World Awaits Iran's Response; Oil & Markets Reaction to Conflict

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, we begin with the latest developments in the Middle East.
Israel is showing no sign of letting up while the
world awaits Iran's response to the US attack. Over the weekend,
the extensive operation targeted nuclear sites at FORDO, Natan's and Ishbahan.
It is still unclear how successful those strikes were in
eliminating Iran's most heavily protected in Richmond site at Fordoh.
Bloomberg News Israel Bureau Chief Ethan Brunner begins our global
team coverage.
They are, first of all, very eager to get clarity
on what happened at Ford Oh.
Did it really get destroyed? And I think we still
don't fully know that. The initial indications are that these
bumperbusters did do a lot of damage, but you know,
a lot in a lot of damage and destruction can
be a big deal. Israel is continuing to attack in
western Iran.
It is eager not only to eliminate or set back
the nuclear program, but also it's holistic missile supply and
ability to produce.
You know it's not over. The Prime Minister Antonio did
say last night that they're not going to make this
last a very long time, but they're not going to
stop until they have a cheat their goals.
And as Bloomberg News Israel Bureau Chief Evan Brauner, Iran
is vowing retaliation and is keeping up attacks on Israel
Bloomberg's Demni versa, she continues our team coverage in Dubai.
What is certain is that they will have to respond somehow.
And remember last week the Supreme Leader that Ayatola gave
a televised speech where he said and he warned the
US that if they did participate militarily in Israel's air
campaign against Iran, they would have no choice but to
reciprocate and to caose quote irrevocable damage. And so we
are now in a situation where they will have to
respond somehow. The question is whether they go for a
targeted response. Is similar to what we got after the
killing of customs to Leimani back in twenty twenty, when
they did actually attack a US base in Iraq, but
they telegraphed it to the US beforehand, so it didn't
lead to any fatalities at the time, but it was
enough for them to save face and say that they
had actually responded.
And as bloombergs, yourmunter Perccci, who says the Islamic Revolutionary
Guard Corps, which answers to the Iran Supreme leader, single
US military basis in the region could be targeted and Karin.
The US strike has sparked a swift global response. UN
Secretary General Antonio Guterrez is coming out against the attack.
The bombing of Uranian nuclear facilities by the United States
marks a perilious turn in a region that is already relinked.
Secretary General Gutaras spoke at an emergency UN Security Council meeting.
UK Prime Minister Keir starmer Is, expressing support for the strike.
Had concerns about the Iranian nuclear program and being very
clear that Iran cannot have a nuclear weapon. The US
has now taken action to alleviate that threat, and.
Now UK Prime Minister cure Starers urging all sides to
de escalate. China issued a statement saying the use of
bunker buster bombs will push the Iran Israel conflict toward
an uncontrollable state, and Pakistan is criticizing the bombing as well.
That country's prime minister met yesterday with Iran's President Masud Pezeshkian.
At the same time, Pakistan says it's nominating President Trump
for the Nobel Peace Price for helping to resolve its
conflict with India last month.
Nathan Israeli Prime Minister Benjamin Etna, who says the US
air strike delivered a great deal of damage, but the
full extent is not yet known. And Netanyah, who praised
President Trump.
Congratulations, President Trump, your bold decision to target Iran's nuclear
facilities with the awesome and righteous mind of the United
States will chase history.
Israeli Prime Minister net and Yahoo made the comments in
a pre recorded news conference that aired last night.
And following the attack.
Karen, President Trump's national security team fend out on the
Sunday political Shows. Vice President jd Vance told NBC's Meet
the Press, the US does not seek war with Iran.
We don't want to regime change. We do not want
to protract this or build this out any more than
it's already been built out. We want to end their
nuclear program, and then we want to talk to the
Iranians about a long term settlement.
Here and Secretary of State Marco Rubio told CBS's Face
the Nation that it would backfire on Iran and its
allies if Iran were to block shipping through the Strait
of Hormuz. The first people that should be angry about
it are the Chinese government because they take a lot
of their oil comes through there, so they should be
the first ones that are saying if they mind the
Straits of Hormones, the Chinese are going to pay a
huge price. And you can hear Face the Nation and
Meet the Press every Sunday on Bloomberg Radio.
Niven several airlines around the world they're halting flights to
the Persian Gulf, and we get the very latest with
Bloombergy Shoe and in London, Good Morning, Ewan.
Karen and Nathan.
British Airways and Singapore Airlines among the carriers canceling fights
to the Persian Golf in the wake of those US
strikes on Iran. According to Flight Radar twenty four, BA
has dropped several flights to Dubai and diverted two other
planes bound for the Emirates, including one which took off
from Heathrow on Saturday, which was diverted to Zurich. Flights
to Doha and Bahrain have also been canceled. Further afield,
India and Japan airlines have rebooted flights to avoid the
Persian golf, adding to journey times for passengers in London.
