Transcript
Michael Simon Johnson (0:00)
This podcast is supported by Charles Schwab. Decisions made in Washington can affect your portfolio every day, but what policy changes should investors be watching? Washington Wise is an original podcast from Charles Schwab that unpacks the stories making news in Washington right now and how they may affect your finances and portfolio. Listen@schwab.com WashingtonWise from the New York Times, it's the headlines. I'm Michael Simon Johnson. Today's Wednesday, June 18th. Here's what we're covering. As the conflict between Israel and Iran continues into its sixth day, President Trump has taken a newly combative tone, calling for Iran's, quote, unconditional surrender and threatening its supreme leader, writing, quote, our patience is wearing thin. The comments came before Trump met with his national security team on Tuesday. And it's the latest signal that the US May be considering joining Israel's bombing campaign against Iran. Should the US Join the fight? Intelligence officials told the Times that Iran has prepared missiles for strikes on US Bases in the Middle East. In anticipation of that, the Pentagon sent three dozen refueling aircraft to Europe, where they can assist fighter jets protecting those bases. The most immediate decision for Trump is whether to deploy America's largest conventional weapon, a 30,000 pound bomb called the Massive Ordnance Penetrator. Israel has neither the bomb nor the planes heavy enough to carry it. Instead, it hopes the US can use it to destroy Iran's most heavily fortified nuclear enrichment site, which is buried under a mountain. Trump has resisted helping Israel attack the facility. He pledged not to bring the US into new wars and has largely pushed for a diplomatic solution in Iran. But that may be changing.
David Sanger (1:48)
He's basically got a choice between going back to the Iranians one more time and saying, we made you an offer that would require you to give up all of your nuclear enrichment on Iranian soil, but over time.
Michael Simon Johnson (2:02)
My colleague David Sanger covers the White House and national security.
David Sanger (2:06)
Or you can ignore the offer, as the Iranians have so far, and he'll say, I'll conduct this military operation. This is called coercive diplomacy. And I think he may take some time, but not very much time to give them that last chance. And then I suspect if they turn that down, he will make his move. Now, the Iranian system is so dispersed in terms of power between the generals, the ayatollahs, civilian groups, that I don't think they're capable of making that decision in a day or a week or a month. So my sense is we kind of know where this may be headed. I think the president's hope here is you go, you drop your 30,000 pound bombs, you've made your point and you go home. But the fact of the matter is the world is rarely that simple. The Iranians will have their moment to respond. It may be against American bases or troops in the Middle East. If any of them are killed, obviously the pressure would be on for a big escalation of the conflict and it would put him in exactly the place where he said he did not want to be.
