WSJ What’s News – Episode Summary

Episode Title: U.S. and Israel Consider Attacks on Iran’s Economy
Date: April 6, 2026
Host: Luke Varkas
Key Contributors: Dov Lieber, Suna Rasmussen, John Emont, Alex Osola

Episode Overview

This episode discusses the escalating tensions between the U.S., Israel, and Iran, focusing on threats to Iran's economy and civilian infrastructure as both a military and diplomatic lever. The show also covers the global implications for oil markets, inflation concerns, U.S.-EU trade spats over cheese naming, and other major business headlines.

Key Discussion Points and Insights

1. U.S.-Israel Strategy Shift: Targeting Iran’s Economy

• Escalation Threats: President Trump pledges to destroy Iran’s power plants unless Tehran reopens the Strait of Hormuz ([00:22], [00:49]).

  • Trump has set a deadline: Iran must reopen the strait by Tuesday evening or face attacks on energy sites and bridges.
  • Trump also signaled a potential for a diplomatic deal, even as military threats continue.

• Planning Joint Strikes:

  • Dov Lieber explains Israel has plans to attack Iranian energy facilities and is awaiting a green light from Washington ([01:49]):

    "The Israelis tell me that they have plans to hit Iranian energy facilities...both the United States and Israel are looking for a new type of leverage...by striking these infrastructure sites they will be able to increase the pain on the Iranian government and hopefully buy themselves some leverage."

  • Both countries are shifting from purely military targets to economic infrastructure hoping this will compel Tehran to negotiate.

• International Law Concerns:

  • U.S. and Israeli officials claim these targets are legitimate because they support Iran's military. However, attacking civilian infrastructure risks international law violations ([02:28]).
  • Dov Lieber highlights the dangers:

    "Pulling the trigger against civilian targets risks putting economic facilities of importance to the US and its allies in the crosshairs." ([02:28])

• Retaliation Risks:

  • Lieber warns Iran may not fold even after extensive damage. There’s significant risk of reciprocal attacks on U.S. and allied economic interests, creating long-term pain on both sides ([02:50]):

    "Iranians are promising to retaliate in kind across the region in a way that will seriously affect the regional economy as well as the global economy, potentially for many months or years to come." ([02:50])

2. Strait of Hormuz Remains Closed: Global Oil and Diplomacy

• Wider Regional Risks:
  • Iran-backed militia in Iraq threatens to attack energy infrastructure across the Middle East if the U.S. intervenes by force ([03:19]).
• Japan’s Response:
  • Japanese Prime Minister Sanae Takeichi seeks talks with Tehran to free oil tankers trapped in the Gulf and restore shipping ([03:19]).
• Iran’s Determination:
  • The Revolutionary Guard insists the Strait “will never return to its previous condition,” signaling a more permanent disruption ([03:19]).
• Shipping and Insurance Uncertainty:
  • Suna Rasmussen outlines how continued Iranian threats keep international shippers and insurers cautious ([04:13]):

    "A lot of shippers and insurance companies will not be willing to take on the risk of resuming shipping in the Strait if they don't have guarantees from Iran that Iran will not fire at ships." ([04:13])

  • She emphasizes China's key role as Iran’s economic and political partner, suggesting international pressure (especially from China) could be decisive.

3. Economic and Market Fallout

• Oil Futures and OPEC:
  • Despite the war rhetoric, oil futures remain steady after OPEC raises production by 200,000 barrels/day ([05:13]).
• Jamie Dimon’s Inflation Warning:
  • JPMorgan Chase CEO Jamie Dimon, in his annual letter, warns that the Middle East conflict could drive new oil/commodity price shocks and stoke prolonged inflation, a “skunk at the party” scenario that could harm markets ([05:13]):

    "[This] could drag down financial markets this year." ([05:13])

  • Key inflation metrics: February PCE Price Index (Thursday) and Consumer Price Index (Friday).

Other Headlines

4. U.S.-EU Cheese Dispute ([06:52])

• American Cheese Naming Rights:
  • The U.S. requires trading partners to accept generic cheese names (e.g., Asiago, Parmesan), opposing the EU’s regional protections.
  • John Emont explains how trade deals have often blocked American cheese makers from markets:

    "If you're a feta producer in, say, Wisconsin or Vermont, you can't sell your feta into the [EU] market unless you call it something different..." ([07:27])

  • The new U.S. stance opens up access to big dairy markets (Argentina, Indonesia, Malaysia, Taiwan).

5. Paramount-Warner Brothers Discovery Merger ([08:27])

• Saudi-backed $81 Billion Takeover:
  • Saudi-led sovereign funds will help finance the Paramount-Warner merger. Gulf investors will not get voting rights, and regulatory hurdles are not expected.

6. Labor & Corporate News

• Colorado Meat Plant Strike Ends:
  • 3,800 JBS beef plant workers will return after a three-week strike ([08:27]).
• Festival Sponsorships Pulled Over Kanye West:
  • Pepsi and Diageo drop sponsorship after Kanye (Yee) booked for a London festival, with UK PM Keir Starmer voicing criticism.

7. Science, Space & Pop Culture

• NASA’s Artemis II Lunar Flyby:
  • Set for the first lunar flyby in over 50 years, a four-astronaut crew (three Americans, one Canadian) will see the moon’s far side ([10:15]):

    "We’re really gearing up now for what’s going to be an exciting lunar flyby tomorrow..." – Lori Glaze, NASA ([10:15])

• Super Mario Galaxy Breaks Records:
  • The Super Mario Galaxy movie debuts with $370 million global box office, continuing the trend of video games driving cinema attendance ([10:45]).

Notable Quotes & Memorable Moments

• Dov Lieber on New Escalation:

  "Both the United States and Israel are looking for a new type of leverage, leverage they haven’t been able to gain by going after pure military sites." ([01:49])

• Jamie Dimon on Inflation:

  “A skunk at the party scenario that could drag down financial markets this year.” ([05:13])

• Suna Rasmussen on Shipping Risks:

  “It’s also up to Iran to declare when the war is over. ... As long as Iran doesn’t agree to cease hostilities or to cease threats against ships going through, well then the uncertainty remains for international shippers.” ([04:13])

Important Timestamps

• 00:22: Lead headlines: Trump’s ultimatum to Iran, Jamie Dimon’s inflation warning, US cheese trade fight
• 01:49: Dov Lieber on U.S.-Israel plans for strikes on Iranian energy infrastructure
• 02:50: Risks of escalation and reciprocal economic pain
• 04:13: Suna Rasmussen on shipping, insurance, and the role of China
• 05:13: OPEC oil decision, Jamie Dimon’s inflation warning
• 06:52: U.S. push on cheese naming rights in trade deals
• 08:27: Saudi investment in Paramount-Warner merger; labor and festival news
• 10:15: NASA Artemis II lunar flyby preview
• 10:45: Super Mario Galaxy’s record-breaking box office

Summary for First-Time Listeners

This episode provides a succinct, dynamic briefing on the new U.S.-Israel approach to resolving the standoff with Iran, emphasizing the planned escalation from military targets to attacks on Iran’s economic infrastructure—actions fraught with diplomatic and economic risk. Broad implications range from regional instability and threats to global oil flow, to ripple effects for financial markets. The episode also explores how trade skirmishes over cheese nomenclature highlight broader U.S.-EU tensions, and recaps top business, cultural, and science headlines, all delivered with urgency and clear-eyed analysis.