Skip to content
You can now search across every topic, entity and event.What's new
European Oil Markets
15JUN

Iraq to host Khamenei funeral rites

2 min read
11:33UTC

Iraqi President Nizar Amidi will receive Khamenei's coffin at Najaf on 8 July, the first head-of-state reception of the funeral abroad, as Gulf Arab governments stay silent and Europe stays excluded.

EconomicDeveloping
Key takeaway

Iraq's head-of-state welcome plants Baghdad in Iran's Shia axis while Gulf Arab states stay pointedly silent.

Iraqi President Nizar Amidi will personally receive Ayatollah Ali Khamenei's cortege at Najaf airport on 8 July, the first time a head of state has hosted a leg of the funeral on foreign soil 1. After rites in Tehran and Qom, the cortege flies to Najaf, where Amidi and senior officials meet it before a procession to the Imam Ali shrine and a helicopter transfer to the Imam Hussein shrine in Karbala. Those two shrine cities are among the holiest sites in Shia Islam, and hosting the coffin pulls Baghdad into Iran's succession for the first time.

Read as a guest list, the itinerary sorts Iran's standing into three tiers. Confirmed at senior level are Pakistan's prime minister Shehbaz Sharif in person, China's lawmaker He Wei, and now Iraq's head of state . Silent: not one Gulf Arab government has confirmed senior attendance at any leg. Excluded: Europe, which Iran struck off its 30-nation funeral delegation list entirely .

Baghdad has featured in this conflict as a tanker destination and a transit corridor, not as a political actor with a stake in who leads Tehran. Sending its president to receive the coffin plants Iraq inside the Shia axis at the moment that axis is choosing, or failing to show, its new figurehead. The Gulf Arab silence runs the other way: neighbours who still bargain with Iran over Hormuz will not be photographed mourning its leader.

Deep Analysis

In plain English

Iraq's president, Nizar Amidi, will personally welcome the coffin of Iran's late Supreme Leader Ali Khamenei when it arrives at Najaf airport on 8 July, the first time an Iraqi head of state has taken part in an Iranian funeral this way. From there the procession moves to two of Shia Islam's holiest sites, the Imam Ali shrine in Najaf and the Imam Hussein shrine in Karbala, before a helicopter carries it onward. Iraq sits between Iran and the West: it hosts roughly 2,500 US troops but also has deep religious and political ties to Tehran. This funeral role shows how hard it is for Baghdad to stay neutral when the ceremony involves shrine cities that matter enormously to both Iranian and Iraqi Shia Muslims.

Deep Analysis
Root Causes

Iraq's Shia-majority political settlement, cemented after the 2003 invasion, gave the Popular Mobilisation Forces, an estimated 100,000-strong network including Iran-aligned Kataib Hezbollah, formal integration into state security structures. That integration means any Shia religious event of this scale draws in state protocol whether or not Baghdad's civilian government wants it to.

Najaf and Karbala's status as the two holiest Shia shrine cities outside Iran gives Tehran leverage no other neighbouring capital has: any Iranian funeral or pilgrimage naturally routes through Iraqi soil, making Baghdad's participation structurally hard to avoid rather than a purely discretionary political choice.

What could happen next?
  • Precedent

    Iraqi head-of-state participation in an Iranian funeral sets a template Tehran can invoke for future succession events, since no prior Iraqi president has performed this role.

  • Risk

    Hosting funeral rites at Najaf and Karbala revives scrutiny of the same shrine-city area named in May reporting as the site of covert Israeli special-forces bases, raising security exposure for the procession.

First Reported In

Update #146 · Iran's new leader wounded, not just hiding

The National· 5 Jul 2026
Read original
Different Perspectives
Sanctions compliance officer reviewing a Lukoil International GmbH bid
Sanctions compliance officer reviewing a Lukoil International GmbH bid
OFAC's amended FAQ 1224 gives a compliance desk its first published standard: full severance from Lukoil and a US-jurisdiction blocked account for sale proceeds. The conditions name neither ISAB nor Italy, so a Priolo Gargallo-linked bid answers a different question than a Neftochim Burgas or Petrotel Ploiesti one.
Managed-money funds on Brent Last Day
Managed-money funds on Brent Last Day
CFTC data for the week to 21 July showed managed money flipping 74,400 contracts to a net long of 15,665 against 1,410 short on the Brent Last Day contract, code 06765T. A fund that held that short through July has now covered it, and the spent short base raises the bar for the next leg higher.
Saudi crude exporters
Saudi crude exporters
Saudi-linked tanker transits through Bab el-Mandeb fell to about 7.5 a day after the 24 July underwriting withdrawal, pushing more barrels onto the longer route round the Cape or through the Yanbu terminal. Every diverted barrel ties up a ship for longer, and a fleet that turns slower charges more.
Tanker owners on the Bab el-Mandeb route
Tanker owners on the Bab el-Mandeb route
Lloyd's-market syndicates withdrew war-risk cover from Saudi-linked hulls on 24 July, leaving owners of that class of vessel to sail Bab el-Mandeb uninsured or not at all. Tanker transits on the route fell to roughly 7.5 a day, and cover, once withdrawn, does not return on a shipowner's timetable.
Eni
Eni
Eni's board approved second-quarter results on 29 July, swinging refining EBIT to a EUR0.08bn profit from a year-earlier loss even as group profit doubled, and named Red Sea freight cost as a cap on that improvement. A refiner absorbing higher shipping costs on Saudi-linked crude while its numbers improve treats the freight line as a drag, not a crisis.
Asian buyers (India, Japan, China, South Korea)
Asian buyers (India, Japan, China, South Korea)
Asian refiners are absorbing 62% of Yanbu's 3.75m b/d flow, the bulk of Saudi Arabia's rerouted crude now clearing east rather than into the Atlantic basin. That destination split leaves Asian buyers more exposed to any single Yanbu-specific disruption than under the kingdom's normal multi-terminal export pattern.