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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is the Bloomberg dayva q At podcast. Good morning,

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Speaker 2: it's fighting the sixth March. I'm Caroline Hepge in London.

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Speaker 1: And I'm Stephen Carolin Brussels. Coming up today, Iran targets

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Speaker 1: countries across the Gulf with a fresh wave of strikes

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Speaker 1: as Israel and the US launched more attacks on the

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Speaker 1: Islamic Republic.

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Speaker 2: Tankers laden with Russian oil head to India as the

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Speaker 2: US clears the way for more imports amid energy market turmoil.

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Speaker 1: Plus, we report on the role AI is playing in

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Speaker 1: America's bombing campaign against Iran.

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Speaker 3: Let's start with a roundup of our top stories.

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Speaker 1: A new barrage of Iranian missiles and drones has targeted

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Speaker 1: at least five countries in the Middle East, including Saudi Arabia,

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Speaker 1: Kuwait and Bahrain. The Islamic Republic's latest strikes against its

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Speaker 1: Gulf neighbors prompted several governments to urge their citizens to

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Speaker 1: take shelter. Meanwhile, the United States has suspended operations in Kuwait.

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Speaker 1: Explosions were also heard in Tehran overnight as Israel carried

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Speaker 1: out a twelfth way wave of bombings. In a phone call,

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Speaker 1: the US President Donald Trump told NBC News that he

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Speaker 1: wants to see Iran's leadership structure fully removed and that

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Speaker 1: he has some names in mind for a quote good leader.

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Speaker 1: The President's comments come as Iran's foreign minister Abasarachi also

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Speaker 1: spoke to NBC. He says his country has no plans

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Speaker 1: to talk to the US.

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Speaker 4: Yeah, I'm not asking for a ceasfire and we don't

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Speaker 4: see any reason why we should negotiate with the US.

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Speaker 4: But then we negotiated with them twice and every time

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Speaker 4: they attacked US at the middle of negotiations. So there

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Speaker 4: is no request for a CEISFI by US, and there

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Speaker 4: is no request for the negotiation with the.

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Speaker 5: US from US.

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Speaker 4: You have never sent any messages to them.

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Speaker 1: The Iranian foreign minister also said that Russia and China

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Speaker 1: are supporting around politically and otherwise. Asked whether Russia is

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Speaker 1: actively helping Iran in the current conflict, Arachi replied they

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Speaker 1: have always helped US.

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Speaker 2: Tankers carrying Russian oil are headed for Indian ports this

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Speaker 2: morning after the US granted New Delhi a temporary waiver

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Speaker 2: for imports. The measure, which expis on the fourth of

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Speaker 2: April is intended to ease pressure on oil supplies and

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Speaker 2: provide immediate relief for India's refining sector affected by the

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Speaker 2: Middle East conflict. It comes as the Trump administration weighs

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Speaker 2: options to address the spiking global energy prices. Samantha Dart,

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Speaker 2: Goldman Sax's co head of Global Commodities Research, says, the

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Speaker 2: situation is uncertain.

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Speaker 6: If instead of five days, you have let's say another

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Speaker 6: five weeks of very low flows of oil through the street,

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Speaker 6: it's very possible that we would see brand prices crossing.

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Speaker 3: The one hundred dollars per barrel threshold.

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Speaker 2: Goldman SAX is Samantha Dart speaking there. India became a

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Speaker 2: major importer of discounted Russian oil after the invasion of Ukraine,

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Speaker 2: but sharply cut back on purchases after US tariff and

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Speaker 2: sanctioned pressure.

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Speaker 1: The Wall Street Journal is reporting that the United Arab

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Speaker 1: Emirates is considering a freeze on billions of dollars of

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Speaker 1: Iranian assets. The move could target accounts in the Gulf

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Speaker 1: state that are affiliated with the Islamic Revolutionary Guard. Iran

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Speaker 1: has fired more than a thousand drones and missiles at

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Speaker 1: the UAE since the war broke out six days ago.

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Speaker 1: If Emmerati officials proceed with the move, it could dismantle

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Speaker 1: one of Tehran's most significant economic lifelines.

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Speaker 2: Now, golf states under attack from Iran are facing the

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Speaker 2: most significant threat to their status as global financial hubs.

