Iran Wants Hormuz Control, Birthright Citizenship Decision Due

0:28With LPL Financial, we provide the services to help push you forward. with Chase's digital tools. Plus, access online resources designed to help your business thrive. Learn more at chase.com slash business. Chase for business. Make more of what's yours. The Chase mobile app is available for select mobile devices. Message and data rates may apply. JPMorgan Chase Bank N.A. Member FDIC. Copyright 2026. JPMorgan Chase and Company. The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across HR, IT, and procurement processes, we've reduced costs by millions, slash repetitive tasks, and freed thousands of hours for strategic work.

1:13Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business, IBM. Bloomberg Audio Studios. KB Podcasts Radio News. Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Well, Karen, we begin with the latest from the Middle East. The U.S. says it is set for another round of talks with Iran today in Dohar, Qatar. White House says Special Envoy Steve Witkoff and President Trump's son-in-law, Jared Kushner, will attend. Iran has not confirmed it will, though it is sending a delegation to Qatar today.

1:54In the meantime, Iran is ratcheting up talk about maintaining control of the Strait of Hormuz. We get the very latest from Bloomberg Middle East correspondent Abir Abu Omar in Dubai. They've really been doubling down on this toll that they are wanting to charge once the 60-day negotiation period between them and the United States is over. They said with or without the blessing of Oman, which has emerged as this other key country that they will toll the Strait of Hormuz alongside with Oman. And Sultan Haitham bin Tariq met with Emmanuel Macron of France yesterday, and both had agreed that the Strait of Hormuz should remain free of charges.

2:33Bloomberg Zabir Abu Omar reports the interim deal with Iran does keep the Strait toll free for 60 days, but leave open the possibility of shipping fees after that. President Trump is not saying whether he thinks new talks will lead to a breakthrough. He says his focus is on Iran never having a nuclear weapon. Well, Nathan Morgan, Stanley is cutting oil forecasts for the second time in about two weeks. says flows through the Strait of Hormuz return faster than expected. The firm says strong U.S. supply and weak Chinese demand raised the risk of a glut. Brent futures have collapsed about 30 percent this quarter as the U.S.

3:05and Iran reached an interim peace agreement that's allowed some traffic through Hormuz to resume. At the White House, Karen, President Trump is holding off on signing a major bipartisan housing bill. The president canceled plans to sign it last week after it passed both the House and Senate by wide margins. Here's what I would like to sign. Much more than a bill that big deal. It's a yawn. Some people say it's wonderful. To me, compared to the Save America Act, just about everything is a big yawn. President Trump spoke for the Oval Office. He's been pressuring Senate Republicans to pass the Save America Act, which would require voter ID and proof of citizenship to vote.

3:44But Senate leaders have said they don't have the votes to approve the bill or change the Senate's rules to pass it. Lawmakers from both parties are hoping to tout the housing bill as progress on addressing voters' affordability concerns before the November midterm elections. Staying in the nation's capital, Nathan, this is expected to be the final decision day of the Supreme Court's term, and Bloomberg's Amy Morris reports from Washington. Four big cases are still outstanding, including one which challenges the president's executive order ending birthright citizenship for children born in the U.S.

4:14to undocumented parents. The court did rule that President Trump could not immediately fire Federal Reserve Governor Lisa Cook. Elizabeth Wydra, president of the Constitutional Accountability Center, spoke to Balance of Power. This court is generally very pro-big business and business interests support having a healthy, independent Federal Reserve. The court also decided that the president can fire top government officials in a decision that expands the power of the Oval Office. In Washington, Amy Morris, Bloomberg Radio. Amy, thanks. It's not just the final day of the Supreme Court's term. It's also a primary election day in Colorado ahead of the November midterms.

