Iran War Ripples Across Region; US & China Trade Chiefs to Meet

0:01This is Special Agent Regal, Special Agent Bradley Hall. The time is approximately 11.15 a.m. About to start consensual telephone call with Dr. Daiwa Zhang. China's Ministry of State Security is one of the most mysterious and powerful spy agencies in the world. But in 2017, the FBI got inside.

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1:21Bloomberg 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, the war with Iran is now into a fourth day. This morning, Israel says it struck the Islamic Republic's leadership compound in Tehran, including the presidential offices and the Supreme National Security Council building. Overnight, a pair of drones struck near the U.S. Embassy in Riyadh, Saudi Arabia. Non-emergency staff at the American Embassy in Baghdad have been ordered to depart. The State Department is urging Americans across the Middle East to leave as soon as they can, as President Trump vows the U.S.

2:03will do, in his words, whatever it takes to achieve its goals. We have, right from the beginning, we projected four to five weeks, but we have capability to go far longer than that. We'll do it. President Trump gave his first public comments on the war at the White House. Secretary of State Marco Rubio isn't providing a timetable, but he says the U.S. is justified in going after Iran. There absolutely was an imminent threat, and the imminent threat was that we knew that if Iran was attacked, and we believe they would be attacked, that they would immediately come after us. Secretary Rubio spoke ahead of a briefing of the so-called Gang of Eight on Capitol Hill.

2:42A full congressional briefing is set for later today. The U.S. military says it has destroyed Islamic Revolutionary Guard Corps command and control facilities, Iranian air defenses, missile and drone launch sites, and military airfields. U.S. Central Command says six U.S. service members have been killed in action as of late yesterday. Iran's Tosnum News Agency says the death toll since Saturday has risen to 787. Well, Nathan, U.K. Prime Minister Keir Starmer says Britain will not join the U.S. in offensive action against Iran. He told Parliament this government does not believe in regime change from the skies.

3:17We all remember the mistakes of Iraq, and we have learned those lessons. Any U.K. actions must always have a lawful basis and a viable thought through plan. U.K. Prime Minister Keir Starmer has allowed U.K. military bases to be involved in limited strikes to take out Iranian missile launchers. President Trump says he's, quote, very sad that ties with the U.K. have become stretched. He ramped up his criticism of Starmer in an interview with the Sun tabloid. Here in a planned summit between President Trump and Chinese President Xi Jinping is pushing ahead despite U.S. strikes against Iran. Bloomberg News has learned U.S.

4:02and Chinese trade negotiators are slated to meet in the middle of this month. It would mark the first sit down between high-level U.S. and Chinese officials since the Supreme Court dealt the blow to President Trump's global tariff strategy. Nathan, China is calling on all sides of the Iran war to ensure the safe passage of ships through the Strait of Hormuz. It's the most direct call to date from the Islamic Republic's top economic partner for continued trade through the waterway. Begin more with Bloomberg's Will Kennedy. So it's not just vital to the West. It's not just vital to the United States.

4:33The Strait of Hormuz is very vital to the whole global economy and especially the Asian economy. So China, which is historically closer to Iran, will almost certainly be putting that pressure on. And it may make Iran think about exactly what it wants to do in regards to straightforward moves, notably, you know, in some of their communications about this, they've put the emphasis on U.S. ships transiting the straightforward moves. And they have at times made clear that the straits aren't in fact closed. But the bigger issue is that ships are unwilling to transit the strait at the moment because they think it is just too dangerous.

5:06And that's Bloomberg's Will Kennedy. And we are continuing to see big moves in the energy markets. Right now, Now, NYMEX crude oil is up 5.8 percent at$75.35 a barrel, while Brent is at$82.18. And European natural gas prices surged as much as 34 percent this morning. Karen, some big names in finance and investing are giving market context to the war in Iran. JPMorgan Chase CEO Jamie Dimon says there's more inflation risk than people think. In an interview with Bloomberg's Lisa Abramowitz, Dimon said the wild card is the crisis in the Middle East. This war with Iran, you know, if it's short and oil goes to 80 or 90 or 100, but it's a short time, not prolonged, it probably won't have a major effect.

5:48If it becomes prolonged, then all bets are off the table. And you can hear more from our interview with J.P. Morgan Chase CEO Jamie Dimon on our new hub for live streaming news and interviews, all our Bloomberg TV shows, documentaries, and more all in one place, Bloomberg.com forward slash videos. Nathan Oaktree, Capital Management Co-Founder Howard Marks, says investors need to avoid letting their emotions run high when making decisions on exposure due to the Middle East conflict. He told the Australian Financial Review Business Summit that the main thing to keep in mind is how much we don't know about the conflict's duration, size and outcome.

