Iran Seeks to Bar US Ships From Hormuz; Trump Considers Order on Autism

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1:36good 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 local media reports say iran is seeking to bar u.s and israeli ships from the strait of hormuz under a deal with oman and require compensation from hostile countries before they're allowed to use the waterway. That comes as the Iran-affiliated Fars News Agency says the country's naval forces struck hostile targets at the entrance to the strait. President Trump says the U.S. is continuing negotiations and the strait is, in his words, sort of open right now.

2:13We have a thing called the blockade headed up by the U.S. Navy and we control it. And now we control it, but they can always shoot something. They always have something or drop a mine. And if you have one mine sitting out there, you sort of mess things up because people don't want to take their billion dollar boats and accidentally get hit by a mine. But I think we're doing very well. I just, you know, I'm involved in the negotiation. I think we're doing fine. Speaking to reporters in the Oval Office, President Trump said the strait could be open soon. Meanwhile, Nathan, the U.S. is insisting on free transit through the strait and a broad return to the pre-war status quo.

2:52Richard Haas, President Emeritus of the Council on Foreign Relations, says Iran retains a strong negotiating position. The goal is to get the Strait of Hormuz open, which it should be. The idea that Iran would have a larger role now, I think, is inevitable. Wars of consequences. We'll have to let them sell some oil as long as most of the other sanctions stay in place. So I think that's probably as good as we can expect at this point. And Richard Haas was a guest on Bloomberg's balance of power. Iran says a full reopening of the strait would require the U.S. to lift its maritime blockade. The U.S.

3:25has not indicated whether it's ready to go back to the terms of the initial interim deal with Iran. Well, Karen, oil is extending its gains on all this news. Brent crude rose above$83 a barrel after gaining almost 4 percent in the previous session. Right now, Brent has pulled back a bit from that level. It's at 82.87, a gain of about a half percent. West Texas Intermediates at 77.58 a barrel. That's a gain of four tenths of one percent. Paul Sankey with Sankey Research tells Bloomberg banning large flare ups in the Middle East. Oil should pull back. I would say that the situation in the straits is normalizing and we basically have enough oil now.

4:01So I think markets are going to calm down somewhat unless there's another major conflagration. But the reality is the U.S. has run out of bombs pretty much. So I think that the actual kinetic part of the war is hopefully mostly behind us with one major front remaining, which is the Houthis against the Saudis and the Iraqi Shias against the Saudis. And those comments from Paul Sankey of Sankey Research come as Houthi militants launched an attack against Yemen's Saudi-backed government claiming hundreds of deaths. Well, here in the U.S., Nathan, sources tell Bloomberg that Trump administration is considering issuing an executive order on vaccines and autism as soon as next week.

4:37Administration officials are discussing options including research initiatives that encompass both forward-looking studies and backward-looking analysis. President Trump has previously pushed to pare down the number of vaccines recommended for children. Scientific evidence has shown no link between autism and childhood vaccines, and decades of research has failed to identify a single cause of autism. Well, meantime, Karen, President Trump has already signed a pair of other executive orders. These are aimed at denying citizenship to certain people born in the U.S. We get that story from Bloomberg's Amy Morris in Washington.

5:11White House Deputy Chief of Staff Stephen Miller says one order targets so-called birth tourism. The idea that people come here pretending to be a tourist, pretending to be a visitor. But the real reason they're here is to have a child, to make that child an automatic citizen, leave our country and then have a U.S. citizen child, it gives them access under this broken system to welfare benefits, ultimately to the voting booth. Those born to people deemed to be alien enemies, foreign terrorists and foreign agents would also be ineligible. The orders are almost certain to be challenged in court as a violation of the 14th Amendment.

5:47In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. Let's go to markets now in the historic U.S. joint intervention to help prop up Japan's currency is having a limited impact and now more action may be needed. We get an update with Bloomberg's John Tucker. John, good morning. Yeah, good morning, Karen. The Japanese yen has now surrendered nearly half of its intervention driven gains. Bloomberg FX rate specialist David Finnerty says they can intervene all they want. At the end of the day, it's the fundamentals that drive things. The fact that Dolly is back above 158, it just says a lot to the fundamentals.

6:22You can say it shouldn't be there. The market's going, but it is. And it is there because we think it should be there. Traders now think authorities may have to intervene again. But all this may be just a band-aid if Japan doesn't swallow a tough pill and raise the interest rates and raise them more quickly. Another wrinkle in all this is how the U.S. helped. It turns out Treasury Secretary Scott Besson funded the intervention by selling euros. Well, that is seen as an unprecedented breach of long-standing convention with Europe. In New York, I'm John Tucker, Bloomberg Radio. Nathan, there are new questions this morning about the guardrails around artificial intelligence.

6:57The Chinese firm Moonshot's latest AI model broke out of its cyber testing environment. That's according to researchers at U.S.-based Frontier Security. They say the Kimi K3 model managed to find its way out of a sandbox from the U.K. government's AI Security Institute. The researchers say K3 did not try to breach other companies' websites, but the test shows it lacks cyber controls. Now, back in the U.S., Karen, Meta Platforms has been ordered to pay$567 million to New Mexico and to make changes to protect underage users after losing a landmark court case. The judge likened Meta to a polluting factory and ordered measures like time limits and an end-to-night-time push notifications to minors.

