War returns to Iran with Israel, US strikes

China’s exports of electric trucks to other Asian countries have spiked, adding to a surge in domestic sales as higher fuel costs as a result of the Iran war accelerate regional electrification, Reuters reports.

China’s rapid adoption of electric trucks (e-trucks), from lighter vehicles to tractor-trailers, has partially shielded the world’s biggest auto market from the impact of the conflict. Now other countries are scrambling to follow.

In the four months after the US and Israel started the war on Iran in February, China’s exports of heavy e-trucks more than doubled from the same period last year to 16,823 vehicles.

Half went to South and Southeast Asia, with shipments to South Asia up more than fivefold and to Southeast Asia nearly tripling.

US consumer sentiment has dropped sharply in August, new data shows, ending months of recent gains as prolonged inflation and uncertainty over the US war against Iran hit the economy, AFP reports.

“Consumer sentiment fell about eight per cent this August, ending two consecutive months of improvement,” says University of Michigan survey director Joanne Hsu.

Preliminary data shows consumer sentiment at 51.0 points, down from 55.2 and well off from market expectations.

Expectations for inflation in the year ahead have ticked up from 4.2pc in July to 4.3pc in August, the survey shows.

“The current reading substantially exceeds the 3.4pc seen in February before the Iran conflict began, along with all 2024 readings,” says Hsu.

Ahmad Khatami, a cleric on Iran’s Guardian Council and the Assembly of Experts, says the US has failed to destroy the country’s missile capabilities, which has “humiliated America and will continue” to do so, Al Jazeera reports.

“The enemy wanted to return Iran to the Stone Age, but today the world has realised that the American government itself knows nothing about civilisation and democracy, and in practice, it is America that is displaying behaviours that belong to a past era,” he tells Iran’s state television.

He adds that “our nuclear capability still remains” despite US and Israeli attacks targeting Iran’s nuclear facilities, further stating, “Our nuclear power belongs to the country’s scientists and nuclear knowledge.”

Iraq’s average daily oil exports since the beginning of August are the highest since the outbreak of the Middle East war between Iran and the United States, which has choked off the Strait of Hormuz, AFP reports citing the country’s oil ministry.

Iraqi Oil Minister Bassem Mohammed Khudair tells a press conference that “exports since the beginning of the month have reached a rate of two million barrels” per day, for a total of around 26 million barrels, saying the daily rate has been achieved “for the first time since the crisis began”.

Qatar has strongly condemned an “Iranian attack” targeting two Emirati oil tankers belonging to the Abu Dhabi National Oil Company (ADNOC) which were crossing the Strait of Hormuz, deeming it “a severe violation of international law, the freedom of maritime navigation, and a clear violation of UN Security Council resolution 2817”.

In a statement, the foreign ministry reiterated Doha’s “firm rejection of using the Strait of Hormuz as leverage”, demanding that it be opened unconditionally.

The ministry also stresses that freedom of navigation in such a vital waterway is a firmly established principle “not up for compromise”, adding that the continued closure of the strait “undermines the critical interests of the region’s countries and the global economy”.

Saudi Arabia has strongly denounced the targeting of two oil tankers belonging to the United Arab Emirates’ Abu Dhabi National Oil Company (ADNOC) in the Strait of Hormuz.

In a statement, Riyadh’s foreign ministry says the attacks constitute “an unacceptable recurrence of Iranian attacks targeting commercial vessels and tankers”.

It also notes that the repetition of such attacks poses a direct threat to the security and safety of maritime navigation and global energy supplies, alongside violating international laws and norms.

“The kingdom holds Iran fully responsible for the consequences of persisting in these attacks, demanding an immediate halt to these violations and adherence to relevant international laws,” the statement adds.

“It emphasises that regional security and the safety of international navigation are shared responsibilities, and that the continuation of such attacks is unacceptable and cannot be tolerated.”

