Oil's war premium falls as Iran talks remain contested

Lead deep dive

Nine other stories

• 25 U.S. states challenge Trump's latest tariffs. Democratic-led states sued over 10% and 12.5% duties imposed on goods from 60 trading partners under Section 301. The complaint argues that the administration is using a broad tariff authority meant for specific unfair practices and that the levies affect more than 99% of U.S. imports. 3
• AI safety talks move to the White House. OpenAI, Anthropic and Google are expected to attend an Aug. 4 meeting on a voluntary framework for testing AI models. The framework grew out of a June executive order on AI cybersecurity, but has not been released publicly and some benchmarks may remain confidential. 4
• Zelensky dismisses Ukraine's U.S. ambassador. President Volodymyr Zelensky dismissed Olga Stefanishyna on Aug. 3 as Kyiv pressed Washington for more Patriot air-defence missiles. Stefanishyna said the move was her own request and cited personal circumstances, while the timing adds uncertainty to a sensitive diplomatic post. 4
• Washington announces a phased Gaza disarmament plan. The U.S. Embassy in China published President Trump's claim that the Board of Peace had reached an agreement for Hamas and other armed groups to disarm, followed by Israeli withdrawal and an international stabilization force. The page gives no public implementation timetable, so the announcement is a political commitment rather than evidence that the arrangement is operating. 5
• Taiwan signals closer military coordination with the U.S. Defence Minister Wellington Koo said cooperation with the U.S. Pacific Command was closer than many people imagine. Reuters also reported stepped-up Chinese pressure around Taiwan, including coast guard activity near Pacific routes; Koo's remarks describe a security relationship, not a new treaty. 6
• AstraZeneca investors reject a reported mega-merger. AstraZeneca shares fell 4.8% after reports that it had held talks with Bristol Myers Squibb on a combination valued at nearly $400 billion. The report was not a signed deal: AstraZeneca declined to comment and Bristol Myers did not respond to Reuters' request. 7
• Amazon joins the $3 trillion club. Amazon's market value topped $3 trillion after a sharp rally tied to strong earnings and signs that AI demand is lifting its cloud-computing business. The move added an earnings-and-infrastructure leg to Monday's broader equity rebound. 2
• Indonesian ferry fire leaves 41 people unaccounted for. The Mutiara Sentosa 2 was carrying 271 people between East Java and South Sulawesi when it caught fire off Madura island. AP reported at least five deaths and 225 people recovered; the cause remained under investigation. 8
• Alexandra Eala wins the Philippines' first WTA singles title. The 21-year-old defeated top seed Jessica Pegula 4-6, 6-4, 6-0 after rain delayed the Washington Open final. Taylor Fritz won the men's title, beating Rafa Jodar 7-6(2), 6-4. 4

Quote of the day

"Today's sharp selloff ... in crude futures looks like another overreaction to Trump's comments that a deal with Iran is imminent following his weekend threats of massive attacks that were also suggested as imminent."

Ritterbusch and Associates, quoted by Reuters. 1

Further reading

• What is the state of play with the energy shock? - The Financial Times on the supply, route and policy questions that remain after a one-day oil reversal.
• AstraZeneca holds talks with Bristol Myers Squibb over $400bn tie-up - The Financial Times' business-strategy read on why a deal of this size would reshape a major pharmaceutical group.