US officials are discussing military options with European counterparts, including sending European forces under US command or providing air support such as air defense systems and fighter jets, as part of a potential troop deployment to Ukraine. French President Emmanuel Macron and British Prime Minister Keir Starmer have expressed support for troop deployments, while German Chancellor Friedrich Merz has signaled openness to participation. US Secretary of State Marco Rubio held conference calls with European counterparts to discuss security guarantees for Ukraine, including air defense systems and enforcing a no-fly zone.
Russia launched a rare drone and missile attack on western Ukraine overnight, targeting an American-owned electronics plant and other Ukrainian military-industrial complex sites. The strikes came amid Moscow's objections to key aspects of proposals aimed at ending the three-year-old war. US President Donald Trump had discussed the war with Russian President Vladimir Putin in Alaska last week, before hosting Ukrainian President Volodymyr Zelenskyy and European leaders at the White House on Monday.
Oil prices have edged up amid uncertainty over stalled Russia-Ukraine peace talks. A major air attack by Russia near Ukraine's border with the European Union and a reported strike on a Russian oil refinery have heightened geopolitical tensions. The US Energy Information Administration reported a larger-than-expected drawdown of 6 million barrels from US crude stockpiles, supporting oil prices. Analysts at PVM Oil Associates warn that tighter sanctions on Russia are possible due to stalled peace talks, while investors await signals on a potential Fed interest rate cut at the Jackson Hole economic conference in Wyoming, where Fed Chair Jerome Powell is scheduled to speak.
Leaders from a bloc spanning roughly a quarter of the globe will gather at the Shanghai Cooperation Organization summit in Tianjin from August 31 to September 1, where they will unveil new plans to deepen ties. The gathering coincides with Beijing's largest military parade in years and comes as US President Donald Trump's foreign and trade policies draw regional players closer to China. Iranian President Masoud Pezeshkian and Indian Prime Minister Narendra Modi are among the invitees.
South Korea's Trade Minister Kim Jung-kwan will meet with U.S. officials, including Commerce Secretary Howard Lutnick and Energy Secretary Chris Wright, ahead of the Lee-Trump summit. The meetings come as part of final agenda coordination efforts. A framework trade agreement between Seoul and Washington was reached last month, and a bilateral trade consultation team led by Yeo and Kim is on the ground in Washington to prepare for the summit. Foreign Minister Cho Hyun is also set to arrive in Washington this week, sparking speculation about potential issues that may require his attention.
The US is considering using drones as part of its security guarantees for Ukraine, with a preference over fixed-wing aircraft. The Trump administration has expressed openness to this idea, while there are concerns about sending US pilots on manned missions over Ukraine. US President Donald Trump stated that security guarantees cannot include NATO protection, but would be willing to provide air power assistance. European politicians have raised the possibility of Western troops being deployed to Ukraine if the crisis is resolved. Russia opposes the presence of NATO troops in Ukraine, with Foreign Minister Sergei Lavrov reiterating this stance.
Ukraine and Donald Trump are facing difficult choices as they navigate a potential "bitter peace" following the Russia-Ukraine war. The US President's comments on Ukraine have raised concerns, with some interpreting his remarks as an attempt to downplay the severity of the conflict. Ukrainian officials have expressed frustration with Trump's stance, which has been seen as dismissive and insensitive.
The UK has imposed sanctions on a Russian-linked cryptocurrency exchange, Grinex, in an effort to prevent Moscow from using alternative financial systems to circumvent restrictions. The move comes after the US froze $27 million in USDT linked to Garantex, another Russian exchange accused of facilitating illicit transactions. Kyrgyzstan's President Sadyr Japarov has criticized the UK's decision, stating that none of his country's 21 banks are involved in helping Russia evade sanctions, and that only state-owned Keremet Bank is authorized to process transactions involving the Russian ruble, which was also sanctioned by the US earlier this year.
A UN envoy has warned of escalating tensions in Sweida, Syria, amid accusations from Druse separatists that a governance shift is undermining their rights. The envoy, Mr Pedersen, urged all sides to avoid actions that could polarise communities and destabilize the region further. US acting ambassador Dorothy Shea called on Syrian interim authorities to protect everyone, regardless of ethnicity or religion, and ensure swift justice for military personnel who abuse trust.