US, Iran Halt War; Global Stocks Surge on Deal

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2:02After weeks of negotiations, threats, and counter-threats, the U.S. and Iran now say they have reached an interim deal to put more than three months of war on hold. U.S. Ambassador to the United Nations Mike Waltz says the deal will not provide immediate sanctions relief to Iran. This is going to be, in terms of any unfrozen assets or sanctions relief, relief what's called pay for performance. There will not be upfront cash, so to speak, that we saw in the Obama deal and the JCPOA with literally pallets of cash because the Iranian banking system was dysfunctional being flown in. UN Ambassador Mike Waltz appeared on ABC's This Week, heard Sundays on Bloomberg Radio.

2:45Bloomberg Middle East correspondent Abir Abou Omar reports the details of the agreement still have not been released. What we know so far is that the deal Right now will ensue the reopening, the immediate reopening of the Strait of Hormuz, where tankers can go back to their movement. Now there are some caveats there. And the other thing is that 60 days of an extended ceasefire will ensue afterwards, where both sides will take part in technical negotiations about mainly the state of Iran's nuclear program. Bloomberg Zabir Abu Omar reports President Trump pushed for the deal by his 80th birthday yesterday.

3:21Both sides now plan to sign it this Friday in Switzerland. Iran says it will release the text of the agreement then. And even as he celebrated the deal, President Trump told the New York Times he could restart military attacks if Iran does not reach an agreement on its nuclear program. Well, Nathan, one factor that could complicate the deal is Israel. Prime Minister Benjamin Netanyahu's government launched new attacks on Lebanon yesterday, hours before the agreement was announced. This morning, Israel's defense minister, Israel Katz, says Israeli forces will remain in security zones in Lebanon, Syria, and Gaza for as long as necessary.

3:57Well, National Security Minister Edmar Ben-Gavir posted on X that Israel is not bound by the U.S.-Iran deal. And Finance Minister Benzel El-Smotrich added his own X post, saying the deal is, quote, bad for Israel and for the entire free world. Well, right now, Karen, we are seeing positive reaction in equity markets to the U.S.-Iran agreement. In Europe, the stock's 50 is up 1.3 percent. U.S. futures are in rally mode as well, led by NASDAQ futures up 2.1 percent. S &P futures are 1.3 percent higher. And Dow futures have a 1 percent gain. And as expected, Nathan, oil is dropping on the latest developments right now.

4:36NYMEX crude oil is down 5.6 percent at$80.16 a barrel. Brent is down more than 5 % at$82.85. However, analysts are warning it could take months to fully restore oil and gas flows in the Strait of Hormuz. They say a deal will ease the risk to supply and continued upward pressure on prices, but rebuilding confidence among ship owners, insurers, and refiners will take longer. Now President Trump, Karen, is on his way to the G7 meeting in France, and he's reportedly threatening France with 100 % wine tariffs. The president told the New York Post he'd have no choice if France doesn't drop its digital tax on U.S.

5:16tech companies. Bloomberg's Ben Sills says this puts French President Emmanuel Macron in a difficult position. Having Trump come out attacking the French tech taxes at this point is going to be a real bump in the road for Macron. He is due to have a bilat with Trump at five o 'clock this afternoon our time shortly after Trump arrives in Evian. So we'll get a sense of how much trouble that's going to cause pretty quickly, I think. Bloomberg's Ben Sills notes Macron's invited a group of technology executives, including OpenAI's Sam Altman, to a lunch on the summit's final day. Nathan, there's a crackdown on social media in Europe.

5:56Britain is banning people under 16 from using a range of social media apps. And we go to London and get the latest with Bloomberg's James Wilcock. James, good morning. Good morning, Karen and Nathan. I'm not prepared to compromise on children's happiness or safety. Those are the words of Prime Minister Keir Starmer as he announces new rules due to come into force next year that will stop under 16s from accessing social media and a number of other gaming platforms. It marks the start of a crunch week for the Prime Minister. He heads to a potentially embarrassing G7 summit after his defence had quit last week.

