Aug. 4, 2026 - Daily News Digest

On this day: in 1578, Battle of Al Kasr al Kebir. The Moroccans defeat the Portuguese but both the Moroccan king Abd al-Malik and the Portuguese king Sebastian die. Ahmad al-Mansur follows Abd al-Malik as sultan of Morocco while the death of Sebastian leads to a succession crisis in Portugal.

QOTD: In a statement on Tuesday, ​China's Defence Ministry spokesperson Chen Xi said [Japan’s defense] white paper was "filled with false narratives" hyping up the so-called China threat. "We are strongly dissatisfied with this ‌and firmly ⁠oppose it," he said.

US/IRAN/MIL - US has used 'virtually all' of its long-range precision missiles during Iran war, sources say
https://www.reuters.com/world/us-has-used-virtually-all-its-long-range-precision-missiles-during-iran-war-2026-08-04/

The U.S. Army has used up much of its stockpile of highly accurate long-range missiles during its five-month war with Iran, according to three people familiar with the data, ​raising concerns about the military's readiness for future conflicts.

The missiles are principally the Army's surface-to-surface weapons, known as Army Tactical Missile Systems (ATACMS) and Precision Strike Missiles (PrSM). The U.S. has used "virtually all" of these weapons, according to ‌two of the sources.

The degree to which the military is running out of ATACMS and Precision Strike Missiles has not been previously reported.

The long-range munitions – which cost more than $1 million each – are an important part of the military's arsenal, allowing accurate strikes from a safe distance. U.S.-supplied ATACMS have played a key role in the war in Ukraine, allowing Ukrainian forces to attack targets inside Russia. The PrSM is a newer, more advanced generation that will replace the ATACMS, which have a shorter range.

The dramatic rundown in precision, long-range missiles means U.S. President Donald Trump may have to rely more on riskier, piloted bombing missions ​if he relaunches large-scale attacks on Iran.

The sources declined to say how many of each munition the U.S. had left.

Trump launched the Iran war jointly with Israel in February, predicting that the conflict would last a short time.

But as ​the war drags on, the three people familiar with the matter expressed worry that the falling missile supplies could limit the U.S. ability to deter adversaries, including Russia and China.

A fourth person ⁠familiar with the matter said that while Central Command — which oversees U.S. forces in the Middle East — has nearly used up the land-based missiles it had before the war began, it has been able to reload from U.S. military supplies elsewhere in the ​world.

EUROPE/SUMMER/TRADE - Rhine Falls to Lowest Since 1880, Threatening European Trade
https://www.bloomberg.com/news/articles/2026-08-03/rhine-falls-to-lowest-since-1880-disrupting-european-trade

The Rhine River’s water levels dropped to the lowest in nearly 150 years as hot, dry weather grips Europe, threatening to disrupt a crucial route for transporting coal, fuel and industrial commodities across a large swath of the continent.

The water level at Kaub, a key choke point for vessels heading to southern Germany and Switzerland, fell to 24 centimeters Monday. That’s the lowest since records began in 1880, according to German federal data compiled by ETH Zurich.

With the fourth heat wave to grip Western Europe this summer stretching through the start of this week, the situation risks creating logistical bottlenecks on a river that snakes for roughly 800 miles (1,290 kilometers) from the Swiss Alps to the North Sea.

The falling levels of the Rhine have already pushed freight rates sharply higher as barges are forced to reduce cargo loads to navigate the shallow waters. The cost to ship diesel from Rotterdam to Karlsruhe — further inland from the closely watched Kaub choke point — has climbed to the highest since Bloomberg began compiling the data in 2009.

The Rhine is a vital conduit for transporting oil products, chemicals, coal, iron ore, grains and goods in containers. Some cargoes can be transported by rail instead. A DB Cargo spokesperson said last week that the railway operator is in constant talks with customers affected by low water levels.

Still, even if companies can find alternative supply routes, higher costs threaten to further erode Europe’s industrial competitiveness against rivals in Asia and North America.

GIFT LINK: Five Charts That Show Why the U.S. and Japan Teamed Up to Buy Yen
https://www.wsj.com/finance/currencies/five-charts-that-show-why-the-u-s-and-japan-teamed-up-to-buy-yen-a1ed9bbb?st=orp91x&reflink=desktopwebshare_permalink

Washington and Tokyo’s joint move to boost the Japanese yen marks a historic intervention in currency markets. Here is a rundown of why it happened.

Forty-year low

Japan’s currency was testing 40-year lows before Friday’s joint move, reflecting investor concern over the slow pace of interest-rate increases by the Bank of Japan and the prospect of more borrowing and spending by Prime Minister Sanae Takaichi. Yen weakness is great for tourists and Japanese exporters, but painful for households facing quickening inflation on imported goods. The Japanese government intervened to put a floor under the currency at around 160 yen to the dollar in April and May, but the currency’s slide soon resumed.

