Iran-Oman Hormuz Agreement; Trump Threatens Munitions Leakers

0:00Bloomberg Daybreak U.S. edition is brought to you by OTC Markets Group. OTC Markets' overnight platform for exchange-listed securities, Moon ATS, provides access to global securities in U.S. dollars from 8 p.m. to 4 a.m. Eastern, Sunday through Thursday. Learn more at otcmarkets.com slash moon. Moon ATS is operated by OTC Link LLC, a FINRA-registered broker-dealer, and is available only through participating broker-dealers. Everyone's talking about how AI is transforming work, especially in sales. While the landscape shifts, one thing remains the same, the thrill of closing a deal. Whether it's a gong or a confetti machine, every team has its celebration rituals.

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1:16This one looks perfect. Scheduling for tomorrow. Gosh, Grand really makes it easy. Another crisis averted by the team at Grand Appliance. Visit grandappliance.com today. Grand Appliance. Appliance experts since 1930. 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 an important development in the Middle East this morning. Iran says it has reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz. Both countries have been in talks on this for several days.

1:55Though an Iranian foreign ministry spokesman has not mentioned any role for the U.S. in the discussions. We get the latest from Bloomberg Middle East correspondent Abir Abu Omar in Dubai. There's a lot of details to be arvined out here about just how exactly ships that are outbound and inbound would make their way through the Strait of Vermouth. We'll await more details once that draft is publicized. But what we know from the Iranian side, and you mentioned the spokesperson for the foreign ministry, Ismail Bakhaei, that said that negotiations are forward moving and the deal would be struck if certain third parties do not obstruct the process.

2:31Obviously, they're referring to the United States, perhaps Israel as well. Bloomberg's Zabir Abu Omar reports this latest announcement follows months of deadlock between the U.S. and Iran on how to end their war. President Trump has claimed breakthroughs repeatedly before, but a lasting agreement has remained elusive. Meanwhile, Nathan, President Trump is denying that the U.S. is running low on munitions. That's after the Washington Post reported he clashed with Defense Secretary Pete Hegseth at Camp David last week about shortages of long-range guided missiles and air defense interceptors. In a Truth Social post, the president said the U.S.

3:05has massive amounts of munitions and the, quote, leakers of these treasonous statements are being hunted down. And Karen, President Trump's also speaking out after progressive Democrat Abdul El-Sayed's victory in the Michigan Senate primary. Abdul El-Sayed, lovely gentleman. He's a man of hate. And now he's going around saying, no, I love everybody. He doesn't love everybody. Put him in office. You're going to find out what he loves. The president called Abdul El-Sayed a communist who hates Jews and Israel. At an event in Las Vegas aimed at touting his economic agenda, El-Sayed responded on CNN.

3:38Look at the background. It says no tax on tips. The man can't stay on focus. That's like the one thing that he did to offer any economic relief. But instead of that, he's more focused on me. Abdul El-Sayed says he is a capitalist who condemns anti-Semitism, though he has accused Israel of genocide in its war in Gaza. El-Sayed defeated establishment-backed Congresswoman Haley Stevens in the primary and will now face Republican Mike Rogers in a high-profile general election race that could determine control of the Senate. Well, Nathan, President Trump has reportedly spoken repeatedly with Kevin Walsh since he became chairman of the Federal Reserve.

4:15The Wall Street Journal reports the president has sought Walsh's counsel on a range of matters, including how the war in Iran and the rapid rise of artificial intelligence are affecting the economy. The paper says it isn't clear if Trump and Walsh have discussed monetary policy. However, their communication sparks concerns about the independence of the Fed. Well, Karen, Fed Governor Lisa Cook says she's ready to raise interest rates if inflation doesn't slow. She spoke at an event in Alaska. If I do not see signs of continued disinflation soon, I am prepared to act. With five years of above target inflation, the risk grows that higher inflation may become entrenched in price and wage setting behavior, leading to persistence that would be much harder for us to attack.

5:00The longer inflation is above target, the more likely this scenario becomes. And Fed Governor Lisa Cook went on to say her priority remains getting inflation back to the Fed's 2 % target. She says she is firmly committed to restoring price stability. Well, Nathan, we now turn to the markets. Global stocks are retreating from record highs on weakness in chip stocks. Memory maker Sandisk down more than 9 % in early trading, while rival Western Digital is lower by almost 15 % after both companies reported earnings. In Asia, Karen, a second flash crash in SK Hynix shares has raised fresh questions about South Korea's new alternative stock exchange.

