Iran Escalates Attacks on Shipping; Oil Prices Keep Rising
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56 segmentsSo there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300,000 can use AI to fill their HR questions, resolving 94% of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off. Deep in the work that moves the business. Let's create smarter business. IBM. Support for the show comes from public.com. If you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge. On public, you can now create AI agents. that handle all these tasks on your behalf. Just describe what you want to do in plain English. Like if the VIX hits 25, buy a put option on the S&P 500. Or if my cash balance goes above $20,000, move the excess into my direct index. You approve the workflow and your agent handles the risk. Monitoring the market, watching for your conditions, and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com slash market and fund your account in five minutes or less. That's public.com slash market. Paid for by public investing. Brokred services by Open to the Public Investing Inc. member FINRA and SIPC. Advisory services by Public Advisors LLC, SEC registered advisor. Complete disclosures available at public.com slash disclosures. Healthcare doesn't always work great. If you've ever waited on a refill or couldn't schedule an appointment, you get it. That's the kind of stuff Optum is changing. They're using data and technology to integrate patient care, pharmacy, and everything else. So healthcare is connected, not complicated. What's that look like? Cheaper prescriptions that are easier to get and care that looks at the whole person, how you need it. Optum is helping make healthcare work as one for everyone. Learn more at business.optim.com. Bloomberg Audio Studios. Podcasts Radio News. Good morning. I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, it is day 13 of the war with Iran and the impact on the global energy supply is spreading. We get the very latest from Bloomberg's Jumana Bersetschi in Dubai. What we're seeing is attacks taking place on the northern part of the Persian Gulf, so two tankers off the coast of Iraq. So this is way north of the Strait of Hormuz. We're set on fire this morning, reportedly ablaze, and then further south of the Strait of Hormuz. Yesterday evening, the key port of Salala in Oman was also struck at the fuel depot. And earlier, out of abundance of caution, vessels were asked to evacuate the area. Another key export terminal in the region, Oman exports about one million barrels a day of oil through that port, and it is on the Gulf of Oman. It is not on the Strait of Hormuz. Bloomberg Middle East correspondent Jumanabersets reports this follows attacks on other ships in the Gulf. The U.K. says a projectile struck a vessel today in the United Arab Emirates, and the Thai Navy says a cargo ship was attacked yesterday as it tried to exit the Strait of Hormuz.
Well, Nathan, the world is responding to these attacks with an unprecedented move to shore up the energy market. The International Energy Agency says its members will release 400 million barrels of oil from their emergency reserves. That's more than twice the previous record after Russia's invasion of Ukraine. 172 million of those barrels will come from the U.S. And President Trump says... That should ease price pressures. Oil prices are already coming back down, and it's going to come down, but we're not leaving until that job is finished, and it's going to be very fast. President Trump spoke at a rally in Kentucky last night, but Energy Secretary Chris Wright says getting all the oil out could take a while. The releases, certainly out of the U.S. Strategic Petroleum Reserve, they'll go over about four months, but this conflict, I don't think, goes that long. I think we will have the Straits of Hormuz open well before then. Energy Secretary Chris Wright appeared on Fox News. Sources now Bloomberg, President Trump is also preparing to use Cold War era powers to revive oil production off the Southern California coast. Bloomberg economics says a one-month closure of the Strait of Hormuz. could send oil prices near $105 a barrel. And looking at prices again right now, NYMEX crude oil is up more than 6%. It's at $92.53 a barrel. Brent is at $97.99. And there's more fallout from the war. Karen, the International Energy Agency says the Middle East conflict will slash global oil supplies by 8 million barrels a day this month or about 7.5%. The IEA says the mid-east war is the biggest supply disruption. in the history of the oil market. Well, Nathan, Republican, Senator Rand Paul is warning that the ongoing war in Iran could hurt his party in the midterm elections. Speaking on Bloomberg's balance of power with Joe Matthew, the Kentucky Republican also said the war is putting the U.S. more in debt. Right now, our military, we spend more in our military than the next 10 countries combined. So for people to argue we're not spending enough, we're spending more than the next 10 countries combined. We spend plenty on our military. It needs to be spent wisely, but they've spent an extraordinary amount on two wars. We've had two wars in one month. I mean, for goodness sakes, they're talking about another war with Cuba as we speak. Right. So, yeah, they cost money. They cost lives, most importantly, but they also cost money. for I'm not for, I wasn't for the war in Venezuela, I'm not for the war in Iran, and I'm certainly not for a war with Cuba. And catch our full interview with Kentucky Senator Rand Paul on our new video experience on the Bloomberg business app. Karen, several top banks are telling their staff to stay away from offices in Dubai and other locations in the Middle East. Bloomberg's Tiwa Auto Bio has the latest from London. Several major Wall Street banks have already been allowing their employees to work from home since the start of the Iran War. Now some big names are instructing colleagues to exit their offices in the region. Bloomberg understands that the likes of Goldman Sachs and Citigroup have told their staffers to stay away from their Dubai offices. And some lenders have also offered staff the option to temporarily leave the country.