4:53It's a contest between progressives and established incumbents in several Democratic races. Senator John Hickenlooper is facing a challenge from self-described insurgent progressive Julie Gonzalez. In the first House district, Congresswoman Diana Diggett has been in office as long as her Democratic Socialist challenger, 29-year-old Milad Keros, has been alive. And in the 8th district, two state representatives, Shannon Byrd and Manny Rutenell, are competing to take on Republican Congressman Gabe Evans in a swing district that was created just five years ago. We turn to the markets now, Nathan, where global equities are on track for their best quarter in almost six years.

5:29And Bloomberg's John Tucker joins us with the latest. John, good morning. Can you believe this, Karen? We're reaching the half-year mark. And the chip wreck of last week seems like a distant memory. The tech-heavy Nasdaq up 11 % since the start of the year. It's been the best quarter for the Philadelphia Semiconductor Index ever. It's been driven by an AI boom and also comes despite geopolitics. AI infrastructure stocks have just by themselves likely contributed 60 % of S &P 500 earnings growth in the quarter. Alicia Levine at BNY Wealth is focused on those earnings and an S &P 500 at 8 ,000. So the path to AK is the earnings, right?

6:08It's the earnings and the fact that it's not just focused on the AI beneficiaries, but it's actually broadening throughout the S &P. And that's what gets you to the 8 ,000. Well, the rally is not without risk. The amount of leverage in the market could fuel a violent reversal. And Citigroup strategists warn U.S. technology shares are at risk of further declines. In New York, I'm John Tucker, Bloomberg Radio. Well, John, maybe the only thing hotter than the stock market right now is the weather. A heat wave is about to stretch across the northeast and through the mid-Atlantic. We get the latest from Bloomberg meteorologist Craig Allen.

6:42Well, it's warm, but it's tolerable so far this morning. However, the sweltering heat is no more than a day away. The worst of it will reach us starting tomorrow and last into the July 4th weekend. Temperatures will reach the 90s in D.C. today and about 85 to 90 for New York City and Boston. add another 6 to 10 degrees on for tomorrow, meaning mid-90s to low 100s. From D.C. through Philadelphia to New York City and Boston, the heat index will make it feel like 110 degrees or higher. And the nights may not drop below 80 in some urban areas. And this type of dangerous heat, it's going to last at least four days.

7:20Bloomberg meteorologist Craig Gallen says temperatures this week are going to be 10 to 20 degrees above the 30-year historical average in nearly three dozen states. Well, let's look at the global economy now, Nathan. Some of the world's top economic leaders are in Portugal for the European Central Bank's annual retreat in Centra. ECB President Christine Lagarde says Europe is becoming less vulnerable to external economic shocks. The euro area has also weathered the largest U.S. tariff increase in almost a century, as well as what the International Energy Agency has called the largest oil supply disruption in history.

7:56That didn't go without a significant cost. It has been substantial. But the economy has not been derailed. ECB President Christine Lagarde will appear on a panel tomorrow alongside Fed Chair Kevin Warsh, and we will bring it to you live at 9 a.m. Wall Street time on Bloomberg Radio and the Bloomberg Business App. In company news, Karen, Supermicrocomputers offices in Taiwan have been raided by government authorities. Sources say the move widens an investigation into alleged smuggling of NVIDIA chips into China using Supermicro's servers. Now, the company has previously said it is cooperating with Taiwanese authorities on the probe, and shares of Supermicro fell 8 % on the news.

8:41Time 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. The death toll from the twin earthquakes that struck Venezuela on June 24th rose past 1 ,700. More than 22 ,600 people were injured. Katie Sussman is the deputy regional director of the Latin American branch at the International Rescue Committee. We're seeing huge water shortages. Seven of the states within Venezuela are without water now, which means that the survivors that are coming out of that rubble are facing greater challenges and really just being able to have their basic needs met, which is what IRC and other humanitarian organizations are really focused on right now.

9:25Search and rescue operations continue with international aid, including thousands of foreign rescue workers and more than 700 ,000 tons of humanitarian aid. A JetBlue flight reported hitting a drone at 3 ,000 feet while trying to land in New York City. The flight was coming in from Las Vegas for landing at JFK Airport. It didn't cause any damage to the jet. Hours later Monday, a helicopter pilot reported a very close call at JFK with a remote-controlled plane. Do you think it was like somewhat like a drone or like, can you describe it? It was just an RC, one of the remote-controlled airplanes, a big one at 500 feet.

