Iran holds funeral for late Supreme Leader; He Wei represents China; Saudi delegation makes unexpected appearance; Iran again proposes "joint management" of the Strait.

The farewell ceremony for the remains of Iran's late Supreme Leader Ali Khamenei was officially held in Tehran on July 3 local time. This is regarded by Iran as the most important national political ceremony in recent years, with Iranian top leaders and official representatives from multiple countries, including China, attending.

Meanwhile, the unexpected appearance of the Saudi delegation during the funeral activities, renewed assertions by Iranian officials regarding the management of the Strait of Hormuz, and latest statements on US-Iran negotiations and Israel-Iran relations have made Khamenei’s funeral an important window for observing the next phase of the Middle East situation.

Analysts believe that, unlike previous external focus on whether Iran would launch a new round of retaliation, this Friday Iran released more political and diplomatic signals: on one hand using the state funeral to demonstrate domestic political stability, regional ally support, and diplomatic influence; on the other hand, continuing to release policy signals regarding the Strait of Hormuz, Middle East security order, and future negotiation arrangements, leaving more room for subsequent regional developments.

Khamenei’s Farewell Ceremony Begins, Iran’s Top Leaders Attend Collectively

According to Xinhua and various domestic and international media, on Friday, July 3, Khamenei’s farewell ceremony was held in Tehran, the capital of Iran.

It was reported that on Friday morning local time, Khamenei’s coffin was transported to Tehran Grand Mosalla, marking the official start of a two-day public farewell ceremony. Foreign dignitaries, religious figures, and representatives from various sectors arrived one after another to pay their respects, with Tehran hosting a two-day public farewell event.

According to CCTV News, Iranian President Pezeshkian, Parliament Speaker Kalibaf, Foreign Minister Aragchi, Chief Justice Ejei, and Supreme Leader Advisor Mohsen Rezaei—all Iranian top officials—attended the ceremony. This shows that Iran’s political leadership is highly unified at this critical moment.

CCTV mentioned that, according to Iran’s previously announced schedule, after the farewell ceremony for Khamenei’s remains, further funeral ceremonies will be held in Tehran, Qom, Mashhad, as well as the Iraqi Shiite holy cities of Najaf and Karbala. After the ceremonies, the remains will be buried at the Imam Reza shrine in Mashhad.

Saudi Delegation’s Unexpected Appearance Adds Another Point of Observation for Regional Relations Easing

Besides Iran’s top officials, delegations from multiple countries also attended the farewell ceremony.

It was reported that before the start of Khamenei’s ceremony, the Saudi delegation appeared in Tehran, drawing widespread attention. Nonetheless, analysts believe the presence of the delegation reflects the continued improvement in Iran-Saudi relations in recent years and indicates Gulf nations' desire to avoid renewed regional instability.

According to reports, Saudi Deputy Foreign Minister Waleed El Khereiji led the delegation to Tehran to pay their respects. However, the Saudi side did not announce the arrangements high-profile, and according to Iranian official media, their arrival had not been anticipated, as Oman and Qatar were on the list of invited foreign delegations, but Saudi Arabia was not.

Iranian President and Speaker Meet Chinese Representative He Wei Separately

Also on Friday, according to CCTV News, He Wei, Vice Chairman of the Standing Committee of the National People’s Congress, attended the funeral of the late Iranian Supreme Leader Khamenei in Tehran on behalf of China. This reflects China’s emphasis on China-Iran relations and its lasting concern for regional peace and stability.

According to CCTV, Iranian President Pezeshkian and Speaker Kalibaf met separately with He Wei, who attended the funeral as the Chinese representative.

He Wei expressed deep condolences for the unfortunate passing of the Supreme Leader Khamenei on behalf of China, sincerely extended sympathies to the Iranian government, people, and the Supreme Leader’s family, and hoped that under the leadership of Supreme Leader Mojtaba Iran could quickly restore security, stability, and development. In the 55 years since diplomatic relations were established, China-Iran relations have maintained stable and healthy development. China’s determination to develop relations with Iran remains unwavering, and the direction in which the ties move will not change. China is willing to work with Iran to steadily advance the comprehensive strategic partnership.

He Wei stated that China welcomes the signing of the memorandum of understanding between Iran and the US, hoping both sides implement existing achievements, maintain the ceasefire and end hostilities, stay rational and pragmatic, and consolidate the momentum in negotiations. China also hopes the Strait of Hormuz issue can be properly addressed, hoping countries in the region live harmoniously.

