Iran holds funeral procession for Ayatollah Khamenei as oil markets and crypto brace for geopolitical fallout

Iran kicked off a massive state funeral procession for Supreme Leader Ayatollah Ali Khamenei on July 4 in Tehran, drawing hundreds of thousands of mourners into the streets.

Khamenei was killed on February 28, 2026, during the opening strikes of a US-Israeli military campaign. His death was officially confirmed on March 1, triggering 40 days of national mourning and setting in motion the elaborate, multi-city funeral now unfolding.

A funeral designed to project power

The procession spans multiple cities, including Tehran, Qom, and Mashhad, with ceremonial activities extending to Najaf and Karbala in neighboring Iraq. The burial is scheduled for July 9 at the Imam Reza Shrine in Mashhad, one of the holiest sites in Shia Islam.

Estimates suggest attendance could reach into the millions. The Iranian government has arranged transportation, food, and lodging for participants traveling from across the country.

Crowds have been chanting “Death to America” and “Death to Israel” throughout the processions. Mojtaba Khamenei, who has assumed the role of Supreme Leader, has been conspicuously absent from the main public events, fueling speculation about regime stability and internal power dynamics.

The sanctions and crypto connection

Iran has a well-documented history of using cryptocurrency to circumvent international sanctions. Regulators in the US and Europe have previously targeted Iranian-linked wallet addresses and mining operations.

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