I'm you and pots Spoomberg.
Radio okay ewan, thank you.
As for the market reaction to the US strikes, futures
have turned higher.
S P futures are up two tens to one percent.
Oil is also marginally higher, but well half the best levels.
Global benchmark Brent initially surged as much as five point
seven percent. Right now it's up a tenth of a
percent at seventy seven dollars twelve cents per barrel. Matt
Gerkin is chief politicals Geopolitical Strategistic BCA Research.
He says could go even higher.
If Hormoz is claused, or if shipping in other ways
is blocked, or if Saudi Arabia is hit. Those are
last last gasp actions by Iran, but if they happen,
then of course we would start to move toward maybe
even a doubling of oil price. I mean, definitely over
one hundred per barrel that.
Was BCA research as Matt Girkin, and the news comes
as Bloomberg data show two empty supertankers capable of transporting
around two million barrels of crude you turned in the
Strait of Hormuz after the strikes.
Nathan, we are watching shares of Northern Trust this morning.
They're up more than five percent. The Wall Street Journal
is reporting Bank of New York Mellon approached the bank
last week to express interest in a possible merger, and
a tie up would be significant in the banking role.
Northern Trust is a market capitalization at more than twenty
one billion dollars by while BN wise top sixty five billion.
Turin the politics now, Karen, we are one day away
from the Democratic mayoral primary election in New York City
and some political heavyweight sir weighing in on the contest,
as we hear now from Bloomberg's Lisa Mateo in Manhattan.
Good morning, Lisa, Yeah, Good morning, Nathan.
So last night the candidates, they attended campaign events across
the city to try and lure undecided New Yorkers in
early voting. Former Governor Andrew Cuomo, while he received a
last minute endorsement, with the backing from former President Bill Clinton,
who provided a taped robo call showing his support.
He's a fighter who knows how to make government work,
and out of time, when our basic rights are under assault,
I know he'll stand up and protect the people in
this city.
Cuomo worked in the Clinton administration as the Housing Secretary.
Now experts say that move while it could help turn
out older voters in the Democratic mayoral primary tomorrow. Meanwhile,
State Attorney General Letitia James criticized Cuomo over harassment allegations
at a rally in Brooklyn last night. Cuomo denies wrongdoing.
He said he regretted leaving office. By the end of
early voting period last night, three hundred and eighty four
thousand Democrats had voted in the primary, nearly twice as
many people that voted during the same period four years ago.
Michael Bloomberg, the founder majority owner of Bloomberg LP, the
parent company for Bloomberg Radio, has endorsed Cuomo for mayor
Lisa Mandeo Bloomberg Radio.
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 care and tens millions of people across the
Midwest and Easter will endura another sweltering day of dangerously
hot temperatures as a June heat wave grips much of
the US. Bloomberg Median Religions Craig Allen has the latest.
A large and expanding and intensifying heat dome covers the
eastern half of the nation. There are nearly thirty states
with some type of heat alert in effect right now.
There is an extreme heat warning which affects one hundred
and fifty million people, especially in urban centers. When we
add the heat advisories, that's another fifty million people, So
about two one hundred million people will be affected by
this heat over the next twenty four to forty eight hours,
if not longer. This is being called one of the
most expansive heat alerts for so early in the season.
Bloomberg Meetiing Religius Craig Allen. Mayor Eric Adams reminded residents
that the severe heat kills hundreds every year in New
York City.
We are going to open our cooling centers. Please take
advantage of it. Or stay with a loved one or
family member who would have an air conditioner.
A federal judge in Tennessee plans to order the release
of Ki Abrego Garcia. His deportation to El Salvador has
become a flashpoint in President Trump's immigration crackdown while he
awaits a federal trial on human smuggling charges. Abrego Garcia
pleaded not guilty on June thirteenth to smuggling charges. His
attorneys have characterized the charges as an attempt to justify
his mistake and deportation in March to a notorious prison
in El Salvador. After the fact, after more than three
months in federal constandy, Columbia University graduate and activist Mackmoud
Khalil was released from a nice detention facility in Louisiana
and returned to Newark, New Jersey. Yesterday, Khalil addressed supporters
on the steps of Saint John the Divine in Manhattan.
Khalil recognized as fellow Columbia University students who are facing
expulsion and other punishments.
Columbia University will do everything and anything it can to
ensure that the words free Palestine are not uttered anywhere neared.
Leel was joined by his wife in Manhattan Global News
twenty four hours a day and whenever you want it
with the Bloomberg News Now Tom, Michael Barrn, this is
Bloomberg Karen.
