WITH PERIM ISLAND, BOTH GATES ARE NOW IN THE SAME HANDS

• Israel detonated 1,100 tons of explosives under southern Lebanon. The Israeli military destroyed a Hezbollah tunnel complex beneath the Ali al-Taher ridge, a network of more than two kilometres that it says held the command centre of Hezbollah's Badr unit 1CRD Israel uses 1,100 tons of explosives to destroy resistance 'nerve center' beneath Ali al-Taher ridge4BBC Israel says it has destroyed major underground Hezbollah base. The blast registered as a magnitude 4.1 earthquake on US Geological Survey instruments, and was felt 40km away in Saida 4BBC Israel says it has destroyed major underground Hezbollah base. "The sky lit up and about 15 seconds later we heard the terrifying sound," a resident of Nabatieh told the BBC 4BBC Israel says it has destroyed major underground Hezbollah base. Netanyahu and Defence Minister Israel Katz say this completes their "security zone" in southern Lebanon 1CRD Israel uses 1,100 tons of explosives to destroy resistance 'nerve center' beneath Ali al-Taher ridge. An Israeli official told Maariv that around 50 Hezbollah fighters were underground when the operation began and refused an offer to surrender 1CRD Israel uses 1,100 tons of explosives to destroy resistance 'nerve center' beneath Ali al-Taher ridge. Iran reportedly warned Washington last month that it would respond forcefully if the attacks on the ridge continued 1CRD Israel uses 1,100 tons of explosives to destroy resistance 'nerve center' beneath Ali al-Taher ridge.

• The US Navy admits Iran wrecked its Bahrain headquarters. "They blew the hell out of Bahrain," acting Navy Secretary Hung Cao said of the Naval Support Activity base, home of the Fifth Fleet, adding that a task force is now deciding whether to repair it at all 5AJE ‘Blew the hell out of it’: How Iran damaged US bases in Bahrain, Jordan. The Navy's top uniformed officer says the base will not resume service "anytime soon" 5AJE ‘Blew the hell out of it’: How Iran damaged US bases in Bahrain, Jordan. Damage there left the USS Abraham Lincoln with "no place for them to pull in" during a nine-month deployment that has produced a crew mental health crisis 5AJE ‘Blew the hell out of it’: How Iran damaged US bases in Bahrain, Jordan. Araghchi's response was one line long: "We appreciate the candor of Acting Navy Secretary Hung Cao" 5AJE ‘Blew the hell out of it’: How Iran damaged US bases in Bahrain, Jordan.

• Iran has restarted ballistic missile production underground. The Wall Street Journal reports Tehran is assembling both liquid and solid-propellant missiles from components stockpiled before the war, with activity detected at several underground sites including the Khojir complex, and new assembly sites being dug to make future strikes harder 16YNT Netanyahu: Iran is trying to rebuild its nuclear weapons capability. Output is well below pre-war levels 16YNT Netanyahu: Iran is trying to rebuild its nuclear weapons capability. It still undercuts Pete Hegseth's April claim that Iran's missile programme was "functionally destroyed" with "no ability to replenish" 16YNT Netanyahu: Iran is trying to rebuild its nuclear weapons capability. Netanyahu, at the Western Wall before Rosh Hashanah, promised that Iran will not get a nuclear weapon "as long as I am prime minister" 16YNT Netanyahu: Iran is trying to rebuild its nuclear weapons capability.

• Iran's president says out loud that he does not want the war to continue. "I am not in favour of continuing the war, but we must strengthen the country's resilience in the face of upcoming developments," Masoud Pezeshkian told university heads on Friday, arguing Iran must not be forced to negotiate from weakness 3AAM Iranian president says he does not support continued war, urges strengthening country’s resilience. He also told students to bring solutions "instead of engaging in protests," which tells you what the government is worried about domestically 3AAM Iranian president says he does not support continued war, urges strengthening country’s resilience. He then flew to New Delhi for the BRICS summit, which he described as a vehicle for reducing dollar dependence and countering unilateralism 9MHR Pezeshkian terms BRICS a tool against US pressure.

• NATO will not be clearing the mines. Secretary-General Mark Rutte said demining in Hormuz "is not a NATO mission" because the strait lies outside alliance territory, while praising a Franco-British initiative and contributions from members including Latvia and Lithuania 12CRD NATO chief says Hormuz mine clearance 'not a NATO mission'. Individual European navies are helping the US. The alliance itself is staying formally out, at the same moment Washington is pressing Europe to carry more of its own conventional defence 12CRD NATO chief says Hormuz mine clearance 'not a NATO mission'.

The European Central Bank made it official: this war is now a monetary problem. It raised its main rate to 2.5 percent, lifted its inflation forecast to 3 percent for the year, and Christine Lagarde said "we believe inflation will be longer lasting than we had anticipated" 17GDN ECB raises interest rates to 2.5% and warns Iran war is fuelling inflation.

The bond market reaction is the number to watch. UK 10-year gilt yields hit 5.36 percent, the highest since August 2007, Germany's 30-year yield reached its highest since 2003 and France's 10-year its highest since 2008 17GDN ECB raises interest rates to 2.5% and warns Iran war is fuelling inflation. US long-term borrowing costs are also at multi-decade highs 15BBC Oil, gas and borrowing costs surge as fears over Middle East escalate. The US 10-year sits just under 5 percent.

Gas is the quieter emergency. Dutch wholesale gas passed €80 per megawatt hour for the first time since January 2023, UK gas went above 203p a therm, and EU storage is only 67 percent full against a five-year average of 84 percent going into winter 17GDN ECB raises interest rates to 2.5% and warns Iran war is fuelling inflation.

Brent is sitting around $104.60, off Thursday's $105 peak, but the Oil Volatility Index is still near 59, roughly a third above where it sat a week ago. Traders are not calming down. Tanker stocks kept climbing, while defence names slipped again.

British households are about to feel this twice. Wholesale gas above 200p a therm is the highest since the end of 2022, and Ofgem's price cap is already set to rise 3.6 percent in October with another review in January 15BBC Oil, gas and borrowing costs surge as fears over Middle East escalate. Meanwhile gilt yields at 2007 highs feed directly into fixed-rate mortgage pricing 15BBC Oil, gas and borrowing costs surge as fears over Middle East escalate.

The White House's answer to pump prices is Venezuela. Energy Secretary Chris Wright told Fox News that the 30-minute January operation that removed Nicolás Maduro has cleared the way for Venezuelan output to more than double by the end of 2027, with Chevron investing more than $7bn and lifting production to 600,000 barrels a day 10FOX Top Trump official reveals how 30-minute military op unlocked Venezuela oil windfall for US buyers. Venezuela holds roughly 20 percent of the world's crude reserves but produces about 1 percent of global output 10FOX Top Trump official reveals how 30-minute military op unlocked Venezuela oil windfall for US buyers. Even on the administration's own numbers, those barrels arrive years after this winter's bills.

One more thing Europeans should notice: NATO is not mine-clearing Hormuz, so the cost and risk of keeping that waterway navigable falls on individual national navies, principally Britain and France 12CRD NATO chief says Hormuz mine clearance 'not a NATO mission'.