July 1
Sea War, Atlantic
The 'Happy Time' begins for U-boat crews as their operational range is increased now that they have bases in French ports. This lasts until October. U-boat crews inflict serious losses on Allied convoys.

July 3-7
Sea War, Mediterranean
Britain, fearing that France's navy will be seized by Germany, sends two battleships, a battlecruiser, and a carrier (Force H) to neutralize French vessels at Oran and Mers-el-Kebir, Algeria. After negotiations fail, the British sink one battleship and damage two. In Britain, two French battleships, nine destroyers, and other craft are acquired with minimal force. French naval forces in Alexandria, Egypt, are disarmed on the 7th.

July 9-19
Sea War, Mediterranean
At the Battle of Punta Stilo, the British Mediterranean Fleet tries to separate the Italian Fleet from its base at Taranto in southern Italy. An Italian battleship and cruiser suffer damage, and Italian aircraft hit a British cruiser. On the 19th, the Australian light cruiser Sydney and four destroyers engage two Italian light cruisers. The Italians lose a cruiser and the Sydney is damaged.

July 10
Air War, Britain
The Battle of Britain begins. Hermann Goering, the Nazi air force chief, orders attacks on shipping and ports in the English Channel. The movement of Allied vessels in the Channel is soon restricted as a result of British naval and aircraft losses.

British pilots rush to their Hurricanes during the Battle of Britain

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