All right, Michael, thank you time now for the Bloomberg
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bring in John stash Hour, John, Good morning.
Good morning, Karen.
He was in two thousand and eight at the Seattle
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The Thunder partake of the NBA by Store for the
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Earlier Today, a big trade agreed too. Kevin Durant goes
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The Rockets will be Kd's fifteen Yankees. With three runs
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The Mets and David Peterson gave up two home runs
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Bloomberg Business app. This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager.
The world in global markets are waiting for Iran's next
move after the United States unprecedented decisions to strike to
Iran's nuclear program with bunker buster bombs over the weekend
at three of its main underground enrichment facilities, and Israeli
Prime Minister Benjamin NATANYAHUO is signaling no letup to his
country's attacks.
History will record that President Trump acted to deny the
world's most dangerous regime the world's most dangerous weapons.
I was Israeli Prime Minister Benjamin Natanya who joining us
this morning from Tel Aviv is Bloomberg News Israel Bureau
Chief Ethan bron Or, Ethan, good morning. What more can
you tell us about what's been happening between Israel and
Iran those US strikes over the weekend.
Mornie Nathan, Well, the counter attack and attacks continue. Israel
has been taking out, it says, launchers and missile storage sites.
It has also attacked a bunch of airfields, military airfields,
taken out some military planes on the ground in Iran.
It is also overflying and attacking in Tehran and the capitol,
and recently, according to recent report, just took another hit
at fdah At that heavily fortified rich in Urini and
Richmond Center that the Americans dropped the fourteen bunker busters on.
So the Israelis have been continuing heavily on this side.
There was overnight just a single missile, but in the
last hour or two, perhaps fifteen or twenty damage apparently
has been done to an electric out system in the
south of the country. So and every time these things come,
millions of people go to their shelters and safer. So
it's really enormously disruptive and destructive. I mean, ten thousand
Israelis are without homes as a result of these attacks.
Were all waiting to see whether or how Iran goes
after US assets in the Middle East. We haven't gotten
any indication officially from Iran whether it's going that way.
What is Israel bracing for?
I mean, I think that Israel is bracing for everything
with regard to what iranmandu to the US. There was
an assertion on Monday that the US should await quote
severe consequences. I think, as we all know, it's sort
of impossible for Aroan to do nothing given what the
United States did yesterday, attacking so directly and so daringly.
So I don't think that there will be nothing thing happening.
I do think that they'll probably try to maintain pressure
on Israel in particular, but I find it hard to
believe they won't do something against the US Israel. You know,
Israeli officials say, look, we've always been dealing with Iran
and its proxies and what it does to us, so
you know, we're not any more for a retaliation than
we were before. That's why we're carrying out this war.
We heard the praise from Israeli Prime Minister Natan Yahoo
for President Trump and carrying out this attack over the weekend.
At the same time, we've heard from Israel's President Isaac
Herzog that they're not trying to bring the US into
its war with Iran. What is Israel's position when it
comes to further US action in the region.
So, look, this is delicate. The Israeli official position is,
you know, we are defending ourselves and we are not
asking anyone to help us. But there is no question
that this has been a goal for years of Israel
to persuade the United States that to help it fight
off the Iranian nuclear and other threats is of interest
not only to Israel, but the United States and to
the entire world. So what happened yesterday morning with the
United States coming in has been almost a fantasy fulfilled
for israelis I mean, the headlines today are quoting biblical
passages about it will be like dreamers in the Promised Line.
Nobody can say enough of appreciation and of a sense
of fulfillment that the United States took part in this
in the way it did, and the way the President
spoke about the threat from Iran in his speech afterwards
was really could have been written only by a spokesman
for Prime Minister in Tanyat, and frankly, it was a
total embrace of an Israeli perspective.
In terms of that embrace, Ethan, is the sense that
the goal for Israel is simple to take out the
nuclear program?
Is it?
Regime change? Is that where this is going? Got about
a minute left?
Okay, Well, the Israelis have laid out three goals nuclear elimited, nuclear,
eliminateed ballistic and eliminate Iran's ability to arm and sponsor
militias the way they've done in recent decades.
Look, those things are very serious goals. Whether they can
possibly accomplished with that regime change is hard to know.
They have not officially asserted regime change to be their goal.
They would love it, of course. All right, I appreciate this, Ethan.
As always leading our coverage of what's been happening in
the Middle East throughout that is Bloomberg News Israel Bureau
chief Ethan Brunner with us this morning from Tel Aviv.
Karen Well Nathan of course, we want to continue that
coverage now and turn our attention to a conversation with
former National Security Advisor John Bolton. He joined Tom keenan
Paul Sweeney on Bloomberg Surveillance as special cover to the
US strikes on Iran to just discuss America's move into
the Middle East conflict and what will bring lasting security
to the region.