6:26This morning, U.S. stock index futures, they are sharply lower. Nasdaq futures are leading the declines. They're down two and a quarter percent. Yesterday, after falling more than one percent during the session. Stocks staged a comeback to eke out gains. Let's turn to politics at home now, Karen. Several incumbents in Texas are at risk of losing their jobs in the first congressional primary voting of the 2026 election. Bloomberg's Amy Morris reports from Washington. On the House side, Representatives Tony Gonzalez and Dan Crenshaw are vulnerable because of personal scandal, and they've antagonized some Republicans.

7:01But after Republican legislators redrew congressional lines in Texas, Democrats Al Green and Julie Johnson are also at risk of losing their seats. But in the Senate, Republican John Cornyn, who has two decades in the Senate, faces a challenge from Texas Attorney General Ken Paxton, who brings with him legal and personal controversies. Cornyn telling The Washington Post that he cannot, in good conscience, turn the job over to somebody as corrupt as Paxton. In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. Now to the latest on the Jeffrey Epstein scandal. Former President Bill Clinton told the House panel that his former Treasury Secretary Larry Summers introduced him to the disgraced financier after he left office.

7:42The House Oversight Committee released video of the former president's deposition yesterday. Did you ever have any sexual contact with young women or girls in the presence of Epstein or Maxwell? No. Did you ever have sexual contact with any young woman or girl introduced to you by Epstein or Maxwell? No. Both former President Bill Clinton and his wife, former Secretary of State Hillary Clinton, denied knowledge of Epstein's crimes during their sworn testimony. Last Friday's deposition was the first time a former president has been forced to testify before Congress. And as we've just seen this past weekend, Karen, markets may close on Fridays, but the world does not.

8:27That is why we are bringing you a new live radio and TV show. Bloomberg This Weekend looks beyond the daily headlines to the bigger themes driving politics, business and culture. Join David Gura, Christina Ruffini and Lisa Matteo for smart conversations and in-depth interviews that help make sense of the week that's been and what comes next. Get Bloomberg this weekend live, Saturdays and Sundays from 7 a.m. Eastern on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business App.

8:57It is time 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. There are differing views from protesters about the U.S. going to war with Iran. Protesters gathered in New York City's Columbus Circle speaking out against the U.S. and Israeli strikes on Iran. So we know Trump doesn't care what we think. We know that he does not have the well-being of the American people in his mind right now. He has the pockets of his rich billionaire friends at the forefront.

9:30Meanwhile, in a counter demonstration, many Iranian-Americans, while concerned about their homeland being bombed, say they are happy to see their oppressive ruler, Ayatollah Khamenei, is no more. When an entire country of people is begging to be bombed, you know that there's something wrong. Audio courtesy of ABC7. Many in this demonstration came out to thank President Trump for getting rid of Khamenei. Today, show host Savannah Guthrie and her sister returned to their mother's home outside Tucson in their first sighting at the house since Nancy Guthrie went missing about a month ago. The NBC anchor, her sister and brother-in-law, walked arm in arm down the driveway and laid yellow flowers in a makeshift tribute to the 84-year-old at the edge of the street.

10:20Authorities believe she was abducted. The Reverend Jesse Jackson returned to his home state of South Carolina one more time Monday to lie in state inside the South Carolina Capitol. Jackson died last month at age 84. His close friend, Representative James Clyburn of South Carolina, spoke inside the Capitol in Columbia. Because of his efforts, I'm able to sit where I sit today. I can remember those battles. After South Carolina, Jackson will be returned to Chicago for a large celebration of life, gathering at a mega church and the final homecoming services at the Rainbow Push headquarters. Global News, 24 hours a day and whenever you want it.

11:03With the 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, Darren. Duke is ranked number one in college basketball. Blue Devils have been winning their games easily. That was the case last night at North Carolina State, 93-64. Second-ranked Arizona beats sixth-ranked Iowa State 73-57. NFL free agency comes next week. Beforehand, Detroit traded running back David Montgomery to Houston. Washington released cornerback Marshawn Lattimore. Kansas City did likewise with starting tackle Jawan Taylor.

11:38That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. The news doesn't stop on the weekends. Context changes constantly. And now Bloomberg is the place to stay on top of it all. Hi, I'm David Gurra. Join us every Saturday and Sunday for the new Bloomberg This Weekend. I'm Christina Ruffini. We'll bring you the latest headlines, in-depth analysis, and big interviews. All the stories that hit home on your days off. And I'm Lisa Matteo. Watch and listen to Bloomberg This Weekend for thoughtful, enlightening conversations about business, lifestyle, people, and culture.