6:31And his leadership rival, Andy Burnham, could enter Parliament later this week if he wins a vote in Northwest England. In London, James Wilcock, Bloomberg Radio. James, thanks. Back here in the U.S., the countdown is underway for the parade for the NBA champion New York Knicks and the celebration's expected to draw millions. Bloomberg's Alexis Christophoris is in New York with the very latest. Alexis. Well, Nathan, city officials say it could be the largest turnout for a parade in Big Apple history. Millions of Knick fans are expected to line the parade route Thursday morning to cheer on their beloved championship team in the once-in-a-lifetime experience.

7:11The Tigger Tape Parade is going to kick off at 10 a.m. Wall Street time and run from Battery Park North one mile up the Canyon of Heroes to City Hall, where Mayor Mamdani will host a celebration fit for champions. It is a chance for this entire city to celebrate this team that has given us so much. We're going to have a ceremony at City Hall. We're going to be presenting our administration's first keys to the city, to the team. It will be the first Knicks ticker tape parade in franchise history. During the team's 1970 and 73 championship wins, then-Mayor John Lindsay suspended the city's sports parade tradition.

7:45If you plan on attending, city officials recommend showing up hours before that 10 a.m. start time. No word on whether the celebration at City Hall will require tickets or how they'll be distributed. From New York Knicks Nation, Alexis Christophoris, Bloomberg Radio. All right, Alexis, thank you. Let's turn to the economy now, where new Fed Chairman Kevin Warsh will host his first policy meeting this week. Warsh is facing a difficult test as inflation roars back at the fastest pace in three years. Ira Jersey is Chief U.S. Interest Strategist for Bloomberg Intelligence. I do think that he's in a little bit of a no-win situation because it's going to be very difficult for the Federal Reserve to produce interest rates, which, of course, President Trump has said that he wants Kevin Walsh to do and what he said he thinks Kevin Walsh will do.

8:30But Kevin Walsh can't do it because he's only one member of the committee. And that's Bloomberg Intelligence Chief U.S. Interest Rate Strategist Ira Jersey, who says there's little hanging on the outcome of this week's meeting. The bank is widely expected to hold its benchmark rate unchanged. Well, SpaceX shares are anything but on hold, Karen. and they are jumping in the pre-market following its debut Friday that vaulted the company into the ranks of the world's most valuable public firms. Right now, SpaceX stock is up more than 5%. Today, we'll actually mark the first full trading session for SpaceX.

9:05It gained 19 % on Friday.

9:10Time 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. And good morning, Karen. The more than 50-year curse broke in with the next winning the NBA championship Saturday night, but not all celebrating handled it well. There was violence. Five school buses being used for the World Cup were destroyed, including one set on fire. Police say four people were either stabbed or slashed. A 17-year-old shot on the foot near Times Square. Senator Mitch McConnell, the longest-serving Senate Republican leader, was admitted to a hospital yesterday morning.

9:45Spokesman didn't give any details about McConnell's condition except to say he's receiving excellent care. And a UFC fight at the White House last night drew 4 ,000 people to the South Lawn. President Trump and the First Lady celebrating his 80th birthday. They sat ringside. I got to thank President Trump for making this happen. A federal lawsuit tried to stop the event from happening, calling it deeply corrupt. Vice President J.D. Vance says he hasn't decided whether he's going to seek the Republican presidential nomination in 2028, but tells CBS News he expects President Trump to get behind him.

10:21I have no doubt that the president of the United States is going to be very supportive of anything that I ultimately decide to do, but we really just haven't talked about what that thing will be. Vice President Vance on CBS Sunday morning. Global news 24 hours a day, whenever you want it with Bloomberg News Now. I'm John Tucker. This is Bloomberg Karen. Thanks, John. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. 24 hours after the Knicks completed the playoff run of 16 wins, only three losses in the NBA. The Carolina Hurricanes did the exact same thing.

10:57They won 3-0 at Vegas. They won the Stanley Cup for the second time. The previous one was 20 years ago. Jordan Stahl, who scored in each of the first five games, won the Consumite as playoff MVP. The World Cup, Germany 7-1 over Curacao. Now in Sweden, a five to one route of Tunisia, Ivory Coast upset Ecuador, Japan and the Netherlands finishing the tie. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. 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.

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13:32See how your business can get stronger and go farther with Chase for Business. 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. 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. President Donald Trump has an interim deal with Iran at his back as he heads to the G7 Leaders Summit in France today.

