Lebanon's National News Agency reported an Israeli Merkava tank fired several shells at Khiam in southern Lebanon.

Rising intervention risk and higher rates have weakened yen funding, pushing carry traders toward Swiss franc financing. CFTC data for the week to Aug. 11 show hedge funds’ net short positions in the franc near a two-month high while they trimmed yen shorts for a second consecutive week. Tobias Jungmann, head of FX options at BofA in New York, said markets have increased franc short exposure to finance FX carry trades and that options are attractive given the franc’s vol-to-carry profile, allowing exposure with capped downside. The franc’s appeal rests on near-zero Swiss interest rates and the Swiss National Bank’s willingness to limit appreciation; by contrast, a late-July Japan–U.S. joint intervention raised yen volatility and curbed yen-funded trades.

IAEA Director General GROSSI said on the 18th that several tons of nuclear material were found at a site Syria recently reported to the agency, speaking at a joint press conference with the Syrian transitional government’s foreign minister Hebbani. Hebbani said Syrian authorities will retain custody of the material and it will be subject to IAEA oversight.