12:14On Saturday mornings, we put the past week's events into context, examining what happened in the markets and the world. Then on Sundays, we speak with journalists, columnists, and key political figures to prepare you for the week ahead. Join us as soon as you wake up and bring us with you wherever your weekend plans take you. Watch us on Bloomberg Television, listen on Bloomberg Radio, stream the show live on the Bloomberg Business app, or listen to the podcast. That's Bloomberg this weekend, Saturdays and Sundays starting at 7 a.m. Eastern. Make us part of your weekend routine on Bloomberg Television, radio, and wherever you get your podcasts.

12:56coast 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 whatever it takes that is the promise from president trump as the u.s israeli war with iran enters a fourth day. We have the strongest and most powerful by far military in the world, and we will easily prevail. That was President Trump in his first public comments on the war from the White House. For the very latest, we are joined by Bloomberg Middle East correspondent Jumana Bersechi, the host of Bloomberg Horizons on Bloomberg Television.

13:36And Jumana, just looking at the headlines this morning, it doesn't seem like there is any let up in the Middle East. Good morning. No, no, there absolutely isn't. And just in the last half an hour ago, we're hearing of further sirens going off in Bahrain. It appears as though more U.S. assets, U.S. bases have been targeted. And this is adding to the energy infrastructure sites that were hit yesterday, which caused global ramifications, as you know, on energy markets with that key LNG facility in Qatar being halted for disruption. As we understand, it's still closed for production. And this accounts for about 20 % of the world's LNG needs.

14:11So substantial impact there. And that refining facility in Aramco is still closed. And this morning, we walked in to news that the U.S. embassy in Riyadh had also been targeted as well. The Saudi Arabian Ministry of Finance just put out a statement a couple of minutes ago condemning the attack. And then also adding a line at the end saying they repeat that they have the right to self-defense and if deemed necessary also have the right to respond as well. So the language and the response coming out of these Gulf states is also intensifying in nature as these attacks continue. We've spoken before about the risk of the wider Middle East being drawn into this conflict that's led at this point by the U.S.

14:56and Israel. What is the sense at this point about whether this could escalate even further? Well, if you listen to what the president said yesterday, President Trump, he seemed to imply that this was not going to be wrapped up in a matter of days, that rather it could actually continue for weeks. The Secretary of State, Marco Rubio, also suggesting that the intensity of their actions could be amplified in the coming days as well. And the Israeli side are also saying the same thing. The Israeli Prime Minister also reiterating that he expects the operations to intensify in the coming days. This morning, we heard of the U.S.

15:34taking out or specifically targeting a command center, control and command center for the Revolutionary Guard. A short while ago, the IDF said that they had targeted the presidential headquarters of Iran. So, you know, we still don't know whether there were any casualties or what happened there. But the presidential headquarters was a target this morning, in addition to ongoing strikes on military infrastructure, on Iran's missile launchers. And indeed, as we understand, on some of those clear nuclear sites with the IEA confirming that there was a bit of damage sustained at the Natanz nuclear site, too.

16:11With these attacks targeting apparently command and control centers as well as leadership facilities in Tehran, where is the off ramp? We had heard that the United Arab Emirates and Qatar were lobbying allies to help President Trump find an off-ramp. What could that look like at this point? Yeah, indeed. According to our reporting, there was a suggestion that the UAE and Qatar had been speaking to their counterparts in Europe and the U.S. as well to potentially look for some sort of diplomatic channel out of this. This, as the costs continue to mount for these Gulf states. I mean, nobody had anticipated, I don't think any of the leaders had anticipated a couple of days ago that the attacks specifically on energy infrastructure, civilian infrastructure would be as frequent and as damaging as they have been.

17:02And so there is concern that this could really spiral out of control. But at the same time, the comments that have come through, even from the Iranian side, yesterday we were talking about the chief commander of this National Supreme Council, Ali Larijani, who effectively is kind of running the show behind the scenes now because he makes a lot of the military and intelligence decisions. He said that negotiations with the U.S. are not on the table. So perhaps the best bet of an off-ramp is this continued mediation effect, mediation impact that might come through from the Gulf states who would look to seek an end to the conflict.

17:40But at the same time, there's also a feeling in the region that Iran has gone one step too far in terms of the amount of damage it has leveled at the Gulf countries. 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.

18:24And 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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