Ukraine, Russia Vow Escalation after Moscow Attack Kills 21 in Kyiv

Ukraine's President Volodymyr Zelenskiy walks with Interior Minister Ihor Klymenko as he visits the site of an apartment building damaged during overnight Russian missile and drone strikes, amid Russia's attack on Ukraine, in Kyiv, Ukraine July 2, 2026. REUTERS/Valentyn Ogirenko
Ukraine's President Volodymyr Zelenskiy walks with Interior Minister Ihor Klymenko as he visits the site of an apartment building damaged during overnight Russian missile and drone strikes, amid Russia's attack on Ukraine, in Kyiv, Ukraine July 2, 2026. REUTERS/Valentyn Ogirenko
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Ukraine, Russia Vow Escalation after Moscow Attack Kills 21 in Kyiv

Ukraine's President Volodymyr Zelenskiy walks with Interior Minister Ihor Klymenko as he visits the site of an apartment building damaged during overnight Russian missile and drone strikes, amid Russia's attack on Ukraine, in Kyiv, Ukraine July 2, 2026. REUTERS/Valentyn Ogirenko
Ukraine's President Volodymyr Zelenskiy walks with Interior Minister Ihor Klymenko as he visits the site of an apartment building damaged during overnight Russian missile and drone strikes, amid Russia's attack on Ukraine, in Kyiv, Ukraine July 2, 2026. REUTERS/Valentyn Ogirenko

Ukraine and Russia on Thursday vowed fresh assaults in their four-year war after Moscow launched a massive barrage on Kyiv, killing at least 21 people, tearing open apartment buildings and sending tens of thousands to shelters.

Ukrainian President Volodymyr Zelensky said his forces would "definitely" retaliate for the overnight pummeling of the capital as he inspected the site of an apartment block partially destroyed in the attack, AFP reported.

In Moscow, the Kremlin vowed to further ramp up the "pressure" on Kyiv, sticking to its no-compromise rhetoric as rescuers in Kyiv scoured the rubble for survivors.

The European Union's top diplomat proposed new sanctions on Moscow, while Zelensky asked the United States for licenses to manufacture Patriot air defense missiles.

Russia has routinely launched waves of missiles and drones at Ukrainian cities during its invasion, which has become Europe's deadliest conflict since World War II.

AFP journalists in central and eastern Kyiv heard more than a dozen explosions and saw residents -- some with children and pets -- rushing to shelter in metro stations.

In the morning, locals stood on the rubble of destroyed apartment blocks ripped apart by the barrage, as smoke poured over the Kyiv skyline.

At one spot, a mother cried as she embraced her son in front of the smoldering debris.

Blasts started echoing out late on Wednesday, lasting into the early hours of Thursday as Russian missiles and drones rained down on residential areas in the city center.

Mayor Vitali Klitschko described it as the "enemy's most massive attack on the capital", without elaborating.

Rescuers carry the body of a killed person found under debris of an apartment building damaged during overnight Russian missile and drone strikes, amid Russia's attack on Ukraine, in Kyiv, Ukraine July 2, 2026. REUTERS/Valentyn Ogirenko

The state emergency services said at least 21 people were killed and 85 were wounded, including two children.

The Ukrainian branch of the Red Cross said that its key warehouse was "destroyed" in the attack with around $2 million worth of humanitarian aid lost.

Debris from the pummeling also damaged a building that was "hosting a number of diplomats", EU spokesperson Anitta Hipper told AFP, adding that "EU diplomats were affected" but "safe".

Kyiv urged its allies to send more air defense.

"Air defens supplies for Ukraine are an absolute and critical priority," Zelensky said in a post on Facebook.

"We also very much count on a decision by the United States regarding licenses for Patriots."

Ukraine is seeking to manufacture munitions for the US-made missile interceptor system, one of its only ways of defending against Russian ballistic missiles, although defense experts say it will take time to set up production domestically.

Russia fired 496 drones and 74 missiles, including hard-to-intercept ballistic projectiles, Ukraine's air force said.

It said it shot down 48 of the missiles and 476 drones.

People look at the site of a Russian missile strike that hit a residential building in Kyiv, Ukraine, Thursday, July 2, 2026. (AP Photo/Efrem Lukatsky)

AFP reporters met several Kyiv residents outside an apartment building largely destroyed in the attack.

"Half the building has been destroyed. The roof is gone," said 32-year-old factory worker Sabina Mambetova, standing outside the rubble of her home in the eastern Darnytskyi district.

