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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with the latest on the war where Iran, now into its twenty fourth day, Tehran has been carrying out fresh waves of attacks across the Persian Gulf after President Trump issued a deadline on social media over the weekend to reopen the strait of horror moves. We get the very latest from Bloomberg's Jumana Borsecci in Dubai.
He's basically given Iran a forty eight hour ultimatum to reopen the streets without threats or else. He says, the US will hit and obliterate various power plants, starting with the biggest one. First, that Iran has around one hundred
power plants that they're sitting on that could potentially be targets. Now, Iran, we're quick to retaliate as ever, and they said that if that does happen, and if civilian infrastructure targeted, then they in turn will strike back on all energy, information, technology, and desalination infrastructure linked to the US and Israel in the region.
And Bloomberg's Jumanni Burssetti reports this morning Iran is threatening to mine the entire Persian Gulf if the US or Israel attack its islands or coastline.
Nathan.
Israel meanwhile, has been carrying out new waves of air strikes on infrastructure in Tehran. Defense Minister Israel Cant says the intensity of US and Israeli attacks will increase significantly in the coming week, and we get that part of the story from Bloomberg's Dan Williams in Jerusalem.
The public commentary has been abuiliant, almost triumphalists, especially when it comes to the Israeli Defense Minister devowing stepped up strikes on this the fourth week of the war. Nonetheless, perhaps more quietly, officials in noting that the Iranians have managed, despite a drop off in missile strikes overall during the third week of the war, to pick them up over
the weekend, specifically with two missile attacks. Two missile that managed to reach that targets towns in the south of Israel, and more than one hundred people civilians were wounded over the weekend.
And that's Bloomberg's Dan Williams who reports Iran is claiming that attack in the southern cities of Irod and Demona was in retaliation for a strike, and it's net Town's nuclear facility.
And Karen the White House is defending the stepped up attacks. Treasury Secretary Scott Besson says President Trump will take whatever steps are needed to deny Iran the ability to project power internationally.
Every day we are taking out their missiles, their missile systems, and the factories that build those missiles. And now are the General Kine Secretary Headsith are leading a campaign to destroy all the fortifications along the Straits of Formost.
Treasury Secretary Scott Bessett appeared on NBC's Meet the Press Heard Sundays on Bloomberg Radio. But Eurasia Group President Ian Bremer says a prolonged war is not priced into the markets yet.
This Iranian regime, if they wish, are going to be capable of continuing to pose threats to anything that goes through the Strait and to ongoing production and capability of golf energy infrastructure.
So yeah, the Golf.
Is concerned about that, and they don't want the United States to stop now having started the war, until that is resolved in some way.
Eurasia Group President Ian Bremer was a guest on Bloomberg This Weekend, airing every Saturday and Sunday at seven am Eastern on Bloomberg Radio and Television and the Bloomberg Business App.
Well, Nathan, we are seeing major moves in the markets as President Trump's deadline approaches. Right now, S and P futures are down seven tenths of up percent. Stocks in Japan, China, and Hong Kong fell more than three percent. South Korea's Cosby plunged more than six percent. Despite today's sell off, Bloomberg Markets Alive Executive editor Mark Hudmore says investors are not fully pricing in the Middle East war.
The market continues to be far too optimistic because they're focused on the fact that we always get a Trump taco, you know. Geopolitical risk in the Middle East is always a fade. We've got the mid terms come ups. The US doesn't have any incent to continue going. They're all based on the idea that the US has near unilateral control over the conflict, which is not the case at all.
In fact, as Trump's threatened, the Weekend implicitly accepts it is Iran who controls the stread of remoss and when it will reopen.
And Bloomer's Mark Cudmore also noted precious metals are getting hit today. Checking gold right now, Comas gold is down seven percent, Spots silver is down almost six percent.
And global bond yields have risen to their highest levels in almost two years.
Karen.
Here, in the US, yields are at their highest in months on speculation the Federal Reserve may raise borrowing costs to combat inflation. The specter of stagflation caused by the Iran war has wiped out more than two and a half trillion dollars from the value of global bonds this month.
