WORLD IN BRIEF:Germany blames Russia for airport drone attack, US borrowing costs rise, Senegal secures $2.2bn IMF deal and other stories

Germany blames Russia for Leipzig airport drone attack

Germany has accused Russia of being behind a failed drone attack at Leipzig/Halle Airport earlier in August, saying the incident fits a wider pattern of Russian hybrid operations across Europe.

A drone carrying an explosive device was found at the airport on August 4 near Ukrainian cargo planes. The device failed to detonate, apparently because of a faulty detonator, while investigators believe another drone collided with a nearby cargo aircraft. A third drone was reportedly discovered near the airport 10 days later.

Alexander Dobrindt, German Interior Minister, said an examination of the equipment, combined with intelligence findings, had established Russian involvement. Moscow rejected the allegation as “absurd”.

Johann Wadephul, the Foreign Minister announced tougher measures against Russia, including the closure of the Russian consulate in Bonn, the termination of the contract for the Russian House in Berlin and tighter entry controls for Russian nationals.

Germany also plans to increase pressure on Russia’s so-called shadow fleet of ageing tankers used to circumvent Western sanctions.

Russia has threatened to respond with similar measures, describing Germany’s actions as an “unprecedented escalation” in bilateral relations.

US resumes strikes on Iran as tensions escalate

The United States has launched fresh strikes against Iran, raising fears that renewed fighting could escalate across the Middle East after weeks of relative calm.

US Central Command said American forces began striking Islamic Revolutionary Guard Corps targets after accusing Iran of attempting attacks against commercial shipping in the Strait of Hormuz and US personnel in the region.

Iranian state media reported that a US strike near Sirik in southern Iran killed four people, including a four year old child, at a wedding party and wounded about 50 others. Iranian authorities subsequently reported missile and drone attacks against US interests in the region.

The strikes follow an earlier US attack on two Iranian launchers on Larak Island, which Tehran answered with missile attacks on US bases in Jordan.

President Donald Trump warned that Iran would face attacks at a “much harder and higher level” if it retaliated.

The renewed exchanges of fire threaten to deepen disruption around the Strait of Hormuz, a critical route for global energy shipments.

Israel warns UK against sanctions over West Bank settlements

Israel has warned Britain it will retaliate if London imposes sanctions over Israel’s expansion of settlements in the occupied West Bank.

Gideon Saar, Israeli Foreign Minister, said Israel would respond if Britain took action, calling such a move a mistake.

His warning came after UK Foreign Secretary Ed Miliband said Britain was preparing a “comprehensive reset” of its policy towards Israel and would examine measures against UK companies involved in financing, constructing or advertising new settlements.

Miliband described Israel’s planned construction of about 1,200 homes in the strategically important E1 area as a “red line”, warning that the development could undermine the possibility of a viable Palestinian state.

The plans have drawn international criticism because the E1 area lies between Jerusalem and the rest of the West Bank and its development could further divide Palestinian territory.

France imposes new fees on ultra fast fashion

France has introduced new fees on ultra fast fashion products sold by online platforms such as Shein, Temu and AliExpress as part of efforts to reduce the environmental and economic impact of cheap clothing.

The levy, which took effect on Tuesday, starts at €0.50 for underwear, €2 for T shirts, €9 for jeans and €12 for jackets. It could rise to as much as €19.50 per item by 2030, although the charge cannot exceed half the product’s pre tax price.

The measure follows legislation passed in June targeting retailers that sell large volumes of inexpensive clothing and encourage rapid consumption.

French officials say the policy is aimed at addressing environmental damage and the pressure ultra fast fashion places on the domestic economy.

China has criticised the law as discriminatory and a potential trade barrier, arguing that it could conflict with World Trade Organisation principles.

US borrowing costs rise as Iran conflict stokes inflation fears

US borrowing costs have risen to their highest level since January 2025 as renewed conflict in the Middle East pushes oil prices higher and raises concerns about inflation.

The yield on 10 year US government debt climbed to 4.79 percent on Tuesday as oil prices moved above $92 a barrel.

Higher government borrowing costs can feed into mortgage, car loan and credit card rates, increasing financial pressure on households and businesses.

The latest rise has also fuelled speculation that the Federal Reserve could raise interest rates later this month. Inflation stood at 3.4 percent in July, well above the central bank’s 2 percent target.

Michael Barr, Federal Reserve Governor, warned that policymakers may need to act decisively if inflation fails to cool.

Xi visits Egypt as China deepens Middle East ties

Xi Jinping, Chinese President has arrived in Egypt as the Iran conflict prompts Middle Eastern countries to reassess their economic and security relationships.

Xi was welcomed by Egyptian President Abdel Fattah al Sisi in Cairo, marking the Chinese leader’s first visit to Egypt in a decade.

The two countries have strengthened economic and strategic ties in recent years, with Egypt presenting its relationship with Beijing as part of a broader effort to strengthen the role of the Global South.

The visit comes as the war involving Iran has disrupted energy markets and raised questions about the long term reliability of US security commitments in the region.

Xi described China and Egypt as “close brothers” and signalled an interest in deepening the partnership.

Senegal reaches $2.2bn IMF deal as debt crisis deepens

Senegal has reached a staff level agreement with the International Monetary Fund for a $2.2 billion, three year lending programme as the country seeks to restore debt sustainability.

The agreement follows the discovery of billions of dollars in previously undisclosed borrowing under the former administration. Senegal’s debt reached about 132 percent of GDP by the end of 2024, according to IMF figures.

The new programme requires the government to take corrective measures and address the misreported debt before final approval by the IMF’s management and board.

Senegalese bonds fell sharply after the announcement, with all trading below 50 cents on the dollar or euro.

The IMF had previously frozen a $1.8 billion programme after the undisclosed debt was uncovered.

Algeria appoints central bank governor as finance minister

Abdelmadjid Tebboune, Algerian President, has appointed central bank governor Mohamed Lamine Lebbou as finance minister in a partial cabinet reshuffle.

Lebbou, who became governor in February, will move to the finance ministry only months into his tenure at the central bank.
The presidency also announced new ministers for labour, agriculture and communications.

No replacement has been announced for Lebbou as central bank governor.

Guinea Bissau approves constitution expanding presidential powers

Guinea Bissau has approved a new constitution that significantly expands presidential powers ahead of a presidential election expected in December.

Provisional results showed 70 percent of voters supported the changes, while 30 percent opposed them. About 544,060 people voted, representing almost 60 percent of registered voters.

The new constitution allows the president to appoint and dismiss the prime minister and cabinet, create or abolish ministries and dissolve parliament under certain circumstances.

The referendum was boycotted by the main opposition party.

The changes strengthen the position of the military backed authorities that seized power in a coup last November, adding to concerns about democratic stability in a country with a long history of political and military intervention.

Kenya aviation workers end strike after flight disruption

Kenyan aviation workers have ended a strike that caused widespread flight delays and cancellations at the country’s main airports.

The action, largely involving air traffic controllers, disrupted operations at Jomo Kenyatta International Airport in Nairobi and caused knock on delays across East Africa.

A return to work agreement was signed by the workers’ union, airport and civil aviation authorities and low cost airline Jambojet.
The agreement provides a framework for negotiations over outstanding labour issues, including three collective bargaining agreements that have remained unresolved since 2015.

Transport authorities said discussions would continue while normal airport operations resume.