CUBA/POWER - Cuba: Further blackouts disrupt energy restoration attempts
https://www.dw.com/en/cuba-further-blackouts-disrupt-energy-restoration-attempts/a-78224862

Cuba's efforts to restore electricity after a series of blackouts were hampered again on Monday when a second nationwide power cut in a day, the sixth this year, struck its national grid.

Power began returning to parts of Havana and several provinces in central and western Cuba during Monday and, by midday, authorities said about half of the capital had electricity again.

However, the state electricity provider later warned that unfavorable weather had again interrupted the restoration process.

Cuba blackouts: What have authorities said?

"In the process of reestablishing the [National Electric System], existing weather events caused disruptions to the grid, directly affecting the generator units that were online," the provider said in a statement posted to social media on Monday afternoon, without specifying the extent of damage or how many areas were affected.

"We continue to work intensively to revert the situation and achieve the system reset as soon as possible."

By early evening, authorities were reporting some progress, saying four generating units at Energas Jaruco were operating and several transmission substations around Havana had ​been re-energized.

QATAR/US/IRAN - Qatar says progress made toward US-Iran talks
https://www.reuters.com/world/middle-east/status-us-iran-talks-uncertain-ship-struck-hormuz-2026-08-04/

Qatar said mediators were making progress in efforts to end the U.S.-Iran war on Tuesday, although Tehran ‌has denied President Donald Trump's assertion that talks are already under way.

Oil prices fell quickly after the comments from Qatar, with Brent crude down more than 2%, extending Monday's steep losses on hopes that an arrangement could soon be reached to unfreeze traffic through the blockaded Strait of Hormuz. But for now, the strait remained virtually shut, with another ship reportedly coming under attack while trying to cross it.

Trump said on Monday that talks with Tehran had started and Iran faced ​a "last chance" to reach a deal. Iranian officials insisted no negotiations with the United States were taking place. Iran says its only talks are with Oman about the strait, and ​that no major meetings were planned this week.

"They are going on right now," Trump told reporters at an Oval Office event on Monday when asked ⁠about negotiations, adding that discussions were taking place at the request of Iran, Saudi Arabia, the United Arab Emirates and Qatar. "This is a last chance for them (Iran) to sign a good document."

Qatar's foreign ministry ​spokesperson Majed al-Ansari said diplomatic contacts had reached "very progressive stages".

MORE: Iran demands inbound control of Hormuz and outbound oversight, source says
https://www.reuters.com/world/middle-east/iran-demands-hormuz-inbound-control-outbound-oversight-source-says-2026-08-04/

Iran wants control over inbound shipping through the Strait of Hormuz and visibility over outbound traffic, with the ability to ​intervene if necessary, under a temporary plan being discussed with Oman to reopen ‌the strategic waterway, a senior Iranian source told Reuters on Tuesday.

The source, who is involved in the talks, said this is "the general idea currently being discussed", and specified that the outbound lane would follow a route ​between Iran and Oman, with exit clearance granted through Oman after notifying Iran.

"Tehran ​is unlikely to change its position," the source added, saying that Tehran has ⁠already shown flexibility by moving from its initial position of seeking full control over ​traffic in both directions in the strait.

Last month, Iran rejected an Omani proposal for an equal division ​of transit routes between the two countries, which Tehran said failed to address the country's security concerns until long-term regional stability is achieved.

Control of the strait, the narrow waterway between the Gulf and the Indian Ocean ​that is the main route for about a fifth of world oil supplies and other ​vital goods, has been a main sticking point in efforts to end the U.S.-Israeli war on Iran.

PAKISTAN/SEC - Pakistan’s Kashmir Problem
https://www.nytimes.com/2026/08/04/world/asia/pakistan-kashmir-jaac-rawalkot-protests.html

India and Pakistan have fought multiple wars over Kashmir, a Himalayan territory that both countries claim. For Pakistan, this external rivalry has long overshadowed political problems within Kashmir.

But the discontent there now seems too serious for Pakistan to ignore.

What began as demonstrations over the soaring cost of living in the part of Kashmir that Pakistan controls has evolved into a political movement, the Joint Awami Action Committee, a coalition of traders, civil society activists and local politicians. The coalition has organized protests in recent weeks that are posing the most significant challenge in years to Pakistan’s authority over the region.

The coalition announced a long march in early June toward the regional capital, Muzaffarabad, to pressure the government into accepting its demands for more autonomy. The group planned to start the march on June 9 in its stronghold, Rawalakot, just 20 miles from the heavily militarized de facto border that divides Kashmir into two parts, one administered by Pakistan, the other by India.

The Pakistani authorities responded by banning the group under counterterrorism laws on June 5 and later arresting several key leaders. Nevertheless, supporters staged weeks of sit-ins in Rawalkot while negotiations continued. At least 30 people, including protesters, law enforcement personnel and bystanders, have died in clashes from early June to July 27, according to local officials and independent estimates.

