US sends third carrier and 2,000 Marines toward Iran as Trump says standoff ends 'very soon'

Washington told France and Germany to release emergency diesel stocks or face a US export ban. The EU 'fully rejected' the threat, saying it would undermine trust in Washington. The G7 later agreed to release up to 100 million barrels of diesel and crude over four months, pledging no energy export restrictions. Trump claimed Europe agreed to a 'massive' release and said the US will not ban diesel exports. The IEA's Birol said oil prices were starting to fall.

US Treasuries rebounded on Thursday after a global sell-off pushed the 10-year yield to its highest since 2002. Cooler August PCE inflation of 3.4% had dented talk of an October hike, though Fed official Logan called for hikes of '50 bps or more'. Friday's jobs report showed only 29,000 jobs added in September, unemployment at 4.2% and July and August revised down by 60,000. An October hike looked nearly off the table and the dollar fell.

The Saudi-led coalition said the Houthis attacked the Taibah power distribution station in Medina. Crown Prince Mohammed bin Salman vowed a decisive response, and Reuters reported Riyadh was preparing an offensive to break the Houthis' Red Sea chokehold. Saudi Arabia also said debris from an intercepted Houthi missile injured a resident in Asir. Pakistan pledged 'whatever means' under their mutual defence pact, and the Pakistan-Turkey-Saudi defence committee will hold an emergency meeting next week.

Parliament voted down both of the government's housing decrees on Friday, with the PP, Vox and Junts against, as protesters gathered outside parliament in Madrid and across Spain. It is a key defeat for PM Pedro Sánchez that could lead to an early general election before the end of the year.

Brazil votes Sunday in a tight first round between President Lula and Flávio Bolsonaro, son of jailed former president Jair Bolsonaro, who is also campaigning for his father's release. Both skipped the final debate: Lula chose a popular podcast, while Bolsonaro accused the electoral court of 'censorship' to justify withdrawing. Brazil's attorney general has called for an investigation into alleged US efforts to divert funds to far-right groups.

More than 560 French schools were closed or disrupted on Friday as student protests over overcrowded classes and teacher shortages turned violent, with the education ministry calling it 'urban violence'. Around 100 schools were severely damaged and 40 headteachers injured, and nearly 3,000 teenagers had been detained since the unrest began. PM Lecornu had called a crisis cabinet meeting.