US-Iran Strikes Enter 10th Day, Canada Tariff Threats, More

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What is the main topic discussed in this episode?

Francine Lacqua 0:00
This week on Leaders, with me, Francine Lacqua. I speak to tennis legend Rafa Nadal about how he stayed competitive despite injury.
Rafa Nadal 0:08
I was able to enjoy the victories probably more than if I will not have this issue.
Francine Lacqua 0:13
One iconic match.
Rafa Nadal 0:15
In my mind was, I am almost dead.
Francine Lacqua 0:19
And whether he misses playing.
Rafa Nadal 0:21
I don't miss tennis because there was nothing else to offer.
Francine Lacqua 0:24
Listen and watch Leaders with me, Francine Lacroix, on Bloomberg Television or wherever you get your podcasts.
Karen Moskow 0:32
News when you want it with Bloomberg News Now.
Karen Moscow 0:35
I'm Karen Moscow. And I'm Alexis Christophorus. Here are the stories we're following today.
Karen Moskow 0:41
Alexis, we begin with the latest developments in the Middle East. The U.S. and Iran have exchanged strikes for a 10th consecutive day. The escalation comes as mediators try to revive a truce. And Bloomberg Middle East breaking news editor Dana Crach has the latest.
Unknown 0:54
Iran's interior minister is in Pakistan today, and in Pakistan, Qatar are, of course, the two intermediaries who are helping to de-escalate. And they're the ones who secured that MOU a few weeks ago. So it's still not clear what the mediators have come to and whether there is, as we've seen, reports of some 10-day ceasefire. This is very early to see, and perhaps the U.S. and Iran are not eager to immediately cease fire right now, but to do this tit-for-tat, kind of like a managed conflict. So it's not an all-out war, but it's a managed conflict, especially in Hormuz.
Karen Moskow 1:29
And Bloomberg's Dana Craig said the Iran-backed Houthis say they would impose a maritime blockade on Saudi Arabia, putting at risk the flow of millions of barrels that the kingdom exports via the Red Sea.
Karen Moscow 1:40
And Karen, oil has surged about 20% since the June 17th accord between the U.S. and Iran unraveled, and it could go even higher. Goldman Sachs says Brent could rally to more than $120 a barrel by the fourth quarter if disruptions of the Strait of Hormuz persist. Checking oil right now, Brent crude at $89.77 a barrel. That's up six-tenths of a percent. And West Texas Intermediate crude now up more than half a percent at $83.70 a barrel.
Karen Moskow 2:06
Alexis, we're also keeping an eye on global trade. The Trump administration threatening to impose new tariffs on Canada on Bloomberg's John Tucker joins us with more. John, good morning.
John Tucker 2:15
Yeah, it's a big escalation, Karen. 50% tariffs on things like milk, plywood, and some very Canadian items like hockey equipment and beer. There will be no exemptions for exporters shipping under the rules of the existing North American trade pact. Now, the Trump administration says this is the result of Canada's unfair treatment of certain U.S. goods. They're set to take effect in 30 days. And this further strains relations between America and the second largest trading partner with the U.S. Last week, President Trump threatened higher tariffs to punish Canada for the wildfire smoke.

What triggered the 10th day of US-Iran strikes and how are mediators responding?

John Tucker 2:50
The tariffs being applied under Section 338 of the 1930 Tariff Act, the provision has never been used before. I'm John Tucker, Bloomberg Radio.
Karen Moscow 2:59
All right, thanks, John. U.S.-U.K. relations are also in the spotlight this morning. President Trump has reached out to new U.K. Prime Minister Andy Burnham. Let's go to London now and get the very latest with Bloomberg's Ewan Potts.
Ewan Potts 3:11
Andy Burnham began his first full day in No. 10 Downing Street with an announcement on the cost of living, a tax cut on energy bills. We're still awaiting details of any changes to foreign policy, but the new UK PM has already spoken to the leader of the country's most important ally. We're told that Burnham reassured President Trump that defence and security is at the top of his agenda. The US President also bagged himself an invitation for another visit to the UK, this time for the G20 summit set to be held in Manchester, where Burnham was mayor.

How are Iran, Pakistan, and Qatar involved in de-escalation talks?

Ewan Potts 3:42
In London, I'm Ewan Potts, Bloomberg Radio.
Karen Moskow 3:44
Ewan, thanks. Back here in the U.S., Arizona Republicans are heading to the polls today to choose a nominee to challenge Democratic Governor Katie Hobbs in November. And Bloomberg's Amy Morris has more from Washington.

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