Trump Demands Hormuz Reopening; Israel Agrees to Lebanon Talks

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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today, Karen.
The US and Iran are headed for high level talks
in Pakistan tomorrow on ending their six week war, with
new threats from President Trump. In a series of social
media posts, the President warned Iran against charging fees on
tankers to go through the Strait of Hormus, and he
said Iran was doing a dishonorable job of allowing oil
through the waterway. Bloomberg's Jumana Bersecci reports both sides are
still very far apart ahead of tomorrow's discussions.
The US once again reiterating their principles, which is, you know,
zero enrichment policy for Iran, limiting their ballistic weapons, a
full unconditional reopening of the Strait of Hormos, and limiting
the funding for some of their military proxies in the region. Iran,
on the others sides, have been saying that they want
a full cessation of hostilities, war reparations, assurances from the
US that they won't strike again, in addition to their
ability to number one maintain these group of proxies around
the region, including Hezbalah, which is a key point for them,
and a new one, which is they are asserting that
they have right of sovereignty over the strait of hormones
and clearly that is a non starter, but is also
a condition that did not exist before the war started.
Six weeks ago, and Blomberg's Jumana Burssetti reports, despite his
latest threats, President Trump still says he's optimistic about reaching
a deal with Iran.
But Nathan, what if this weekends talked and with no deal.
Jennifer Welch is chief geo economics analyst for a Bloomberg Economics.
If Iran is seen as still not making good on
its promise to reopen the Strait of Hermus, which Trump
said was critical to the ceasefire, he really has two choices.
He can either threaten as he has to use military
force against them, that the ceasefire is now Nolan void.
But I think the bar for that is rather high.
This is an unpopular war in the United States. Gas
prices are still rather high. He's clearly looking for an
exit ramp, so that leads to the second option, which
is diplomacy, and I think that's why we are seeing
talks happening this weekend.
Jennifer Welch with Bloomberg Economic says Vice President JD. Vans
will lead the US delegation in Islamabad tomorrow along with
Envoys Steve Wickoff and Jared Kushner.
And Karen Israeli Prime Minister Benjamin Netanyahu has agreed to
hold talks with Lebanon. This comes as President Trump said
the Israeli leader is, in his words, going to low
key it with strikes on the war weary country. Still,
netanyahuo is vowing to keep fighting iron backed Hesballa in Lebanon's.
Dear residents of the North, I'm proud of you. You
continue to stand strong. I want to tell you there
is no sea spire in Lebanon's We will continue to
strike Hesblah with great force. We will not stop until
we restore your security.
Benjamin nton Yah, who spoke through an interpreter there the
Lebanese Health Ministry, says the death toll from Israel's offensive
this week left more than three hundred dead and.
A reminder Nathand to stay with Bloomberg for the latest
developments out of the Middle East to Bloomberg This weekend
with David Gura, Christina Raffini and Lisa Matteo will have
a live coverage and analysis of the US around Talks.
Tune in tomorrow and Sunday from seven am to ten
am Eastern on Bloomberg Radio TV and the Bloomberg Business app.
And as we close out this volatile trading week, Karen
oil is on the rise as risks to global energy
supplies continue to grow. According to Saudi Arabia's state run
news agency, the kingdom has lost nearly six hundred thousand
barrels a day of production capacity as a result of
Iranian attacks. Will Kennedy covers energy markets for Bloomberg.
It's become clear that the war has done meaningful damage
to the energy industry in the region. That's an example
of how long the conflict will linger. In the fact
that the economy in the market globally should expect oil
vices to remain elevated for some time to come.
Bloombergs Bill Kennedy says markets face a daily shortfall of
more than ten million barrels that's roughly one tenth of
global demand due.
To the effective closure of the Strait of hormones.
Nathan, Let's turn to the equity markets now, where futures
are lower to close out the week. Stocks are coming
off seven straight days again, so that's the longest winning
streak since October. Robert Rowe is head of Global Strategy
at Citygroup Research.
I think the news over the last two days has
been encouraging, but I don't think we're out of the
woods yet, and I think the markets priced themselves that way.
We haven't had a full recovery or full reversal of
the risk a version that took place in the market,
and I think it's a wait and see for the
market right now.
City Group Research is Robert Rowe. The S and P
five hundred is down nearly one percent as the war began.
On the other hand, oil is up forty six percent,
while the other major story out of a Shington DC
is coming from Melania Trump. The First Lady took to
a White House podium yesterday to deny any ties to
the late sex offender Jeffrey Epstein.
The lies linking me with the disgraceful Jeffrey Epstein need
to end today. The individual's lying about me a devoid
of ethical standards, humility and respect.
And a rare on camera statement. Melania Trump said she
never had a relationship with Epstein and only had casual
correspondence with his accomplice, Glaine Maxwell. She did not give
specifics on what she called numerous fake images and statements
about her and Epstein, but she said she wants to
uncover the truth.
I call on Congress to provide the women who have
been victimized by Epstein with the public hearing specifically centered
around the survivors.
Following First Lady Milaniani Trump's statement, the top Democrat on
the House Overside Committee, Robert Garcia, said he agrees that
a hearing should be held immediately.
Well.
Earlier this week, Karen wall Street's top leaders were called
to an urgent meeting at the Treasury Department. Bloomberg News
has learned Treasury Secretary Scott Bessen and FED chair J
Powell called this meeting over concerns that Anthropics' latest artificial
intelligence model could usher in an era of greater cyber risk.
Sources say the meeting was intended to make sure banks
were aware of possible future risks and taking precautions to
defend their systems. Anthropics Mythos is a more powerful system
that the AI firm has said is capable of identifying
and then exploiting vulnerabilities in every major operating system and
web browser when directed by a user to do so.