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Speaker 2: For years, Dubai and Abu Dhabi have been building their

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Speaker 2: reputations as low tax juristictions havens for investment from hedge

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Speaker 2: funds to real estate to private equity, but proximity to

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Speaker 2: the world's most volatile region can no longer be quietly discounted.

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Speaker 2: Here is Lloyd Bank's former chief economist, Trevor Williams.

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Speaker 7: One of the long term effects that could come out

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Speaker 7: of this is a reassessment of the whole profile of

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Speaker 7: the golf There's probably perhaps a lot of complacency about

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Speaker 7: the fact that somehow they could survive in what is

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Speaker 7: a dangerous neighborhood with no consequences.

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Speaker 2: That was Lloyd's Bank former chief economist Trevor Williams. The

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Speaker 2: UAE's economy minister said that it has quote demonstrated its

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Speaker 2: strength in absorbing the pressures generated by economic and geopolitical

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Speaker 2: crises in Europe.

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Speaker 1: Leaders are pushing back against President Donald Trump's demands that

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Speaker 1: he continues an open ended military campaign in Iran. Bloomberg

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Speaker 1: stains Wilcock has more.

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Speaker 8: The way President Trump has treated America's allies is now

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Speaker 8: becoming a hurdle. Europe's military bases, ports and airspace are

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Speaker 8: key strategic points for the US. UK Prime Minister Kis

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Speaker 8: Starmer initially blocked access to using them to hit Iran.

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Speaker 5: I took the decision that the UK would not join

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Speaker 5: the initial strikes on Iran by the US and Israel.

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Speaker 5: Now that decision was deliberate, it was in the national

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Speaker 5: interest and I stand by it.

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Speaker 8: Starma since allowed the use of UK air bases for

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Speaker 8: defensive strikes, but he's one of many European leaders who

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Speaker 8: are wary of escalation, with Spain's Pedro Sanchez saying the

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Speaker 8: war runs against his country's values and interests. As the

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Speaker 8: US's open ended campaign in the Middle East continues, President

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Speaker 8: Trump may come to regret eroding European trust. In London.

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Speaker 3: James Wilcock Bloomberg.

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Speaker 2: Radio Anthropic has vowed to challenge a Pentagon decision to

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Speaker 2: designate the company a threat to the US supply chain.

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Speaker 2: The move normally reserved for foreign adversaries, jeopardizes the firm's

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Speaker 2: Pentagon contract and could block defense partnerships. Its legal challenge

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Speaker 2: comes as the Iran War illustrates how the US military

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Speaker 2: is increasingly using artificial intelligence tools, including anthropics clawed in combat.

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Speaker 2: Bloomberg's teaba at a Baio has more.

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Speaker 9: Since the start of military strikes last week, the US

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Speaker 9: has hit more than two two thousand targets.

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Speaker 3: According to the head of Central Command.

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Speaker 9: That volume is more than double the scale of America's

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Speaker 9: assault on Iraq in two thousand and three. Playing a

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Speaker 9: critical role in operations is AI supporting initial screenings of

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Speaker 9: incoming data, allowing humans to focus on a higher level

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Speaker 9: analysis and verification. But its uses raise questions about the

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Speaker 9: technology's growing role in warfare. Some organizations, such as human

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Speaker 9: rights coalitions Stop Killer Robots, are highlighting the risks associated

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Speaker 9: with involving AI systems in combat situations and whether it

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Speaker 9: can be used in a lawful manner. In London, to You,

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Speaker 9: added Bio Bloomberg.

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Speaker 1: Radio, officials of the US Commerce Department of written draft

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Speaker 1: regulations that would restrict AI chip shipments going anywhere in

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Speaker 1: the world. The rules that would force companies like Nvidia

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Speaker 1: or AMD to seek American government permission for almost all

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Speaker 1: exports of advanced semiconductors. Analysts fear the plan is to

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Speaker 1: tie AI capacity into trade and denusciations as the White

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Speaker 1: House seeks alternative cudgels to tariffs. Bloomberg Technologies Ed Ludlow

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Speaker 1: says it would also leave countries with only one AI

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Speaker 1: alternative China.

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Speaker 10: The issue is the vacuum, and this is part of

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Speaker 10: what the people around the president have advised them on

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Speaker 10: and we've reported on. If you don't allow American companies

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Speaker 10: to export to say the Middle East or the Golf,

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Speaker 10: then China will go into those markets.

