← Balance of Power
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- [00:00]
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Christina Ruffini
Bloomberg Audio Studios podcasts Radio News
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Doug Krisner
this is a breaking news update from Bloomberg.
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Jeff Mason
Instant reaction and analysis from our 3,000
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Doug Krisner
journalists and analysts around the world. This is special coverage from Bloomberg Radio. I'm Doug Krisner in New York. Wednesday evening, in a rare primetime address to the nation, President Trump provided an update on the war in Iran.
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President Donald Trump
Thanks to the progress we've made, I can say tonight that we are on track to complete all of America's military objectives shortly, very shortly. We are going to hit them extremely hard over the next two to three weeks. We are going to bring them back to the Stone Ages where they belong. In the meantime, discussions are ongoing. Regime change was not our goal. We never said regime change, but regime change has occurred because of all of their original leaders. Death. They're all dead. The new group is less radical and much more reasonable. Yet if during this period of time, no deal is made, we have our eyes on key targets. If there is no deal, we are going to hit each and every one of their electric generating plants very hard and probably simultaneously. We have not hit their oil, even though that's the easiest target of all because it would not give them even a small chance of survival or rebuilding. But we could hit it and it would be gone and there's not a thing they could do about it.
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Doug Krisner
President Trump there delivering a rare primetime address with regards to war in Iran. He said the US Is getting very close to finishing the job in Iran. The hard part in Trump's words, done insofar as Iran is concerned and the country is no longer really a threat. Let's talk a little bit more about what we heard today from the president with our special guest. Christina Raffini is with us. She is co host of Bloomberg this weekend. Also on the line, Bloomberg's Jeff Mason. He is White House and Washington correspondent. Thanks to you both. Christina, let me begin with you. What did you make of what you heard tonight?
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Christina Ruffini
One of the interesting things we did not hear was something we were expecting to hear, and that was the president named NATO. We understand he's been very frustrated with NATO allies. He kind of second referenced it at one point. He said, America doesn't need things out of the strait. We have our own oil and gas. And to all you allies who basically wouldn't help us, if you want it, go protect it. He also gave a bit of a timeline, although there weren't as many specifics as a lot of people were hoping for. He said our objectives are about to be fully achieved. We're on track to complete those shortly. And then he said in the next two to three weeks. And for context, he then began listing the duration of other American wars, including Vietnam and the Iraq war, which meant much longer, and said this has only been 32 days of conflict.
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Doug Krisner
Jeff he seemed to be delivering an ultimatum. Vice President J.D. vance is set to relay some messages through mediators. And essentially it comes down to this. If there is no deal, the US Is going to hit each and every one of Iran's electrical generating plants very hard. That seems to be illegal. Doesn't.
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Jeff Mason
Well, I don't feel like I can comment on whether it's illegal, but I can say that it is certainly a threat and that may be one reason why we're seeing S and P futures going down already. As President Trump was speaking, and that's probably the opposite of what he was hoping to achieve because he did reference the markets tonight and he talked about the fact that stock markets had dropped a little bit because of the war. And then he said what he often says, which is he said he saw the markets coming back as he's been talking about ending the conflict and thought it seemed happy about that. I think tonight was largely a sales pitch by the President. It's a late sales pitch, and I don't mean late on a Wednesday evening. I mean late in the process of the war. He launched this war four and a half weeks ago essentially with a social media announcement. And yes, he has spoken to reporters and in that way addressed the American public over these weeks. But this was his first time coming out and laying out the logic for going into the war and laying out his next steps. And that's what he did with this address tonight. But I wouldn't say we learned a whole lot more about the war or the, the process other than him sticking to a two to three week timeline for, for getting out.
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Doug Krisner
Christina earlier today, Iranian President Masoud Prashes took the, let's call it unusual step of issuing a letter directly addressed to Americans. And in it he said continuing along the path of confrontation is more costly and futile than ever before. And he noted that attacks on infrastructure directly target Iranian people. Did it surprise you that there was no reference made to that letter?
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Christina Ruffini
Not really. The president doesn't like to. I don't think he wants to give credence to that administration or that power structure in Tehran right now. But it was an interesting move by Iran because that's something we've seen Americans usually comes from the State Department or American presidents have often issued statements in Farsi for the Iranian people. They often are trying to appeal to the people, especially during the protests. Or as President Trump said tonight, regime change was not our goal, but regime change has occurred. If you're trying to appeal directly to the population to overthrow what you view as a corrupt and as he said several times, evil regime, that is something we are more commonly seeing from the US To Iran. I don't remember in recent memory the president of Iran appealing directly to the American people, but these are unprecedented times. The other thing the president said that I thought was interesting was when he talked about regime change. He said, but regime change has occurred because all the original leaders are dead. This is true. They have taken out of a lot of Iran's leadership. But the current leader is the son of the former leader and a lot of the mullahs and power structure that are electing him are still in place from the old regime. And if anything, analysts have told us these strikes knocked out of a lot of potential moderates and you're getting mostly extremists who are in the government right now, with the exception of perhaps the president and the foreign minister and maybe the speaker of the House in Tehran. So that's not exactly accurate. And calling it regime change is also not accurate because these are, for better or worse, mostly the same people who were in power before this assault started.
