Larak, Hormuz, and the first U.S.-Iran strike since July

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Nine other stories

1. Iran claims a missile strike on two U.S. bases in Jordan. Iran's Revolutionary Guards said it launched ballistic missiles at the King Hussein and Al Azraq bases on Monday in response to the Larak attack. The report records an Iranian state claim; confirmed damage, casualties and an independent assessment remain outstanding. 4
2. Bessent takes China's trade surplus to the G20. U.S. Treasury Secretary Scott Bessent said he would urge G20 economies to reconsider their trade terms with China and press Beijing to rely more on domestic consumption. He cited a $1.2 trillion Chinese trade surplus, a 23.9% year-on-year rise in July exports and weak domestic demand. The meeting also brings U.S. tariff pressure, Iran sanctions, Treasury debt concerns and high energy prices into one negotiating room. 5
3. Oil prices rise with the new Hormuz risk. At 06:02 on August 31 (+08:00), Brent stood at $90.32 a barrel after a $2.22, or 2.52%, rise from the previous session. WTI reached $85.41 after gaining $2.01, or 2.41%. The two contracts moved in the same direction, giving markets a direct measure of the strike's first economic reaction. 3
4. A Belgorod missile attack kills two. A missile attack killed two people and injured 16 in Belgorod, near Russia's border with Ukraine, on Sunday evening, acting governor Alexander Shuvayev said. The governor said Ukraine hit a commercial facility and that fires spread through seven warehouses; those casualty and attribution details come from the regional authority. 6
5. Pacific leaders meet in Palau with several absences. The Pacific Islands Forum began in Palau on Monday, with the prime ministers of Fiji, Vanuatu, Samoa and Solomon Islands and the president of Kiribati missing the leaders' retreat in person. The September 4 meeting will cover the region's 2050 strategy, climate priorities, fuel costs and security after members failed to agree on a common response to a Chinese missile test earlier this month. 7
6. Iceland votes to keep EU accession talks closed. Icelanders rejected a proposal to reopen membership negotiations with the European Union by 52.8% to 47.2%, with 82.5% turnout. Prime Minister Kristrun Frostadottir said the country would strengthen its existing European Economic Area ties; the result keeps fishing policy and national control at the centre of the debate. 8
7. Ferry disaster leaves 18 missing off North Cyprus. At least eight people died and 18 were missing after a ferry capsized off Kyrenia on Sunday. The report says 267 people were aboard and 241 were rescued; the captain and seven crew members were detained for questioning. The vessel was travelling from Kyrenia to Tasucu in Turkey when it began taking on water for an unknown reason. 9
8. Merz warns an AfD win could deter investors. German Chancellor Friedrich Merz said a victory for the far-right Alternative for Germany in Saxony-Anhalt's September 6 election would deter foreign companies from investing in the state. A recent poll put the AfD at 42% and Merz's Christian Democrats at 22%; the result could leave coalition-building or minority government negotiations after the vote. 10
9. Canada's proposed defence bank still needs major backers. The Defence, Security and Resilience Bank aims to raise about €100 billion and lend at low cost to governments and defence contractors. Two officials said commitments stood at about €5 billion in August, while Germany, Britain and other G7 economies had declined to join; that gap raises questions about the bank's planned triple-A rating and its ability to offer cheap financing. 11

Quote of the day

"I cannot imagine international investors attending a ground-breaking ceremony with an AfD Minister-President to set up new plants and establish new businesses in Saxony-Anhalt."

Further reading

• Nvidia forecasts 70% sales growth fuelled by relentless AI boom — FT's reporting connects the AI investment cycle to infrastructure financing, margins and export controls.
• Big Tech profits get $160bn boost from gains on stakes in other AI companies — FT examines how cross-holdings are changing the way investors read technology-company profits.