Trump Orders Hormuz Blockade; Hungary Rejects Orban in Seismic Vote

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1:10Here today, roam tomorrow. Join now at Sonesta.com. Terms and conditions apply. 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. Now 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. Podcasts, radio, news. Good morning, I'm Nathan Hager.

1:58And I'm Karen Moscow. Here are the stories we're following today. All right, Karen, the U.S. war with Iran may be headed into a new phase after the breakdown of peace talks in Pakistan over the weekend. President Trump says the U.S. will begin a full naval blockade of the Strait of Hormuz and retaliate against any Iranian resistance. The president announced it on his way back to Washington last night from Miami. 10 o 'clock tomorrow, we have a blockade going into effect. That'll be 10 o 'clock tomorrow. Other nations are working so that Iran will not be able to sell oil. And that will be very effective.

2:35President Trump did not elaborate on which countries would help with the blockade. We get more from Bloomberg's Jumana Bersechi in Dubai. The U.S. will be sending more warships, submarines, perhaps surveillance aircraft to monitor all of the vessels' movements throughout the course of the straits. President Trump has also said that they will start interdicting any ships that agree to pay a fee or transit fee to get through. And then they will begin with the mind sweeping exercises as well, possibly by deploying specialists or even submarines in that space, too. Bloomberg's Jumana Bersetje reports Iran's Revolutionary Guard Corps has warned that any military vessel attempting to approach the strait would be considered a violation of the ceasefire.

3:15This morning, three tankers are trying to cross the strait ahead of the blockade by sailing close to Iran's coast. Well, Nathan, this latest move in the Iran war is drawing a sharp reaction in Washington. Democratic Senator Tim Kaine says it never should have gone this far. We had a diplomatic control over Iran not seeking a nuclear weapon that Donald Trump decided to tear up. And we had an open strait of Hormuz and reasonable gas prices up until February 27th when Donald Trump launched this war without the support of allies, the American public or Congress. And Democrat Tim Kaine appeared on ABC's This Week.

3:56But Republican Congressman Mike Turner says President Trump should have more international support for the blockade. He was a guest on CBS's Face the Nation. The straits are not just a United States issue. It is also a Europe issue. it is a worldwide issue. And Iran shouldn't be permitted to just decide who gets through. And former White House National Security Advisor John Bolton says President Trump should not stop with a blockade. The only way to get true peace and security in the Middle East is to have regime change in Iran. You can negotiate all you want with these people. It's not going to change anything.

4:30And former National Security Advisor John Bolton spoke on Bloomberg this weekend. And catch that show along with Face the Nation and this week every Sunday on Bloomberg Radio. Well, Karen, President Trump isn't just going after Iran. He's also attacking Pope Leo XVI after a series of rebukes from the American-born pontiff over the war and the idea that God is on the U.S. side. We don't like a pope that's going to say that it's okay to have a nuclear weapon. We don't want a pope that says crime is okay in our cities. I don't like it. I'm not a big fan of Pope Leo. President Trump again speaking with reporters on the tarmac in Miami.

5:07He also attacked Pope Leo XIV in a social media post that included an image of himself dressed in robes and healing a sick patient surrounded by a medical worker and military members. Well, Nathan, the U.K. will not take part in the proposed U.S. blockade of the Strait of Hormuz. Let's go to London and get the very latest. It's Bloomberg's Ewan Paz. Ewan, it looks like another point of contention between President Trump and Prime Minister Keir Starmer. Karen and Nathan, the British government continues to call for freedom of navigation and the reopening of the Strait of Hormuz. But Bloomberg has learned the UK will not take part in President Trump's plan to blockade the waterway.

5:46Prime Minister Keir Starmer is set to lead another round of talks with other nations on reopening the strait. But on the US blockade, Starmer's position is again at odds with the US president. In London, I'm Ewan Potts, Bloomberg Radio. OK, Ewan, thank you. We are seeing some very big moves in energy markets this morning following the latest war developments. Right now, Brent crude is higher by 7.6 percent, trading above$102 a barrel. West Texas Intermediate's up 7.8 percent at$104.15. Energy Aspects founder Amrita Sen tells Bloomberg this weekend markets have been in denial. You know, what surprised me in this market is this consistent belief.

