Episode summary
Iran Keeps Striking Gulf; Oil Set for Weekly Surge | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 16 min
Summary
US and Israeli officials tried to calm markets after strikes on Iranian energy assets sent oil and gas sharply higher. The hosts reported that President Trump told Benjamin Netanyahu to stop attacking Iranian oil and gas fields, and Netanyahu said Israel would no longer target energy infrastructure after an Iranian gas-field strike triggered retaliation. Even so, the broader conflict kept spreading across the Gulf, with Iran continuing to hit refineries and other energy sites in the region.
An analyst said the key market issue is the Strait of Hormuz, which is effectively shut and could be costing roughly 10 million barrels a day of flow. That kept oil on track for another weekly gain, while European natural gas futures and fuel prices also surged. The same conflict is now feeding into expectations for tighter monetary policy, as traders reduce bets on Fed rate cuts because of the inflation risk.
The program also noted tension between Washington and Tokyo during Sanae Takaichi’s White House visit, where Trump referenced Pearl Harbor before otherwise praising her. Separately, an analyst said US and Israeli war goals appear to diverge, with the US focused on degrading Iranian military power and Israel seen as aiming beyond that toward leadership change.
Key takeaways
- The hosts said Trump and Netanyahu are trying to prevent further strikes on Iranian energy infrastructure, after market volatility intensified.
- An analyst said the Strait of Hormuz is effectively shut, making the energy shock the main driver of oil prices.
- The analyst estimated the disruption could remove about 10 million barrels a day of flows, which he called unsustainable unless prices rise much higher.
- The hosts said traders are trimming expectations for Fed rate cuts because the war is raising inflation risks.
- An analyst said US and Israeli objectives in Iran are not identical, with Israel appearing to want more than military degradation alone.
Notable quotes
“President Trump said he told Israeli Prime Minister Benjamin Netanyahu to stop attacking Iranian oil and gas fields”
“Israel acted alone against the Sloia uh gas compound. Fact number two, President Trump asked us to uh hold off on future attacks and we're holding out”
“The main fundamental driver of energy markets right now is the straight of horses which is normally responsible for 20% of the world's energy flows is effectively shut”
“We're probably losing about half of that 10 million barrels a day roughly. That's unsustainable unless prices go much much much higher”
“Gabbard says the Trump administration's goals are centered on degrading Iran's military, but Israel's aim is to remove Iran's leadership”
How the episode opens
Bloomberg Audio Studios podcasts radio news. — Good morning. I'm Karen Moscow — And I'm John Tucker. Here are the stories we're following today. — Well, John, the apparent stabilization in the energy and equity markets this morning comes as the US and Israel reassure world leaders and investors they will no longer target energy infrastructure in Iran. Oil and gas prices have surged this week following strikes from both sides. As heard right here on Bloomberg radio, President Trump said he told Israeli Prime Minister Benjamin Netanyahu to stop attacking Iranian oil and gas fields.
I told him, "Don't do that." And he won't do that. We didn't discuss, you know, we do uh we're independent. We get along great. uh it's coordinated, but on occasion he'll do something and if I don't like it and so we're not doing that anymore.
And President Trump also told reporters he is not putting troops anywhere. If I were, I certainly wouldn't tell you. — And Israeli Prime Minister Benjamin Netanyahu said his country would no longer target energy infrastructure after its attack on an Iranian gas field that sparked retaliatory strikes.
Israel acted alone against the Sloia uh gas compound. Fact number two, President Trump asked us to uh hold off on future attacks and we're holding out. — Benjamin Netanyahu's comments came after Israeli officials previously said they had informed the US about the attack.
Still, John, oil heading for another weekly gain as the war in the Middle East drags on. The straight of horses is all but closed and analysts warned that the crisis may deepen. Will Kennedy covers the oil markets for Bloomberg. Iran has throughout this conflict and continues to strike energy infrastructure. It has from the beginning hit refineries throughout the region and we saw another strike this morning on a Q80i refinery.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- iran gulf attacks
- oil weekly gain
- strait of hormuz
- us-middle east war risk
- trump japan meeting
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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