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Speaker 1: Ed Ludlow, speaking there as Bomberg reports the policy is

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Speaker 1: far from finalized. Shares of Nvidia and AMD failed to

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Speaker 1: session lows following the news.

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Speaker 2: And those are our top stories for you this morning. Now,

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Speaker 2: as we get to the end of this week, let's

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Speaker 2: think about the markets. Stocks in Asia are up this

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Speaker 2: morning on the MSCI Asia Pacific Index, so reversing earlier

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Speaker 2: losses this as we see stock futures for Europe more positive, up.

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Speaker 3: By one percent this morning.

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Speaker 2: It has been a hugely volatile week though in terms

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Speaker 2: of stock trading the first week of the US's military

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Speaker 2: campaign epic fury against on oil prices now trading on

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Speaker 2: an eighty five dollar handle for brain crewed futures WI

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Speaker 2: eighty dollars forty eight. You've seen a continued bond route

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Speaker 2: throughout this week. Four fourteen is where we are for

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Speaker 2: US benchmark yield's ahead of the US jobs report today,

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Speaker 2: and gold right now is up by seven tens of

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Speaker 2: one per one hundred and seventeen dollars.

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Speaker 3: Those are the markets.

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Speaker 1: In a moment, we'll bringing the latest on the war

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Speaker 1: in the Middle East after that barrage of new attacks

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Speaker 1: in the golf, Plus we'll be examining the consequences for

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Speaker 1: Russia and Ukraine. But another story that we've been reading

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Speaker 1: this morning about and how what's going on in the

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Speaker 1: Middle East also relates to ai. David Ficklan's been writing

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Speaker 1: about this for Bloomberg Opinion and the pipeline for the

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Speaker 1: technology being affected by this, particularly in South Korea and Taiwan.

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Speaker 1: They make the majority of the world's high end chips,

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Speaker 1: but they're also among the most dependent on liquefied natural

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Speaker 1: gas that comes from Katar to power their grids. Now

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Speaker 1: one gas applies, the the golf up to their stock

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Speaker 1: markets took that big hit that we've been reporting on.

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Speaker 3: But it's interesting to note that neither.

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Speaker 1: Of these countries has particularly large storage for gas, unlike,

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Speaker 1: for example, the situation in the European Union.

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Speaker 3: So shipments do.

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Speaker 1: Slow down for long, it could start affecting electricity and

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Speaker 1: chip production. Less than a month is the storage that

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Speaker 1: Taiwan has available. And David's writing this is a wake

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Speaker 1: up call for these countries who've been largely reliant on

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Speaker 1: these energy energy supplies to be able to build these

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Speaker 1: high tech economies.

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Speaker 3: Yeah, I think this is a really key point.

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Speaker 2: You know, everything that has been closely examined, the intersection

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Speaker 2: of technology, war and energy production hugely important and we

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Speaker 2: will put a link to David Fickling's story in our

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Speaker 2: podcast show Notes for you.

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Speaker 1: Now, let's bring you up to date on the latest

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Speaker 1: developments in the Middle East around targeting several Gulf neighbor as.

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Speaker 1: While the US and Israeli air strikes continued to hit

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Speaker 1: Tehran and bea route, NATO is also ramping up its

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Speaker 1: defenses for Turkey. We have our managing editor for the

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Speaker 1: Middle Eastern North Africa on around with us for more

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Speaker 1: this morning. The intensity of the bombing appears to be growing.

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Speaker 1: What does this mean for Gulf states?

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Speaker 11: The Arab states in the Persian Gulf have become targets

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Speaker 11: of Iranian missile and drawn attacks more frequently and heavily

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Speaker 11: than Israel has been since the beginning of the war,

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Speaker 11: just judging by the various stats that we have seen

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Speaker 11: coming in. And it's somewhat ironic for them because they

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Speaker 11: are finding themselves at the center of this conflict that

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Speaker 11: they tried very hard to avoid and prevent. And it's

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Speaker 11: also ironic because these countries bledged more than a trillion

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Speaker 11: dollar while trillions of dollars in investments in the US economy,

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Speaker 11: but they are now finding out that they have very

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Speaker 11: little influence over the US regional policy. And we are

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Speaker 11: seeing signs of growing frustration among the business community, especially

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Speaker 11: in the Union that Arab airmits, where some of the

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Speaker 11: big business magnets are becoming more vocal about the cost

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Speaker 11: of the war for their economies. The airspace across the

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Speaker 11: region remains pretty much shut. The straight Offmous is parctically

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Speaker 11: at a stands still with very few tankers going through,

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Speaker 11: and it's taking a huge toll on the economies of

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Speaker 11: these regional countries.