Oil on to move again. It's higher and at checking prices right now nim scrude oil up nine tenths of percent at ninety nine dollars seven cents a barrel, while Brent is at one hundred and thirteen dollars. The International Energy Agency says more than three dozen assets in the Middle East have suffered extensive damage. Here's Ia, Executive director of fanti UROL.
We are following the damage on all the energy assets. At least forty for zero energy sts in this region are severely or very severely damaged across nine countries.
An Ia, executive director of Fanti Barrel says, in addition to oil and gas, some of the vital arteries of the global economy, such as petrochemicals, fertilizers and sulfur have also been impacted.
Then, Karen, the CEO of one of the world's biggest bank says, energy prices are likely to remain elevated. We spoke with UBS Banking boss Sergio or Madi.
Energy prices are likely to stay high for the foreseeable future, put in some inflation pressure and also some pressure on the delivery chain or on the supply chain.
Ub As CEO Sergiyo or Madi says so far his firm's customers are not making dramatic changes to asset allocation as a result of the war.
Nathan, UK Prime Minister here Starmer will hold an emergency meeting with his top ministers on the Iran crisis, and we go to London and get the very latest of Bloomberg's James Wilcock, James, good morning.
Good morning, Karen, Nathan UK. Gilt leals are hitting highs not seen since two thousand and eight. Energy prices are forecast to rise as much as twenty percent, and over the weekend a UK military base was targeted by Iranian missiles. Prime Minister Kissed Darma meets with the Bank of England governor and other top officials later for crisis talks on
what can Britain do. He's been clear the UK does not want to get drawn into the war in the Middle East, but the economic consequence and says already on Britain shows in London, James will Cook Blimberg Radier.
Okay, James, thanks for also following and developing storyback on this side of the Atlantic. Authority say an Air Canada flight collided with a Port Authority vehicle at New York's LaGuardia Airport. The Air Canada Express plane from Montreal had seventy six people on board. The Port Authority has confirmed now the pilot and co pilot died in this collision.
The National Transportation Safety Board is launching a team to investigate today, and a notice has been issued by the Federal Aviation Administration that airport operations at LaGuardia will remain suspended until at least two o'clock this afternoon.
Well Nathan, President Trump says ICE agents will be going to airports today. As Congress continues debating a funding plan for homeland security, the President named White House Borders Our Tom Homan to lead the effort.
We're simply there to help TSA do their job in areas that don't need their specialized expertise, such as you know, screening through the X ray machine, not train that we won't do that. Whether there are roles we can play to release TSA officers from the non significant roles such as guarding an exit so they can get back to the scanning machines and move people quicker and Wright.
How sports our Tom Homan made the comments on CNN. Hundreds of thousands of Homeland Security workers, including from the TSA, Secret Service and Coastguard, have worked without pay since Congress failed to renew DHS funding last month. Time Now for look at some of their stories making news in New York and around the world, and for that we're joined by Bloomberg's John Tucker. John, good morning, and good morning, Caaron.
The US Supreme Court today will consider a case that could up end key election deadlines in as many as twenty nine states have drawn justices in the President Trump's campaign against mail in ballots. Let's get more from Bloomberg's Monica Ricks.
The case involves the Mississippi law that allows ballots to be counted if they arrived shortly after election day, which the Republican Party and the Trump administration say is incompatible with federal law. This is part of a prolonged effort by the GOP to keep control of Congress in November, but critics say it would lead to chaos, including different deadlines for congressional and presidential elections than for state and
local races. It could also suppress the votes of people likely to support Democrats Monica Rix Bloomberg Radio.
