Episode summary
US Reinstates Blockade of Hormuz; Graham's Sister Appointed to Senate | Bloomberg Daybreak: US...
Summary
The day’s main market story was a sharp escalation in the Middle East after the US carried out a five-hour round of strikes on Iranian military targets and President Trump reinstated the US blockade of Iranian ships transiting the Strait of Hormuz. Trump also demanded a 20% reimbursement on other cargo moving through the waterway, a move the guest said would be a major change in shipping costs and could push oil sharply higher. Brent and WTI both rose as traders reacted to the renewed risk to tanker traffic.
The broadcast also covered the political fallout in Washington after South Carolina Governor Henry McMaster appointed Darline Graham Nordone, Senator Lindsey Graham’s sister, to finish his term until January. The host said a special election is set for August 11, while the White House signaled support for a Russia sanctions bill that Graham had pushed before his death.
Elsewhere, the program reported a fatal shooting involving a US immigration officer in Maine, a new state lawsuit aimed at blocking Paramount Skydance’s $110 billion bid for Warner Brothers Discovery, and continued volatility in memory-chip stocks, including SK Hynix and Samsung Electronics. New York also faced a heat wave and a growing Legionnaire’s disease outbreak on the Upper East Side.
Key takeaways
- The host said the US resumed blocking Iranian shipping through Hormuz, while Trump demanded a 20% reimbursement for cargo moving through the strait.
- The guest said a 20% levy would be a dramatic change for oil shipping costs and could make global markets much less stable.
- Bloomberg reported that two UAE oil tankers were hit while crossing Hormuz, helping lift crude prices.
- Henry McMaster chose Darline Graham Nordone to serve out Lindsey Graham’s term until January, with a special election set for August 11.
- The White House said Trump will support a Russia sanctions bill that Graham had championed as a final legislative effort.
Notable quotes
“President Trump is reinstating the US blockade of Iranian ships transiting the street of Hormuz”
“He's also demanding a 20% reimbursement for all other cargos shipped through the waterway”
“It is a important turn of events. Clearly, a 20% levy on the cost of cargos”
“Leaving the straight of Hormuz would be a very serious change in the expense involved in shipping oil out of Hormuz”
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 developments in the Middle East. The US Central Command says it's completed the latest wave of strikes on military targets across Iran in a 5hour mission. President Trump spoke to reporters at the White House yesterday.
Well, I think it's going very fast. We've demolished their military. We're hitting them very hard. We had a deal yesterday or the day before. Yesterday it was all done and then they broke up that deal immediately because they found out there was something in the deal they didn't like and they're wired differently and we're not going to put up with it.
Was President Trump at the White House. Iran's semi-official Tausnd News Agency reports Islamic Revolutionary Guard Corps targeted radar systems of the US Navy's fifth fleet in Bahrain with missiles and drones. Well, Nathan, President Trump is reinstating the US blockade of Iranian ships transiting the street of Hormuz. He's also demanding a 20% reimbursement for all other cargos shipped through the waterway. We get more from Bloomberg News director Will Kennedy.
It is a important turn of events. Clearly, a 20% levy on the cost of cargos. Leaving the straight of Hormuz would be a very serious change in the expense involved in shipping oil out of Hormuz.
You're talking about $15 a barrel. It's a lot and it's a lot lot more than Iran was proposing when it was saying that it wanted to charge people. So, it really is a dramatic twist and I think whether or not this ever comes to pass, we will see.
But the important thing for global markets is we're in a very different situation with Hmuz than we were a few days ago and not in a good way.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- iran blockade of hormuz
- u.s. demands cargo reimbursement
- senate appointment darline graham nordone
- lindsey graham successor placeholder
- maine immigration officer shooting investigation
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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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