CNN senior national security reporter Zachary Cohen says sources indicate a CENTCOM intelligence officer emailed military analysts last Wednesday: 'We're looking for new, creative, unconventional ways to pressure and punish Iran.'

As markets priced in a likely new round of US-Iran talks, international crude futures plunged after trading began on the 2nd. By 19:00 ET, NYMEX September WTI hit a low of $74.78/bbl, down $5.89 (-6.96%) from the prior close; ICE October Brent hit $81.55/bbl, down $6.38 (-7.26%). President Trump told media on Air Force One on the afternoon of the 2nd that the US will hold talks with Iran the next day; he had announced the previous day that he called off planned military strikes on Iran.

MORGAN STANLEY says Xiaomi Group (01810.HK) will report Q2 results on Aug. 18 and expects quarterly revenue to exceed 100 bln yuan and recurring net profit of about 6 bln yuan. Citing Omdia, MS notes Q2 smartphone shipments of 31.2 mln units, ~15% above its estimate. With average selling price at a record high and resilient volumes, MS expects smartphone gross margin to stay above 8% in Q2, reflecting pass-through of higher costs. The firm reiterates an Overweight rating and a HKD32 target price.