Russia’s Permanent Representative to the United Nations Mikhail Ulyanov has criticised the US for calling for freedom of navigation in the Strait of Hormuz, calling their logic “not understandable”, Al Jazeera reports.

“It wants freedom of navigation through the Strait of Hormuz, but this freedom was ruined by the US aggression against Iran,” he writes in a post on X. “Now they want to remove the consequences of their strategic mistake through the continuation of war. Something is wrong here.”

The Pentagon has announced framework agreements with Boeing and RTX — formerly known as Raytheon — to increase the production of components of SM-3 Block IIA and SM-3 Block IB munitions, Reuters reports.

It adds in a statement that both agreements will strengthen production of a series of critical ship-fired surface-to-air interceptors that underpin the US Aegis Ballistic Missile Defence System.

The development comes after reports emerged of the US running critically low on munitions during the Iran War, particularly interceptors.

Deputy Prime Minister and Foreign Minister Ishaq Dar has “exchanged views on regional and international developments of mutual interest and agreed to remain in close contact” with his Egyptian counterpart, Badr Abdelatty, according to the Foreign Office.

During their phone call, the two top diplomats reaffirmed the brotherly relations between Islamabad and Cairo, expressing their shared commitment to strengthen cooperation across all areas of mutual interest, it adds.

Abdelatty has also congratulated Pakistan on the occasion of Independence Day, and “conveyed his best wishes for continued peace, progress and prosperity”.

Iran’s Islamic Revolutionary Guard Corps (IRGC) has said that its forces shot down a US MQ-9 Reaper drone over the country’s Hormozgan province, according to state news agency IRNA.

It adds that the drone was shot down “by the IRGC Aerospace Force’s cutting-edge defence system, operating within the nation’s unified air defence network”.

Iran has decided to hold off on raising gasoline prices, Al Jazeera reports citing the Fars news agency, which cited government sources.

Mohammad-Saeed Ahadian, an adviser to Iranian parliament speaker Mohammad Bagher Ghalibaf, has said on social media that the country’s leadership has decided that gasoline rates will not increase, and proposals not involving a price hike are under consideration.

“Therefore, government officials should not allow any action that could cause people to worry about an increase in gasoline prices,” he adds.

Iranian Foreign Minister Abbas Araghchi has discussed “the latest developments and issues of bilateral, regional, and international significance” with his Austrian counterpart, Beate Meinl-Reisinger, in a phone call, according to the state news agency IRNA.

For decades, the Gulf served as the centre of gravity for much of Lebanon’s creative talent, with swathes of designers and marketing executives flocking to its cities to find clients or relying on its foundations and cultural centres for funding, Reuters reports.

But with Gulf economies now under pressure from a nearly six-month-old regional war, Lebanese creatives say financing and work opportunities are drying up.

Uncertainty linked to the conflict has prompted Gulf-based clients to postpone projects, reduce budgets and slow payments, leading to layoffs and income declines, Lebanese professionals in advertising, branding and communications told Reuters.

Fashion school Creative Space Beirut (CSB) relied on donations and partnerships with individuals and institutions in the Gulf to keep its courses free for underprivileged students.

CSB hoped those avenues could yield $500,000 this year, but its co-founder and CEO Sarah Hermez told Reuters the regional war meant Gulf-based donors went into “survival mode” and that many “promises weren’t able to be met”.

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Israeli warplanes and drones have attacked in intervals, targeting the al-Mashaa neighbourhood and the agricultural outskirts of the town of al-Mansouri in the Tyre district of southern Lebanon, Al Jazeera reports, citing the National News Agency.

These attacks were coupled with other offensive operations in the town of al-Mansouri, southeast of Tyre.

A senior Iranian official has said the general principles of a strategic action plan to manage the Strait of Hormuz have been agreed upon in a meeting of the Parliamentary Committee on Councils, Al Jazeera reports, citing Iranian media.