JAPAN/MIL/ECON - Japan casts military buildup as path to economic prosperity
https://www.reuters.com/world/asia-pacific/japan-casts-military-buildup-path-economic-prosperity-2026-08-04/

Japan's government is portraying ​its accelerating military buildup not only as a way to protect the country but as a route to greater ‌prosperity, arguing in its latest defence white paper that arms production can support economic growth.

The annual assessment of threats posed by neighbouring China, Russia and North Korea calls for Japan, constrained for decades by postwar restrictions on military activity, to harness technology, to fund startups and use more commercial components in weapons production.

The white ​paper "stresses that investment in defence benefits the wider economy and people's lives", according to a Defence Ministry presentation document. That ​message aligns with Prime Minister Sanae Takaichi's broader use of strategic state spending in an effort to drive economic ⁠growth.

The pitch is reinforced by the document's anime-style cover, which depicts a smiling family in a gleaming cityscape rather than the troops, ​weapons and military insignia featured on many previous editions. A Defence Ministry official said the design was intended to convey a "futuristic image".

NATIONAL SECURITY STRATEGY

The ​link between defence and future prosperity comes as Takaichi's administration prepares a new national security strategy. Military experts expect it to call for further spending increases aimed primarily at deterring China from starting a conflict with Taiwan that could also draw Japan into a prolonged war.

BANGLADESH/SEC/POL - Bangladesh warns media against airing Hasina's planned address from India
https://www.reuters.com/world/asia-pacific/bangladesh-asks-india-clarify-stance-hasinas-planned-new-delhi-speech-2026-08-04/

Bangladesh warned the country's media not to publicise the ‌statements of exiled former Prime Minister Sheikh Hasina who is due to give a virtual address on Wednesday from India to mark the second anniversary of the uprising that ousted her.

Hasina has remained in India since the student-led protests toppled her government in 2024. ​She was sentenced to death in 2025 for crimes against humanity over her crackdown on the demonstrations, a ​verdict she has dismissed as legally void.

The 78-year-old is due to make her first public ⁠appearance, albeit by video link, since she fled Dhaka, at an event hosted by the Foreign Correspondents' Club ​of South Asia in New Delhi alongside her son, Sajeeb Wazed Joy, and other speakers.

Hasina’s aides have not shared details ​of the contents of her address, but the former premier told Reuters last month that she and party colleagues plan to return from exile around December and present themselves in court, a move that would test how Bangladesh's new government handles its most prominent political ​opponent.

INDIA SAYS IT HAS NO INVOLVEMENT IN PRIVATE EVENT

Information Adviser Zahed Ur Rahman warned Bangladeshi media on Tuesday ​that announcing or publicising Hasina's planned speech would violate a December 2024 order by Bangladesh's International Crimes Tribunal that prohibits media outlets ‌and ⁠social media platforms from publishing or broadcasting Hasina’s speeches, statements, interviews, and audio or video messages.

US/CANADA/ASIA - US State Department to close consulates in Canada, Japan and Indonesia, sources say
https://www.reuters.com/world/us/us-state-department-close-consulates-canada-japan-indonesia-sources-say-2026-08-03/

The U.S. ​State Department has notified Congress that it plans to close five foreign missions in a rare downsizing of ‌America's global diplomatic footprint, according to people familiar with the notice.

In the notice sent to some congressional committees late last week, the State Department said it planned to close its posts in St. George's, Grenada; Nagoya, Japan; Medan, Indonesia; Douala, Cameroon; and Winnipeg, Canada. The people familiar with ​the notice spoke on the condition of anonymity because the notice was not public.

The expected closures, which have not ​been previously reported, represent a rare example of the U.S. closing multiple foreign missions in a ⁠downsizing that is not tied to a particular geopolitical event.

Early last year, during the opening months of the Trump administration, ​the State Department began preparations to shut down nearly a dozen foreign missions, Reuters and other media outlets reported at the ​time, as part of a broader push by the Republican president to transform the U.S. bureaucracy so that it is fully aligned with his "America First" agenda.

The White House Office of Management and Budget had advocated for an even more ambitious closure program, targeting up to 30 foreign missions. Some ​administration officials have privately argued that some smaller foreign missions are inessential and not cost effective.

VENEZUELA - Death toll from Venezuela June earthquakes tops 6,000
https://www.reuters.com/business/environment/death-toll-venezuela-june-earthquakes-tops-6000-2026-08-03/

The death toll from twin earthquakes which ​struck Venezuela in June ‌has risen to 6,125, according to figures released ​by top lawmaker Jorge ​Rodriguez on Monday.

Nearly 61,000 ⁠people were attended to ​at hospitals, the graphic ​published by Rodriguez on Telegram showed, adding that 16.5% of ​the debris generated ​by the quakes had been removed.

Acting ‌President ⁠Delcy Rodriguez, who is backed by U.S. President Donald Trump, has defended ​the ​government's ⁠response amid criticism that military personnel and ​other officials arrived ​late ⁠and have done little to help victims of ⁠the ​quake, including people ​who were trapped in the rubble.