Egypt. South of Mersa Matruh, Rommel’s Panzerarmee Afrika harasses the retreating British 8th Army. Private Adam Wakenshaw (Durham Light Infantry) wins the Victoria Cross for continuing to fire his 2-pounder anti-tank gun, despite being mortally wounded by German shellfire. At 7 PM, German 90th Light Division reaches the Mediterranean coast at Ras Hawala, 25 miles East of Mersa Matruh. 21st Panzer Division briefly surrounds New Zealand 2nd Infantry Division at Minqar Qaim, before the New Zealanders break out overnight with a bayonet charge that catches the German asleep.
Allied Convoy PQ 17 (35 merchant ships, 3 rescue ships and 2 oilers) departs Hvalfjord, Iceland, for Arkhangelsk, USSR (escorted by destroyer HMS Middleton, minesweepers HMS Britomart, HMS Halcyon & HMS Salamander, anti-aircraft ships HMS Pozarica & HMS Palomares, CAM ship Empire Tide, 3 anti-submarine trawlers and submarine HMS P615).
Operation Pastorius. The last 2 German saboteurs (Neubauer and Haupt, landed in Florida by U-584 on June 18) are arrested in Chicago by FBI. All 8 saboteurs, including the informant George Dasch, will be put on trial.
Off the East coast of USA, 300 miles Southeast of Philadelphia, U-404 sinks Norwegian MV Moldanger (14 killed, 30 survivors some of whom float 1000 miles East towards the Azores until rescued on 14 August).
In the Gulf of Mexico 50 miles North of Vera Cruz, Mexico, U-129 sinks Mexican tankers SS Tuxpam (8 dead, 31 survivors) and SS Las Choapas (4 dead, 28 survivors).
20 miles West of Barbados, U-126 sinks Norwegian tanker MV Leiv Eiriksson which catches fire and spreads burning oil on the sea (4 burned to death, 40 survivors).
In the Atlantic. 250 miles East of Trinidad, U-128 sinks American SS Polybius (10 dead, 34 survivors). 650 miles East of the Virgin Islands, U-153 sinks American SS Potlatch carrying 7500 tons of tanks, trucks and supplies from New York to British 8th Army in Egypt (8 killed, 47 survivors in 1 lifeboat reach an uninhabited island in the Bahamas after 26 days).
60 miles south of Tokyo Bay, US submarine USS Nautilus sinks Japanese auxiliary minesweeper Musashi Maru.
Overnight, 144 RAF bombers (55 Wellingtons, 39 Halifaxes, 26 Stirlings, 24 Lancasters) return to Bremen, Germany. The Atlas Werke and the Korff refinery are damaged again (7 civilians killed, 80 injured). 4 Wellingtons, 2 Halifaxes, 2 Lancasters & 1 Stirling are lost.