Semafor Flagship-The World Today

"Trump calls off Iran strikes, Setbacks for Gaza Plan, Cyberattacks on US water."

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Riyadh  Tokyo  Shenzhen August 3, 2026 Read on the web Flagship Sign up for our free email briefings→   The World Today Trump calls off Iran strikes Setbacks for Gaza plan OPEC hikes output target Cyberattacks on US water US intervenes in yen BYD’s EV sales spike Tech incumbents’ bet FIFA ditches plan Visiting a flyby asteroid Chatbots as scammers A novel that celebrates the impermanence of existence, and a look at the week ahead. ↓ 1 Trump calls off Iran strikes Daniel Heuer/Reuters US President Donald Trump abruptly called off a new round of planned strikes on Iran on Saturday after some of Washington’s Gulf allies pushed for deescalation. The pause was contingent upon “rapidly” arriving at a deal to reopen the Strait of Hormuz, Trump said, as Iran and Oman discussed a new shipping route that Tehran said would not reopen the strait. Some Gulf allies have expressed frustration at what they see as a lack of clear strategy from the US, The Wall Street Journal reported, and requested more missile interceptors, as the conflict continues to stretch US military assets: The US’ top general in Europe privately warned last week that he lacked the resources to protect Israel from Iranian missiles, The Washington Post reported. ↓ 2 Trump’s Gaza deal faces resistance Amir Cohen/Reuters US President Donald Trump’s diplomatic push to disarm Hamas has run into headwinds as political resistance in Israel and disagreements with Hamas over implementation cast doubt on the US-backed plan. Trump hailed the agreement last week as a “monumental step” that Israel was “very happy” about, but he dodged key questions over sequencing: Israel insists Hamas must fully disarm before any withdrawal, while Hamas says Israel must halt attacks and withdraw forces before surrendering weapons. Prime Minister Benjamin Netanyahu has yet to endorse the plan, facing pressure from his far-right coalition ahead of elections while also managing Trump’s push for a diplomatic breakthrough. Israeli airstrikes continued Sunday, killing at least 18 Palestinians, medics said, and straining the fragile deal. ↓ 3 OPEC+ raises production targets OPEC+ agreed on Sunday to raise oil production by 188,000 barrels a day in September, marking its sixth consecutive monthly increase as the group seeks to restore supply to a market strained by global conflicts. The increase is largely symbolic as the conflicts in Iran and Ukraine continue to disrupt exports, but it gives major producers like Saudi Arabia more flexibility to raise output once regional flows normalize. The group also warned that attacks on energy infrastructure could further threaten supplies and increase market volatility. Even if more crude becomes available, ExxonMobil and Chevron said gasoline and diesel prices will likely remain elevated because global refining capacity remains constrained, limiting relief for consumers. ↓ 4 US water systems face cyber threats Brian Snyder/Reuters A wave of cyberattacks targeting US water systems exposed a growing vulnerability in the nation’s critical infrastructure as federal investigators examine whether Iran was responsible for disruptions reported in at least seven states. While authorities cautioned the investigation remains preliminary, intelligence agencies assessed that Iran was likely behind coordinated attacks on more than 30 municipal water systems in Minnesota and are investigating connections to incidents in other states. The episode highlights a challenge facing state and local governments, which often lack the resources to secure aging infrastructure against increasingly sophisticated cyber threats, particularly as AI compounds cybersecurity concerns. US cybersecurity officials have warned that such vulnerabilities could disrupt essential services and undermine the systems communities rely on every day. ↓ 5 US, Japan coordinate yen purchases Eugene Hoshiko/Reuters The US and Japanese governments coordinated to stabilize the yen after the currency plummeted last week, a historic intervention aimed at preventing wider economic destabilization. The yen is “very undervalued,” US Treasury Secretary Scott Bessent said on Friday — Japan’s currency has weakened for months, a phenomenon economists attributed to Prime Minister Sanae Takaichi’s expansionary fiscal policy, including her push to boost defense spending. The moves suggest the White House was concerned a yen selloff could further push up US bond yields, which remain elevated, analysts said. The intervention mirrors Washington’s actions on behalf of Argentina’s flailing peso last fall, timed to support President Javier Milei’s coalition — a “calculated wager” that Buenos Aires would “continue advancing economic liberalization,” the Reason Foundation argued. ↓ 6 BYD sees third month of EV growth China’s BYD recorded a 22% year-over-year increase in EV sales in July, marking a third straight month of growth, as overseas gains continued to help offset slumping demand at home. The company must sharply lift its second-half sales to meet its annual goal, Bloomberg noted, as a sluggish Chinese economy and intensifying competition depress its domestic sales; last week, BYD unveiled the first non-Japanese electric mini-car for Japan. Tesla sales have recovered in Europe, spurred by higher fuel prices, but polling suggested Europeans find the Chinese government’s support for BYD less toxic than Tesla’s association with CEO Elon Musk, as the US