CCTV mentioned that Iranian leaders congratulated the 105th anniversary of the Communist Party of China’s founding, thanked China for sending a high-level representative to attend Khamenei’s funeral, saying Iran will always cherish China’s valuable support over the years, appreciates and supports the four global initiatives proposed by President Xi Jinping, and is willing to strengthen communication and coordination with China to take Iran-China relations to new heights. Iran is willing to continue easing tensions through political and diplomatic means, properly resolve the Strait of Hormuz issue in accordance with international law, and achieve neighborly relations with surrounding countries.

Analysts believe that, against the backdrop of just cooling off Israel-Iran conflict, attendance by various parties such as China and Saudi Arabia also gives the funeral regional diplomatic significance beyond domestic politics.

Iranian Speaker: Strait of Hormuz Should Be Jointly Managed by Iran and Oman

On the day of the funeral, Iran continued to release new signals about regional security order.

According to Xinhua citing Iranian media on Friday, July 3 local time, when Iranian Islamic Parliament Speaker Kalibaf met with Iraqi Parliament Speaker Halbousi, he stated that the recently signed memorandum of understanding with the US has made provisions, namely that the Strait of Hormuz should be jointly managed by Iran and Oman.

Kalibaf said Iran is soliciting opinions from Gulf coastal states, including Iraq, on this matter. He also thanked Halbousi for attending the farewell ceremony for Iran’s late Supreme Leader Khamenei.

This is the latest public statement by Iran on the management of the Strait of Hormuz. According to previous Xinhua reports citing Iranian media in June, Kalibaf had said on June 17 that the Strait of Hormuz “will never return to its previous state” and that Iran will charge “service fees” in the Strait of Hormuz.

Market analysts believe that compared to the earlier proposal of “service fees” in June, Kalibaf’s latest suggestion of joint management by Iran and Oman implies Iran is gradually improving its management framework over this global energy passage, hoping to form a strait governance model led by regional countries.

The Strait of Hormuz carries about one-fifth of global seaborne oil transport, so its shipping security and management mechanisms have always been a focal point for international energy markets. Kalibaf’s latest statement indicates that Iran is still actively advancing its vision for regional security and shipping order after the conflict.

Israel Denies Assassination Rumors Regarding Iranian Negotiators, US-Iran Diplomatic Window Still Open

The latest statements from various parties regarding future diplomatic processes have also drawn attention.

According to CCTV News, the office of Israeli Prime Minister issued a statement on Friday, July 3, denying US media reports about Israel planning to assassinate senior Iranian negotiating officials, accusing the reports of being “fake news” and “complete fabrications.”

The above Israeli denial refers to a July 2 Thursday report by The New York Times. The report claimed US officials had earlier this year indirectly warned Iranian Foreign Minister Aragchi and Speaker Kalibaf that Israel might attempt to assassinate them, fearing such actions would undermine subsequent ceasefire negotiations and spark new conflict, thus urging other regional countries to relay the warning to Iran.

The report also indicated that after a sudden US-Israeli strike against Iran on February 28 this year, Aragchi and Kalibaf had been listed as Israeli targets, and previously two Iranian senior negotiating officials had already been killed by Israeli military strikes.

Meanwhile, previous reports said Qatar, acting as mediator for US-Iran talks, stated the two sides are expected to resume indirect negotiations after Khamenei’s funeral. Pakistan, also involved in mediation, expressed the same expectation, hoping to use the post-funeral political window to push for continued dialogue.

However, reports note that before the funeral started, Iran’s military had warned the US and Israel against initiating new military actions during the ceremony, or face resolute response. This means that though diplomatic channels remain open, the coming days remain a crucial window for observing whether regional tensions can continue to ease.

Overall, the series of political and diplomatic signals released around Khamenei’s farewell ceremony on Friday indicate that Iran’s current focus has gradually shifted from military responses to domestic political stability, regional diplomatic arranging, and the pace of subsequent negotiations. The presence of the Saudi delegation, China sending a government envoy, Iran reiterating its stance on the management of the Strait of Hormuz, and US-Iran indirect talks expected to resume after the funeral jointly outline a new direction for the next round of competition in the Middle East given the temporary lull in conflict.

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