7:42Meta plans to appeal its total exposure in the New Mexico case now stands at more than$900 million. And Nathan, we're getting a first look at OpenAI's first consumer device. Sources say the display-free smart speaker will look like a donut about the size of a hockey puck and come with moving parts to help give it personality. The device is also likely to come with a more than$300 price tag when it comes out next year. We're told OpenAI plans to position the device as an AI-first computer that can help get things done. And you can help shape our conversations here on Bloomberg Radio. We've got a new feature exclusively for Bloomberg.com subscribers and terminal clients.

8:23You can submit questions to our analysts and experts to answer live on air. If you are a subscriber, go to Bloomberg.com slash askradio to send in your questions and tune back because you might hear them asked on our shows. That's Bloomberg.com slash Ask Radio.

8:43Time 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. New York City and much of the Northeast is under heat advisory until at least 8 p.m. Saturday. Temperatures are expected to hit 90 degrees today in the city, but the bigger problem is the humidity, making it feel like it's 100. Families whose relatives fell ill or died during an outbreak of Legionnaires disease last year in Harlem are suing New York City. They say the cooling towers at two city-owned sites had spewed dangerous bacteria.

9:20Civil rights attorney Ben Crump is representing the patients. Accountability is essential not only to provide justice for those who were harmed, but to ensure that a tragedy like this never happens in Harlem or anywhere else in New York in the future. Seven people died in the August 2025 outbreak and 118 were sickened. Congressman Rob Menendez of New Jersey says another death is connected to a detention center in Newark. It is the third death at Delaney Hall and the second in a month. Fellow Democratic New Jersey Senator Cory Booker called on Congress to shut it down. I'm now asking for unanimous consent to pass the Delaney Hall Closure Act, which will close Delaney Hall within 90 days.

10:10They're out of excuses. We are out of time. How many more people should die? The latest death is believed to have happened two weeks ago when the detainee had a seizure. Primaries were held in Tennessee. Incumbent Congressman Andy Ogles, an ally of President Trump, lost his Republican primary to former state agriculture commissioner Charlie Hatcher. Hatcher got 53 percent of the vote compared to Ogles, 47. He faces off against Democrat Chaz Mulder in November. Another Trump ally, Senator Marsha Blackburn, won the state's GOP primary for governor, defeating Representative John Rose 43 to 33 percent.

10:51Blackburn faces Democrat Jerry Green, a Memphis Consulwoman, this fall. 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. Amazing what's been going on in Boston with the Red Hot Red Sox. They've won 26 of their last 29 games, 31 of 38. They beat the White Sox 12-11 in 13 innings. The Red Sox tied the game in the 9th inning, then the 10th, the 11th, and the 12th, and they won the game in the 13th. Preseason football, the Hall of Fame game in Canton, Ohio, won by Carolina, 33-30 over Arizona.

11:34into the hall tomorrow go Drew Brees, Larry Fitzgerald, Adam Vinatieri, Roger Craig, and Luke Kuechly. That's a Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg.com and the Bloomberg Business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager, a deal to reopen the Strait of Hormuz may be leaving the U.S. out. Iranian Remedia reports that Iran will try to keep U.S. and Israeli ships out of the strait. President Trump, though, says the U.S. is already in control.

12:13We have a thing called the blockade headed up by the U.S. Navy, and we control it. And now we control it, but they can always shoot something. They always have something or drop a mine. That was President Trump speaking in the Oval Office. Joining us from Jerusalem this morning is Bloomberg News reporter Dan Williams. And Dan, if these reports hold up, it sounds like rather than coming to a compromise that the demands around the straight-of-form rules are getting more maximalist. What do we know about what's happening with this potential deal? Good morning. Hi, good morning, Nathan. We know that for going on 72 hours now, we've been expecting this deal imminently.

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15:29The question is this latest condition by Iran, how practical, what sort of impact would it have on the ground or more precisely on the water? Israeli flagships have pretty much not been anywhere near Hormuz during this war. They've already thinned out their presence such as it was well ago. US flagships, in terms of US flagships, not necessarily in cargo for the United States, are also fairly rare. So it could be that this will not have a practical price. However, in terms of prestige, it's kind of a blow. It's really egg in the face of the US president who, as you noted, is talking up this allegedly imminent deal in his own right.

16:13Very hard to know where things stand. it's worth remembering that from the outset, we weren't even clear if this was a bilateral conversation between the foes, the United States and Iran. Iran always insisted it was talking to Oman, who was serving as kind of a proxy or mediator for the US here. Iran has presented this as a bilateral deal. So really, in terms of the basic fundamental structure of this negotiations, there's disagreement. Hard to know how a peaceable deal might emerge. Just about a minute left here, unfortunately, Dan, but does it look like a return to the pre-war status quo in the strait is just out the window at this point?

16:53I think a pre-war status quo in terms of Hormuz would be very satisfactory to Trump. Keep in mind that even if there is a return to that, Iran would certainly not return to the pre-war status quo given the damage inflicted on it during the war. And I think both Israel and the United States would try to spin that resolution in their favor in terms of having delivered that blow. The Iranians are clearly aware of this. What they're trying to do is exact compensation indirectly through the tolls or the tributes or if you like the service charges that they want to exact from shipping that would come through Hormuz in the event of a deal there.

17:31Apparently one of the things holding up is disagreement over the degree to which the Iranians could exact that kind of toll, how much money and whether they'd also be able to inspect cargo on ships that they would have inspection rights over, should there be such a resolution, such a deal for our moves. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6am Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121.

18:16Plus, 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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