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Speaker 1: News when you want it with Bloomberg News Now, I'm

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Speaker 1: Caroline Hepcare.

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Speaker 2: And I'm Stephen Carroll.

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Speaker 1: Iran is continuing to target Israel and Gulf States as

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Speaker 1: the US and Israeli force its bomb sites inside the

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Speaker 1: Islamic Republic. The US sankann Iranian warship in international waters yesterday.

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Speaker 1: Is the first time since World War II that an

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Speaker 1: American submarine has attacked a vessel on the surface. Iran's

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Speaker 1: foreign minister has called it an atrocity that the US

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Speaker 1: will come to bitterly regret. In his words, US President

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Speaker 1: Donald Trump says that he is pleased with how the

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Speaker 1: military campaign is proceeding.

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Speaker 3: We're doing very well on the warfront. To put it mildly,

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Speaker 3: I would say so many said on a scale of ten,

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Speaker 3: where would you're ready? I said about a fifteen. And

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Speaker 3: we're going to continue to do what We have the

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Speaker 3: greatest military in the world by far, and that was

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Speaker 3: a tremendous threat test for many years forty seven years,

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Speaker 3: have been killing our people and killing people from all

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Speaker 3: over the world. And I think we have great support.

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Speaker 1: MP's bullish assessment came as the Republican controlled US Senate

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Speaker 1: rejected a democratic attempt to halt the strikes. Tehran, meanwhile,

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Speaker 1: has dismissed a report that its Ministry of Intelligence had

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Speaker 1: contacted Washington to negotiate an end to the conflict. More

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Speaker 1: than one hundred people have been killed in Iran so far,

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Speaker 1: with dozens more deaths reported elsewhere in the region.

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Speaker 2: Six days into the conflict, Satellite imagery and open source

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Speaker 2: data shows the extent of destruction caused by the US

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Speaker 2: Israeli strikes. Meanwhile, Iran's nuclear facilities have largely avoided attacks

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Speaker 2: so far. Military and civilian sites, including hospitals, police stations,

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Speaker 2: and a court, have all been hit, though the devastation

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Speaker 2: is clear. President Trump and his team have offered differing

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Speaker 2: objectives for the campaign. Trump has called on Iranians to

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Speaker 2: rise up against the regime, while also saying that he's

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Speaker 2: open to an option similar to Venezuela. On Wednesday, White

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Speaker 2: House Press Secretary Caroline Levitt said the administration has four

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Speaker 2: aims for the war.

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Speaker 4: The stated military objectives of Operation Epic Fury are as follows.

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Speaker 4: Eliminate Iran's ballistic missile threat, destroy their naval capability, disrupt

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Speaker 4: missile and john production infrastructure, sever their pathway and end

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Speaker 4: their pathway to nuclear weapons.

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Speaker 2: When Levitt was pressed during the news briefing to state

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Speaker 2: explicitly if regime change is one of the aims, she

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Speaker 2: declined to do so. Israel's goals appear clearer. According to

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Speaker 2: two senior European officials who spoke on condition of anonymity,

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Speaker 2: israelis seeking the complete destruction of the Iranian regime and state.

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Speaker 1: Former US Secutive State Anthony Blincoln says that real change

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Speaker 1: in Iran will require a sustained military focus that could

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Speaker 1: wear down US weapons stockpas and leave it vulnerable to

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Speaker 1: attacks from other adversaries. Concerns it growing that both sides

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Speaker 1: are headed for a war of attrition, with Iran analysts

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Speaker 1: telling Bloomberg that the regime thinks it can outlast America's

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Speaker 1: munitions and patients. Blincoln, who was the top diplomat in

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Speaker 1: Joe Biden's administration, is questioning whether the White House is

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Speaker 1: ready for the consequences of a drawn out war.

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Speaker 5: What I'm worried about. One of the things I'm worried about,

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Speaker 5: and this gets to the second and third order consequences,

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Speaker 5: is we so deplete our arsenal and it takes a

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Speaker 5: long time to rebuild it that that puts US in

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Speaker 5: a disadvantageous position when it comes to say a China

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Speaker 5: or a Russia. All of those things need to be

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Speaker 5: factored in. And again it's one of the reasons why

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Speaker 5: if you're going to undertake something like this, you've got

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Speaker 5: to make sure that you've you've factored all of that in.

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Speaker 1: Blinket added that the US will be constrained by markets

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Speaker 1: and munitions. You can listen to the full interview on

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Speaker 1: the Big Take podcast. Meanwhile, defense Ferns, Lockheed Martin, and

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Speaker 1: RTX have been called to a meeting at the White

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Speaker 1: House tomorrow as the PENTA can push its company says

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Speaker 1: speed up weapons production.

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Speaker 2: Bran crude oil climb to eighty four dollars a barrel

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Speaker 2: as traders continue to price in a longer conflict in

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Speaker 2: the Middle East. Global energy markets have been rocked by

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Speaker 2: the war, which is in its sixth day with no

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Speaker 2: immediate prospective or resolution in sight. Trump ally and Fed

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Speaker 2: Governor Stephen Myron argues this will not feed into inflation even.

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Speaker 6: If oil stays at these types of levels. To me,

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Speaker 6: it's difficult to get a lot of read through as

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Speaker 6: a result of that sure, oil will feed into headline inflation,

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Speaker 6: but the evidence that it feeds into core inflation in

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Speaker 6: any sort of material way unless there's a huge move

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Speaker 6: in oil prices, I think, is quite limited. So it's

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Speaker 6: difficult for me to get very excited about a policy

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Speaker 6: implication of what's happened thus far.