The news comes as Iran continues to strike targets in the Middle East. A representative for Goldman Sachs declined to comment while Citigroup said in a statement that all of its employees are accounted for and safe. In London, Tewa Adabaya, Bloomberg Radio. All right, Tewa, thank you. While we are continuing to see the market reaction to the war, global bonds have surrendered their year-to-date gains. Elevated oil prices are stoking fears that inflation will reignite, triggering a sell-off across fixed-income markets. The Bloomberg Global Aggregate Index is now flat for 2026. It was up as much as 2.1% this year just before President Trump launched the attack on Iran. And stock futures are falling this morning. Karen, right now S&P and NASDAQ futures are both down a half percent. Dow futures are lower by six-tenths of one percent. Sarah Hunt, chief market strategist at Alpine Saxon Wood, says this is a difficult time for investors. Longer term, I think investing is... always been, you always bounce back from problems. The question is how long does it take you to bounce back? And right now, I think the U.S. equity markets, even though the headline indices are close to all-time highs. Underneath, you've seen a lot of damage already to specific sectors. So there are definitely places to look in the market for investing. But I think you have to have a pretty strong hand at this particular time because it is difficult to see that you're going to get away from the volatility that we're seeing right now. And investors don't love volatility. Alpine Saxon Woods, chief market strategist Sarah Hunt. And speaking of volatility, the VIX, Wall Street's so-called fear gauge is trading back near 25 this morning. Well, Nathan, the Trump administration is opening a new trade investigation into manufacturing in foreign countries. It's an effort that comes after the Supreme Court struck down President Trump's previous use of tariffs. Trade Representative Jameson Greer has announced his office will begin a probe into more than a dozen major economies, including China, the EU, India, and South Korea under Section 301 of the Trade Act. Bloomberg's Dildesis has more on how the administration is attempting to rebuild its trade policies. Those executive order tariffs that Trump announced last year, obviously, that was a pretty high-risk strategy for the Trump administration to pursue. Something like this might go a long way toward actually laying something down that can hold up going into the future. Of course, these types of probes, I will just caution, do take in many cases months to ultimately complete before you do see those tariffs. So it might be a long ways out before we actually see something take effect. And Bloomberg-Degesis adds that the move is likely to damage relations with the targeted countries and comes ahead of a plan. and trip by the president to Beijing. And there's more apparent fallout from the Jeffrey Epstein scandal, Karen. New York Giants co-owners Steve Tisch and his two siblings are transferring their stakes in the team to trusts for their children. The move comes after Tisch recently appeared in documents tied to the investigation into the convicted sex offender. Steve Tisch has not been accused of any crimes, but he was mentioned hundreds of times in Epstein documents released earlier this year. The transfer of this stake has to be approved by the NFL. it would shift ownership of a franchise valued last year at $10.3 billion.