14:15Implementation could be a key focus for G7 allies. Kaya Callas is head of foreign policy for the European Union. We have expertise when it comes to the nuclear negotiations, for example. We can also provide other help. And to you, Foreign Policy Chief Kayakala speaking with reporters in Luxembourg and joining us now from the G7 in Evian, France, is Bloomberg Chief Europe Correspondent Oliver Crook. So Oliver, what role could the G7 play now as we do have this interim deal at least announced by the U.S. and Iran? Good morning. Good morning. Yeah, Yeah, exactly. So this is going to be the main focus for the G7.

14:51It was going to be the main focus regardless of sort of what happened with the war in Iran. But now that there is a beginning of a sort of architecture coming into form to basically end this war, everybody here hopes that will be the main focus for leaders here. So there's a big question of how the G7 can sort of contribute to this, particularly the Europeans. You heard it from the host of these proceedings, the president of France, Emmanuel Macron, who's really said it from the very beginning of the war, that the Europeans would have a sort of military role in the day after, and sort of after a ceasefire.

15:19So the question is, how do you flesh that out? How are the Europeans going to be involved? We know that it could involve a sort of de-mining mission that the French and the U.K. have said that they would sort of put forward. But you should also remember that the Europeans are involved in the sanctions regime against Iran. And we heard from the E3, these are the leaders of Germany, U.K., France and Italy, saying that actually they'll be open to putting down some of their own sanctions in accordance with this deal if Iran sort of reaches certain milestones. So all of this sort of nitty-gritty will be established and discussed here at the G7 leaders.

15:49And we should say, though, there are leaders also from other countries that are absolutely crucial to the architecture of this deal. You have the leaders of Qatar, the UAE, Egypt. They will all be here. And again, I should just sort of stress that the president of the United States is going to be out of country. He's going to be in France for three days. That's a really rare opportunity to have that much time with the president of the United States with a very busy agenda of many things that these European leaders want to get from the president of the United States. As we've been speaking, Ali, the FARS semi-official news service in Iran is reporting that this deal is going to stipulate that Iran is going to allow passage through the Strait of Hormuz for only 60 days, presumably during the nuclear negotiations.

16:25Could that complicate things further for the G7 as they're thinking about that day after? Yeah, I mean, absolutely. I think that, again, everyone here will sigh sort of a great relief that there is a deal. The next thing they're going to do is find out what this actual deal is, what is actually in it. I think that that is I think what the entire world is grappling with. And I think that for the leaders here from the United States, but of course from the Europeans and some of the other nations, is to basically make sure that this does not ever return back to a kinetic war, that we don't ever get the closure yet again of the Strait of Hormuz.

16:56So they were going to think put everything on the table to try to get that forward with the president of the United States in those negotiations. But again, trying to get the president on side, not just on the question of the Gulf. And if he's satisfied with what the Europeans are offering, can they get him on side on some of the other issues, we should say, you know, namely for the Europeans here and someone who's going to be here in the next couple of days is the president of Ukraine, Volodymyr Zelensky, who spoke with the president yesterday. We should say the president of the United States also spoke with Vladimir Putin yesterday.

17:22And I wanted to get to that in our last minute here, Ollie, because what's the challenge to put the Russia-Ukraine issue back in front of the table for President Trump as we're still trying to figure out what the final details of this interim agreement with Iran are going to be? Yeah, absolutely. I think that the way that the Ukrainians and the Europeans are going to see the Trump visit here. And the opportunity that is presented here is the big question is, what is the next chapter of American engagement on the question of Ukraine and Russia, right? They've basically checked out entirely of that process.

17:52It became too complicated. They had their hands full with a number of different issues. And they basically walked away from it saying, you know, Europe, you take this over. If the president of the United States feels a little bit emboldened, he feels that he's got a win at his back, you know, he just spoke with Putin, potentially, you know, he comes back to the table in some way or another. So I think the Europeans, and particularly for Zelensky, is to really establish what the next chapter of American involvement is going to be, obviously in the question of diplomacy, the question of attention, but of course, the question of military hardware, a lot of which has been diverted away from Europe, away from Ukraine, and in the Middle East in order to deal with that war.

18:25This 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. It's the latest news whenever you want it, in five minutes or less.

19:05Search 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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