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Doug Krisner
Jeff, we understand that British Foreign Secretary Yvette Coop will be chairing a virtual meeting with counterparts from some 35 countries and the aim apparently is to discuss a plan to restore freedom of navigation in the Strait. The US from what I understand, is not due to attend this virtual meeting. Where do you think things stand with some of our allies, particularly those in Europe?
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Jeff Mason
Well, it's hard to say. I think they've certainly had a wake up call from President Trump and that didn't just start with this war. That started with his return to office generally when he started to critical of NATO again, as he was during his first term. Although I will say I asked him a question at one of his first press conferences last year about whether he remained committed to Article 5, which of course, is the part of the NATO treaty that guarantees mutual defense. And he said yes, but there has certainly been a number of questions about that since. And he is raising them himself by being critical of NATO allies, Britain in particular, I might add, for not jumping in to help protect the Strait of Hormuz and help get ship, help improve the shipping passages through there. So to your question, and that was a long wind up, sorry. The fact that, that the United States is not taking part is probably a sign that these other countries realize that Trump is serious when he says we're going to leave in two to three weeks and we don't really care what happens to the Strait of Hormuz. I mean, he says that it will just, it'll just automatically start working better. But I think most reasonable people who are familiar with that area of the world will know that that's not the case. And so these countries appear to be looking like they want to talk about it in order to come up with a strategy.
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Doug Krisner
Speaking with Bloomberg's Jeff Mason, who is our White House and Washington correspondent, as well as Christina Ruffini, who is co host of Bloomberg this weekend, by the way, you can catch her Saturdays and Sundays on Bloomberg TV and radio beginning at 7:00am Eastern Time. Christina, let me go to you. The conversation that we had yesterday, late in the day was the possibility of some type of UN Action as it relates to the UAE maybe using the use of force to keeping the strait open. Do you think that's got any chance of succeeding?
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Christina Ruffini
I think the UN Is at its weakest, that we've seen it in probably the last two decades. But following up on Jeff's point, the president said when this is done, it will just open up naturally because they want to sell the oil. Referring to the Strait of Hormuz, what Jeff was talking about is something that allies are really concerned about. And that's probably what's precipitating that mention, that meeting you mentioned from the UK and this effort to try to get some sort of coalition together with the UN with these nations to open up the strait, because it is looking more and more likely. And I think the president's words hinted at it tonight. He doesn't really care if the strait is operational. He's going to do his thing and the US Is going to leave. And all those GCC countries, all those Gulf allies, all the Asian countries that depend heavily on oil coming through that strait, some of them who thought they had very close ties to the United States, are going to be in trouble if the US is not there to finish the job. And that's going to fall to some sort of coalition of other nations. Maybe the UN is the mechanism by which they, they make that happen. But I would reckon it probably happens between a collaboration of EU and GCC countries. I think it probably happens outside that body. But perhaps talking about it at the UN will be helpful in getting that started. But this is a real issue and allies are really concerned that this could actually happen and they could be left in a worse straight pun unintended than when this war started because Iran could be controlling the strait and then potentially profiting off of it if it starts to charge tolls or control passage.
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Doug Krisner
Jeff, let me go to you. Is President Trump getting advice from anyone outside that inner circle, so to speak, do you think?
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Jeff Mason
You know, it's always sort of tricky to figure out where President Trump is getting his advice. We know that he talks to, of course, the inner circle of advisors that you were referencing, also an outer circle of friends. He calls some of the natural US Allies and leaders friends as well. But it's hard for me to say to what extent he's listening to them. I always come back when asked about this to something that he said. I believe it was in 2016, before he won the first election that he won, which was he was asked then where he gets his advice, and he said from myself. And I think that that still applies in 2026. He is his top counselor, he is his top spokesperson. He likes to be the number one in charge and he likes to be the one delivering the message and he likes to be the one making the decisions. Now, that's not to say he's not listening to some others and getting some advice, certainly from people like from Marco Rubio, Steve Woodkoff, Jared Kushner, and probably his own vice president, as you noted earlier, who's becoming a little bit more involved in more recent days. But the buck stops with him and he's the ultimate decider.
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Doug Krisner
Christina, before this conflict began, the administration was somewhat stressing the issue of affordability. And I know now that the Cleveland Nowcast from the Cleveland Fed has the inflation rate at around 4, forecasted around 3 and a quarter percent. Where do you think this leaves the president? As we talk more and more about the run up to the off term elections?