5:39The chipmaker briefly fell 30 % in pre-market trading on NextTrade before ending the 50-minute session down about 2%. SK Hynix then dropped another 6.5 % in regular trading on South Korea's main stock exchange as the company tracked a broader chip sell-off. Nathan, today could be another critical day for SpaceX. We get details with Bloomberg's Charlie Pellett. Just over$100 billion worth of SpaceX shares become available for trading. Insiders, should they choose, can start unloading shares when a lockup agreement ends. Stephen Wesley is a former board member at Tesla. He's now the co-founder of the Wesley Group.

6:19This is a bit of a different IPO where shareholders can sell 20 % of their holdings within 90 days. And so one of the questions out here is going to be how many people are going to hit the exits early. The traditional 180-day lockup for other shares ends December 8th. Elon Musk's shares remain locked until June of next year. In New York, Charlie Pellett, Bloomberg Radio. Thank you, Charlie. Bloomberg News has learned hackers have launched a major cyber campaign against some of Wall Street's biggest money managers. Sources say the attacks featured voice phishing in an effort to trick employees into revealing sensitive information or grant access to internal systems.

6:55Hema Parmar is one of the Bloomberg reporters who broke this story. We are seeing some of the world's biggest hedge funds attacked in this attempt. And we're talking Citadel, Millennium, Point 72, Two Sigma. And, you know, these firms collectively manage hundreds of billions of dollars. We do know that Point72 sent a letter to investors telling them that initial indicators were that there were no client information stolen. And then Two Sigma also said in a statement that they have no indication of any impact to its systems. Bloomberg's Hema Parmar says Wall Street's financial regulator FINRA has been in touch with member firms following the attempted breaches.

7:32Nathan OpenAI is asking a federal judge to dismiss a lawsuit filed by Apple accusing the artificial intelligence company of stealing trade secrets. The chat GPT maker says the iPhone maker's allegations are meritless. The filing came a day after Apple asked the judge to order OpenAI to stop using what it calls stolen trade secrets and to force the company to return any confidential information to Apple. We care. And Amazon founder Jeff Bezos unloaded almost$350 million in company stock as it hit a record on Monday. The transaction was disclosed after yesterday's market close. it represents only a fraction of the up to 15 million shares worth more than$4 billion that Bezos said he'd proposed to sell in a separate filing released two days earlier.

8:16Bezos's wealth has climbed almost$39 billion this year to$292 billion. That's according to the Bloomberg Billionaires Index. And Amazon recently became the fifth firm to surpass$3 trillion in market value. And we do have a programming note here, Nathan. Bloomberg Radio is introducing a new feature exclusively for Bloomberg.com subscribers and terminal clients. You can help shape our conversations by submitting questions for our analysts and experts to answer live on air. Subscribers can go to Bloomberg.com slash ask radio to send in questions and you may just hear the mast on the air. That's Bloomberg.com slash ask radio.

8:56Time now for a look at some of the other stories making news in New York and around the world. And for that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. Several New York City families are homeless this morning after a big explosion and fire at an apartment building in the Bronx. One person was found dead and at least 15 people were hurt after Wednesday's fire reached five alarms in the Bronx Norwood section. The FDNY says six firefighters were among the injured. Several residents had to be rescued. Fire Chief John Esposito says the cause of the blast is under investigation.

9:30As the commissioner said, there was some sort of explosion. It blew out window frames. It blew some of them across the street. And when our members got up to the second floor, some of the apartment doors had been blown off the hinges as well. Fire Chief John Esposito says that allowed the fire to spread down the hallways and into stairwells. Embattled Republican Congressman Max Miller doubles down, saying he will not get out of his re-election race. Miller continues to deny domestic abuse allegations brought against him by his ex-wife, the daughter of a fellow Ohio lawmaker, Senator Bernie Moreno.

10:05The House Ethics Committee announced they have opened an investigation into Miller. Former House Ethics Committee Chairman Charlie Dent says he expects Miller is facing pressure from major party leaders like Speaker Mike Johnson behind closed doors. I suspect behind the scenes and behind closed doors, I would expect that the Speaker would likely be putting pressure on Congressman Miller to resign, not only to get out of the race, but to resign. Former Congressman Dent spoke to ABC. Speaker Johnson publicly said earlier to let the investigation into Miller run its course. A Senate committee is set to vote today on whether to hold Dr.

10:45Anthony Fauci in contempt of Congress for refusing to answer questions at a hearing. Fauci invoked his Fifth Amendment right against self-incrimination more than 100 times. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen. Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. The Red Sox on June 24th had a record of 32-46. Since then, they are 30-7. They shut out the White Sox 4-0 at Fenway. Sonny Gray improving to 14-2 on the season. At Wrigley, the Cubs topped the Dodgers 7-6.