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Speaker 1: Yeah.

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Speaker 2: Indeed, also that issue of the Board of Peace that

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Speaker 2: President Trump had been promoting and trying to get investment for.

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Speaker 2: President Trump also seems to want not just regime change

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Speaker 2: in Iran, but also to install his own choice of leader.

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Speaker 3: The comments that he has made, Yeah.

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Speaker 11: There is a bit of lack of clarity in what

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Speaker 11: exactly President Trump is hoping to achieve with the war.

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Speaker 11: On the one hand, he has made it clear that

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Speaker 11: he would like to see a regime change, but on

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Speaker 11: the other hand, at times he has a signaled that

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Speaker 11: he could be happy with working with elements of the

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Speaker 11: Iranian administration. And the most recent example of that was

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Speaker 11: last night, which you just referred to. He said he

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Speaker 11: would not want to see much Taba Khamane, who was

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Speaker 11: the second oldest son of the last Supreme Leader of

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Speaker 11: Iran who was killed on Saturday when the US attacks

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Speaker 11: on Iran began, and he said he would not want

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Speaker 11: to work with him. So, yeah, there is a little

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Speaker 11: bit of a lack of clarity. He seems to be

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Speaker 11: fine with the idea of working a new Supreme leader

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Speaker 11: who might bring about some change in Iranian policies. But yeah,

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Speaker 11: on the other hand, he did say that he wouldn't

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Speaker 11: mind seeing a regime change in Iran either.

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Speaker 1: Meanwhile, of course, even watching the move higher in oil

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Speaker 1: prices this week, on track for their biggest surge in

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Speaker 1: the week since twenty twenty two, what is the situation

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Speaker 1: that we know about the straighter Foremus this morning?

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Speaker 11: The Strait of Hormos remains practically well at a standstill.

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Speaker 11: There are very few tankers that are going through. We

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Speaker 11: have seen reports of the Chinese block carrier transiting the

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Speaker 11: strait yesterday, but other than that, the flow of oil

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Speaker 11: and lerg has come to a standstill since the fighting

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Speaker 11: began last Saturday, and we are seeing the impact on

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Speaker 11: oil where Brent is set for its biggest weekly increase

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Speaker 11: since twenty twenty two. That said, there seems to be

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Speaker 11: some stabilization in the oil markets this morning, after US

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Speaker 11: President Donald Trump re treated his commitment to the passage

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Speaker 11: the safe passage of oil by offering various guarantees both

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Speaker 11: in terms of insurance and also of this pledge to

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Speaker 11: provide label escort to ships that might want to go

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Speaker 11: through the Street of Ormus. But as we speak at

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Speaker 11: the moment, there is little, if at all, activity across

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Speaker 11: the street.

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Speaker 3: Yeah.

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Speaker 2: Indeed, Brent crude currently up seventeen percent this week. Honor,

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Speaker 2: thank you for being with us. Bloomberg's managing editor for

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Speaker 2: the Middle East and North Africa, Honor, and stay with us.

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Speaker 3: More from Bloomberg Daybakeube coming up after this.

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Speaker 1: I mean, while the United States has cleared the way

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Speaker 1: for India to import more Russian oil as the crisis

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Speaker 1: in the Middle East continues, joining us now for more

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Speaker 1: Bloombergs Tony Hawpen It leads our team covering Russia and Ukraine. Tony,

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Speaker 1: How significant is this move by the United States to

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Speaker 1: allow more Russian oil to be sold to India?

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Speaker 3: What does it mean for Russia?

