Rommel swung the emphasis to the central sector dominated by the Ruweisat ridge but in the south the New Zealanders had attacked the Ariete Division which broke and ran, leaving the flank open, and only a vigorous counter-attack by the panzers held the New Zealanders back. The loss of Ariete in the line reduced the strength of the Axis forces to a level at which it was no longer possible for Rommel to continue with the offensive and the assault against the Ruweisat ridge was called off on 4 July. The ensuing pause was used to regroup and to bring forward ammunition, particularly artillery shells and this piece of husbandry proved itself when a British tank force broke through the positions held by 21st Panzer, rolled over an infantry battalion, and had practically thrust through the gun line when it was brought under fire by an army artillery group and driven back with loss. An ammunition column reached the forward positions and these new supplies were able to ensure that for the immediate future the German artillery would be able to reply to British barrages, although on a much more modest scale.
The Littorio and the Ariete Divisions each had 5 tanks, 2 and 1 gun respectively, while the Africa Corps' panzer divisions had a combined total of 50 vehicles. There were only 1500 men in 90th Light's infantry component, the reconnaissance battalions had only 15 machines between them, 20 armoured trucks, and 2 batteries of guns. The Italian X Corps had 11, partly motorised battalions each of 200 men, 30 light, and 5 heavy batteries of guns. Thus, the position at the end of the first week of July was that neither side had the reserves whose commitment would have broken the deadlock. An exhausted British Army which had lost 80,000 men had halted an equally exhausted Axis army along a defensive position, which had been selected by one former commander and prepared by another.
After the necessary regrouping the Panzer Army was ready for action again and the first attacks on 9 July, against the Alamein position, went in from the south. The mine-fields were crossed, the field defences taken by storm, and a penetration of the main defensive area looked possible when a British counter-attack against the Italians on the northern sector tore Sabratha Division apart A battle group from 15th Panzer Division closed the gap but then, on 11th, the 8th Army struck at another Italian division and destroyed two battalions of infantry. There were no reserves to commit and Rommel was forced to send in his batteries of 8.8cm guns to hold the gap until he could mount an assault upon the Australians. This counter-attack drove them back and on the central sector the Ruweisat ridge was, once again, the scene of desperate struggles to gain the high ground. During the following days the battle roared around this narrow strip of desert with the 8th Army selecting weak Italian units and destroying them one by one. On 15 July Brescia was rubbed out; two days later Trento followed Trieste and the British began the first move to roll up the German front from the south. A small sector around the Bir el Schine became the focus of the righting as the 8th Army strove to capture the place and thus divide the Axis forces. A desperate counter-attack restored the situation but this battle of attrition could only end in German defeat unless the supply position was eased.
The appearance of both Kesselring and Cavallero upon the field of battle allowed Rommel the rare opportunity of asking them directly for supplies. Both the senior officers brought promises but no certain information. Berlin had proposed and promised so many things but high seas, strong winds, and any number of excellent reasons were given for the non-arrival of the ships. Rommel was sick at heart and his bitterness was increased at the news of the latest losses, for at the reported rate the time would soon come when the Africa Corps would no longer exist. As well as this fear of impotence was the added worry that Italian units were becoming less and less able to stand the lightest stress. There was no alternative; Rommel called off the attacks and. realising that the British commander would capitalise upon this weakness, made a point of organising personally the defence of the captured sectors. So effective were his efforts that the British probing assaults made on 23 June were flung back with a loss to the 8th Army of 146 of its tanks and 1400 of its men. Both sides now began to prepare for the trials ahead.
A heavy sense of destiny hung over the battlefield during those months of late summer and early autumn 1942. Instinctively, it seemed both sides knew that the clash for which they were preparing would be the one to decide the fate of Africa. If Rommel could revivify his exhausted soldiers and their dilapitated machines, if the magic of his personality could bring them forward once again and this time with sufficient impetus to smash through the Alameir. defences, then the prizes for which he had fought lay within the grasp of his veteran warriors. But if he failed, then he and his armies were condemned tc watch, with a full knowledge of its grim and awful consequences, the 8th Army increase day by day in strength and confidence until one moon-fillec night a roar of guns would beat the drum roll of defeat of Axis hopes in the southern Mediterranean.
Slowly the supplies and reinforcements came into the line and by 1 August 15th Panzer Division numbered 6407 men, 65 panzers, and 36 field guns. The strength of 21st Panzer Division was a little higher with 8996 men, 6S armoured fighting vehicles, and 47 guns. To these two veteran divisions and tc that of 90th Light was added a new formation, 164th Division, which had been garrisoning Crete and which had been sent across in such haste that its 6903 officers and men were without trucks of any sort.
The Italian Corps, too, were gaining strength but slowly, and X Corps had one infantry battalion on establishment for which there were no weapons available. In XX Corps only 4 of the 9 battalions of infantry were motorised and XXI Corps presented an equally depressing picture. Only the Folgore Division, the Italian parachute unit, had a satisfactory establishment of anti-tank battalions — two on establishment and both up to strength.
The losses to the Axis armies from the end of May had been average: 2908 Germans and 1338 Italians were killed or died of wounds; 9260 Germans and 11,457 Italians were wounded, and 4000 Germans went missing against 6000 Italians. The German establishment was short by 484 officers and 11,500 men. It was a depleted army which faced the growing might of Britain and her Empire.
From the German and the Italian High Commands came promises of fuel and supplies to nourish the offensive for, having accepted the need for the attack, they were now demanding action from Panzer Army Africa. Rommel stressed that the 6000 tons of fuel promised by Cavallero must arrive within two days of the promised date, otherwise the offensive would have to be postponed for a month and within that time the British would have grown too strong. The Axis armies were ready for the assault and, given the petrol, the break-through could be accomplished and the battle fought to a successful conclusion. The tanker bringing petrol was torpedoed and as an interim measure Kesselring offered to fly in fuel. A second tanker came in on 30 August and at 22:00hrs on that day the battle opened but with an alteration to Rommel's original plan and one which had more modest objectives. Rommel intended that the main effort of his new assault would be in the south and it was there that he massed the Africa Corps and two Italian divisions. Once the breakthrough had been achieved then the whole southern wing would pivot and drive northwards with the intention of trapping 8th Army in the field and there destroying it. The original plan had foreseen a wider and deeper southern drive.