2) Attacks on Saudi tankers

The UK Maritime Trade Operations centre said a ship was targeted 70 nautical miles (130km) off the Saudi coast, causing a fire on board. There is no mention of casualties among the crew.

The Iran-backed Houthi rebels claimed to have attacked two Saudi oil tankers — Encelia and Layla — in the Red Sea. They used cruise and ballistic missiles and drones for the attack, causing fire on board those ships.

3) Global oil prices close to 6-week high

Global Oil prices inched close to a six-week high as Yemen’s Houthis targeted oil tankers in the Red Sea. Brent crude futures gained $2.2 or 2.3%, to $96.27 by 03.27 GMT, the ⁠highest ​since June 8. US West Texas Intermediate crude surged $1.65, or 1.9%, to $88.48, after Wednesday’s rise of 3%.

4) What Donald Trump said

Before attending the transfer ceremony for four US soldiers killed on duty in the war with Iran,  Trump said Iran will “pay a big price”. On Wednesday, Trump said: “From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT.”

What Iran said

Responding to Trump, Tehran said the threat represents a new escalation and warned that it would retaliate if Iranian civilian infrastructure is targeted. Iran’s Minister of Foreign Affairs Abbas Araghchi replied, saying Tehran’s defence doctrine is an “eye for an eye”, after Trump’s warning.

US House okays $95 billion budget

The US Parliament Wednesday adopted a Republican-only $95 billion budget proposal in an effort to fund the Iran war and other White House priorities amid objections from Democrats. The Republicans too were divided over the plan, with conservatives skeptical over no offsetting budget cuts. However, Speaker Mike Johnson saw it as the best possible way to materialise Trump’s priorities through a split Congress.

5) US, Saudi Arabia sign nuclear deal

The US and Saudi Arabia have signed a deal reportedly allowing the Gulf kingdom to develop a civilian nuclear programme. Described as a “peaceful nuclear co-operation agreement”, the deal will provide “great access for American companies in the Saudi nuclear energy programme”, the US energy department said.

Even though the deal text was not made public, The Wall Street Journal reported that a key part of it would involve American firms building a uranium enrichment plant in Saudi Arabia if a joint review by Washington and Riyadh concludes the move is justified. AP reported the same, noting the enrichment facility would follow a joint US-Saudi study.