"I've been left without an apartment, alone with my child. I don't know what to do now."

An AFP journalist at the site saw rescuers extracting the body of another victim of the attack, which ripped a multi-story building open.

Some 52,000 people, including 4,500 children packed into underground stations to shelter from the barrage -- the highest number in recent years, according to the Kyiv metro.

Others hunkered down in basements or corridors through the night as blasts shook buildings across the city.

"It's hard. My child is used to sleeping in complete silence and darkness," 32-year-old doctor Kateryna Kucheryava told AFP from the metro as the attack was unfolding.

"I picked her up and carried her down. She woke up and now she's not sleeping anymore."

Along station platforms, locals set up tents and lay on air mattresses and camping chairs, while mothers tried to sleep clutching babies to their chests.

The EU's top diplomat Kaja Kallas said she would propose new sanctions on Moscow over the attack.

But the Kremlin showed no signs it would back down, more than four years into an invasion that has killed hundreds of thousands.

The attack came hours after Zelensky cut short a visit to Dublin on Wednesday, citing intelligence reports of an impending Russian strike.

Zelensky said Russian President Vladimir Putin "has been preparing this massive strike against Ukraine for some time now".

Ukraine has stepped up long-range drone attacks inside Russia in recent weeks, targeting energy infrastructure and military targets.

Russian officials have reported repeated strikes in border regions, while Moscow has said its air defenses have intercepted hundreds of drones from Ukraine in recent days.

US efforts to broker an end to the conflict have so far failed.



Pentagon Picks Boeing for New US Navy Contract for Fighter Jets

26 October 2022, Schleswig-Holstein, Henstedt-Ulzburg: Boeing logo is pictured on a hall of the US aircraft manufacturer Boeing distribution center in Schleswig-Holstein. (dpa)
26 October 2022, Schleswig-Holstein, Henstedt-Ulzburg: Boeing logo is pictured on a hall of the US aircraft manufacturer Boeing distribution center in Schleswig-Holstein. (dpa)
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Pentagon Picks Boeing for New US Navy Contract for Fighter Jets

26 October 2022, Schleswig-Holstein, Henstedt-Ulzburg: Boeing logo is pictured on a hall of the US aircraft manufacturer Boeing distribution center in Schleswig-Holstein. (dpa)
26 October 2022, Schleswig-Holstein, Henstedt-Ulzburg: Boeing logo is pictured on a hall of the US aircraft manufacturer Boeing distribution center in Schleswig-Holstein. (dpa)

The Pentagon has chosen Boeing to build the Navy's next-generation fighter jets in a contract valued at $20 billion, US officials announced Tuesday.

The contract is to produce F/A-XX aircraft or "strike fighters" under the "Next Generation Air Dominance Program," a Pentagon statement said, adding that the new jets would replace the legacy "Super Hornets" fleet beginning in the 2030s.

The announcement marks the second time Boeing has been selected by the Pentagon during the second Trump administration for a sixth-generation weapons system. In March 2025, Trump announced that the Air Force chose Boeing to build a new stealth fighter.

"Delivering two advanced fighters in parallel was always our plan, and we invested accordingly. We are ready and able to build multiple concurrent future combat aircraft franchise programs," said Steve Parker, head of Boeing Defense, Space & Security.

"The F/A-XX platform represents a crucial, non-negotiable investment in America's national security and long-term air combat capabilities," said Pentagon undersecretary Michael Duffey. "We are joining forces with Boeing to field these capabilities."

Boeing said construction was continuing at the company's "secure manufacturing" facility in St. Louis, which the company said is the largest of its kind in the United States.

"The technical and programmatic details of F/A-XX remain classified under US national security and export laws," Boeing said.

Boeing was competing for the contract with Northrop Grumman.

"For F/A-XX, Northrop Grumman offered a highly survivable, digitally advanced sixth-generation fighter to the US Navy," Northrop said Tuesday. "We look forward to receiving additional information about their selection."

At a May 2026 hearing, Admiral Daryl Caudle, chief of naval operations, told a Senate panel that the next-generation system needed to "extend the reach, survivability and lethality," expected to work with unmanned systems.

"Failure to field next-generation carrier aviation capability on schedule will introduce risk to air superiority, strike reach and the long-term viability of carrier-based operations in contested environments," Caudle said.

