Iran Seeks Hormuz Compensation, European Heat Kills Thousands, More

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How are tensions in the Strait of Hormuz affecting European natural‑gas and oil prices?

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Caroline Hepker 0:35
European natural gas prices are jumping as renewed tensions around the Strait of Hormuz add to concerns over winter supplies. Benchmark futures surged by over 10% across two sessions, with prices now around double their January levels. Brenck crude also rose above eighty-three dollars a barrel after gaining almost four percent in the previous session. The moves followed reports that Iran's Chirac hostile targets at the entrance to the strait and is seeking to bar US and Israeli ships from the waterway. Richard Haas is President Emeritus of the Council on Foreign Relations and says Iran is in a strong position.
Richard Haass 1:13
And if the goal is to get the Strait of Hormuz open, which it should be, the idea that Iran would have a larger role now and I think's inevitable. Wars have consequences. We'll have to let them sell some oil as long as most of the other sanctions stay in place. I think that's probably as good as we can expect at this point.
Caroline Hepker 1:31
So that was Richard Haas speaking on Bloomberg's balance of power. The war has already cut off about a fifth of global LNG, making it harder for Europe to replenish inventories that recently hit their lowest seasonal levels since two thousand and nine.
Stephen Carroll 1:46
Extreme heat has killed more than twenty five thousand people across Europe this year, according to data compiled by Bloomberg. Germany recorded the highest toll with an estimated eleven thousand nine hundred excess deaths linked to heat since April. In the UK, Health Secretary Yvette Cooper says thousands of excess deaths occurred in May and June.
Unknown 2:05
The NHS now has to work to prepare for summer pressures in the way that we have long had to do for winter pressures. That means uh trusts having to have plans in place to deal with higher levels of demand, people coming through the door, maybe because of the heat wave.
Stephen Carroll 2:23
Evett Cooper was speaking as heat waves across Europe have shattered records and dented economic output. The heat is set to build again next week, with temperatures forecast to reach thirty four degrees in London and thirty eight degrees in Paris.
Caroline Hepker 2:37
The US is said to have blindsided the European Central Bank by selling euros as part of last week's intervention to prop up the yen. The Financial Times reports ECB officials in Frankfurt were only informed after the trade, with some senior figures viewing the move as an unprecedented breach of long-standing conventions. The Yen has since surrendered nearly half of its intervention-driven gains. Leaders have no consensus on where the currency goes from here.
Unknown 3:07
The fact that Dolly Ann is back above 158, it just says a lot to the fundamentals. You can say it shouldn't be there. The market's going, but it is. And it is there because we think it should be there. So I think whatever tools they use, and rhetoric obviously is not enough, we're questioning whether intervention's even enough. The reality is that the market is so big and deep, you are fighting this wave of basically sentiment saying, well, we do think it's gonna be higher, but we're very wary that you're
Caroline Hepker 3:34
Finity points to US jobs data later today as the next big test for the currency pair. The renewed slide raises the prospect of further intervention, with both US and Japanese officials warning this week that they are prepared to act again if needed.
Stephen Carroll 3:49
The UK government has declined to rule out increasing bank taxes in its upcoming budget. Bumper profits among lenders are sparking speculation that the new administration will target the financial industry.

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