read ahead (choose a chapter and start with that many lore counters. add one after your draw step. skipped chapters don't trigger. sacrifice after iii.)
i, ii — another target nonland permanent phases out. it can't phase in for as long as you control the phasing of zhalfir.
iii — destroy all creatures. for each creature destroyed this way, its controller creates a 2/2 black phyrexian creature token.