automaker weighs spinning out or selling its China business before potentially merging with SpaceX, The Wall Street Journal reported. ↓ 7 Tech giants betting on outpacing rivals in AI Brendan McDermid/Reuters Tech’s incumbent giants are betting that their market dominance will let them beat the upstart AI companies, even though they do not have the strongest models. Microsoft is increasingly challenging Anthropic and OpenAI, despite having significant investments in both, TechCrunch reported: Its cloud and software businesses give it unparalleled enterprise market reach. Mark Zuckerberg, meanwhile, hopes that WhatsApp will allow Meta to be a platform for personal AI assistants for billions of customers. The two are in different situations financially — Microsoft posted $133.7 billion annual net income, while Meta’s fell $2.49 billion year-on-year last quarter as it strains to catch up on compute — but both are hoping that they can make ground with their own AI agents. ↓ 8 FIFA scraps privatization push Benoit Tessier/Reuters FIFA abandoned its plans on Friday to spin off its commercial arm as a $20 billion private entity following a soccer world revolt that has pushed President Gianni Infantino’s leadership to the brink. On Saturday, UEFA — which had threatened to boycott the World Cup — declared victory over the “shabby, back room” deal. It added that along with CONCACAF, it had lost confidence in Infantino, who had been expected to stand unopposed in next year’s presidential election but could now face competition. Infantino has driven a revenue push during his decadelong tenure, earning him broad support, and privatization would have increased member payouts further. Instead, Infantino stands weakened, perhaps fatally undermining his contested push to increase the tournament’s field again from 48 to 64 teams. ↓ 9 Spacecraft want to probe flyby asteroid NASA’s Goddard Space Flight Center/Handout via Reuters Three, perhaps four, spacecraft will visit an asteroid as it makes a near-miss flyby of Earth. The asteroid, Apophis, was spotted in 2004 and at first was thought to have a one-in-37 chance of hitting Earth in 2029: At an estimated 20 million tons, it could have caused widespread destruction. But scientists now know that it will miss. Still, it will be the largest object known to pass so close — 20,000 miles, closer than the moon and geostationary satellites. NASA, the Japan Aerospace Exploration Agency, the European Space Agency, and potentially a student-led Chinese team will meet it with probes. Scientists hope for insights into asteroids’ interiors and guidance on how to deflect or destroy space rocks that threaten Earth. ↓ 10 Chatbots better scammers than humans Desks used to make scam calls in a Cambodian compound. Soveit Yarn/Reuters AI chatbots outperformed human scammers at luring victims for online “pig butchering” cons, research found. Pig butchering involves building text-based relationships, sometimes romantic, with people over time — “fattening” the “pig” — then conning them into fake crypto investments. The (admittedly small) study found that AI models were graded as more trustworthy than humans. Because relationship-building is the most labor-intensive and time-consuming part of a scam, researchers suggested that AI could take over much of the scam process. That would make scams harder to fight but might reduce Southeast Asia’s human-trafficking problem: Many scam workers are forced-labor victims, often held in brutal compounds of hundreds of people. ↓ The Week Ahead Diplomacy: Thai Prime Minister Anutin Charnvirakul visits Indonesia (Monday-Tuesday) to deepen bilateral cooperation. Israel and Lebanon are due to resume peace talks in Rome (Tuesday). Taiwan begins its annual Han Kuang military exercises, its largest defense readiness drills simulating conflict scenarios with China (Wednesday through next week). Colombia inaugurates President-elect Abelardo de la Espriella (Friday). Key Reports: India announces its interest rate decision (Wednesday). The US Bureau of Labor Statistics releases its July jobs report (Friday). China publishes data on July trade (Friday) and inflation (Sunday). Earnings: SpaceX hosts its first earnings call since its IPO (Tuesday). Disney and Uber report earnings (Wednesday), followed by SoftBank and Warner Bros. Discovery (Thursday). Culture and Sports: The Edinburgh Festival Fringe, the world’s largest performing arts festival, opens (Friday). The Wyndham Championship takes place in North Carolina (Wednesday-Sunday). ↓ Semafor Recommends Whistler by Ann Patchett. The celebrated American writer’s newest novel, just named by former President Barack Obama as one of his favorite summer reads, begins with a chance reunion between a daughter and stepfather at The Metropolitan Museum of Art decades after a car accident drove the family apart. As the two rekindle their profound bond, they together explore the trauma of the past and the secrets of their family. “Whistler is a novel that celebrates the impermanence of our existence and the love that makes it all tolerable,” the Southern Review of Books wrote. Buy Whistler from your local bookstore. ↓ Semafor Spotlight The CEO Signal: The fintech founder sees AI threatening traditional lenders by alerting consumers to their hidden fees. → You’re receiving this email because you signed up for briefings from Semafor. Manage your preferences or unsubscribe here. Read our privacy policy. Was this email forwarded to you? Sign up now to get Semafor in your inbox. Semafor, Inc. 228 Park Ave S, PMB 59081, New York, NY, 10003-1502, USA