Nathan, we also have a programming note here. Markets may close on Friday, but the world does not, and that's why we're bringing you a new live radio and TV show. Bloomberg this weekend is looking beyond the daily headlines to the bigger themes driving politics, business, and culture. Join David Gura, Christina Ruffini, and Lisa Mateo for smart conversations and in-depth interviews that help make sense of the week that's been, and what comes next. Again, Bloomberg this weekend, live Saturdays and Sundays. from 7 a.m. Eastern on Bloomberg Radio TV and the Bloomberg business app. Time now for a look at some of the other stories making news in New York and around the world. And for that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. The struggle is getting heavy and harder to manage for the hundreds of TSA workers who remain on the job working without a paycheck as the partial government shutdown drags on. A nonprofit group, JD Vance, held a food drive for the nearly 500 workers at the Minneapolis-St. Paul Airport. Union leader Neil Gosman was grateful as he and his colleagues tried to soldier through their third shutdown in just six months. He says they are being used as pawns as Washington does nothing. Instead of a paycheck. I'm getting poor in place. That's great. I really appreciate JD Vance doing this. This is not a way to treat a federal employee. We're trying to keep people safe. Union leader Neil Gosman says many TSA agents need help with gas. Two congressional Democrats are seeking an investigation into U.S. Attorney General Pam Bondi's brother. California Senator Adam Schiff and Congressman Dave Min allege a, quote, troubling pattern of favorable outcomes in cases involving the Justice Department and clients who hired defense attorney Brad Pam Bondi. It's not even officially spring yet, but health experts say seasonal allergies are already starting to impact many Americans. The CDC estimates 25% of adults and nearly 21% of children across the U.S. have an allergy. Doctors say start preparing now by taking allergy medication. Dr. Daryon Sutton spoke to ABC. Experts recommend number one, know your allergies. So write your symptoms down. Check the pollen counts when you do have symptoms because it can help you understand. For example, right now in the late winter, we're going to start to see more tree pollen. In the summer, we see grass pollen. And towards the end of the summer, we see weed pollen. Researchers at Climate Central also found changes in climate can lead to a worse reaction for those suffering. Global news, 24 hours a day. And whenever you want it with Bloomberg News now, I'm Michael Barr. And this is Bloomberg. Karen. Thanks, Michael. Time now for our Bloomberg Sports Update, and for that we bring in John Stash Hour. Thanks, Karen. The Big 12 tournament, Iowa State beat Arizona State 91 to 42. And then Arizona State fired their coach. Bobby Hurley had the job for 11 years. Syracuse fired Adrian Autry. He had that job for three years. World baseball classic, Italy, 9 to 1 over Mexico. That keeps the USA alive despite their loss to Italy.
The Americans will play Canada in a quarterfinal game tomorrow night. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Support for the show comes from public.com. If you're actively involved in your portfolio, you probably catch yourself repeating the same actions, buying the dip, manually sweeping idle cash, putting on a hedge. On public, you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English. Like, if the VIX hits 25, buy a put option on the S&P 500. Or, if my cash balance goes above $20,000, move the excess into my direct index. You approve the workflow and your agent handles the risk. Monitoring the market, watching for your conditions, and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com slash market and fund your account in five minutes or less. That's public.com slash market. Paid for by Public Investing. Brokred services by Open to the Public Investing Inc. Member Finra and SIPC. Advisory services by Public Advisors LLC, SEC registered advisor. Complete disclosures available at public.com slash disclosures. The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across HR, IT, and procurement processes, we've reduced costs by millions, slash repetitive tasks, and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off. Deep in the work that moves the business. Let's create smarter business. IBM. Let's talk about health care for a second. It doesn't always work the way people expect it to. If you've ever waited on a prescription refill or had a hard time getting the care you needed, you know the feeling. The system should just work better for everyone. That's exactly what the people at Optum are trying to do every day. They're a health care company linking patient care and pharmacy services and using data and technology to drive the whole system. So care is connected, not complicated, for patients and providers. Things like making it easier to get care that looks at the whole person, from primary care doctors to mental health support and even in-home care, and then using technology to make sure they all work together. Technology designed to help doctors spend less time on busy work and more time with their patients. And those prescriptions? Optum is working to bring costs down, save patients' money, and make it easier to get refills. Little by little, Optum is helping make health care work as one for everyone. Head to business.optim.com to see how.
