Episode summary
Iran Says Hormuz Talks Underway, Stocks Rise as Oil Plunge | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 19 min
Summary
Markets opened the week reacting to signs that US-Iran tensions may be easing. The host said President Trump called off a planned attack and suggested new talks with Iran would begin Monday afternoon, while a guest said the more immediate issue is a separate Omani track on the Strait of Hormuz. That guest argued that a deal on navigation could create momentum, but that it would not amount to a full victory for Washington if Iran keeps some control over the waterway.
Oil sold off sharply on the prospect of diplomacy, with Brent falling to about $83 a barrel and US futures higher as investors welcomed the lower inflation risk. A commodity strategist said crude could stay volatile but argued that Trump wants lower energy prices by the midterms and that oil could trend much lower over time as US and Canadian supply grows.
The show also covered the US-Japan yen intervention, with officials warning they will not hesitate to act again, and previewed Friday’s July jobs report, which economists expect to show roughly 100,000 payroll gains and unemployment unchanged at 4.2%. Other headlines included a possible AstraZeneca-Bristol Myers Squibb deal, government funding talks in Washington, and wildfire damage in the US and Europe.
Key takeaways
- The host said Trump called off a planned attack on Iran and that new talks could begin Monday afternoon, pressuring oil lower.
- A guest said the Strait of Hormuz discussions are separate from US-Iran negotiations and may only restore a prewar shipping arrangement.
- A commodity strategist said Trump needs lower energy prices by the midterms and expects crude to trend lower over time.
- The host said investors are watching Friday’s July jobs report, with consensus around roughly 100,000 payroll gains and 4.2% unemployment.
- Officials from the US and Japan warned they will not hesitate to intervene again after the first joint yen action in 15 years.
Notable quotes
“We get more from Bloomberg opinion columnist Mark Champion”
“He needs a deal, but he needs a deal that looks like a win for him”
“we are indeed speaking with the Ammanis about the straight of Hormuz and what safe passage might look like in future”
“Investors bets on a rate increase next month hang on a strong enough economy to absorb an increase in the cost of borrowing”
“the leader of the world's largest energy producer and a net exporter, Mr. Trump, needs lower energy prices by midterms”
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. — John, we begin with new developments in the Middle East. President Trump says talks with Iran will begin this afternoon after he called off a planned attack on Iran. The president says he stepped back from the latest attacks following appeals from Saudi Arabia. and other US allies in the region. And here's what he told reporters yesterday on board Air Force One.
We're talking to them in the form of a negotiation. It begins tomorrow afternoon and we'll see if it's true. I'd love to do that.
Save a lot of lives. Save a lot of a lot of unnecessary power to be honest with you. It would take many many years to ever build it back.
If it could, I don't think it would be even buildable back. So, we had a we had an attack that would be the biggest attack since World War II. And President Trump suggested a deal on reopening the Straight of Hormuz may be close.
We get more from Bloomberg opinion columnist Mark Champion.
He needs a deal, but he needs a deal that looks like a win for him. Uh and that's going to be hard because at the moment all that's being discussed is the the status of the straight horm which was open before the war and is only an issue now as a result of the war. It's not exactly a victory if you end up with an outcome where none of the things that you said you were going to war have been dealt with, such as the nuclear program, but you have got a deal to reopen the straight of that gives Iran control that it didn't have before the war.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- iran hormuz talks
- us iran tensions easing
- oil prices brent crude
- treasury yields inflation
- us japan yen intervention
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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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