Trump revives Iran sanctions, Turkey grants PKK amnesty as UK confidence hits two-year high

On 11 August, President Donald Trump said the United States would increase economic pressure on Iran, presenting sanctions as a means of forcing Tehran to curb its nuclear programme and fully reopen the Strait of Hormuz to energy shipping. The administration had been running what it calls Operation Economic Fury since April, with the possibility of penalties for countries buying Iranian oil or using its financial system. Iranian officials rejected the approach, while analysts cautioned that sanctions generally work over a longer period and may not quickly resolve a conflict. The renewed emphasis followed stalled negotiations and months of military action, against a backdrop of disruption to a waterway that had carried roughly a fifth of global oil supplies before the conflict.

Separate developments in Turkey and the UK occurred after the stated 11 August date. On 18 August, President Recep Tayyip Erdogan signed legislation providing a conditional route to suspend sentences, investigations and trials involving some PKK-linked offences, but only after the National Security Council verifies the PKK has fully dissolved and surrendered its weapons. Serious offences, including intentional killings linked to terrorism, are excluded, and senior figures including Abdullah Ocalan are not covered. In the UK, the GfK Consumer Confidence Barometer released on 21 August rose three points to -14, its highest overall reading in two years. Expectations for personal finances and major purchases improved, although views of the wider economy remained negative and GfK cited rising inflation and Middle East uncertainty as continuing risks.