Funeral processions began in Najaf, drawing hundreds of thousands of mourners to the Shrine of Imam Ali. The late Ayatollah Ali Khamenei’s body, draped in the Islamic Republic’s flag, was carried through streets where flags of Iran and red‑Muted mourning banners were waved.

Concurrently, U.S. forces struckуры Iranian targets, and Iran retaliated against Kuwait and Bahrain. The clash erupted in the Strait of Hormuz, a choke‑point for global oil shipping. The U.S. and Iran paused talks until after the burial, raising the risk that an interim cease‑fire could unravel.

Energy markets reacted sharply. Oil prices spiked as traders feared supply disruptions; shipping lanes in the Gulf faced heightened risk, prompting insurers to hike premiums. Multinational firms with exposure to the region reassessed risk and adjusted hedging strategies.

Investors should monitor the unfolding diplomatic dialoguefirms’ exposure to the Gulf and the potential for sanctions enforcement. Market volatility may persist until a clear resolution emerges, affecting energy and shipping sectors across the globe.