the main obstacle being Tehran’s demand for access to billions of dollars in frozen assets and the Trump administration’s refusal to provide upfront cash or broader sanctions relief. Tehran is seeking about $12 billion upfront and $24 billion during a proposed 60-day negotiation window.
“Twenty-four billion dollars is not much for America if he wants to reach an agreement with Iran,” Gen. Mohsen Rezaei, a senior adviser to Iran’s top official, told CNN on Friday. “This is our own, not America’s money.”
For the Trump administration, releasing frozen funds for Tehran is optically displeasing because the president spent years blasting the Obama administration over the $1.7 billion Iran payment tied to the 2015 nuclear deal, and later criticized the Biden administration’s move to allow Iran access to $6 billion in assets during a prisoner swap.
The U.S. government estimates that Tehran has $100 billion in inaccessible assets, mostly oil revenue trapped abroad, including funds in China, Qatar, Oman, and Iraq.
Iran FM Complains of ‘Moving Goal Posts’
On Sunday, Iranian Foreign Ministry spokesman Esmaeil Baghaei spoke with CNN’s senior international correspondent Frederik Pleitgen about the ongoing negotiations with the U.S.
Baghaei stated, “The main problem of negotiating with this administration is that you have to face so many changing positions, moving the goal posts, different statements, contradictory remarks by different officials, so it makes the whole process very cumbersome.”
He outlined one of the main problems is that “the Americans must understand that they have to recognize Iran’s rights,” including its right to peaceful nuclear enrichment under the international non-proliferation treaty.
“At the same time, when they are talking about our blocked assets, they’re not going to give us any concession,” he said. CNN reported earlier on Sunday that the US plans to allow Iranian assets to be used for rebuilding projects in Gulf countries impacted by the war, according to a source close to US Treasury Secretary Scott Bessent.
Baghaei added that the US must “simply stop their sanctions” and “need to let Iranian assets be released and be available for the Iranians.”
Iran Implements Toll System as US Balks
Beyond US-Iran talks, IRGC-linked Fars News reports that Iran has been collecting $1.5 million to $2 million per vessel passing through the Strait of Hormuz.
Fars said the payments are deposited into Iran’s treasury under the budget law and directed toward designated spending areas. Some payments are reportedly settled not in cash but in USDT/Tether or through barter arrangements.
Top Overnight Headlines (courtesy of Bloomberg):
US-Iran Conflict Flashpoints
- US Central Command shot down two Iranian attack drones over the Strait of Hormuz early Sunday that threatened international maritime traffic
- US forces intercepted multiple Iranian missiles and drones in the Persian Gulf late Friday and responded with attacks on radar sites in Iran
- Six ballistic missiles fired by Iran at Bahrain and Kuwait were intercepted, with a seventh not reaching its intended target
- US attacked Iranian coastal surveillance radar sites in Goruk and on Qeshm Island early Saturday
- Iran condemned US attack on its radar and coastal surveillance facilities as a clear violation of the April 8 ceasefire
Peace Negotiations Status
- The US and Iran appear to be making little progress toward an interim deal to end the war 100 days after it began
- Negotiations are bogged down over the fate of $24 billion in frozen Iranian assets
- Pakistan’s interior minister was in Tehran on Sunday in a fresh bid to restart negotiations between Iran and the US
- Iran’s Baghaei said the US needs to let Iranian assets be released and must stop their sanctions
- The Trump administration is seeking to steer Iranian assets toward helping US allies in the Persian Gulf rebuild from damage inflicted by Tehran
War Damage and Infrastructure
- About 7,000 megawatts of Iran’s power-generation capacity was damaged in the war, with some 2,500 megawatts restored to service so far
- Despite 4,000 megawatts of damaged power plant capacity remaining offline, there are currently no plans to implement planned blackouts this summer
- Kuwait’s airspace was temporarily closed for two hours early Saturday as a precautionary measure due to Iranian missile and drone attacks
Economic Impact
- Italy extended a fuel tax cut until July 3, cutting pump prices by €0.05 per liter for diesel while keeping it unchanged for unleaded fuel
- India raised prices of domestic cooking gas for the second time since the Iran war started, with a 14.2-kilogram LPG cylinder increasing by 29 rupees
- Container shipping spot rates from Asia to northern Europe rose 27% to $3,649 as of Friday, while rates to the US West Coast increased 20% to $3,933
- Crude oil remains below $100 a barrel despite the Strait of Hormuz being effectively blocked for over three months, defying forecasts for prices as high as $200
Previous US-Iran Wrap
Institutional Market commentary:
- Goldman analyst Johann Cohen: Markets appeared to suffer from headline fatigue, alongside fading expectations of any near-term agreement between the US and Iran.
- UBS analyst Zeynep Akkok: European equities are resilient, with SX5E trading off earlier lows and price action is largely unchanged into the weekend as markets pause after recent moves. The focus remains on US-Iran negotiations, with US President Trump flagging talks are in their final stages, but the continued lack of tangible progress caps upside. The tone remains constructive, but increasingly conditional on delivery.
- Goldman analyst Chris Hussey: But as we saw back in 2021, global supply chain shortages are plentiful. The prolonged blockade of the Strait of Hormuz is still cutting off about 10% of the world’s oil supply with a bigger impact on things like jet fuel, diesel, and aluminum.
Global Supply Chain:
- Alarming Supply-Chain Stress Sends Transport Cost Soaring, Fueling Inflation Fears
- UBS Reactivates Supply-Chain Stress Watch After Detecting Alarmingly Rapid Deterioration
Energy Market:
Tyler Durden
Sun, 06/07/2026 – 21:45