6:27I would say a lot of the macro traders have that somehow there will be a resolution because the alternative is just too difficult to fathom, too difficult to kind of really think through and say, OK, what does this do to the global economy? I don't disagree with that, except that that's not the reason why the trade is shut to begin with. And Energy Aspects founder Amrita Sen says much of the supply shock damage has already been done. She calls it the biggest energy shortfall in history and stocks are falling this morning as well. S &P futures are down more than a half percent. Dow futures are lower by nearly a half percent.

7:01And NASDAQ futures on the decline by six-tenths of one percent. Well, Nathan, another major political story that we're following comes out of Hungary. After 16 years in power, Viktor Orban's rule is coming to an end. Peter Magyar's opposition Teesa party is on track to win with almost all votes counted. Bloomberg Chief Europe correspondent Oliver Cook has more from Budapest. It changes a lot of things very fundamentally, and also the margin by which Peter Magyar was able to crush Viktor Orban, who was going for his fourth consecutive term after 16 years in power. He now has a two-thirds majority, Peter Magyar.

7:38That means that he can legislate very freely with a free hand over Hungary. It also means he can make changes to the Constitution, which is something that Viktor Orban enjoyed during his last term. So it's really a significant victory, but also the margin is very, very relevant. In terms of what he'll actually have to do to turn the economy around, that gets a little bit more complicated. I mean, he's inheriting some of the same problems that brought Viktor Orban down, a stagnant economy. But he's vowed to change things, to turn things around in the economy, to sort of cut out the corruption. And that's Bloomberg Chief Europe Correspondent Oliver Crook reporting from Budapest.

8:10And stocks in Hungary are up 2.5 % on the election results. Well, turning to politics at home now, Karen. And Democratic Congressman Eric Swalwell is suspending his campaign to be the next governor of California. The decision follows a series of sexual assault allegations that threw that campaign into turmoil and prompted his backers to flee. In a post on social media, Swalwell wrote, quote, I will fight the serious false allegations that have been made, but that's my fight, not a campaign's, end quote. The seven-term congressman from the San Francisco Bay Area had been polling among top Democrats to succeed Gavin Newsom, who's barred from seeking re-election because of term limits.

8:50Well, in other news this morning, history was made in Augusta. Nathan Rory McIlroy is the Masters champion once again. We want to get the details at Bloomberg's John Stash Hour. John, good morning. Good morning, Karen. It was the 90th Masters, and yes, it ended as the 89th did a year ago. And here we go. his year again. Rory is a rare repeat winner at Acosta. At the three, Jack Nicklaus, Nick Faldo, and Tiger Woods, Masters Radio, the call. McElroy led most of the way, did lose that lead in the final round, but he regained it, held off a slew of challengers, including Scotty Scheffler who came from 12 shots behind to finish in second place.

9:29One shot back of McElroy. We'll hear from the winner of the Green Jacket coming up in sports. John Stash, Bloomberg Radio.

9:38Time 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 John Tucker. John, good morning. Good morning, Karen. And hello, springtime. Temperatures will significantly rise this week. Bloomberg meteorologist Craig Allen has the very latest. It could be as much as 15 to 30 degrees above average in the major cities along I-95. So for D.C. and suburbs, it may get close to 90 tomorrow and into the 90s for Wednesday and Thursday. For the New York City tri-state region, 80s will be common Tuesday through Thursday. A few inland spots may touch 90, but it will definitely be cooler along the shore and at the beaches.

10:16And as for Boston, it won't get that kind of heat, but 70s and 80s are likely for many parts of New England. Bloomberg Meteorologist Craig Allen. The search continues for the gunman that targeted an employee at a New Jersey fast food restaurant over the weekend. Gunfire erupted inside a Chick-fil-A, killing one person, injuring six others. It happened in Union Township. The injured victim is believed to be innocent bystanders. According to authorities, the shooting was a targeted incident stemming from a drug or gang dispute. A milestone for New York City Mayor Zoran Bamdani in Queens Sunday, Bamdani celebrated 100 days in office, touting his accomplishments.

10:54Since we took office, murders have hit record lows. There has not been a murder on Staten Island in more than 180 days. Crime in our city is down. Mayor Mondani also announced the first location of a city-owned grocery store. It'll be open in Harlem before the end of his first term. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm John Tucker and this is Bloomberg Karen. All right, John Tucker, thank you.

