U.S. is evacuating its air force base in Bahrain amid expectations of a possible regional escalation.

Since June, measures to attract overseas capital have brought in more than $40bn, bolstering the Reserve Bank of India’s foreign-exchange buffer, the RBI said. As of July 31, FCNR(B) deposits totalled $36.72bn; together with other overseas borrowings the sum is about $41bn. The RBI conducted roughly $7bn of FX sales on July 24 to defend the rupee, its largest direct intervention in months. Middle East tensions had pushed oil above $100/bbl and pressured the rupee; oil has since eased to around $90/bbl. The RBI governor said this week that recent rupee weakness reflects geopolitical tensions, dollar strength and EM volatility, not a deterioration in India’s economic fundamentals.

Hamas leader said Israel has disregarded US mediators in recent months; if Israel does not comply with the plan's terms, Hamas will not fulfill its obligations.