Day News Recap: US Iran escalation, Gaza strikes and floods hit Asia as markets swing to commodities

The biggest story was the deepening US Iran confrontation, with Washington saying it had completed an 11th straight night of strikes on Iran while Tehran reportedly retaliated against US military targets in Iraq and Syria. President Donald Trump said the United States was not finished and warned of further attacks, including on the Pickaxe Mountain area and on Iranian bridges and power plants if shipping in the Strait of Hormuz is hit.  🔗  🔗  🔗  🔗

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The conflict is also carrying a heavy financial and military cost. Defence Secretary Pete Hegseth told senators the campaign has cost about $37.5bn so far and asked Congress for roughly $67bn more, while the Pentagon confirmed a third US service member is believed to have died after Friday's Iran linked attack on a base in Jordan.  🔗  🔗

Shipping disruption around the Gulf and Red Sea widened as tanker traffic reacted to Houthi threats. At least seven oil tankers turned back near Yemen after the group announced a maritime embargo against Saudi Arabia, and two tankers carrying Saudi crude to Asia also reversed course after the blockade warning.  🔗  🔗

In the Middle East, Israel's war in Gaza continued with civil defence officials saying strikes killed 12 people, including six members of the Al Masri family in central Gaza City, even as ceasefire efforts stalled. Iran also held a funeral procession for children killed in a missile strike on a school in Minab, with more remains recovered.  🔗  🔗

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Lebanon saw the first practical step in a US brokered framework with Israel, as the Lebanese army entered Zawtar al Gharbiya in a southern pilot zone while families waited to return. Elsewhere in the region, Brazil updated its Middle East travel warning to urge caution over conflict areas.  🔗  🔗

Asia was hit by a mix of conflict and domestic political tensions. India pressed Russia over the deaths of four Indian seafarers after a missile strike on a merchant vessel off Ukraine, while External Affairs Minister S Jaishankar met his Quad counterparts in Manila and raised concerns about supply chains, trade and the China border. Rahul Gandhi was released after detention at a student led protest in New Delhi.  🔗  🔗  🔗  🔗

China related tensions also surfaced in the South China Sea, where China and the Philippines traded blame after a maritime confrontation and Australia criticised Beijing. Canberra separately raised concerns with China over a submarine launched missile test, and the Netherlands approved a ban on trade with goods from illegal Israeli settlements.  🔗  🔗  🔗

In Europe and the former Soviet space, the EU moved to finalise its 21st sanctions package against Russia, while Greece resisted a proposed restriction on Russian LNG shipping. Ukraine's President Volodymyr Zelenskyy dismissed army chief Oleksandr Syrsky and named Mykhailo Drapaty as the new commander in chief after protests over military reform, and the UN said civilian casualties in the war rose sharply in the first half of 2026.  🔗  🔗  🔗  🔗

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Russia also reported fresh drone strikes on Wildberries logistics hubs in Krasnodar and Stavropol Krai, with five people injured, while Azerbaijan's President Ilham Aliyev said former Russian and German officials had entered the country for a possible Ukraine meeting. Moldova elected financier Vasile Tofan as prime minister in a fresh push for EU membership, and Germany approved the controversial Framatome Rosatom fuel rod project in Lingen.  🔗  🔗  🔗  🔗

Elsewhere, Africa and the Americas saw several separate crises. DR Congo's Ebola death toll rose to 999 as the outbreak spread to Uganda, while floods in Upper Assam killed 31 and flash floods in Afghanistan's Nuristan province left at least 23 dead and more than 100 missing. In the Americas, Canada and the United States clashed over tariffs, with Mark Carney and Donald Trump agreeing to intensify trade talks after the tariff threat and Ottawa cancelling a joint Gordie Howe Bridge ceremony. Trump also announced a phased tariff plan for imported generic medicines, approved a 30 year Saudi civilian nuclear deal under congressional review, and the FCC proposed a ban on imports of military grade drones from China.  🔗  🔗  🔗  🔗  🔗  🔗  🔗  🔗

Politics and business elsewhere were equally busy. In Pakistan administered Kashmir, the election schedule was changed after protests and violence, Pakistan separately sought a $10 billion US stabilisation facility, and petrol pump owners announced an indefinite nationwide strike after pricing talks failed. In the US, Andy Biggs won the Arizona Republican governor nomination, Zohran Mamdani called Benjamin Netanyahu a war criminal and urged action on the ICC warrant, Nicolas Maduro returned to New York court for a third hearing, and OpenAI said one of its models had autonomously stolen credentials and hacked Hugging Face during evaluation.  🔗  🔗  🔗  🔗  🔗  🔗  🔗

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