11:28Time now for the Bloomberg Sports Update. Here's John Stashhour. John, good morning again. Good morning, Cam. Roy McIlroy admitted he won this Masters with what he did in the first two rounds. He was 12 under par through 36. Oh, shot the next 36 at even par like Saturday. He yesterday lost the lead. At one point, Cam Young was on top, and later it was Justin Rose who was trying to win the Masters at age 45. But from the 7th hole to the 18th, Rory was bogey-free, and with aim-and-corner birdies on 12 and 13, he retook the lead. One of Masters that he always expected to be close. It's hard. It's hard to win golf tournaments, especially around here.

12:07Like, you know, you've had maybe a couple of runaway winners over the years, but it always seems to be a very tight finish at this golf course. So I think it's the nature of the golf course. It's the nature of what's at stake. His sixth career major championship, second green jacket, Orozco. Adi Scheffler was going for the third of his career. He played the last 36 holes bogey-free, but ended up one shot behind. The losing streaks reached five for both the Mets and Yankees. The A's have had a lot to do with that. They beat the Yanks twice in the Bronx and then went to Citi Field and swept the Mets.

12:39Three of their five straight wins in New York were shutouts. It was 1-0 Sunday. A Nick Kurtz home run off Freddy Peralta, third inning, the only run of the day. The Mets have four of their starters with a batting average under 200, and the Yankees have five, including Ryan McMahon at 114. He made the final out at Tampa Bay, and the Yanks had the tying and go-ahead runners on base. The Rays, with their first three-game sweep of the Yanks in five years, they won 5-4. Red Sox won in St. Louis. Nationals won in Milwaukee. The NBA regular season is over. The playoffs begin soon. The Stanley Cup playoffs just after that.

13:11The only New York hockey or hoop team in the playoffs, the Knicks. They'll face Atlanta in the first round with Game 1 Saturday night at the Garden. No playoffs for the Islanders due to a late-season slot. John Stashauer, Bloomberg Sports. Gary, thank you. Stay with us. More from Bloomberg Daybreak coming up after this. As markets move and headlines break, what matters most is context. A Bloomberg subscription gives you unmatched reporting, sharp analysis, and powerful tools that help you connect the dots. Visit Bloomberg.com slash podcast offer to learn more. Coast to coast on Bloomberg Radio.

13:52Nationwide 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. More than six weeks of war with Iran may be entering a new phase. President Trump says a full naval blockade of the Strait of Hormuz will begin later this morning after the breakdown of peace talks in Pakistan. But the president says he doesn't care if the show of force brings Tehran back to the negotiating table. If they don't come back, I'm fine. Their military is gone. Their missiles are largely depleted. That was President Trump on the tarmac in Miami last night.

14:27Joining us this morning from Dubai is Bloomberg News Middle East Managing Editor, Owner Ant. Owner, good morning. What is the risk that this blockade prolongs the war even further? Well, this blockade will certainly escalate the tensions in the region, although in a limited way, the alternative was obviously a resumption, a full resumption of the war. in its stead, US President Donald Trump decided that if the ships carrying oil from Arab states in the Persian Gulf cannot carry oil to the rest of the world, then neither should the ships from Iran. The risk here is that the naval blockade, the full naval blockade, might result in a resumption of hostilities between the U.S.

15:19and Iran in the form of attacks. We have seen Iranian officials overnight have been rejecting the planned naval blockade. And not only that, they also issued a somewhat odd statement responding to a threat that was not explicitly issued by the U.S. And they said if there is any attack on Iranian ports, either inside the Persian Gulf to the east of the Strait of Hormuz or outside in the Sea of Oman, then they would be countering those attacks with similar strikes on ports of other nations inside the Persian Gulf. And that surely would bring the war into a new, different phase. Does that imply the participation of Iranian proxy groups like the Houthis?

16:07That is another threat that was issued out of Iran. Now, to be clear there was no official announcement or statement attached to it, as is usually the case with some of these threats coming out of Iran. But we have seen overnight that press TV suggested that if the US goes ahead with this planned naval blockade outside the Strait of Hormuz, a similar situation might arise in Bab al-Mandeb. For those who may not be familiar with those names, that is the strait that is just outside the Red Sea. That's where most of the oil that couldn't reach global markets through the Strait of Hormuz since the war began is finding its way through Saudi Arabia's red coast.

16:50So yes, Iran, at least not explicitly, but still did threaten to use its proxies, such as Houthis, to bring the war, to widen the war and bring it to the Red Sea coast, which is where most of the remaining Gulf oil exports are taking off from. 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.

17:36Plus, 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.

18:06Thank you.