Overnight in the Gulf of Finland, Soviet troops land from 30 patrol boats and torpedo cutters on the Finnish-held island of Someri. Finnish defenders on the island hold out until dawn when Finnish gunboats, patrol boats and torpedo boats arrive to land reinforcements and harass the Soviet flotilla. 3 Soviet torpedo cutters are sunk by the Finnish boats and coastal batteries. Despite this, Soviet ships also manage to land reinforcements.
Convoy PQ 17. At 1 AM, U-255 sinks American SS Olopana (7 killed, 34 survivors float on 4 rafts for 2 days many suffering from frostbite). The commander of Convoy PQ 17, Commodore John Dowding, gathers up 5 freighters, 3 minesweepers, 3 corvettes, 3 anti-submarine trawlers, anti-aircraft ships HMS Pozarica & HMS Palomares and rescue ship Pozarica to proceed in convoy through the Matochkin Strait to Archangelsk.
10 miles off the South coast of Sweden, Soviet submarine ShCh-317 sinks German SS Otto Cords.
At 6.16 AM 4 miles off the Florida Keys, U-571 torpedoes US tanker MV J.A. Moffett, Jr. which runs aground and is a total loss (1 killed, 42 survivors US Coast Guard auxiliary craft Mary Jean and Southbound and cutter USCGC Nike).
In the Department of Justice Building, Washington, a special military commission (7 US Army officers appointed by President Roosevelt) begins the trial of 8 German saboteurs from Operation Pastorius, including the informant George Dasch. The trial will end on August 4.
In the South Pacific 20 miles Northwest of Rabaul, US submarine S-37 sinks Japanese transport Tenzan Maru. Japanese submarine chaser Ch30 depth charges S-37 without success.
US Admiral Chester Nimitz issues orders for the Marines to invade the Solomon Islands in the South Pacific. Admiral Ernest King, Commander in Chief US Navy, has President Roosevelt's approval for the offensive over the objections of the US Army who insist on a “Germany first” policy. The objectives are Tulagi (sheltering a Japanese seaplane base) and Guadalcanal (where the Japanese are constructing a large airfield at Lunga Point for deploy 45 fighters and 60 bombers to threaten the sea lanes from USA to Australia).
In the Mozambique Channel, Japanese submarine I-10 sinks British SS Hartismere, carrying 8000 tons of general cargo from Philadelphia to Alexandria, at 7.48 AM (all hands reach Portuguese East Africa) and Dutch freighter Alchiba, carrying 4000 tons of ammunition from Durban to Aden, at 6 PM (5 killed).
Rommel in Egypt is desperate for supplies. Convoy Siena departs Suda Bay, Crete (5 freighters escorted by Italian destroyer Mitragliere, German destroyer ZG-3, Italian torpedo boats Sirio and Cassiopea plus German submarine chasers UJ-2104 and UJ-2107). The convoy will arrive safely at Tobruk, Libya.
Overnight, 285 RAF bombers (137 Wellingtons, 52 Lancasters, 38 Halifaxes, 34 Stirlings, 24 Hampdens) attack the docks at Wilhelmshaven, Germany. Most bombs fall in open country West of Wilhelmshaven (25 civilians killed, 170 injured). 3 Wellingtons, 1 Halifax & 1 Lancaster are lost.