The US launched strikes on Iran’s Larak Island for the first time since late July, killing two people and prompting Tehran to vow a “decisive response”. Hours later, Iran struck US bases in Jordan, escalating a conflict that has already sent oil prices surging and stock futures sliding. The Dow had been on pace for a fifth consecutive monthly advance, but the geopolitical shock has reversed the mood. Bitcoin, by contrast, barely blinked, remaining above $77,000 and heading for its best monthly performance — augmented by hints from Michael Saylor of a first purchase in two months and a crypto market maker ecosystem that is collecting yield rather than making directional bets. The Strait of Hormuz, a critical chokepoint for global energy, is again at the centre of tensions, with analysts suggesting the US struck Larak Island to prevent Iran from mining the waterway.
Elsewhere, at least eight people died and 18 remain missing after a ferry carrying nearly 270 passengers capsized off northern Cyprus, with search and rescue operations ongoing. In Nepal, survivors in Nuwakot district are digging through mud and debris after flash floods, as the window for rescue closes. In the occupied West Bank, two Palestinians were reported dead during an Israeli military raid on Nablus, while an Israeli strike killed a three-year-old child in Gaza.
On the economic front, the EU AI Office sent its first formal requests for information to general-purpose AI model providers, marking the start of enforcement of the bloc’s AI Act. In China, BYD shares slid after the automaker’s first-half earnings disappointed despite higher second-quarter profit, reflecting fierce competition at home. In the UK, Kemi Badenoch is expected to reshuffle her front bench, replacing Priti Patel with Tom Tugendhat as shadow foreign secretary, while James Cleverly pitches a “classically Conservative” campaign for London mayor. The children’s commissioner has called for paid leave for parents of seriously ill children, and Andy Burnham’s plan to end indefinite prison terms has been welcomed by campaigners as a step towards healing.