Iran rejects Oman’s Gulf-backed 50-50 Hormuz plan, wants full control of the strait

Oman, backed by Gulf states, proposed to Iran a plan to manage the Strait of Hormuz by collecting voluntary transit fees, but Iran rejected it, reported Al Jazeera. 

“Oman proposed to us the creation of a route in the Strait of Hormuz, with 50% of it located in our territorial waters and 50% in Omani territorial waters. The route for ships to pass through the Strait of Hormuz could involve entering through our waters and exiting through Omani territorial waters,” said Kazem Gharibabadi, Iran’s Deputy Foreign Minister.

Instead, Iran wants one shipping route which will lie entirely within its territorial waters, so that it “can effectively exercise oversight over both inbound and outbound traffic.” Gharibabadi warned that the strait will remain closed if Oman rejects the plan, and that the strait could not return to pre-war arrangements when ships passed without paying toll.

Iran said it would hold fire as ​long as Washington does. Iran continues to control the strait since the United States and Israel attacked Iran on February 28, the Islamic Republic took control of the Strait of Hormuz, through which about a fifth of ​global oil and liquefied natural gas (LNG) flowed before the war. Last month, it partially reopened after the US and Iran struck a deal, but fresh attacks by the US in July plunged the strait’s fate into chaos again.  

Trump’s new 10% tariffs to hurt Indian textile exporters, divert trade to Bangladesh, Southeast Asia  

New US tariffs on Indian goods could hurt the subcontinents textile exporters and divert trade to Bangladesh and Southeast Asia, Reuters reported.  The Trump administration imposed tariffs of 10% and 12.5% on some imports, citing inadequate enforcement of forced-labour import prohibitions. 

India was also excluded from quotas ​allowing specified textile and apparel shipments from Bangladesh, Cambodia, Indonesia and Malaysia using ​US-origin cotton and fibre to enter the US duty-free. 

"The differential treatment risks diverting sourcing orders for textile and apparel items away from India," CITI ​Chairman Ashwin Chandran told Reuters. India's textile and apparel exports to the US, the largest ​market for the country, are worth nearly $11 billion annually.

Trump tariff threat pushes Indian pharma and steel firms to manufacture in the US 

US President Donald Trump's proposed tariffs on generic drugs are prompting Indian pharmaceutical companies to expand manufacturing in the US to protect access to their largest export market, reported The Indian Express.

To encourage pharmaceutical production domestically, Trump announced that tariffs on imports will be raised 100% after two years and to 200% thereafter, adding that companies deciding against building plants in the US will be penalised. 

The US is India’s largest market for pharmaceutical exports. In 2025, India exported $9.7 billion worth of pharmaceuticals to the US, out of which 90% are generics. 

Trump’s threat to impose 100% tariffs on generic drugs “have triggered investment outflow from India to the US to secure access to the world’s largest consumer market”, according to The Indian Express. For example, Sun Pharmaceutical Industries, India’s largest pharma company, announced the acquisition of US-listed Organon & Co. for $11.8 billion.

Indian companies like Sun Pharma, Zydus Lifesciences, Lupin, Aurobindo Pharma, Cipla and Dr Reddy’s Laboratories operate US-based manufacturing facilities approved by the country’s Food and Drug Administration, according to research firm Global Trade Research Initiative (GTRI). Cipla is expanding production at plants in Massachusetts and New York, while Dr Reddy’s Laboratories is willing to expand manufacturing if it makes commercial sense.

The shift is also extending beyond the pharmaceutical sector. Last month, US Ambassador to India, Sergio Gor, said that JSW Steel’s $500 million investment plans in Ohio and Texas would strengthen the India-US partnership.

ASEAN meet: Jaishankar stresses fair trade, supply chain reliability in meeting with Chinese Foreign Minister

Indian External Affairs Minister S. Jaishankar raised the need for fair market access, balanced trade and reliable supply chains during a meeting with his Chinese counterpart Wang Yi on the sidelines of the Association of Southeast Asian Nations (ASEAN) foreign ministers’ meeting in the Philippines, reported The Times of India. 

In FY2025-26, India’s trade with China crossed $150 billion, overtaking the US. Jaishankar also praised the upgradation of the visa framework, resumption of direct flights between the neighbouring countries, the Kailash pilgrimage and border trade.

Since the border standoff in eastern Ladakh ended in 2024, relations between the two economic powerhouses have improved. This September, India will host the BRICS summit, where both countries’ leaders are expected to meet. 

In another development at the summit, U.S. Secretary of State Marco Rubio met his Chinese counterpart, Wang Yi, on the sidelines of the ASEAN meeting in Manila to discuss managing tensions ahead of President Xi Jinping's upcoming visit to the United States. The meeting came two days after a confrontation between Chinese and Philippine vessels in the South China Sea left a Philippine sailor injured, prompting both countries to summon each other's ambassadors,  Al Jazeera reported.

Al Jazeera noted that Rubio wrote an opinion piece in Philippine media about Beijing’s conduct in the South China Sea warning of “dire new threats” if those waters were to “fall under the control of a power willing to use commerce as a geopolitical weapon”.

Western Ghats eco-zone draft reissued for 7th time as Centre, six states remain at odds 

A fresh draft notification for the Western Ghats eco-sensitive zone was issued after the previous notification lapsed on July 26 without agreement between the Centre and six states over its boundaries, reported The Hindu. 

The latest draft, issued on July 27, proposes declaring about 56,825 sq km as an ecologically sensitive area (ESA) and will remain open for public objections for 60 days before being finalised. 

Once finalised, it will prohibit mining, quarrying, sand mining, new thermal power plants, certain industries and large construction projects within the ESA, while regulating activities such as hydro power generation.

The long-standing differences between the six Western Ghats States — Gujarat, Maharashtra, Goa, Karnataka, Kerala, and Tamil Nadu — are over the precise villages and regions that should be included within the ESA, according to the report. The six states had raised concerns over the impact of the ESA declaration on agriculture, plantations, infrastructure and development.

SC panel seeks public suggestions on protecting the Aravallis by Aug 31

A Supreme Court-appointed panel has asked for fresh public suggestions, representations and documentary evidence on protecting the Aravalli range from building and mining projects before it submits a report on August 31, reported The Times of India. The previous panel’s decision to denote and protect hills only more than 100 metres tall as the Aravallis provoked public outrage. This excluded large ecologically important areas, especially in Haryana and Delhi. 

Petitioners, environmentalists and former forest officials cautioned that “the exercise should strengthen legal protection for the mountain range rather than introduce a new definition that could create ambiguity and weaken conservation”,according to the report. It noted that the panel’s recommendations could influence future judicial directions on the identification, protection and regulation of the mountain range.

The Environment Ministry asked stakeholders from states linked to the Aravali ecosystem to submit suggestions within 21 days through email or a dedicated portal.

SC seeks information on Environmental Relief Fund

The Supreme Court asked the Centre and the Central Pollution Control Board (CPCB) to explain how nearly ₹1,000 crore collected, till 2021, under the Environmental Relief Fund has been used, reported Down to Earth. 

Though a scheme known as The Environmental Relief Fund has been in place since 2008, there was nothing on record to show that any amount has been disbursed or utilised for the fund's intended purpose, the apex court noted.