Let's listen in.
I can say unequivocally I think President Trump made the
right decision for America and attacking the Iranian nuclear program.
We could have done it in the first term too.
I think the Hamas attack on Israel on October seven,
twenty twenty three, which is part of the Iranian ring
of fire strategy around Israel, obviously led us to this point,
probably the worst mistake Iran has ever made. And I
think Israel's decision to begin attacking the nuclear program itself
last week is a significant reason why we're here now.
But whatever the reason, it was the right thing to do.
Let's remember this is day one. We now have to
await the Iranian decision on how to retaliate. I think
they'd make a big mistake if they did, because I
think whether it's Donald Trump or any other president. They
would have to respond forcefully, motional.
And delicate question. Can we succeed Republicans, Democrats, Americans? Can
we succeed John Bolton in this process without taking out
the theocracy of Iran?
I don't believe so, and I've thought that for many years.
I think the only way to lasting peace and security
in the Middle East is the overthrow of the Iyatolas.
I think the sanctions that were put in place when
we withdrew from the badly flawed twenty fifteen nuclear deal,
when Trump withdrew in twenty eighteen, were the first step.
They'd called it the maximum pressure campaign. But maximum pressure
is what Israel started last Thursday to take out the
nuclear and ballistic missile programs. But the next step has
to be regime changed, because this regime is committed to
ideological dominance within the Islamic world and hegemony in the
Middle East. It poses a clear threat rightly to the
United States and many of our friends in Allen Well, then.
Your study, either Bolton, Hawker, a Dove, or what do
you see any template of success of regime change in
the levant in the Middle East, in Libya for that matter.
Sure, I think there have been a number of successful efforts,
and I think here the regime in Tehran is at
its weakest points since nineteen seventy nine since it came
to power, for all kinds of reasons. As I indicated
in the Wall Street Journal if BED earlier this week,
the people are very dissatisfied economically, the young people are dissatisfied,
the ethnic groups are dissatisfied, the women are dissatisfied after
the Masciamini murder two years ago, and I think they're
looking the people of Iran are looking at the devastation
of Iran's terrorist proxies, the fall of the Acade regime
in Syria, and now the turning their nuclear and ballistic
missile programs into ashes and saying what did all that
do for the Iranian people? We spent untold billions of
dollars over decades, We've got nothing from it. The regime
is totally responsible for it. That people see, the self
dealing and the corruption by the iatolas and the top
Revolutionary Guard officers. I think the sentiment is very negative
on the regime. There's been no outpouring of pro regime
sentiment since Israel's attacks began. I'm not saying this is
over with or going to be easy, but you've got
a regime with an eighty five year old Supreme leader
who's ruled for thirty six years, with only one other
supreme leader before him. It is in a very dangerous
delicate position.
Is it dangerous enough John, that it can happen within
organically or do you think outside agents are needed, either
Israeli or American or even others.
Well, I don't think there's any need for boots on
the ground, but I think it's been a mistake for
over twenty years not to aid the Iranian opposition inside
iron It's very widespread, but it doesn't have centralized leadership,
which is in a sense a good thing as well
as a bad thing because the regime can't take it down.
But helping coordination through communications or other resource assistance across Iran,
I think would be an entirely proper thing to do.
John, How do you think President Trump came to that
decision last evening?
What changed?
Because it certainly is a part of his base that
really adheres to the America First doctrine and this is anything.
But arguably well.
But I remember what Trump said last week. He made
it up and he decides what it is, and it
just shows why it's not a philosophy in any convenient
sense of that word. It's just what Trump wants to do.
And I think Trump remembered very well in the twenty
sixteen presidential campaign. He made stopping Iran from getting nuclear
weapons the central part of that campaign, and if he
had not followed through on it, I think he would
have had real political consequences that follow. So I think
that's the biggest explanation.
John Bolton, I believe Secretary of Rubio is holding more
than a few jobs. It's sort of like Laul Sweeney
here at Lumberg Radio, John Bolton, with these events with
the Secretary standing behind the president last evening. Do we
have a State Department policy and diplomacy right now or
is it essentially off one desk at sixteen hundred Pennsylvania Avenue.
Well, I think it really is off that one desk.
I think it's a mistake to combine the National Security
Advisor and Secretary of State Roles. No offense to Marco,
for whom I have a lot of respect, but he's
not Henry Kissinger, and I think that the coordination of
policy and a complex, fast moving region like the Middle
East really needs two people to do what are more
than full time jobs as National Security Advisor and Secretary
of State. One person could just be overwhelmed.
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