Republican Senator Mark Wayne Mullen advanced toward confirmation as Secretary of the Department of Homeland Security. It cleared a procedural obstacle Sunday that put his nomination on track for a final Senate vote earlier this week. The fifty forty thirty seven vote signals the forty eight year old first term Oklahoma senator, a former mixed martial arts fighter, a sufficient
support to be installed as leader of the Department. A senior Cuban official said the country is preparing for a possible military assault as President Trump increases economic pressure on
the government in Havana. The Deputy Foreign Minister Carlos Fernandez to Cassio suggested in an interview on NBC's Meet the Press, Cuba could be the next US target after Venezuela and Iran, and London's Metropolitan Police have launched an investigation after four ambulances belonging to the Jewish Community Ambulance Service we're sent on fire in North London, Please said they're looking for
three suspects, though no arrests have been made. Global News twenty four hours a day and whenever you want it with Bloomberg Newsdal I'm John Tucker and this is Bloomberg Karen.
All right, John, thank you time now for our Bloomberg Sports update, and for that you bring in John stash Hour.
Thanks Karen.
The NCAA tournament down to the sweet sixteen. The only one or two seed no longer in the attorney last year's national champions, the Florida Gators. They lost to Iowa seventy three seventy two the Hawkeys. Alvaro Valgaris hit a three pointer with four point five seconds left, a buzzer beater for Saint John's Dylan Darnley the only points of the game, and the Red Storm beat Kansas by two to advance to the Sweet sixteen. Syracuse on the verge
of hiring a new coach Jerry McNamara. That to Bloomber Sports Update.
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Good morning, I'm Nathan Hager. On day twenty four, the US Israeli war with Iran, attacks and rhetoric are ramping up once again head of President Donald Trump's forty eight hour ultimatum to reopen the strait of hormones or risk attacks on Iranian power plants. Treasury Secretary Scott Bessant was asked how that squares with the President's talk of winding down the conflict.
They're not mutually exclusive. Sometimes you have to escalate, Todascali.
That was Treasury Secretary Scott Bessant on NBC's Meet the Press, heard Sundays on Bloomberg Radio. This morning, We're joined from Dubai by Bloomberg Horizons anchor Jumani Bursecci and with us this morning from Tel Aviv is Bloomberg News Israel Bureau
chief Ethan Bronner. Thanks to both of you for being with us, and Jumana, I'll start with you just to get us caught up with the latest on what is happening in the Middle East, as it does sound like the rhetoric certainly is ramping up along with the action. Good morning, Good morning.
Yes, well, you just played some sound there from the US Treasury Secretary squad Vessine, who is saying that it may be necessary to escalate in order to de escalate, and I should just caveat the ultimatum that President Trump gave to the Iranians, with the fact that a few hours before he'd said that they were thinking of winding down some of their military operations in the region. So there's a bit of a mixed messaging coming through from
the White House. That being said, the ultimatum that came through at around seven forty four pm Eastern Time on Saturday, relevance, of course, given the forty eight to hour deadline, is to Iran to reopen the street without threats and if not the US will hit and obliterate their various power plants, starting with the biggest one first. So that's what he
put up in his truth social posts. But of course the Iranians were quick to respond and they said that the strait will remain completely shut and that if the US were to go down the route of targeting their power plants, they would strike back. They would target all energy,
information technology, and desalination infrastructure. They followed that up with some comments put forward by the head of the parliament, the Speaker of the Parliament, and he added that headquarters and assets of financial entities that by US Treasury bones are also legitimate targets. And then a couple of hours ago we also got more rhetoric coming through from the country's National Defense Council, also putting out a statement saying that they're looking to not just mine around the Strait
of Hormos, but around the entire Persian Gulf. So you can see that there is a lot of rhetoric coming back through from the Iranians. The big question I think over the next twenty four hours is whether the US actually follows through on this threat, and equally, whether Iran in turn will follow through on their own threat, which is to strike at some of these key strategic sites.
And I will say, you know, the water, the desalination infrastructure would take this war to get another statusphere because so many countries in the region rely on the salinated water.
Well.
Alongside the threats from the US side Ethan, of course, we're hearing reports as well that Israel is ramping up its own attacks on Tehran. What's the latest from your perspective.
