US–Iran War and Oil Prices
President Donald Trump has again announced that he is ordering U.S. forces to hold off on new strikes against Iran. He says regional allies have outlined a deal aimed at ending the roughly five‑month war and reopening the Strait of Hormuz.
Following his latest statement about pausing strikes and being “near” a deal, oil prices fell about 5% on Sunday night. Prices, however, remain roughly 20% higher than before the war.
The conflict has repeatedly swung between escalations and short cease‑fires. Saudi Arabia is now openly participating in strikes on Iran‑backed militias, and diplomatic efforts have frequently stalled.
Major Wildfires and Heat Wave in the Western US
Around Spokane, Washington, the fast‑moving “Spokane Complex Fire” has forced evacuations of about 60,000 people and destroyed at least 600–640 homes, businesses and other structures. Officials warn it could become the most destructive fire in state history.
The fires began on Saturday, August 1, and were driven by strong winds and high temperatures. They jumped the Spokane River into more urbanized areas, complicating firefighting efforts.
Nationwide, the U.S. is battling more than 90 large fires. The 2026 wildfire season is already above the 10‑year average for both the number of large fires and acres burned, with Washington and Oregon among the hardest‑hit states.
US Economy: Slower Growth, Persistent Inflation
The U.S. economy grew at a 1.5% annual rate in the second quarter of 2026, down from 2.1% in the first quarter and below forecasts. Consumer spending, however, accelerated to a 3.2% annual pace.
Inflation remains above the Federal Reserve’s 2% target. Mortgage rates are at their highest level in about a year, and average credit‑card rates are near 20%, keeping pressure on many households despite steady job gains.
Markets and policymakers are closely watching the war in the Middle East. Energy‑price swings tied to the conflict have been a major driver of recent inflation trends.
Russia–Ukraine War
Russia launched a large barrage of ballistic missiles and drones against Kyiv overnight into Saturday, August 1, killing at least nine people and wounding more than 30. The attack is described as one of the heavier recent strikes on the Ukrainian capital.
Earlier in the week, Ukraine used long‑range drones to strike two of Russia’s largest oil refineries, keeping pressure on Russian energy infrastructure. At the same time, EU countries have rolled out additional sanctions targeting Russian energy revenues and the military‑industrial sector.
Ukrainian and independent assessments indicate that July was one of the deadliest months of 2026 for Russian forces, with Russia firing a record number of ballistic missiles at Ukraine during that month.
Sources: AP, AP, Reddit (summary of assessments)
Other Notable Developments
Bulgaria presidential election date set
Bulgaria has scheduled its next presidential election for October 25, 2026. The largely ceremonial presidency will be contested after a landslide parliamentary victory earlier in the year shifted internal power dynamics.
Key upcoming US economic data
In the U.S., attention is turning to economic data due in the week of August 3–7, including the Job Openings and Labor Turnover Survey (JOLTS) and July jobs numbers. These releases are expected to shape expectations for the Federal Reserve’s next policy moves.