Shares of Boeing rose 2.4 percent in after-hours trading, while Northrop Grumman dropped 3.6 percent.


Qatari Mediators Press Peace Deal between US and Iran

This photo shows a general view of Milad Tower in Tehran on September 27, 2026. (AFP)
This photo shows a general view of Milad Tower in Tehran on September 27, 2026. (AFP)
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Qatari Mediators Press Peace Deal between US and Iran

This photo shows a general view of Milad Tower in Tehran on September 27, 2026. (AFP)
This photo shows a general view of Milad Tower in Tehran on September 27, 2026. (AFP)

Qatar said on Tuesday it hopes that shuttle diplomacy between Iran and the US can lead to a breakthrough despite US President Donald Trump's denial of media reports that he was willing to ease sanctions and release frozen funds in exchange for Iranian concessions on its nuclear program.

"We are exchanging messages between the parties, and we're working towards establishing a common ground in order to get into a deal that would save all of us from the repercussions of the conflict," Qatari Foreign Ministry spokesperson Majed al-Ansari told reporters.

The US and Iran have failed to find an off-ramp from their war, now in its eighth month. Negotiations appeared to intensify during last week's UN General Assembly meeting in New York, but have so far not yielded any agreement ‌to reopen the Strait ‌of Hormuz.

US and Iranian officials spoke separately with Qatari mediators on Monday. It was unclear if another exchange took place on Tuesday.

Trump repeated his position that Iran must not obtain a nuclear weapon and that the war would be over soon.

The conflict has degraded Iran's conventional forces and damaged its already ailing economy, but Tehran has fought back with missile and drone strikes on US allies in the Gulf and by restricting oil tanker traffic in the strategic Strait of Hormuz, which has pushed up world energy prices.

"I don't know if they are going to give up yet but they'll give up," Trump told ⁠reporters on Tuesday.

"They are doing very poorly," he added.

On Monday night, Trump took to ‌social media to deny reports by Axios and CNN, citing unidentified US ‌officials, that Trump was willing to give Iran sanctions relief and release frozen Iranian funds as part of a final deal on the condition ‌that Iran showed "concrete progress" on the nuclear issue.

"This is untrue. I offered them NOTHING," Trump wrote on Truth Social.

Trump has cited ‌preventing Tehran from acquiring a nuclear bomb as a central goal of the war, along with ending its ability to attack its neighbors and creating conditions for Iranians to topple their leadership.

Iran does not have nuclear weapons and denies it wants to develop them, but argues it has the right to a nuclear program for civilian purposes.

Iranian President Masoud Pezeshkian, in an interview with the CBS show "Face the Nation" that ‌aired on Sunday, said Tehran was ready for talks on its nuclear program and other issues, but would not accept "bullying or coercion."

IRANIAN PEACE PROPOSAL

At the United Nations General Assembly ⁠last week, Iran floated a peace ⁠proposal that would trigger a seven-day countdown to reopening the strait and a pause in fighting.

Trump on Saturday rejected the plan although Iranian Foreign Minister Abbas Araghchi said on Sunday that Washington had not officially relayed a US rejection through mediators.

The war has killed thousands of people and severely disrupted global energy supplies, fueling inflation.

Oil prices settled 2.5% lower on Tuesday as investors focused on signs of recovering crude exports from the Middle East, but prices were still on track for monthly gains on lingering concern about supply disruptions.

The US government on Tuesday offered to loan energy companies up to 40 million barrels of oil from the Strategic Petroleum Reserve, the last US batch of crude from a global deal to unleash reserves in the wake of the Iran war.

The United States also stepped up its economic pressure on Iran, sanctioning 10 individuals and entities, including some based in China, Hong Kong and Pakistan, saying they helped Iran procure weapons and components.


Iran’s Currency Hits a New Record Low as War Erodes the Country’s Economic Stability

A display shows currency exchange information, in Tehran, Iran, September 27, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
A display shows currency exchange information, in Tehran, Iran, September 27, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
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Iran’s Currency Hits a New Record Low as War Erodes the Country’s Economic Stability

A display shows currency exchange information, in Tehran, Iran, September 27, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
A display shows currency exchange information, in Tehran, Iran, September 27, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters

Iran’s currency fell to a new record low on Tuesday, with traders in Tehran exchanging more than 2.5 million rials to the US dollar in a stark reflection of how the war in the Middle East has steadily eroded the Iranian economy.

