US Reinstates Blockade of Hormuz; Graham's Sister Appointed to Senate

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1:59The U.S. Central Command says it's completed the latest wave of strikes on military targets across Iran in a five-hour mission. President Trump spoke to reporters at the White House yesterday. Well, I think it's going very fast. We've demolished their military. We're hitting them very hard. We had a deal yesterday or the day before yesterday was all done. And then they broke up that deal immediately because they found out there was something in a deal they didn't like. And they're wired differently and we're not going to put up with it. President Trump at the White House, Iran's semi-official Tasnim News Agency reports Islamic Revolutionary Guard Corps targeted radar systems of the U.S.

2:34Navy's fifth fleet in Bahrain with missiles and drones. Well, Nathan, President Trump is reinstating the U.S. blockade of Iranian ships transiting the Strait of Hormuz. He is also demanding a 20 percent reimbursement for all other cargoes shipped through the waterway. We get more from Bloomberg News Director Will Kennedy. It is an important turn of events. Clearly, a 20 % levy on the cost of cargoes leaving the Strait of Hormuz would be a very serious change in the expense involved in shipping oil out of Hormuz. You're talking about$15 a barrel. It's a lot, and it's a lot more than Iran was proposing when it was saying that it wanted to charge people.

3:12So it really is a dramatic twist. And I think whether or not this ever comes to pass, we will see. But the important thing for global markets is we're in a very different situation with Hormuz than we were a few days ago and not in a good way. And Bloomberg's Will Kennedy says U.S. military forces will resume blockading traffic to and from Iranian ports and coastal areas beginning today at 4 p.m. New York time. And this morning, the United Arab Emirates says two of its oil tankers were hit by Iran while crossing the Strait of Hormuz. It all has oil on the rise once again. Checking NYMEX crude oil again is at$81.20 a barrel, up almost 4%.

3:51Brent is up almost 5 % at$87.36. Now to domestic politics, Karen. South Carolina Governor Henry McMaster has made his choice to fill out the rest of the late Senator Lindsey Graham's term. It's Graham's sister, Darlene Graham-Nordone. I want to thank the governor for selecting me to serve the remainder of Lindsey's term. It is such an honor. Lindsay has always been there for me and now I will be there for him. Darlene Graham-Nordone spoke at a brief event in Columbia, South Carolina. Senate Majority Leader John Thune says she will be sworn in this afternoon in Washington. Governor McMaster says the special election to replace Graham on the November ballot will be held in four weeks on August 11th.

4:34And Nathan, the White House says President Trump will support one of Senator Graham's last major legislative efforts before he died, a new sanctions bill on Russia. Graham first proposed what he called bone-crushing sanctions in April of last year. That bill would have imposed so-called secondary tariffs as high as 500 percent on countries that bought Russian oil or natural gas. It's unclear whether this bill would go that far, but Senate Leader Thune says passing it would be a great tribute and legacy for Lindsey Graham. Well, now, Karen, we want to update you on a developing story in Maine where a U.S.

5:06immigration officer shot and killed a person yesterday morning in Biddefer. That's a small town just outside Portland. The Department of Homeland Security says it was conducting surveillance on a residence where someone had received a deportation order. The agency says a suspected unauthorized person tried to flee in a car and an ICE agent opened fire fearing for public safety. Earlier, an official said that officer fired after the person tried to run them over but didn't give more details. Maine Senator Angus King says he still has a lot of questions. And the question is, what did he do with his vehicle?

5:39Were officers threatened? Were the threats rising to the level that justified deadly force? Senator King says Homeland Security Secretary Mark Wayne Mullen has told him the person who was killed was not the intended target of the operation. This is the second deadly shooting involving federal agents in less than a week. In other news this morning, Nathan, a dozen states have sued Paramount Skydance seeking to block its$110 billion bid by Warner Brothers Discovery. The antitrust lawsuit alleges the deal would harm competition for film distribution and the licensing of cable TV channels. They got reaction from FCC Chairman Brendan Carr.

6:14It's hard to see a real legitimate antitrust action, but of course, you know, I leave it to the antitrust experts to weigh in on this. I did think it was interesting that there was a statement, at least attributed to the California attorney general, that said that they would not sue if Paramount agreed to spin off CNN. It's hard to conceive of a competition or antitrust theory that takes you all the way up to the point where owning or not owning CNN as part of that broader group is a legitimate line that antitrust or competition law would draw. And FCC Chairman Brendan Carr speaking with Ann Ludlow on Bloomberg Tech.

6:48Catch the full conversation on our video hub on the Bloomberg Business app. In a statement, Paramount said the lawsuit was wrong on the facts and the law, and it would vigorously defend the transaction in court. Well, Karen, the volatile trading in SK Hynix continues. The South Korean memory giant erased an early plunge to climb 5 % in Seoul. At one point, SK Hynix tumbled 9%, a move that would have pushed its two-day loss beyond 20 % before staging that dramatic rebound. And this morning, shares of SK Hynix traded in the U.S. are up 6.5%. And Nathan, like SK Hynix, Samsung Electronics is in the early stages of exploring a potential offering of American depository receipts.

