Episode summary
No End of War in Sight; Oil Hits $116 a Barrel | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 15 min
Summary
The dominant story is the war between the US and Israel and Iran, which has entered a fifth week with no clear path to de-escalation. The host and a guest said the fighting is still intensifying, with Iranian-backed Houthi forces joining in, more US Marines arriving in the Middle East, and discussion of possible US action on Iranian territory, including Kar Island. The guest said the situation on the ground points to further escalation even as President Trump says Iran is ready to make a deal.
Oil markets are reacting sharply. Brent crude rose above $115 a barrel and was described as up roughly 60% this month, while analysts and an energy-market guest warned that the longer the conflict disrupts the Strait of Hormuz, the more upward pressure there will be on prices. Treasury gains and weaker equities reflected fears that the war could slow the economy and force traders to scale back higher-rate bets. The host noted the S&P 500 is more than 8% below its January record and the Nasdaq 100 is in correction territory.
The program also covered a Russian oil tanker arriving in Cuba after the Trump administration signaled it would allow the shipment for humanitarian reasons, plus domestic fallout from the war, including protests and debate over whether the White House is explaining its strategy to the public.
Key takeaways
- The host and a guest said the Iran war is still escalating, with US Marines arriving and possible action around Kar Island under discussion.
- An oil strategist said the longer the Strait of Hormuz stays effectively closed, the harder it will be for oil prices to fall quickly.
- Brent crude topped $115 a barrel and was said to be up about 60% for the month.
- The host said the S&P 500 fell 3.4% over two sessions and the Nasdaq 100 entered correction territory.
- A guest said Pakistan may try to facilitate peace talks, but there is still no clear sign either side is negotiating.
Notable quotes
“Everything on the ground is pointing to further escalation”
“the longer uh the straight of hormuse remains effectively closed uh to traffic, the more upward pressure there will be on oil prices”
“We're not trying to be able to go in and to be able to occupy the country or to be able to have a long-standing long-term war”
“Brent has surged around 60% this month, and many on the street see it going even higher”
“The S&P 500 fell 3.4% the last two trading sessions”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. Good morning. I'm Nathan Hager and I'm Alexis Christopherus.
Alexis, the war with Iran is now into its fifth week and there is little sign of the conflict ending anytime soon. Over the weekend, Iranbacked Houthi forces entered the fight for the first time as a US amphibious assault group arrived in the region. But President Trump is insisting Iran is ready to make a deal.
We have a group. It's really a new regime. It's a new group of people, people that we've never dealt with before that are acting very reasonable.
It is truly regime change.
President Trump told reporters on Air Force One last night that Iran's given the US most of the demands from its 15point peace plan. At the same time, the president told the Financial Times he wants to quote take the oil in Iran. Bloomberg's Jamanna Beti has more from Dubai.
Everything on the ground is pointing to further escalation. Now, of note, Friday evening, we had the first uh unit of these Marine Expeditionary units arriving to the Middle East. That's around 3,500 troops, 2,200 Marines.
Lots of questions about how they're going to be deployed, whether uh there will be some form of an attempt to take over Kar Island, which is what he referenced in that interview with the FT. You just spoke about that. Wall Street Journal saying that maybe they could attempt a targeted raid to extract the enriched uranium stockpile that is on Iranian territory.
At this point, we don't really know, but the fact that it has arrived to the region suggests the real possibility of further military escalation.
Bloomberg's Jim Bersi reports Pakistan has offered to facilitate peace talks in the coming days, but it's unclear whether either side is negotiating.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- middle east war
- oil price rally
- treasury yields
- interest rate expectations
- energy crisis cuba russia tanker
Watch the episode
Watch “No End of War in Sight; Oil Hits $116 a Barrel | Bloomberg Daybreak: US Edition” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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