10:10Audio from ATC.com. Over the weekend, a United pilot reported a near collision with a drone at Newark Airport. There's word Warren Buffett has decided to skip his mid-year donations to the Gates Foundation for the first time in two decades. According to the Wall Street Journal, Buffett is waiting for the results of a review into the organization's links to late sex offender Jeffrey Epstein. He could make a donation by Thanksgiving. 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.

10:50And for that, we bring in John Stashauer. Thanks, Karen. Upsets at the World Cup, the Netherlands and Germany. European nations ranked seventh and tenth in the world. Both lost in penalty kicks. Netherlands upset by Morocco. Germany upset by Paraguay. Brazil needed a goal right at the end to get by Japan 2-1. At Wimbledon, Yannick Sinder, the top seed and defending champion, was down two sets to one and fell, had a bloody foot, still pulled out the match in five sets. The big match today, Serena Williams' return. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this.

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14:15Coast 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. The Strait of Hormuz may be the major bone of contention as the U.S. gets ready for another round of talks with Iran today in Qatar, but President Trump says his focus is on Iran's nuclear ambitions. The meeting in Doha is going to be perhaps important, perhaps not. We're going to find out. That was President Trump speaking in the Oval Office. Joining us this morning is Mark Champion, who covers the Middle East for Bloomberg Opinion, sounding as though the president is setting expectations relatively low here, Mark.

14:57But First off, do we know whether the talks are actually going to happen today? There's been kind of mixed messaging, hasn't there? Good morning. Good morning. Yes, absolutely there has. It looks as though there will be talks, but the question is, you know, at what level and about what? And so the Americans are sending, as far as we know, Steve Wyckoff and Jared Kushner, so at a fairly high level. The Iranians are saying they won't be talking to the Americans directly. They'll be sending a technical team. And it seems as though what the Iranians want to do is to basically talk about Hormuz and their interpretation of the memorandum of understanding as it affects the strait, which is that in that memorandum, it says that they should work out with Oman control of the strait.

15:53and they believe that the U.S., by sending ships hugging the Ilmati coast without reference to the Iranians, are breaking the deal. The U.S. interprets the deal differently. So it looks as though, as much as the president thinks that these talks are still all about nuclear and Iran's nuclear program, and that's what it's all about, It looks as though they may focus on more technical issues to do with just keeping the ceasefire alive. Well, we have seen in just the last few days Iran keep up attacks in and around the strait. How much leverage does Iran have around the waterway right now? Well, it has a great deal of leverage.

16:36This is the key to how it emerged from the war. it believes that it may have lost some of its ballistic missile stocks, some of the power of its proxy, what it calls its forward defense network of proxies, including Hezbollah, Hamas, etc. And it may have lost some of the potency of what it considered its deterrence. But it has emerged from the war with something it didn't have before, which was the ability to quickly impact the global economy and put pressure on the United States that way. So they are very insistent that they should retain that leverage, that control, and also try and monetize it and to turn it into a cash flow for the regime, which has an economy that is in deep, deep, deep trouble.

17:32So this is their sort of number one priority. For the U.S., it is more about getting the nuclear deal that Donald Trump has been pursuing ever since he left the 2015 arrangement that was negotiated by President Obama. We have just 30 seconds left. What role could Gulf allies or even Oman have around the Strait of Hormuz issue at this point? Well, Oman's in a difficult position. You know, the problem for the Iranians is that it doesn't have complete control of the strait in the way that, you know, Turkey has complete control of either side of the Bosphorus and the Dardanelles. So Oman, you know, also has a voice and it is, you know, trying to sort of sit the fence between the U.S.

18:17and Iran. Very uncomfortable place to be. 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 6 a.m. 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. 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.

18:58It'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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