Israel and Morocco agreed to exchange ambassadors and establish full embassies under the Abraham Accords as officials discussed expanding normalization to Saudi Arabia.

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Global energy prices have spiked alarmingly again, driven largely in recent days by the escalating conflict between Yemen's Houthis and Saudi Arabia causing chaos for the oil industry. Petrol and diesel costs have risen rapidly in most countries while the wholesale price of natural gas - used for heating homes and generating electricity - has almost doubled in the UK and Europe since July. There are growing concerns of another inflationary shock on the world economy, which could cause interest rates to rise, increase mortgage costs and raise the price of almost everything in the shops including food. So what is behind this latest surge - and what are the implications for the world economy? The global oil price is currently above $108 (£80) per barrel, up from $70 (£52) in June 2026 - a roughly 50% increase.

Images showing widespread damage to multiple US sites in the Middle East from Iranian strikes have been obtained by the BBC's US partner CBS. The photos, provided by active military personnel, show a severed radar jet, flattened trailers and severely damaged buildings. The undated photos were taken at US bases and sites in Saudi Arabia and Kuwait. One member of the military, who was not named by CBS, said: This is major damage to our bases that hasn't been communicated to the American public. We're standing there with our eyes closed getting punched in the face.

USS Abraham Lincoln returns from combat in the Middle East as a White House order to revisit steam catapults over EMALS threatens U.S. aircraft carrier readiness against China's navy.

Image caption, The Houthis denied they had targeted Mecca, where Islam's most sacred shrine is located Saudi Arabia intercepted and destroyed a Houthi drone south of the Islamic holy city of Mecca on Tuesday evening, according to the spokesman of the Saudi-led coalition in Yemen. Turki al-Maliki said the targeting of Mecca, which is the home of Islam's most sacred shrine and the focal point of the Hajj pilgrimage, was a disgraceful act. The 57-nation Organisation of Islamic Cooperation said attacks on Mecca and Medina province, where Islam's second holiest shrine is located, constituted an unacceptable and intolerable transgression. But the Houthis, an Iran-backed armed group that controls much of western Yemen, denied targeting Mecca and accused Saudi Arabia of fabrications and lies. There is no threat whatsoever from Yemen to the holy sites.

Did Iran capture a US submarine? Saudi Arabia has cancelled some oil deliveries to Europe after drone attacks shut down its key export pipeline to the Red Sea. The rare move has caused global panic and forced buyers to rush for alternatives. Why is the far-right embracing crypto? NATO downs drone over Lithuania, 'probably' launched by Russia

Mohammed bin Salman (R) has asked Donald Trump (L) for more military support to counter the Houthis. The U.S.-Iran war has reached crisis point for Saudi Arabia and its de facto leader, Crown Prince Mohammed bin Salman. The kingdom was spared the worst of the Islamic Republic's counterstrikes against the U.S. and Israel early in the conflict, and was even benefiting from higher crude prices as it used a land pipeline to bypass the Strait of Hormuz. That all changed when the Houthis started firing at Saudi Arabia on a near-daily basis this month. The Iran-backed militants have also captured more territory in Yemen, where they are based, tightening their control over Bab el-Mandeb, another vital strait for shipping and energy markets.

US government borrowing costs climbed to their highest level since 2007 after a jump in oil prices further fuelled concerns about inflation. The effective interest rate on US government bonds over 10 years, known as the 10-year Treasury yield, rose as high as 5.04% but has eased back since. Government bond yields have been rising globally for months, driven by worries that inflation caused by the oil price surge since the start of the US-Israel war with Iran will lead to higher interest rates. The US has been buying back bonds back in a bid to drive the Treasury yield down, with Treasury Secretary Scott Bessent calling the intervention successful. The global benchmark wholesale oil price rose to over $109 a barrel on Tuesday, up from around $86 at the end of August, after renewed concerns about Saudi Arabia's ability to export oil following rising tensions in the region .

NATO scrambled two Italian Eurofighter Typhoons to shoot down a drone over Lithuania that officials say likely entered from Belarus, marking a first for the Baltic nation.