The Pentagon recently labeled Anthropic a supply chain risk.
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 Artemis two astronauts are tidying up their lunar cruiser
for this evening's return to Earth. The three Americans and
one Canadian are reflecting on their historic journey around the Moon.
Lunar explorers set a new distance record during Monday's lunar flyby.
Artemis two is aiming for splashdown in the Pacific off
the San Diego Coast. Jeff Radigan is the lead flight
director for the Artemis two mission. In my head, about
an hour and a half of things that have to
go right.
They're coming home pretty fast.
As oryan enders Earth's atmosphere, it will travel nearly twenty
four thousand miles per hour. Then parachutes will deploy, slowing
down spacecraft as it splashes down. A former New York
police sergeant was sentenced from three to nine years in
prison after he threw a cooler at a fleeing drug
sust back who died when he lost control of his scooter.
Defense attorneys for Eric Duran say they are appealing the sentence.
Attorney Arthur Idella was it like, so, oh my god,
this is the first time someone getting away.
Let me stop them.
It was holy cow, here's a motorcycle.
It's about to hit these guys.
What do I do?
Boom boom oh.
More than eleven thousand officers signed a petition pushing for
Dran not to go to prison. However, community members and
activists disagreed. Hank Newsome is with Black Lives Matter Greater
New York.
It is a very seldom occurrence that justice prevails when
a cop kills a black and brown person.
But today in the Bronks, we got it right.
Audio courtesy of ABC seven. Duprey, who was thirty, was
killed in twenty twenty three. The husband of a Michigan
woman who went missing in the Bahamas has now been arrested.
Brian Hooker is in the custody after he says his
wife fell from a small boat that they were taking
to get to their yacht. Hooker, who denies any wrongdoing,
says she fell into the water and was swept away.
Global News twenty four hours a day and whenever you
want it with Bloomberg News Now Michael Barr and this
is Bloomberg.
Well, thanks Michael. Time now for our Bloomberg Sports update,
and for that we bring in John stashauerd Thanks Daring.
Only three golfers and want back to back masters. They're
three of the all time greats, Jack Nicholas, Nick Faldo
and Tiger Woods. Rory McElroy, trying to join the club,
just had his best Master's opening round since twenty eleven
of five under par sixty seven. McElroy tied to the
lead with Sam Burns. College Hockey in Las Vegas, the
frozen four semifinals in wins for Wisconsin and DENVERU beat
Michigan in double overtime. The Wolverines were trying to win
the hockey championship the same week they won it in basketball.
That's your Bloomberg Sports update.
Stay with us.
More from Bloomberg Day Break coming up after this.
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Bloomberg Business opp This is Bloomberg Daybreak.
Good morning on Maithan Hagar, head of high stakes talks
between the US and Iran tomorrow. President Trump is ramping
up threats over the straight of Horn moves and is daily.
Prime Minister Benjamin Natanyahu is promising to keep up the
fight on a parallel front in Lebanon.
We continue to strike Hesblaw with force, and we will
not stop until we restore your security. Our great achievements,
both in i Ran and against the access of evil
have brought a historic change in israel status in the region.
Prime Minister Natanyah, who spoke through an interpreter in an
address to the nation joining us this morning from Jerusalem,
is Bloomberg News reporter Dan Williams. Dan, how tenuous is
the ceasefire this morning ahead of tomorrow's talks. Good morning, Good.
Morning, Nathan Well. The seaspire appears to be largely holding,
at least sufficiently to allow for that first round of
talks to kick off tomorrow in Pakistan, hosted by Pakistan.
It is worth noting, however, that yes strikes have continued
to a small degree in the Gulf, and as you noted,
there has been some consternation recrimination over Israel's continued defensive
against Hezbola in Lebanon, especially a series of bolt out
of the blue strikes on Wednesday that caused a large
casualty toll, including civilians. Israel says it targeted hidden Hesbela fighters. Now,
according to both Israel and the United States, Lebanon is
not part of that ceasefire. Trump said so explicitly as
the outset, as did Natanao. It appears, however, that there
has been a rethink given the extent of those casualties
on Wednesday, and that these Raelies are scaling down the
offensive to a degree. Has Bola meanwhile showing it's still
in a fight with launches overnight, including deep into the
Israeli interior some two hundred kilometers in. That's the upper
end of the Hesbela arsenal, what remains of it. It's
rocket arsenal that hasn't caused significant damage or casualties, but
nonetheless it's a reminder to Israelis that they want to
conclude this war at least with a change of the
security situation on their northern front with Lebanon. The question
is whether that balance will be sustained sufficiently to let
the ceasefire talks continue. Keep in mind that Iran does
want the ceasefire to apply to Lebanon. It wants to
safe god Hasbilla, It's ally, it's most powerful gorilla ally
in the region, and Pakistani intermediary has spoken similarly. So
at the outset, there is a disagreement between the parties
as to the basic terms of the ceasefire. Nonetheless, it
would appear that the US and Iran are sufficiently interested
in the ceasefire to keep those negotiations going.
So we have this disagreement over Lebanon and over the
strait of horror moves, with these threats posted on social
media from President Trump over allowing oil through in our
last minute, Dan, what's the risk that these new threats
derail the talks.
Again, As far as that Trump is concerned, much of
the word horn moves is key. It's key that this
is what brought Trump to this position. The Americans say
that that's where this entire ceasefire begins. It's clear the
Iranians want to make sure they don't give up anything
too soon, So I think that will become far clearer
tomorrow when the talks begin, or when the delegates emerge
from the talks to see if something can be achieved
in whole News. Inditionally, that would lead to the rest
of the ceasefar unfilling its planned at least in the
coming two weeks.
This is Bloomberg Daybreak, your morning podcast on the stories
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