Wednesday 5 August 2026 12:10 UTC
Hormuz Deal Nears as Shipping Risks Shadow the Strait
In the period ending 5 August at 12:10 UTC, the United States, Iran and Oman moved closer to a temporary Hormuz deal. Draft terms would reopen the Strait of Hormuz for 60 days and support renewed nuclear talks. Donald Trump, the US president, said an agreement could come within 48 hours. However, no direct talks are booked, and no final agenda exists.
Iran wants to control inbound traffic through Hormuz, while Oman would coordinate ships leaving the strait. Tehran also wants transit fees and power to stop vessels. Those demands remain the main dispute with Washington. Iran rejected claims of an immediate full reopening. It said alleged US violations could keep the strait closed. Iran may allow European teams to clear mines, but final security guarantees remain absent.
Fewer than 10 ships were crossing Hormuz daily. Crude flows stayed near 3 million to 5 million barrels daily, down from 20 million. Amin Nasser, head of Saudi Aramco, said the war had removed 2.6 billion barrels from global supply. He said inventories could take 18 months to recover after reopening. Brent fell as much as 4.7%, while US crude fell 5.4%. Brent later recovered some losses after new Houthi threats.
A projectile hit a dry-bulk ship near Hormuz, and one sailor remained missing after the crew abandoned it. An unmanned boat struck another commercial ship off Yemen. It caught fire, was abandoned, and later sank. The Houthis, an Iran-backed armed group in Yemen, claimed separate attacks on a Saudi tanker and Najran airport. No damage was confirmed in either claimed attack. The group said its tanker campaign now reaches beyond the southern Red Sea.
New estimates say the US military used nearly all its long-range ATACMS and PrSM missiles during the Iran war. It also used about half its Patriot and Tomahawk stocks, plus nearly 80% of its THAAD interceptors. The White House denied that US readiness was at risk and cited rising production. Volodymyr Zelenskiy, Ukraine’s president, said his country has only one-third of last year’s air-defence supply. The Pentagon is also drafting a nuclear strategy for a possible regional war with China or Russia.
German authorities are investigating an apparent explosive-drone attack at Leipzig/Halle Airport. A drone carrying a package was found near Ukrainian cargo aircraft. Tests indicated explosives, and an X-ray showed a possible detonator. Investigators believe the device failed to explode.
Ukraine said North Korea has begun deploying a missile unit to western Russia. North Korea may supply up to 120 ballistic missiles and six launchers. Independent confirmation of the deployment is still unavailable. Ukrainian drone attacks killed five people and injured 10 in the Moscow region. A major distribution centre southwest of Moscow was destroyed by fire. Other warehouses near Saint Petersburg and Tver were also hit. Russian missile strikes caused major fires in Kyiv.
Ukraine warned that temporary routes cannot replace its Black Sea grain ports. Other routes may handle only half of normal exports by late August. Farm crop prices have already fallen about 30%. Damage from Russian attacks could cost $1.5 billion to $3 billion. Lower exports could also raise food prices worldwide.
Syria placed its army on high alert and moved units toward the Iraqi border. Damascus had warned Baghdad against attacks launched from Iraqi territory. Syria also offered to sharply cut Russian oil imports during talks about removing its US terrorism designation. Lebanese soldiers seized 122mm rockets being smuggled from Syria near Arsal.
Kash Patel, head of the FBI, announced limited crime-fighting partnerships with China and Russia. They cover fentanyl, cybercrime, child exploitation and fugitives. The work includes intelligence sharing, personnel exchanges and joint operations. The change has raised concern about foreign access to US intelligence. Patel said safeguards would protect US secrets and the Five Eyes intelligence alliance.
The Trump administration is preparing a minimum price and new tariffs for imported polysilicon later in August. Polysilicon is a key material for solar panels and computer chips. The administration is also drafting a ban on Chinese parts in US data centres. The White House will exclude open-weight AI models from its advanced safety testing programme.
India is considering fees on gas users to finance a $42 billion expansion of strategic fuel reserves. The fees could raise $1.5 billion each year.
New Bank of Japan data cast doubt on whether Japan intervened to support the yen on Monday. Scott Bessent, the US Treasury secretary, backed Tokyo’s efforts and warned against further yen weakness. Gold rose nearly 3% to $4,196 an ounce, while silver gained 3% to $59.90.
The US trade deficit narrowed to $73.26 billion in June as imports fell faster than exports. The average US 30-year mortgage rate reached a more-than-one-year high of 6.81%. Mortgage applications fell 2.9% during the week. The S&P 500 reached an intraday record after a nearly 4% three-day rise.
Eli Lilly raised annual revenue guidance to $85 billion-$87 billion after strong demand for Mounjaro and Zepbound. Quarterly revenue reached $22.97 billion, ahead of expectations. Mounjaro sales rose 91% from a year earlier to $9.94 billion.
SpaceX announced plans for a nationwide mobile network using Starlink satellites, ground systems and newly acquired spectrum. The network would compete directly with Verizon, AT&T and T-Mobile. Quarterly revenue rose 92% to $7.8 billion. Its shares fell more than 10% as investors worried about heavy spending.
AMD reported quarterly revenue of $11.54 billion and forecast about $13 billion for the next quarter. It expects data-centre sales growth to speed up during the second half.