Morning Briefing: Tuesday 4 August 2026
- Petrol: The relief on oil proved brief — Brent has bounced back above $85 as Iran denied any deal and the US hardened its blockade, reviving the war premium. Petrol prices are unlikely to fall much after all.
- Mortgages: With oil rebounding, government borrowing costs ticked up again, the 10-year gilt yield near 4.99 per cent. Fixed mortgage rates look set to stay high.
- Water: July was the driest on record; hosepipe bans are widening and a drought order has been sought, even as storms threaten flash floods rather than relief. Food prices remain at risk.
Ship Hit in Hormuz as Trump Threatens "Decapitation"
A cargo ship was struck by an unknown projectile near the mouth of the Strait of Hormuz overnight, maritime authorities said, as President Trump sharply escalated his threats against Iran. Mr Trump said he wanted to give Tehran “every last…
Israel Hardens Gaza Terms as Strikes Continue
President Trump’s “Board of Peace” hardened its terms for Gaza on Tuesday, saying Israel would not withdraw its forces until Hamas had disarmed — a shift from earlier talk of simultaneous steps. A senior Israeli minister said the military…
Israel and Lebanon Open Direct Talks in Rome
Israel and Lebanon opened a fresh round of rare direct talks in Rome on Tuesday, hosted at the US embassy, in an American-backed effort to ease tensions along their volatile border. Israeli military officers joined the delegation, and Leba…
Ukrainian Drones Strike Russian Warehouses, Killing Five
Ukrainian long-range drones struck warehouses and logistics sites in Russia’s central regions overnight, killing at least five people, according to reports. The targets included facilities belonging to a major online retailer near Moscow.…
Venezuela Earthquake Toll Passes 6,000
The death toll from the powerful earthquake that struck Venezuela in June has passed six thousand, officials said, in one of the deadliest natural disasters in the country’s history. Thousands more were injured and many remain unaccounted…
Burnham Bars Sex Offenders from Early Prison Release
Andy Burnham has tightened the government’s emergency prisoner early-release scheme to exclude serious sexual offenders, including rapists and child abusers, saying he “wanted to go further”. The changes mean roughly a thousand fewer inmat…
Driest July on Record as Water Bans Widen
July was the driest on record for England and Wales, the Met Office confirmed, calling the figures “truly exceptional” after a summer of relentless heat. Water companies moved to tighten restrictions, with Southern Water applying for a dro…
Court Orders Return of Migrant Removed to France
A judge has ordered the government to bring back an alleged trafficking victim who was removed to France under its flagship “one in, one out” migrant returns scheme, in a fresh legal setback for the policy. The ruling raises questions abou…
150 Migrants Rescued After Channel Boat Fire
More than 150 migrants were rescued after a small boat caught fire while crossing the Channel on Tuesday morning, in a French-led operation. All those aboard were reported to have been brought to safety. The blaze underscored the dangers o…
Trump Calls UK "Bankrupt" and Urges North Sea Drilling
President Trump claimed the United Kingdom was “bankrupt” and pressed it to ramp up North Sea oil and gas drilling, even as he praised Andy Burnham as “terrific”. The remarks, characteristically blunt, waded into a live debate over Britain…