Valiullah Bayati, a spokesperson of the committee, told Iran’s Tasnim news agency that “the strategic action plan to ensure the security and progress of the Strait of Hormuz and the Persian Gulf was reviewed by the Councils’ Commission and, after hearing the opinions, its general outline was approved”.

One of the resolutions in the plan prohibits the passage of vessels and equipment owned by the US, Israel, and other “hostile countries” through the Strait of Hormuz, the report added.

“This is because these countries have used the Strait of Hormuz to carry out hostile actions against our country, and have committed unjust and aggressive acts against the Iranian people,” Bayati said.

Lebanon’s Prime Minister Nawaf Salam met with US officials to discuss the military aspect of the ongoing negotiating framework and the developments in the country’s south, Al Jazeera reports, citing the National News Agency.

The agency reported that Salam met US Ambassador to Lebanon, Michael Issa, and the head of the Special Military Coordination Group for Lebanon, General Joseph Clearfield.

During the meeting, the report said, Salam pressed for “the need for Israel to stop the destruction operations, expand the scope of the experimental areas, and set a clear timetable for the Israeli withdrawal from Lebanese territory”.

Israel continues to occupy swaths of land in the country’s south and has not stopped attacks despite agreeing to a ceasefire.

White House deputy national security adviser Andy Baker is leaving the Trump administration in the coming weeks, Reuters reports, citing Axios.

The White House did not respond to a request for comment outside business hours. Reuters could not immediately verify the report.

The United Kingdom Maritime Trade Operations (UKMTO) has reported a drone strike on a tanker in the Strait of Hormuz a day earlier that caused minor damage but no casualties, according to AFP.

“UKMTO has received reports from Military Authorities that a tanker was struck by a Uncrewed Ariel Vehicle (UAV) whilst conducting an outbound transit of the Strait of Hormuz. The vessel was subject to minor damage, crew are reported as safe and accounted for and no environmental impact has been reported,” it said in a statement.

In a meeting with US Chargé d’Affaires Natalie Baker, Deputy Prime Minister and Foreign Minister Ishaq Dar has underscored that the implementation of the Islamabad Memorandum of Understanding “is the only way forward”, the Foreign Office (FO) says.

In a post on X, the FO says the discussions centered on Pakistan-US bilateral cooperation and recent regional developments.

“DPM/FM appreciated the positive trajectory in Pakistan-US relations and underscored the importance of dialogue and diplomacy for lasting peace,” the FO said.

He emphasised that “the implementation of the Islamabad MoU … in letter and spirit is the only way forward”, it said, adding the deputy PM reaffirmed Pakistan’s commitment to regional peace and security while safeguarding its national interests.

Baker appreciated Pakistan’s constructive role in promoting regional peace and stability and conveyed felicitations to the deputy PM on Pakistan’s Independence Day, the statement said.

At least four Asian refiners bought US crude this week, as the Strait of Hormuz remained effectively closed and refiners sought alternative supplies for delivery later this year, traders said, according to Reuters.

South Korea’s GS Caltex bought two million barrels of Mars crude from Shell for November arrival. The crude was priced at a premium around $13-14 per barrel above the October Dubai benchmark, traders said.

Japan’s third-largest oil refiner, Cosmo Energy Holdings, bought Mars crude from Trafigura, while Eneos Corp, Japan’s biggest refiner, purchased 2m barrels of West Texas Intermediate (WTI) crude from Trafigura for November delivery with a premium over $10 per barrel above the October WTI price.

Taiwan’s state-owned CPC Corp bought 2m barrels of WTI via a tender at a premium of around $8 to $9 a barrel to Dated Brent. CPC also purchased crude from West Africa via the tender, the people said.

China will lower domestic retail price caps on gasoline and diesel from August 15, the fifth cut this year, Reuters reports, citing the National Development and Reform Commission (NDRC).

Retail ceiling prices for gasoline and diesel will fall by 230 yuan ($34.11) and 220 yuan per metric ton, respectively, the NDRC said.