US-Iran Tensions Escalate Amid Regional Defence Pact

Aug 7, 2026

79 min

Aug 7, 2026 17:30

US-Israel war on Iran widens: Trump says Iran can’t ‘go on much longer’; Saudi Arabia, Turkey, Pakistan sign defence pact

## Rising Tensions in the Middle East

The conflict involving the US, Israel, and Iran has intensified, with US President Donald Trump expressing confidence that the situation will resolve soon, stating that Iran "can't go on much longer." Meanwhile, Saudi Arabia, Turkey, and Pakistan have signed a joint defence agreement, aiming to enhance regional security and cooperation.

## Defence Pact Details

The Mecca Joint Defence Agreement, signed by leaders from Saudi Arabia, Turkey, and Pakistan, is designed to bolster mutual defence capabilities without forming a military alliance or targeting any specific country. The agreement emphasizes collective deterrence and regional stability.

## Strait of Hormuz Developments

Iran and Oman are nearing an agreement on a framework for commercial shipping through the Strait of Hormuz. However, Iran has clarified that this will not automatically lead to the reopening of the crucial waterway, which remains a focal point in the ongoing tensions.

## US Sanctions and Military Actions

The US has intensified its "maximum pressure" campaign against Iran by targeting networks allegedly used to evade sanctions. Additionally, US Central Command continues to enforce a naval blockade, redirecting and boarding vessels in the region.

## Regional Conflicts

In Yemen, Houthi attacks have resulted in civilian casualties in Saudi Arabia, further escalating tensions. The UAE has condemned these attacks, reaffirming its support for Saudi Arabia's security measures.

## Economic Impacts

The US economy saw a decline in jobs, leading to a drop in the dollar and a rise in stock markets. This economic shift may influence Federal Reserve policies, as concerns about the labor market persist.

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