US imposes new sanctions on Iran amid Strait of Hormuz tensions
The Trump administration on Wednesday placed additional sanctions on Iran as part of a sprawling economic pressure campaign during the war, this time targeting the country’s newly created agency that is trying to control shipping through the Strait of Hormuz.
The sanctions move, first reported by The Associated Press, is the latest US effort to use economic leverage on top of military action to push Iran’s leadership into an agreement to end the war and open the waterway where a fifth of the world’s oil and natural gas normally passes. President Donald Trump has said a deal is imminent, but talks are ongoing.
“The Iranian military’s latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash,” Treasury Secretary Scott Bessent said in a statement.
ECB’s Philip Lane warns Middle East energy shock may keep inflation elevated
The energy shock caused by the Middle East conflict will likely have a persistent impact on inflation even if there is a quick solution to the war, the European Central Bank's chief economist, Philip Lane, said on Thursday.
"Even if the initial energy shock starts to reverse, the second round (effect) will be with us for a while," he said in a conference hosted by the BOJ and its think tank in Tokyo.
Trump administration seeks funding deals with drone firms
The Trump administration is pursuing funding deals with a group of drone companies, including Unusual Machines and Sequoia Capital-backed Neros, to help increase domestic production and lower the costs of drones, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
Israel issues evacuation warning for Tyre as it targets Hezbollah positions
Israel's military issued an evacuation warning for residents of the city of Tyre in southern Lebanon on Thursday, saying it would operate against Iran-backed group Hezbollah in the area.
"The IDF is compelled to take forceful action against it," the Israeli military's order said, in reference to Hezbollah.
It added that residents of the zone around certain buildings should leave and travel north of the Zahrani River, and that remaining in the area "places you at risk".
US conducts second defensive strike against Iran this week
The US military on Wednesday conducted its second defensive strike this week against Iran after officials said they observed aggressive activity from the Iranian military.
Two US officials told The Associated Press that US military forces shot down four Iranian drones and struck a base that was about to launch a fifth drone after determining they posed a threat to the Strait of Hormuz.
The officials spoke on condition of anonymity in order to discuss sensitive military operations.
Welcome to France 24's liveblog covering events in the Middle East. You can catch up on yesterday's news here.
Yesterday's key developments:
• US President Donald Trump told his cabinet that “nobody” would control the Strait of Hormuz under a future settlement with Iran, but maintained that the US would “watch over” the critical waterway.
• The Israeli military said that all areas south of Lebanon's Zahrani River, which runs roughly 40 kilometres north of the Israel-Lebanon border, were considered "combat zones" and urged residents to head north.
• Israeli Prime Minister Benjamin Netanyahu said that Israeli air strikes on Gaza City had killed Hamas' armed wing chief Mohammad Odeh, considered “one of the architects” of the Oct. 7, 2023 attacks that began the war.
(FRANCE 24 with Reuters, AP and AFP)