The latest decline came just 27 days after the rial hit its previous record low of 2.2 million to the dollar on Sept. 2. The currency has repeatedly reached new lows since the war began in February.

The Iranian economy has been under duress for years in the face of international sanctions. But a US naval blockade on Iranian oil and new sanctions imposed since the start of the war have sent it into free fall.

Meanwhile, Iran’s top diplomat said indirect negotiations with the United States aimed at reopening the critical Strait of Hormuz have become “more serious,” while the Iranian Revolutionary Guard Corps’ chief spokesman Gen. Hossein Mohebbi on Tuesday called on Americans to take to the streets and protest the conflict.

Iran's top diplomat raises the prospect of new talks

Foreign Minister Abbas Araghchi told Iranian media late on Monday that the “current focus is solely on the Strait of Hormuz,” the chokepoint of the war.

Araghchi made the comments shortly before departing New York, where he attended last week’s gathering of world leaders at the UN General Assembly, and after meeting with Pakistani and Qatari mediators.

Araghchi said the Qatari intermediaries were expected to soon engage with the US side.

“They are set to raise the matter with the American side once more, after which the final US response will be conveyed to us,” Araghchi said. “If there is a response, the Qataris will convey it to us and a decision will be made in Tehran on that basis.”

Officials, including from the US, have confirmed to The Associated Press that mediators are working with Iran and the US on trying to broker a deal to end the fighting and open the strait.

The mediation efforts continue even after US President Donald Trump earlier this week spurned an Iranian proposal to reopen the strait in seven days if the US agreed to lift its blockade of Iranian ports, release frozen Iranian assets and waive sanctions on Iranian oil sales, among other conditions.

Tensions in the Strait of Hormuz were underscored by a report Tuesday that a cargo vessel was struck by an “unknown projectile” while moving through the strait on Monday. The United Kingdom Maritime Trade Operations said it had received a delayed report from a third party.

The strike caused a fire on board that was extinguished, UKMTO said, and all crew members were reported safe, UKMTO said. The vessel, which wasn't identified, continued on its way, the report said. There was no immediate claim of responsibility for the attack.

US targets Iran’s military supply chain with new sanctions

The Trump administration said Tuesday that 10 individuals and entities based in Iran, Hong Kong and Pakistan now face sanctions over accusations of procuring weapons and weapon components for Iran’s defense ministry as it fights its now seven-month war against the US

The United States is targeting people and companies around the globe that it accuses of being financial facilitators or enablers of Iran’s military supply chain, pushing ahead with economic warfare against Tehran at a time when renewed diplomacy between the two countries remains uncertain.

The latest action by the Treasury Department is part of the administration’s “Operation Economic Outcast” campaign, aimed at severing “critical financial lifelines” for the already heavily sanctioned Iranian government.

“Treasury will not tolerate any support to the regime and will continue to identify, expose, and isolate Iran’s enablers,” Treasury Secretary Scott Bessent said in a statement.

Iran sends a provocative message to the US public

The Iranian Revolutionary Guard Corps on Tuesday made an appeal to everyday Americans to push their government to end the US war against Iran, a provocative message that comes just weeks before critical midterm elections in the United States.

Mohebbi, the Guard spokesman, read a letter during a news conference in Iran's capital, Tehran, appealing to Americans to pressure their government and claiming that the only way for the war to end is for Washington to admit defeat and leave the Middle East.

Mohebbi’s remarks come as Trump’s Republican Party faces fierce headwinds as it looks to maintain control of Congress. But polling shows the war has darkened the American electorate’s mood ahead of the Nov. 3 election in which elevated gasoline prices, a byproduct of the conflict, loom large.

Trump and his top aides are insistent that Iran’s economy cannot sustain a conflict much longer and have expressed confidence that Tehran will be forced to capitulate.

The US president predicted soon after launching the war that the conflict would last a matter of weeks. More recently, he’s said that the war will likely end after the November elections in the US

US Secretary of State Marco Rubio in a Monday appearance on Fox News said Iran was heading toward an economic “cataclysm.”

Administration officials say that a combination of new sanctions and a US naval blockade aimed at preventing Iranian oil from going to market are having the intended effect.

“And so when you’re denying them money through oil sales and sanctions, you’re not just punishing them,” Rubio said. “You are preventing them from getting access to money that they will use to try and kill Americans and others around the world and their own people and build weapons and threaten the world and ultimately break out to a nuclear weapon program."