7:28Bloomberg News has learned the company has held preliminary discussions with banks but has not yet made a decision about whether to proceed. Sources say Samsung will monitor the volatile memory chip stocks as part of the decision-making. Samsung shares have gained about 120 % this year to raise the company's market value to over$1 trillion.

7:50Time 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. Get ready for the start of another heat wave in the Northeast. Bloomberg meteorologist Craig Allen has more. Alerts for the heat are in place once again for many cities here in the Northeast. you will be experiencing searing heat from Washington to New York City and on up to Boston. The thermometer will be up around the 90s to around 100 once again, and the heat wave could begin as early as today from Hartford to Boston, Poughkeepsie down to New York City, Philadelphia, as well as Baltimore and D.C.

8:28There is a little difference, though, that may help out just a bit as compared to two weeks ago. I don't think the humidity will be quite as oppressive, but the heat index will still top 100 in many locales. Remember the heat alert rules and stay hydrated. Bloomberg meteorologist Craig Allen. In New York City, at least 60 people now have contracted Legionnaire's disease on Manhattan's Upper East Side. New York Mayor Zoran Mamdani. If you live, work, or have visited the area since late June and are experiencing flu-like symptoms, whether they be cough, fever, difficulty breathing, then we encourage New Yorkers to contact a health care provider The source of the disease usually exists on rooftop cooling towers of large buildings.

9:13They are filled with water and are part of the system used to cool the buildings. During a virtual town hall last night, health officials said more than 30 cooling towers that tested positive for Legionella bacteria have now been cleaned. A judge ruled that President Trump's lawsuit against the IRS was a bad faith attempt to manipulate the judicial process. U.S. District Judge Kathleen Williams called into question whether the president, his family members, or business interests will be able to benefit from the controversial settlement, which purports to immunize them from audits or other federal probes related to past filings.

9:48Global 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. They'll play the baseball all-star game tonight in Philadelphia. Last night it was the home run derby and the Phillies fans were pulling for their own. Kyle Schwarber was in the finals against the Cardinals' Jordan Walker and Walker pulled out the victory by homering in each of his last six swings. The World Cup semifinals begin this afternoon in Dallas. It's France against Spain.

10:22France so far in the World Cup is 6-0 by a combined 16-2 and Spain has won its games by 11-1. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Support for the show comes from Public.com. If you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge. On Public, you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English. Like, if the VIX hits 25, buy a put option on the S &P 500.

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12:49Coast 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. Crude oil back on the rise along with tensions in the Middle East after the U.S. military carried out a five-hour assault on Iranian targets, and President Trump announced a renewed blockade on Iranian shipping through the Strait of Hormuz, as well as demands for repayment to protect shipping through the strait. I want to be reimbursed because we're protecting a very rich portion of the world. We're spending money.

13:23And so what we've done is we are going to be reimbursed for protection. We're protecting by the countries that we're helping. That was President Trump in the Oval Office. Joining us this morning from Dubai is Bloomberg Middle East breaking news editor Dana Kresh. So Dana, are we back to square one following these latest strikes. Good morning. Good morning. I would say yes, right. The US reimposed this blockade on Iranian ports, and we are back to where we were before the MOU was signed. But of course, not before April 8, which was when they agreed to the ceasefire. And this is becoming clear, right?

14:00This is the battle over hormones now, and it's hard to see who would win this. It's unlikely Iran would abandon what has become its newfound leverage in the region wider. And now we're seeing the U.S. trying to undermine what Iran has asserted, which is its own control. And ships that are going through the Omani route, which is the southern routes, are being attacked like we saw with the UAE oil tankers that were hit by Iranian missiles, two oil tankers that were confirmed to being hit earlier today. So we are not back to how it was during the war when there's like a heavy exchange of fire and the Gulf countries were dragged into this.

14:44We're still seeing like a tit for tat skirmishes. But the only positive sign that we're trying to look for here is whether Iran and the US would sit again for these technical talks that a US official last week said they would still be on, but we haven't seen any resumption of these talks. Well, what are the chances, Dana, of those technical talks resuming when President Trump, as we just heard, is demanding reimbursement 20 percent for cargo shipping? And how would that even work? We only have about a minute left. Yeah, I think what President Trump is suggesting is hard to materialize right now.

15:20What I mean, how would the Gulf countries react to this right there seeking 20 percent fee on all cargo ship? But it is unlikely to be realized, like we said, just a move would add to global energy and commodity costs, of course, alienate key regional allies, like we talked about the Gulf countries, and face logistical and legal hurdles here, especially when it comes to international law governing international shipping and waterways. So it's hard to see this materializing, but this is also him trying to counter at what the Iranians have said. And we were also seeing that Iran is coming back and said, you know, our fare would be cheaper.

15:55But who is caught in the middle here is the Gulf countries, is the Saudis, the Emiratis, the Bahrainis and everybody else of who would end up or have to pay these fares, be it from the U.S. or from Iran. 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.

16:39Plus, 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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