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Christina Ruffini
I mean, again, I hate to give Jeff Mason too much credit. Just kidding. Jeff is brilliant. But he was right. He was right in saying this was part of that. This is a sales pitch because midterms are, if you are the president just around the corner. And even if this is resolved tomorrow, which the President said it's not going to be right, he's looking at a two to three week timeline before the US Operations inflation is even finished. That's not to say whether or not the strait is, is working by then. And even though the President emphasized many, many times, he said, you know, thanks to my economic policies, we have drill baby Bill drill. The US Is financially independent. The oil prices will come down, the stock market will go up. That's pretty aspirational because every analyst I've heard on Bloomberg this week is saying this is not like flipping a switch. There's a tail to this. It's, it's inputs for chemicals, it's fertilizer for farmers. It's the global oil price, not just what we're paying in the US that impacts everybody's price at the pump. And that's something that voters are really going to notice. And you know, Trump voters are very, very loyal. But it's expensive to live in the United States right now and families are under a lot of pressure and that's really, really gonna hurt him and it's really gonna hurt Republicans ahead of the midterms when they're already looking at an uphill battle.
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Doug Krisner
Jeff, what do we know about the buildup of additional US Troops in the Mideast region?
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Jeff Mason
Let me answer that and then I want to get back to the politics briefly. As far as the buildup, we know, we know that in the, in recent days and weeks that the United States has sent more troops to the region, which has speculated led to some speculation about potentially boots, putting boots on the ground. That's definitely not something that the President addressed tonight, which I think you can interpret in two ways. Number one, you would, I don't think, be wrong to conclude that he's signaling that that is definitely not the direction he wants to move or else he wouldn't be repeating the fact that he, he wants to conclude the war in the next two to three weeks. You could also conclude that it's a head fake and that the President is still considering it and that's why he has sent troops in the, into the region in order to continue to have that option. So that'll be something that, you know, allies and enemies will, will have to figure out as, as the, as, as this war continues. Briefly, back on the politics, though, I also wanted to say, I said earlier that this was a sales pitch. One of the things that was a sales pitch, I think, was him listing the number of when Christina mentioned this as well, listing the major wars of the last century and how long they took. And I've just, I'd be very curious to see some polling after the speech as to whether that logic resonates at all, both with his base and with an American public that heard him say as a candidate in 2024 that he would not launch new wars.
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Doug Krisner
Christina, earlier in the week the president was focused on trying to recover enriched uranium in Iran. But apparently he told Reuters that it's so far underground he doesn't even care about it any longer. Talk to me about what you perceive to be the maybe subtle shifts in objectives.
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Christina Ruffini
So the Washington Post was out with some good reporting today about the president asking for an operational plan for U.S. commandos, Special Forces to go in and try to retrieve that uranium. That to me immediately seems like an almost impossible and incredibly dangerous task because as the president mentioned in his speech, the US Hit sfah the Tante fordo those nuclear sites very heavily last June with those big bunker busting bombs and according to the president, traitor them and at the time destroyed the nuclear, the nuclear program. Now tonight, the president said that Iran was on the door of a nuclear bomb and they were, they were nearing the race. Everyone I've spoken to, nuclear experts say there's no evidence that Iran was any closer to that breakout time, the time it takes them to flip the switch and create a nuclear weapon than they were when, when the US Attacks those nuclear sites last summer. The issue is this has been a talking point for the president and so he wants to show that he's trying to prevent Iran from having a nuclear bomb. He has a plan for getting that uranium, but now it seems like he is backing off of that. That could be potentially because those plans came back and were not feasible or just simply because he realized that it contradicts his own argument that the US Destroyed these sites. But at the same time he's also saying that Iran was about to get a nuclear bomb and both of those two things can't really be true.
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Doug Krisner
Jeff, I'll give you the last word as get set to wrap up.
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Jeff Mason
I appreciate you giving me the last word instead of Christina, but what I would like to say is actually building off of her brilliant remarks just there, which is politically there are servatives and I spoke to one of them today who are concerned that President Trump is not finishing the job, that he made the decision to go in and start this war, controversial decision, but one that is certainly supported by a lot of Iran hawks and right leaning people in foreign policy establishment and they were worried ahead of this speech today that he is done with it, ready to get out because of the multiple reasons that we've already cited and that that will actually still leave a threat in, in Iran that he could have taken care of now if he had just stuck with it.
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Doug Krisner
Jeff, thank you so very much. Bloomberg's Jeff Mason, our White House and Washington correspondent. And a very special thank you. Thanks to Christina Raffini, co host of Bloomberg this Weekend. And you can catch her Saturdays and Sundays on Bloomberg TV and radio beginning at 7:00am Eastern Time. Thanks to you both.