Global Express | August 17, 2026 Trump Orders Major Reduction of US-South Korea Military Drills

1. Trump Orders Major Reduction of US-South Korea Military Drills

On August 16, President Donald Trump announced he has directed the Pentagon to scale down joint military exercises with South Korea. He cited South Korea's refusal to join the US war in Iran, while emphasizing his "very good" relationship with North Korean leader Kim Jong Un.

Trump said the large annual drills send a "totally inappropriate and hostile" signal to North Korea. The move is widely seen as one of the most significant rifts in the US-South Korea alliance in decades. Seoul has yet to formally respond, but analysts worry it could weaken US deterrence on the Korean Peninsula.

2. Ukraine Launches Its Largest Drone Attack of the Year

Ukraine launched its largest drone attack of 2026 against Russia in the early hours of August 17. According to Russia's defense ministry, the Russian military shot down more than 800 Ukrainian drones overnight, and a large e-commerce warehouse near Moscow caught fire after being struck.

In response, Russian forces later struck the southern Ukrainian port city of Odesa, injuring at least four people and damaging a Togo-flagged civilian vessel. President Volodymyr Zelenskyy said Russian forces are continuing to strike multiple Ukrainian regions, causing casualties.

3. UAE Accuses Iran of Third Tanker Attack in a Week

The United Arab Emirates on August 16 accused Iran of attacking an oil tanker belonging to its state-owned Abu Dhabi National Oil Company while it transited the Strait of Hormuz — the third such incident in less than a week. Two other UAE tankers were struck by drones days earlier.

The Strait of Hormuz is the world's most important oil shipping channel, carrying roughly one-fifth of global seaborne oil. The string of attacks has heightened concerns about spillover from the Middle East conflict and disruptions to global energy supplies.

4. Arab Allies Join Trump in Pressuring Israel

The Trump administration's Gaza peace plan is gaining support from Arab nations. On August 16, several Arab allies including Egypt and Saudi Arabia joined Trump in calling on Israel to drop its opposition to the US-backed Gaza peace proposal.

According to reports, eight foreign ministers issued a joint statement condemning Israel for rejecting the Gaza peace plan. The plan aims to achieve a ceasefire and long-term stability in Gaza, but Israel has raised objections over its security arrangements, leaving the outlook for negotiations uncertain.

5. Alibaba to Sell Gaming Business, Accelerating AI Pivot

According to The Wall Street Journal, Alibaba Group is selling its gaming arm Lingxi Games for at least $1.5 billion. The deal will help the Chinese e-commerce giant further concentrate its investment in artificial intelligence.

Sources say the sale is part of Alibaba's broader strategic restructuring, with proceeds to be used for AI computing power and cloud services. Alibaba has been ramping up efforts in large language models such as Qwen, and the sale is seen as another key signal of its "AI-first" strategy.

6. Japan's Q2 Growth Misses Expectations

Data released by the Japanese government on August 17 showed the economy grew 0.3% quarter-on-quarter in the second quarter, or 1.1% annualized — well below market expectations of 2.0%. Weak household spending and business investment dragged on overall growth.

Analysts noted that uncertainty from the Middle East conflict and rising commodity prices have weighed on domestic demand. The data also complicates the timeline for Bank of Japan rate hikes, with market expectations over the central bank's next move now divided.

7. Colombia Earthquake Death Toll Rises to 294

The death toll from the powerful earthquake that struck Colombia on August 10 has risen to 294, with nearly 4,000 injured and about 320 still missing. Nearly a week after the quake, rescue teams are still combing through rubble in search of survivors.

The 7.4-to-7.5 magnitude earthquake hit a vast area of western and central Colombia, heavily damaging cities including Cali and Pereira. The Colombian government has declared a national emergency and continues to expand relief and aid efforts.

8. At Least 12 Killed as Polish Pilgrimage Bus Overturns in Hungary

A bus carrying Polish pilgrims overturned in Hungary on August 16, killing at least 12 people. According to local officials, the accident occurred on a Hungarian highway, and most passengers were Polish nationals traveling to a religious shrine.

Following the crash, Hungarian and Polish authorities quickly launched rescue efforts and rushed the injured to nearby hospitals. The cause of the accident remains under investigation, with initial indications pointing to loss of vehicle control.

9. Waymo Wins Approval to Expand Robotaxi Service in California

Waymo, the self-driving company owned by Google parent Alphabet, has won approval from the California Public Utilities Commission to expand its robotaxi service across the state and enter two new markets.

This marks a major step in Waymo's commercialization. The company already operates in San Francisco and Los Angeles, and the new approval means its service area will expand further, intensifying competition with rivals in the driverless mobility space.

10. Indonesia Marks 81st Independence Day as High-Speed Rail Shines

On August 17, Indonesia celebrated its 81st Independence Day. The Whoosh high-speed train, built through China-Indonesia cooperation, appeared on giant posters at local celebrations, becoming a highlight of the two countries' cooperation.

The Jakarta-Bandung high-speed railway is Southeast Asia's first high-speed rail line and a flagship project under China's Belt and Road Initiative. To mark the Independence Day holiday, the operator also offered discounted fares starting from 8,800 rupiah. Since its launch, the railway has become a vital transport link between Jakarta and Bandung.