11:25L.A. 6th loss in a row. Pete Crow Armstrong homered twice in the win. Shoei Otani homered twice in the loss. The Washington Commanders have signed veteran free agent wide receiver Stefan Diggs. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Bloomberg Daybreak U.S. edition is brought to you by OTC Markets Group. Thinking about joining the exploding overnight market space but unsure where to start? Designed to meet the needs of a growing international investor base, OTC Markets Overnight Platform for Exchange-Listed Securities, Moon ATS, provides access to global securities in U.S.

12:03dollars from 8 p.m. to 4 a.m. Eastern, Sunday through Thursday. Extend your trading day and trade global securities in U.S. dollars through a FINRA-licensed broker-dealer. In the first half of 2026, over$28.1 billion U.S. dollars traded on Moon ATS. Learn more about Moon ATS. Visit otcmarkets.com slash moon. Moon ATS is operated by OTC Link LLC, a FINRA-registered broker-dealer. Everyone's talking about how AI is transforming work, especially in sales. While the landscape shifts, one thing remains the same, the thrill of closing a deal. Whether it's a gong or a confetti machine, every team has its celebration rituals.

12:43Adio is designed for that moment. It's the agentic CRM that turns customer signals into actionable insights, helping you close deals faster with revenue agents and automations working around the clock. You'll have everything you need to scale your go-to market efforts. Elevate your wins with Adio. Start your free trial at adio.com slash iHeart. Ugh, hon, the ice cream has turned to soup. I think the fridge is finally dead. Hopping on grandappliance.com. Great idea. They were awesome with the Samsung Ranger microwave we bought last year. Oh, they have matching Samsung in stock and next day delivery.

13:18Let me see. Oh, yeah, that looks perfect. I hope we get the same delivery crew. Those guys were awesome. Agree. Total pros. Another crisis averted by the team at Grand Appliance. Appliance experts since 1930.

13:55an agreement on proposed shipping lanes was in its final stages. Joining us this morning is Mark Champion, who covers the Middle East for Bloomberg Opinion. Mark, it's great to speak with you again this morning. Of course, we know that Iran and Oman have been discussing this for several weeks. If a deal is announced, what would it entail? Good morning. Good morning. So, to the best of our knowledge, in other words, this mainly comes from the Iranians. but to the best of our knowledge it will identify a temporary channel for a period perhaps 40 days in which shipping traffic will be able to go back and forth through Hormuz and you know sort of more or less opening up the strait and there'll be an agreement in principle on the collection of fees and on control, where the Iranians would control traffic going into the strait close to their shores.

14:56The Amanis on the other side would control traffic going out. That seems to be the kind of framework for the deal from the reporting or the sort of news comments and leaks that there have been on the Iranian side. The American officials off the record have been saying that, you know, that's not accurate. There won't be any fees. We'll see. But the Americans seem to be at one remove from these talks. Yeah, to that point, I mean, President Trump has said that Iran wants to talk, is begging to talk in his words. And Iran has been denying that. Where is the U.S. in all this? And if it's being left out of the talks, where does that leave things when it comes to the broader issues that the U.S.

15:43says it wants to get resolved in this war, particularly the nuclear program? Right. Absolutely. So, you know, the Iranians have also said, look, if we get to this deal with Oman, that doesn't mean that the strait opens. Whether it opens and we have free-flowing traffic, that will depend on the U.S. and changes in its behavior. You know, it's not really clear exactly what they mean by that, but, you know, almost certainly it's about, you know, the unblocking of Iranian ports. So the Iranians, you know, quite clearly don't want to open up the strait if it means that they still can't benefit from that fully.

16:19So, you know, the Americans will have to decide, you know, whether they are willing to accept this, which will be somewhat humiliating. It will not be a victory. It will be, you know, something that Iran has power over that it did not have before the war. And it does not include any of the issues that the U.S. went and Israel went to war to resolve. Those will all have to come later. But it does seem that Donald Trump is very keen to get the straits open. He's got midterm elections coming up. He does want, you know, some kind of stability in the oil markets. And so, you know, he's created a space for these talks to happen.

17:04Whether he can swallow the outcome, that's a different matter. Just 30 seconds left here, Mark, but the president is denying this report in the Washington Post that he confronted Defense Secretary Pete Hegseth about being misled about U.S. munitions stockpiles. Where does munitions play into all this? Well, I mean, again, to the best of our knowledge, it does look as though in the course of this war since February, American stocks of critical weapons, both Patriot anti-ballistic missile defense interceptors, and then the offense, long-range precision strike offensive weapons. These are kind of land-based.

17:49They're called attackums or sea-launched tomahawks. And they're very, very much reduced at this point.

18:17New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121. Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

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