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Speaker 2: Myron's comments commas crude prices have climbed nearly fifteen percent

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Speaker 2: so far this week. Speaking on Iranian television this morning,

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Speaker 2: a military official claims that it hasn't closed the Strait

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Speaker 2: of Hormuz, but traffic through the key shipping rate has

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Speaker 2: slowed to clee shipping route has slowed to a trickle.

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Speaker 2: In the latest sign of global disruption to supply, China's

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Speaker 2: government has told the country's largest oil refiners to suspend

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Speaker 2: exports of diesel and gasoline. China receives close to half

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Speaker 2: its oil supply from the Gulf and has some of

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Speaker 2: the world's largest oil refinery companies, although the vast majority

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Speaker 2: of its oil goes to domestic uses.

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Speaker 7: Well.

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Speaker 1: When it comes to the number of flights canceled to

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Speaker 1: the Middle East, that number has now surpassed twenty three

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Speaker 1: thousand since the start of the war thousands of passengers

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Speaker 1: have been stranded in the Gulf region, with over half

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Speaker 1: of all scheduled flights to and from the Middle East canceled.

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Speaker 1: The UAE says that it is now working to establish

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Speaker 1: safe air corridors to allow for as many as forty

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Speaker 1: eight flights per hour. His our Aviation and Transport report

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Speaker 1: at Danny Lee.

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Speaker 8: Priority has really been given to people to get out

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Speaker 8: of the region, and we have seen over recent days

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Speaker 8: the likes of Emerson and Etty had airlines starting resuming

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Speaker 8: some flights to get people out, but clearly for now

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Speaker 8: as a pretty broad disruption.

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Speaker 1: Overall, Bloomberg's Danny Lee speaking there as some airlines in

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Speaker 1: the Gulf continue to operate limited repatriation flights. So The

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Speaker 1: US State Department has said that seventeen five hundred Americans

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Speaker 1: have saved fully fled the region and has urged others

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Speaker 1: to register var its website. Sky News reports a planned

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Speaker 1: repatriation flight for UK citizens from Muscat in Oman has

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Speaker 1: been delays.

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Speaker 2: China has set its lowest growth target since nineteen ninety one,

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Speaker 2: as policymakers finally appear to acknowledge the difficulties facing the economy,

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Speaker 2: including deflation taraf risks and the property sector. The target

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Speaker 2: of four and a half to five percent growth set

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Speaker 2: at the National People's Congress as the first formal downgrade

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Speaker 2: since twenty twenty three. Former People's Bank of China advisor

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Speaker 2: David dau Queli says the decision is logical.

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Speaker 9: Pop decision makers realize that we are in a very

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Speaker 9: turbulent at times, and it is most important for the

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Speaker 9: Chinese economy to stay put, to stay stable, okay, rather

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Speaker 9: than to pursue a rapid, very rapid rebalance.

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Speaker 2: Former PBOC advisor David dau Quaili speaking to Bloomberg earlier

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Speaker 2: this morning. While Chinese officials have met their growth targets

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Speaker 2: for the past three years, it's going to be a

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Speaker 2: lot more difficult this time. China also set a fiscal

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Speaker 2: deficit goal of around four percent, the highest in more

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Speaker 2: than three decades.

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Speaker 1: In other news, Anthropic is reopening talks with the Pentagon

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Speaker 1: about the use of its technology by the US military.

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Speaker 1: The move comes after a feud between the two about

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Speaker 1: AI safety and reports that the US Central Command used

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Speaker 1: Anthropics clawed AI for intelligence assessments and other purposes during

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Speaker 1: recent strikes on Iran. Bloomberg's cib adabaio has more.

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Speaker 7: Just days ago, Anthropics said it couldn't in good conscience

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Speaker 7: agree to the US Department of Defense's requests to remove

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Speaker 7: safeguards from its AI model, but now it seems the

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Speaker 7: two sides may have found a way forward. Bloomberg understands

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Speaker 7: that discussions between CEO Dario Amadai and the Pentagon have

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Speaker 7: resumed with the hopes of nailing down a contract outlining

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Speaker 7: the government's access to Anthropics technology. A resolution would help

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Speaker 7: clear the air around one of the artificial intelligence industries

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Speaker 7: fastest growing and most promising firms. Anthropic declined to comment

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Speaker 7: on the reports, whilst a Pentagon spokesperson didn't immediately respond

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Speaker 7: to requests. In London Tea weare added by Bloomberg.

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Speaker 2: Radio and those are your top stories on the markets.

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Speaker 2: Zerostocks fifty futures down by half of one percent. That's

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Speaker 2: after the rally that we saw through global equity markets

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Speaker 2: yesterday and into the Asian session today. The Nicke the

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Speaker 2: COSPI rather in Seoul finishing up nine point six percent.

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Speaker 2: Oil prices up three percent at the moment for at

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Speaker 2: eighty three dollars sixty four for Brent crude natural gas

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Speaker 2: prices up around six percent on the Dutch TTF benchmark

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Speaker 2: and on UK prices this morning as well. The Bloomberg

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Speaker 2: Dollar Spot Index up two tenths of one percent.

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Speaker 1: That's news when you want it. With Bloomberg News Now,

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Speaker 1: I'm Caroline Hepke, I'm

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Speaker 2: Stephen Carroll, and this is Bloomberg