The US military attacked Iran early Wednesday (Jul. 8) after it said Tehran struck three ships in the Strait of Hormuz, part of an American effort that also revoked the Islamic Republic's ability to openly sell crude oil in the world market. Iran immediately warned Washington it would "take whatever measures it deems necessary," raising the risks that an interim agreement in the war halting fighting could break down, putting the wider Middle East again at risk of a wider conflict.

Bahrain, home to the US Navy's 5th Fleet, sounded its missile alert sirens Wednesday morning after the American attack on Iran. The attacks on shipping and the resulting strikes on Iran came during the dayslong funeral for Iran's Supreme Leader Ayatollah Ali Khamenei, who was killed Feb. 28 in the war's first moments. The funeral, which ends Thursday, had been thought to be a period of lower tensions - though mourners have repeatedly called for the killings of US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu.

Hamas said it had dissolved its government in Gaza and is preparing to transfer power to a technical committee backed by the United Nations as part of a US-brokered ceasefire deal. Hamas did not say whether it planned to take the crucial step of disarming or handing over security to an international force, but described its decision as evidence of its commitment to Gaza's reconstruction after years of war.

It was unclear if the move, announced by a lower-level official, would lead to any meaningful change on the ground. The Board of Peace, the new entity led by President Donald Trump with the mandate of governing and rebuilding Gaza, said it was aware of the Hamas announcement but would assess the impact based on "actions, not promises." The board stressed in a statement on X that the technocratic committee must control all weapons in Gaza, as laid out in the ceasefire agreement.

The International Monetary Fund modestly downgraded its outlook for the world economy this year, citing the energy shock caused by the Iran war. But the fallout from the conflict is being partially offset by booming investment in artificial intelligence and other technologies. The IMF now expects the global economy to expand by a sluggish 3% in 2026, down from 3.5% last year and from the 3.1% it had forecast for this year back in April. The fund expects worldwide growth to rebound to 3.4% next year.

The IMF cited the complexities ensuing over the Strait of Hormuz in the aftermath of the war on Iran. Energy prices soared, squeezing businesses and consumers. The IMF now expects oil prices to be up nearly 32% this year and for global consumer prices overall to increase 4.7% in 2026. That would be up from 4.1% in 2025 and would mean that two years of progress against inflation has stalled.

Drone strikes on civilian vehicles headed to social gatherings in Sudan have killed more than 20 people in recent days, rights groups said, as the use of unmanned aircraft becomes increasingly common in the north eastern African country's war. A drone strike on a road west of Omdurman on the outskirts of Khartoum on Tuesday killed 10 civilians, including five women from the same family, as they drove to a wedding, the Sudan Doctors Network said Wednesday. The medical aid group, which has been tracking violence been the military and the paramilitary Rapid Support Forces throughout the more than three-year war, blamed the attack on the RSF.

The vehicle immediately caught fire after the strike and all 10 people inside died, a witness told AP, speaking on condition of anonymity for fear of reprisals. The doctors group said the strike "was deliberate and carried out using a guided drone" and called for the international community to pressure RSF leadership to stop targeting civilians.