Top story: BP officials hinted that the company may not make voluntary payments, which it had previously consented to in the wake of the oil spill in the Gulf of Mexico, if Congress goes forward with plans to restrict the company's activities in the Gulf of Mexico. These payments include the $20 billion that BP promised President Barack Obama in a White House meeting that it would pay into an escrow fund to cover damages and government fines associated with the spill. BP executives say that if they are denied the right to drill in the Gulf of Mexico, which accounts for about 25 percent of the company's total annual profits, they might not be able to find the funds to pay for these programs.
Legislation designed to reform the offshore drilling sector passed the U.S. House of Representatives on July 30. It included an amendment that would prevent any company from receiving a drilling permit if it had suffered more than 10 fatalities at its facilities, or had been fined more than $10 million under environmental protection legislation -- conditions that only applied to BP. The amendment was proposed by Rep. George Miller (D-CA). The Senate has not yet acted on the measure, and the Obama administration has not expressed an opinion on this particular amendment.
BP is not only balking at paying money into the $20 billion escrow fund, but also financing a whole range of programs that it previously agreed to. These include $100 million to provide for oil workers who lost their income due to Obama's moratorium on deepwater drilling, $500 million for a research program to study the spill's environmental impact, and almost $80 million to fund the tourism campaigns of the Gulf Coast states affected by the spill.
Depositors make run on Afghan bank: One of the largest shareholders of Kabul Bank warned of a "revolution in the financial system" after depositors removed $180 million in two days, amidst fears that the bank was on the verge of collapse.
Middle East
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Hamas said that 13 Palestinian militant groups were joining forces to more effectively launch attacks meant to disrupt the nascent talks between Israel and the Palestinian Authority.
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U.S. Middle East envoy George Mitchell said that the opening round of talks between the Israeli and Palestinian leadership had been "constructive."
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Members of Iran's pro-government Basij militia attacked the home of opposition leader Mehdi Karroubi.
Asia
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Japan imposed new sanctions on Iran due to concerns over its nuclear program.
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Two Chinese warships ended their first-ever visit to Burma.
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A suicide bomber targeted a Shiite-led rally, killing 22.
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Europe
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EU officials agreed on provisions to reform its financial sector.
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A new wildfire outbreak swept through Russia.
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The German central bank called on the country's president to fire one of its board members over his anti-Semitic and Islamophobic statements.
Americas
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An oil rig exploded in the Gulf of Mexico, though no casualties were reported and there are no indications that an oil leak has developed.
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A new poll showed that two-thirds of New York City residents wanted a proposed Islamic community near Ground Zero to be relocated.
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Mexican President Felipe Calderon referred to drug cartels as a "central threat" to his country.
Africa
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South Africa criticized a life-sentence a Madagascar court issued to exiled former President Marc Ravalomanana.
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The International Crisis Group released a report warning that the border between north and south Sudan was "dangerously militarized."
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Uganda announced that it could deploy up to 10,000 troops to Somalia.
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