The city of Najaf is in a somber state as it prepares for the funeral procession of Iran's late Supreme Leader, Ayatollah Ali Khamenei. Khamenei was killed in US-Israeli airstrikes earlier this year. His body has been transported from Qom for official ceremonies, with a public procession scheduled to end at the Shrine of Imam Ali.
This development occurs amid heightened regional tensions and paused US-Iran peace talks. Market behavior suggests an increased likelihood of leadership changes in Iran by the end of 2026.
The funeral procession is seen as a pivotal moment for regional dynamics. Observers will watch for signs of leadership consolidation or further instability, focusing on potential successors like Mojtaba Khamenei and statements from key bodies like the Assembly of Experts and the IRGC.