US Strikes on Iran Continue, Oil Prices Respond, More

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Bloomberg News Now 7 min 8 speakers 3 chapters transcribed 2 months ago
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What is the main topic discussed in this episode?

Barry Ritholtz 0:00
Hi, I'm Barry Ritholtz inviting you to join me for the Masters in Business podcast. Every week we bring you conversations with the people who shape markets, investing and business. I speak with CEOs, Nobel laureates, market innovators and legendary investors. Whether you own stocks, bonds, real estate, commodities, even crypto, these are discussions you absolutely need to hear. Subscribe to the Masters in Business podcast on Apple, Spotify or anywhere you listen.
Doug Krisner 0:30
News when you want it with Bloomberg News Now. I'm Doug Krisner.

What are the latest U.S. military actions against Iran and how were lawmakers notified?

Doug Krisner 0:34
At this hour, the U.S. is conducting military strikes against Iran after President Trump threatened to do so earlier in the day. And according to Politico, the president formally notified lawmakers over the weekend that the U.S. is once again at war with Iran. Now, this gives his administration another 60-day window to use the military in the region without congressional approval. And at the same time today, Trump said the U.S. would reinstate its blockade of Iranian ships through the Strait of Hormuz. And he demanded a 20 percent fee on all other cargo through the waterway as reimbursement. Here is Bloomberg's Tyler Kendall.
Tyler Kendall 1:14
I was just catching up with our analysts at Bloomberg Economics that say that as far as they can tell, the president's post is inconsistent with international law. This also would be a very high fee, if you will, higher than what Iran is currently trying to charge when it comes to transiting through the Strait of Hormuz. What is very evident here, though, is that the White House's patience has run incredibly thin as we saw CENTCOM over the weekend demand that Iran issue a statement saying that the Strait of Hormuz is open.
Doug Krisner 1:42
That is Bloomberg's Tyler Kendall. At the same time today, U.S. Central Command said its forces will enforce the blockade of Iranian ports beginning on Tuesday afternoon at 4 p.m. Eastern time. Crude oil prices rallied in response to this news as the market priced in a likely slowdown in tanker traffic through Hormuz. In New York trading, WTI climbed 9.4 percent to 78.14. But even with higher oil prices, the CEO of Delta Airlines, Ed Bastian, says the carrier's business is not being deterred.
Ed Bastian 2:17
Our international travel season is looking very, very healthy. Businesses, international, as I just said, American Express, our loyalty programs, our cargo business, we have so many different lines of business, including here in the U.S., our domestic travel. It's all doing very, very well, and I don't see fuel prices deterring that.
Doug Krisner 2:36
That was Delta CEO Ed Bastian, and you can watch the entire conversation on the Bloomberg Podcast YouTube channel. Fed Governor Chris Waller says policymakers may need to raise interest rates in the near term if underlying inflation continues to signal broad price pressure.
Christopher Waller 2:53
If we get another hot reading on core inflation this week, then the FOMC will need to consider tightening monetary policy in the near term.

How would reinstating a Strait of Hormuz blockade and a 20% fee affect international law and shipping?

Christopher Waller 3:02
As always, we need to avoid making the mistake of fighting the last war and reacting too soon to tighten inflation.
Doug Krisner 3:11
Waller also emphasized the need to avoid repeating mistakes from the inflation shock in 2021 and 2022 when the Fed was criticized for taking too long to raise interest rates. Now, money markets already show a near 50% probability of a quarter point rate hike at the Fed's July meeting. South Carolina Governor Henry McMaster has selected Darlene Graham Nordone to serve the remainder of the late Senator Lindsey Graham's term. Nordone is Graham's younger sister, and she'll serve until his term ends in January. Now, South Carolina will hold a special primary to replace Graham as the GOP Senate candidate. Although she has been seen as a placeholder due to her political inexperience, Nordone has been endorsed by both President Trump
Doug Krisner 3:58
and South Carolina's other senator, Republican Tim Scott. A U.S. immigration officer shot and killed a person in Biddeford, Maine. The Department of Homeland Security says the person who was killed, a 26-year-old Colombian man, tried to run agents over with a car.

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