Episode summary
Trump's Iran Deadline Nears; Sharp Selloff in Markets | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 21 min
Summary
Markets were hit by the escalating US-Israeli war with Iran as President Trump’s 48-hour ultimatum to reopen the Strait of Hormuz approached. The hosts said Iran had renewed strikes across the Persian Gulf, while Trump threatened attacks on Iranian power plants if the strait stayed shut. Guests in Dubai and Tel Aviv described an increasingly direct US role, including reports that the US may try to retake the strait and possibly deploy ground troops, while Iran warned it would retaliate against energy, desalination, and financial targets linked to the US and Israel.
The broadcast said investors were still underpricing the conflict’s economic consequences. Global equities sold off, gold and silver dropped, and bond yields jumped to their highest levels in months or longer as traders priced in a risk of inflation and even higher central bank rates. The host emphasized that the war had already wiped out more than $2.5 trillion in global bond value this month, while oil prices and UK energy expectations moved sharply higher.
The guests argued that the situation remains fluid but highly escalatory. One guest said US and Israeli operations are increasingly coordinated, while another noted that the Strait of Hormuz is not technically closed but is effectively controlled by Iran. The discussion framed the key risk as whether the US follows through on its threat and whether Iran expands the conflict to critical regional infrastructure.
Key takeaways
- The hosts said Trump’s 48-hour deadline to reopen the Strait of Hormuz is the key near-term trigger for further US strikes on Iran.
- A guest in Dubai said Iran is threatening energy, desalination, and financial targets if the US attacks its power plants.
- Market moves suggest investors fear stagflation, with global bond losses topping $2.5 trillion this month and yields jumping.
- A guest in Tel Aviv said the US may be preparing a larger operation to retake the strait, possibly over weeks.
- The broadcast said oil prices rose while gold and silver sold off, showing broad stress across risk assets and havens.
Notable quotes
“the US will hit and obliterate various power plants starting with the biggest one first and Iran uh has around 100 power plants that they're sitting on”
“The market continues to be far too optimistic because they're focused on the fact that we always get a Trump taco”
“The spectre of stagflation caused by the Iran war has wiped out more than $2.5 trillion from the value of global bonds this month”
“energy prices are likely to stay high for the foreseeable future, putting some inflation uh uh uh pressure”
How the episode opens
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 on the war with Iran now into its 24th day. Thrron has been carrying out fresh waves of attacks across the Persian Gulf after President Trump issued a deadline on social media over the weekend to reopen the Strait of Hormuz. We get the very latest from Bloomberg's Juman Bureti in Dubai.
He's basically given Iran a 48-hour ultimatum to reopen the straits without threat or else he says uh the US will hit and obliterate various power plants starting with the biggest one first and Iran uh has around 100 power plants that they're sitting on that could potentially be targets. not Iran were quick to retaliate as ever. Uh and they said that if that does happen and if civilian infrastructure is targeted, then they in turn will strike back on all energy, information technology and desalination infrastructure linked to the US and Israel in the region.
And Bloomberg's Juman Bersete reports this morning, Iran is threatening to mine the entire Persian Gulf if the US or Israel attack its islands or coastline. Nathan, Israel, meanwhile, has been carrying out new waves of air strikes on infrastructure in Thran. Defense Minister Israel Catz says the intensity of US and Israeli attacks will increase significantly in the coming week. And we get that part of the story from Bloomberg's Dan Williams in Jerusalem.
The public commentary has been ebulant, almost triumphist, especially when it comes to the Israeli defense minister vowing stepped up strikes on this the fourth week of the war. Nonetheless, perhaps more quietly, officials are noting that the Iranians have managed, despite a drop off in missile strikes overall during the third week of the war, to pick them up over the weekend, specifically with two missile attacks, two missiles that managed to reach their targets, towns in the south of Israel, where more than 100 people, civilians, were wounded over the weekend.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- iran strait of hormuz
- middle east conflict risk
- bond yields and fed rate hike expectations
- oil prices and inflation fears
- market selloff
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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