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Speaker 12: Well, it's good news for Russia's war budget. They had

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Speaker 12: been struggling in recent months with much reduced income from

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Speaker 12: oil and gas sales as a result of US measures

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Speaker 12: to the her India from buying oil, and now those

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Speaker 12: measures have been eased for a month, and there are

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Speaker 12: something like fifteen million barrels of oil already on the

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Speaker 12: sea close to India that could be sold, and so

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Speaker 12: it's a boost for Russia's war budget. They were already

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Speaker 12: considering ways to trim spending because they thought forty dollars

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Speaker 12: a barrel oil would be here for some time, and

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Speaker 12: as we now know, oil is trading around eighty five

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Speaker 12: dollars a barrel.

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Speaker 2: Meanwhile, Ukrainian President Vladimosolensky has offered to share his country's

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Speaker 2: expertise counting Shahad type drones. So again you know that

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Speaker 2: the Rushi Ukraine war is beginning to maybe play out

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Speaker 2: have an impact when it comes to Iran.

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Speaker 3: What is the Lynsky offering the.

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Speaker 12: Country with the greatest expertise in dealing with these Shaihit

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Speaker 12: type drones, of course is Ukraine. They've been spending four

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Speaker 12: years trying to deter them, and President Zelenski now says

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Speaker 12: that the US in particular has reached out and is

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Speaker 12: seeking advice on how to deter these drones, and he's

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Speaker 12: offering to send specialists to help them with that. And

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Speaker 12: he's also been in contact with Gulf Arab states essentially

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Speaker 12: making the same offer, which is, you know, will help

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Speaker 12: you deal with these drones because we have technology that

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Speaker 12: we've developed that brings them down at low cost. But

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Speaker 12: what we need in return is more patriot air defense

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Speaker 12: missiles to protect our populations, and he's proposing some sort

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Speaker 12: of swap really that he'd provided anti drone technology and

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Speaker 12: they provide him with missiles.

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Speaker 1: Vlosho Maslansky is also trying to leverage his position to

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Speaker 1: bring the war in Ukraine to an end.

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Speaker 12: How yes, I mean, he's in a difficult spot because

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Speaker 12: even as he's offering to help Gulf nations and the

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Speaker 12: US deter Iran in this war, he himself has to

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Speaker 12: protect his country against Russian attacks. And there's no sign

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Speaker 12: that Russia's easing off on those attacks. And there's no

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Speaker 12: sign too that the US is shifting its position to

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Speaker 12: a more favorable approach to Ukraine. Just yesterday and Trump

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Speaker 12: said it was Zelenski who had to shift and make

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Speaker 12: a deal, and that Putin was ready to make a

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Speaker 12: deal even though Russia is the aggressor in this war.

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Speaker 12: So he's trying to leverage his expertise and knowledge really

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Speaker 12: basically to achieve a more favorable diplomatic position for Ukraine

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Speaker 12: and to win more friends and influence in places like

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Speaker 12: the Gulf, which has had countries that have been trying

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Speaker 12: to mediate a solution to this war.

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Speaker 2: Yeah, indeed, thank you so much for being with US

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Speaker 2: Tony Bluebig Tony Halpin, who leads our team covering Russia

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Speaker 2: and Ukraine. So it is very interesting how this may

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Speaker 2: play out. Of course, worth noting that the US defense

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Speaker 2: sectually Pete Hegseth has said that there is no shortage

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Speaker 2: of munitions when it comes to the US conflict in Iran.

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Speaker 2: The stockpales for defensive and defensive weapons are there. And

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Speaker 2: yet there is also we know this issue with sort

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Speaker 2: of drone warfare and how to counteract it.

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Speaker 1: Yeah, and it's part of the broader conversation about how

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Speaker 1: this conflict in them at least is having a rippel

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Speaker 1: attract across the world. Of course, the talks between Russia

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Speaker 1: and Ukraine that had been planned for this week were

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Speaker 1: suspended as a result of this war taking place, So

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Speaker 1: I think there's an acknowledgment on both sides as well

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Speaker 1: that certainly the US attention is elsewhere at the moment,

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Speaker 1: as of course, the pressure had been on to try

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Speaker 1: and come to a resolution urgently between Russia and Ukraine.

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Speaker 1: The course, the questions over what that conflict in the

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Speaker 1: Middle East now means for those talks very much a

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Speaker 1: live one as we look into the course now the

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Speaker 1: seventh day of strikes in the Middle East. This is

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Speaker 1: Bloomberg Daybreak Europe, your morning brief on the stories making

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Speaker 1: news from London to Wall Street and beyond.

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