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Iran's Supreme Leader Khamenei dies, Middle East situation faces major changes

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Summary:Iran's official media announced today that Supreme Leader Ayatollah Ali Khamenei died in Tehran due to a sudden health condition at the age of 85. The news shocked the world, the market fluctuated sharply in the short term, and the security risks in the Middle East increased significantly. Iran entered a mourning period of several days, and the expert meeting will discuss the successor within a week.

June 20, 2025 — Joint report from Tehran/London

Iran's state television reported early this morning that Ayatollah Ali Khamenei, the Supreme Leader of the Islamic Republic of Iran, died in hospital due to sudden health problems. Khamenei has served as Iran's Supreme Leader since 1989 and has experienced several domestic and international crises. He is the highest symbol of Iran's political and religious system.

It is reported that the Iranian president, cabinet, and senior officials of the Islamic Revolutionary Guard Corps have held an emergency closed-door meeting. The Iranian capital Tehran has announced a national mourning period, with all government agencies flying flags at half-mast, and schools and banks suspending operations for three days. The Islamic Revolutionary Guard Corps and security forces have strengthened prevention and control in key areas across the country to prevent social instability.

Experts generally believe that Khamenei's death will increase the sensitivity and uncertainty of Iran's power transfer and have a profound impact on the entire Middle East. Israel, Saudi Arabia and other countries immediately raised their border security alert levels. The UN Security Council plans to hold an emergency meeting to call on all parties to exercise restraint.

"Iran under Khamenei is the fulcrum of the regional geopolitical structure. His death will undoubtedly bring about a new round of power reshuffle." - Liam Cooper, director of the Oxford Middle East Institute


Market and international response

indexchange
Crude oil pricesUp 7.5%
Gold PriceRising to $2,100
MSCI Emerging MarketsDown 2.2%
US Dollar IndexRising
Iranian RialSharp drop

The United States, the European Union, Russia and others have issued statements expressing condolences to the Iranian people and urging regional parties to respond to changes through dialogue.

What to look forward to next

According to the Iranian Constitution, the Assembly of Experts will elect a new Supreme Leader within a week. During the transition period, a three-member committee consisting of the President, the Chief of Justice and members of the Assembly of Experts will temporarily perform some of the Supreme Leader's powers.

After Khamenei, Iran's new generation of religious and military elites will compete for dominance under multiple pressures at home and abroad

Written by: M. Ghasemi , Tehran correspondent Editor: Rachel Gran ccd531ad224f15af16234c7b19b2719e.png



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