Yeah, look, I mean, I think Jamonis said it up very very well. The Israeli is definitely flying over and attacking Iran again. And my distinct impression is whether or not there is a specific forty eight hour deadline that's going to end in the next fifteen hours or so. From the reporting I've been able to do in Israel, the Americans are planning a fairly extensive operation to retake the straight up war moves from Iran. It's going to
take some weeks. That's the message they're sending the Israelis, and that's the idea that this war has been kind of driven by Israel. Whether or not that was true to begin with, is I think shifting now and it is now the US that's getting out front with the attacks.
That raises the question of whether the US is preparing for a ground operation to retake the Strait of Horror moves and how Iran might respond to that. Jumana, what's the perspective there?
Yeah, Well, our own reporting suggests that the US is weighing off the possibility of taking over Kark Island. And I should just mention for anyone not familiar with the geography that Kark Island is a lot more north than the Strait of Hormus. To actually get to Krk Islands, you need to pass through the strait if you're sending
amphibious vessels to that part of the region. But that aside, that would you know, as Ethan just spoke about and imply yet another level of escalation in this conflict, because also alongside that reports that the US are also planning on sending around two and a half thousand, possibly three thousand Marines i e. Ground troops to the region as well, which would imply that what they are attempting to do
here is twofold. There are two objectives the ongoing military operations, the airstrikes that are targeting Iran's both offensive and defensive capabilities, but alongside that looking at ways to forcefully reopen the strait, and from what we understand from our own reporting, it will take them a couple of weeks to degrade Iran's offensive capability sufficiently so that once the Marines and the extra ar Mada that arise to the region gets there, it won't be as exposed to as much of a
risk as it would be if, say they were arrived were to arrive today.
Ethan.
There's certainly a lot of attention right now on this ultimatum from the President over the weekend for Iran to reopen the straight At this point, does it seem as though the US goals in Iran are aligned with what Israel is putting forward right now?
I don't see a huge gap. I mean, I you know, what's clear is that assuring freedom of navigation through horror moves is a much bigger American goal than an Israeli goal. So the Israelis have set for themselves three goals here the nuclear, the ballistic, and the proxies and making sure
that around can't be a threat again to it. I think that there is I can't say that the Israelis are unhappy with an approach to the Strait of Horm moves, although there is some chatter in Israel which says, you know, that's taking us somewhere else. Let's stay focused on our the goals that we've set for ourselves here. But you know, I think the Israelis are so grateful and so amazed to have lockstep US military operation against Iran that there's
very little carping underway. And I don't you know, I really don't see a lot of daylight there. I see an enormous amount of cooperation.
We're speaking with Ethan Bronner, our Israel bureau chief for Bloomberg News in Tel Aviv, and Bloomberg Horizons anchor juman and Borsecci with us this morning from Dubai. Jumana. We heard over the weekend from Treasury Secretary bess And that the goal, as far as the US strikes in the Strait of Horror moves is to degrade Iran's fortifications around the Strait, seeming to be specifically focused on that choke point. Does Iran continue to have control over the Strait at this point?
Yeah, So this is the thing. So the Iranians maintained that the street is not closed, but it is effectively closed because it's under Iranian control. And we've been reporting our energy colleagues have been reporting over the last week that a certain number of vessels have trickled through the strait, but most of them are Iranian aligned or headed towards strategic buyers for Iran, so towards China or India or Pakistan.
But they would have received pre approval from the Iranians to get through the straits, So ultimately, you know, they're still effectively controlling who passes through, and they've spoken about one of their conditions to come back to the negotiating table is to discuss the future of the Straits and perhaps introducing a new policy or framework by which vessels
can pass through. Obviously, you know, having Iran maintain control over it is not something that's acceptable mostly to Golf States as well, given the line's share of their own oil products passed through the straits, and it's something I also think that means, you know, from the Golf States perspective, they want to ensure looking ahead that once this war is over, we do end up in a circumstance where the Strait is not effectively still controlled by Iran, that
they're aill can flow through it without being administered by Iranian officials.
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