Coast to coast on Bloomberg Radio, nationwide on SiriusXM, and around the world on Bloomberg.com and the Bloomberg business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Now nearly two weeks into the Iran War, the world is taking a historic step to try to ease the shock to the energy market. The International Energy Agency agreed to coordinate the release of a record 400 million barrels of oil from various national petroleum reserves around the world. which will substantially reduce the oil prices as we end this threat to America and this threat to the world. President Trump touted the move at a rally in Kentucky, but oil prices continue to climb this morning. And for more, we're joined by Ziad Daoud, Chief Emerging Markets Economist for Bloomberg Economics. Zad, good morning. We just got the report from the International Energy Agency that this conflict is causing the biggest disruption to the oil market in its history. What more can you tell us? Good morning. Good morning. There is a lot of disruption. If you think about the straight of Hormuz alone, we're talking about 20 million barrels of oil that sells through it every day. And that's about 20% of global oil supply. That is probably one of the biggest supply shocks in history. The question now is not about intensity. No ship is going through Hormuz. It's a question about duration. How long can this last for? And we ran some scenarios depending on the duration. The disruption of hormones last about one month. We're talking about oil north of 100, around $105 per barrel. If it lasts for three months, the price would go much higher. It will go around $164 per barrel. So the key thing now is how long will hormones be shut for and how it will reopen. Does the analysis shift depending on events on the ground when we're hearing about attacks on Iraqi waters north of the Strait of Hormuz as well as this evacuation this morning of the main terminal in Oman as well? Yes, of course. So the closure or the reopening of Hormuz is more of a geopolitical event than an economic one. And we think it is difficult to imagine that the war maintaining this current very high intensity for many more weeks, something has to give. And the war would move to either a lower intensity warfare or even ceasefire. And we think there are three indicators that could bring that change to the intensity of war. One of them is the economic costs from higher oil prices on the global economy. A second one is logistical, the attacking equipment that Iran has or a defensive equipment that the Gulf or Israel has. And the third one is popular opinion in the US, which may force President Trump to claim victory and decide to end the war. In our last minute, Ziod, what about this release of 400 million barrels that the IEA announced yesterday? 172 million of that coming from the U.S. Is that going to be enough to provide a backstop? The short answer is no. If you think about 400 million barrels, that's like 20 days of normal homeless flows. We're already on the 13th day of the war. So if the war ends in a week's time, that is fine. If it lasts longer, then that's not enough. That's just going to be a temporary fill to the shortage before shortages return.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning, starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 991 in Washington, Bloomberg 929 in Boston, and nationwide on Sirius XM Channel 121. Plus listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak. Health care doesn't always work great. If you've ever waited on a refill or couldn't schedule an appointment, you get it. That's the kind of stuff Optum is changing. They're using data and technology to integrate patient care, pharmacy, and everything else. So healthcare is connected, not complicated. What's that look like? Cheaper prescriptions that are easier to get and care that looks at the whole person, how you need it. Optum is helping make healthcare work as one for everyone. Learn more at business.optim.com. Discover a spectacular island destination with crystal blue seas, endless sunshine, and the cool Bahamian breeze. Bahamara, located in Nassal Bahamas, offers your choice of three luxury hotels, the richly refined Rosewood, the playfully hip SLS, and the stylishly modern Grand Hyatt. With over 45 restaurants, bars, and lounges, Bahamas, serves up delicious dining from world-renowned chefs like Daniel Balloud and Marcus Samuel. Nightlife venues like the new John Batisse Jazz Club and the Caribbean's most luxurious casino. At Baja Mar, you'll find every pleasure under the sun and one-of-a-kind experiences for the entire family, like Baja Bay, our 15-acre lush tropical water park. interactive wildlife experiences, including our daily flamingo parade, world-class golf, tennis, spa, and so much more. Visit bahamar.com today and discover a vacation destination where memories are made for a lifetime. Bahamara, life spectacular. Now more than ever, America needs a laugh. Enter the Super Troopers to the rescue. Vermont's finest and most shockingly offensive, mustachioed highway patrol officers return to the big screen in Super Troopers 3. With more pullover pranks and more over-the-top shenanigans than ever. In this latest installment of the cult comedy classic, Rod Farva's wildly over-the-top Indian engagement to Thorny's sister spirals out of control, a debauchorous bachelor party, a wedding that Thorny is desperate to stay. In a dangerous drug smuggling ring all threaten the troops' friendships and future. Fill your leader of cola, grab your buds, and roll up to the multiplex for Super Troopers 3. Only in theaters August 7th. Get tickets, meow.