ECB President Lagarde said gas prices could rise if further supply disruptions or an unusually cold winter occur, especially given currently low storage levels.

India's foreign exchange reserves rose to a record $785.7bn in the week to Sept. 4, the RBI said on Friday, marking a tenth consecutive weekly increase and a near $120bn gain over that span; the latest weekly rise was about $45bn. Measures announced in June — subsidised hedging for state firms' and banks' overseas borrowings and free hedging for banks raising foreign deposits — helped attract inflows: the RBI received $136.3bn under these programmes between June 5 and Aug. 31, including about $127bn of non-resident Indian deposits. Bankers say frequent RBI intervention to support the rupee may have offset some of the dollar inflows.

Israeli forces used about 1,100 tonnes of explosives to destroy an underground Hezbollah tunnel complex on the Ali Taher ridge, a strategic high ground overlooking Nabatieh, much of southern Lebanon and northern Israel. Israel framed the strike as a strategic victory and potential turning point; Hezbollah rejects that assessment, saying it does not regard the loss as a battlefield defeat because its tactics have shifted. Since the March outbreak of hostilities, Hezbollah has been unable to hold fixed positions under Israeli air superiority and is pursuing a war of attrition aimed at raising the cost of any ground presence. Hezbollah attacks draw Israeli reprisals against populated areas, forcing evacuations, and the situation has escalated over the past two weeks.