Sources say two drones attacked a camp of an Iranian Kurdish opposition group west of Sulaimaniyah, Iraq.

Politico, citing two sources, reports the UK Foreign Office has placed additional staff on weekend standby as London expects the US‑Iran confrontation could escalate this weekend. Diplomats fear President Trump may broaden strikes on Iran and that Iran could retaliate in the Gulf region. European governments are coordinating potential joint responses. It remains unclear who would represent the UK if allies convene an emergency leaders' or ministers' meeting on Monday.

Pantheon’s Samuel Tombs wrote the University of Michigan consumer sentiment index rose to 54.4 in July from 49.5 in June, beating economists’ 50.5 forecast but remaining below last year’s average. He said falling inflation expectations provide some comfort to the Fed, though the Fed chair may be disappointed that his hawkish remarks did not push expectations lower. Tombs added that workers’ limited bargaining power makes wage growth unlikely to accelerate in response to the recent uptick in headline inflation.