News when you want it with Bloomberg News now, I'm Nathan Hager.

And I'm Karen Moscow. Karen, it's day ten of the war with

Iran. Once again, there is little sign of let

up on either side. The U.S.

and Israel continue to launch heavy airstrikes on Tehran while Iran is

attacking Israel and Arab Gulf states regularly with drones and missiles.

Iran says it can keep up this level of fighting for at least six months.

But Defense Secretary Pete Hegseth says at some point Iran will surrender.

We're not flying a mission accomplished banner like George W Bush on an aircraft

carrier. We're not doing that, and we haven't

done that. But we can be clear with the American

people that this is not a fair fight, and that's on purpose.

Our capabilities are overwhelming compared to what Iran's are.

In an interview on CBS's 60 Minutes heard Sundays on Bloomberg Radio,

Defense Secretary Pete Hegseth said President Trump will set the terms of

Iran's surrender. But former U.S.

Ambassador to Israel Tom Nides, says it's important to take a step back.

We have to understand what the objectives of this is.

How do we determine what successes or success is necessarily a regime

change? But one will have to debate that.

And I do believe Congress has a role here.

But I think it's important for us to understand that former U.S.

Ambassador to Israel Tom Nides was a guest on our new show, Bloomberg this

weekend. In the meantime, the U.S.

has ordered non-essential diplomats in Saudi Arabia to leave.

That's after a U.S. service member wounded in in an attack

over the weekend, died overnight, bringing the U.S.

death toll to seven. Iran says more than 1300 people have

died in U.S. and Israeli strikes so far.

Sources tell Bloomberg News that President Trump is considering a special

forces ground operation to seize Iran's enriched uranium.

That's on growing concerns it may have been moved.

President Trump says that's something he could do later on, but he's not

considering it right now. Well, Nathan, Iran is signaling no let

up to the war after naming the hard line son of the assassinated Ayatollah Ali

Khamenei as its new supreme leader. 56 year old Mashaba Khamenei has deep

ties to the Islamic Revolutionary Guard. Bloomberg senior editor Wendy Benjamin

says the decision was not a surprise. This was the man that the U.S.

really expected would take over for his father.

It's the first generational succession since the 1979 revolution, and he seems

to be the kind of guy who will continue in his father's footsteps in every way.

And Bloomberg's Wendy Benjamin said in President Trump told Fox News he was

unhappy with much time based nominees. Appointment, health care and oil has

smashed through $100 a barrel this morning as the war rages on.

Checking nine max crude right now. It's up nearly 14% at $103.36 per

barrel. Brent is up 15%, at $106.62.

The price was even higher earlier, but talks on a coordinated release of

reserves took some heat out of the market Stephen.

Steph Krinsky leads Bloomberg's team covering energy in Asia.

I think some of the worrying things that happened over the weekend is the

retaliatory strikes from Iran continued. It did not look like there was any

easing of tension. In fact, it looked like it was getting

worse. The US wasn't showing like it's going to

back down, especially rhetoric coming out of the White House and from Trump

himself. And on top of that, you had some major

producers, you had Kuwait and you also had adnoc looking to adjust or lower

their their oil production because their inventories are getting high as they

can't export the fuel. Bloomberg Stephen Stuff.

Shinseki says the group of seven finance ministers will discuss a possible joint

release of oil from their reserves today.

President Trump says $100 oil is a, quote, small price to pay for world

safety and peace. But Nathan, oil's not the only thing on

the move this morning. We're seeing a big sell off in stocks

around the world. And Bloomberg's John Tucker joins us

with the very latest. John?

Good morning, Karen. U.S.

stock futures down over 1%. Japan's Nikkei plunged 5% this morning,

sending that market into correction. Global bonds, they continue to sell off.

So that's pushing yields even higher. About $6 trillion of market value has

now been erased from global stocks since the war in Iran began.

Investors are pricing in a deeper and longer lasting supply shocks.

This is one that could squeeze growth while reigniting inflation.

Well, we know it's stagflation. The dollar has emerged as the haven

asset of choice with the Bloomberg dollar spot index up almost 2% since the

war began. Now, that adds to cost pressures since

oil is priced in dollars. And Helen Jewel of BlackRock says the

war introduced more unwelcome obstacles for investors.

Uncertainty about the Fed pass, which we didn't have just a few weeks ago.

Expectations for Federal Reserve. The interest rate cuts have already been

pared back. And veteran strategist Ed Yardeni has

raised the probability of a market meltdown.

As he puts it, the US economy and stock market are stuck between Iran and a hard

place. You know your income.

John Tucker Bloomberg Radio. All right, John, thank you.

There's another source of tension in New York City.

Authorities are investigating potential terror Terrorism.

linked to two suspects in custody of what Police Commissioner Jessica Tisch

says was an improvised explosive device thrown near Mayor Zoran Mamdani

residents. Tisch says the device was thrown by a

counter-protester during an anti-Islam demonstration.

Witnesses reported seeing flames and smoke as it's traveled through the air

before it struck a barrier and extinguished itself a few feet from

police officers. New York City Police Commissioner

Jessica Tisch says the confrontation unfolded outside Mayor Madonna's home

during a protest organized by far right activist Jake Lane to, quote, stop the

Islamic takeover of New York City. And that's news when you wanted to.

Bloomberg News now. I'm terror in Moscow.

I'm Nathan Hager and this is Bloomberg.