Case Blue. Soviet Bryansk Front collapses in front of Voronezh in the face of the onslaught from German 2nd Army & 4th Panzer Army. Slightly to the South, German 6th Army moves forward, helping 4th Panzer Army complete the entrapment and annihilation of Soviet 40th Army.
At Sevastopol, a heavy artillery barrage and Luftwaffe bombardment of Soviet positions allows Germans to reinforce the bridgehead on the South side of Severnaya Bay. Soviet resistance begins to wither as Stalin orders top commanders, party officials and administrators to be brought out by submarine.
In Egypt, Rommel's forces arrive in front of El Alamein to find the British 8th Army dug in across the 35 mile wide coastal strip. At 8.24 AM 62 miles Northeast of Alexandria, U-372 sinks British submarine depot ship HMS Medway evacuating to Haifa, Palestine (30 killed, 1105 survivors rescued by cruiser HMS Dido and 7 destroyers). The sinking temporarily brings British submarine activities in the Mediterranean to a standstill, although 47 of the 90 torpedoes and other equipment on board will be recovered.
In the North Atlantic. 550 miles West of Ireland, U-458 sinks Norwegian MV Mosfruit (all 36 hands escape in 1 lifeboat and rescued on July 8 by British MV Empire Hope 40 miles off the coast of Ireland). 650 miles Northeast of the island of St. Martin, Italian submarine sinks Dutch MV Tysa (all hands escape and reach St. Martin). 150 miles West of Bermuda, a Martin PBM Mariner flyingboat (piloted by Richard Schreder, Navy Squadron VP-74) sinks U-158 with depth charges (all 54 hands lost).
70 miles Southeast of Shanghai, US submarine USS Plunger sinks Japanese steamer No 5 Unkai Maru.
In the Mozambique Channel, Japanese submarine I-10 sinks American SS Express (13 killed) and I-20 sinks British tanker Steaua Romana.