Senator Elizabeth Warren Talks Iran Deal, Fed's Warsh and SpaceX IPO

**SPEAKER_1** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News. This is Balance of Power, live from Washington, DC.

**Donald Trump** (0:21)
Here's what it says, Iran will never have a nuclear weapon. That's what it says. It won't have one to buy, to develop. They will not have a nuclear weapon. And I would say that's about 99.9% of what I wanted, because we couldn't let that happen. You couldn't let that happen.
And they won't have a nuclear weapon. Now, in addition to that, This trade is going to be open toll free.

**Joe Mathieu** (0:46)
Tonight, details, details. President Trump touting his agreement with Iran on day two of the G7 summit, but questions remain over what's actually in the memorandum of understanding and what still needs to be negotiated.
Also, let's make a deal. After months of back and forth over competing housing bills, congressional leaders say they have an agreement on a bicameral package. We will speak with one of its sponsors, Senator Elizabeth Warren, coming up this hour. We'll cover it all in The View from the Hill. Senators Warren as well as Ron Johnson joined Balance of Power on the Iran agreement, the housing fight, Kevin Warsh is fed, and a lot more. From Bloomberg's Washington, DC studios to our TV and radio audiences worldwide, welcome to Balance of Power. Alongside Kayleigh Lines, I'm Joe Mathieu.

**Kayleigh Lines** (1:33)
And Joe, we begin with new developments tonight from the G7 summit in France as the US and Iran prepare to formally sign an interim peace deal this Friday. The rest of the world is pressing for details on what's actually in it. The framework agreement has yet to be published, but a near final draft seen by Bloomberg News indicates Iran is set to receive some key financial incentives, including sanctions waivers to begin selling oil immediately.
For the very latest, let's go live now to Bloomberg's Tyler Kendall, who is covering the summit for us from Evian, France. Tyler.

**Tyler Kendall** (2:05)
Hey, Kaylee. Well, new tonight, as you mentioned, Bloomberg News has obtained the latest draft agreement of this memorandum of understanding, which appears to show that Iran will get broad financial incentives, at least for now, as the US does maintain that those incentives will only accrue if Iran maintains its end of the deal. But importantly, there's a few different threads that we've been following here, including that this does include that Iran would be able to tap a $300 billion development fund, which the MOU says will be financed through the US as well as regional partners. As you mentioned, we have been waiting for any signal when it comes to whether or not Iran will be able to sell its crude to market. And this draft MOU goes on to say that the US Treasury Department will in part, quote, issue waivers for exports of Iranian crude oil, petrochemical products and their derivatives, apparently immediately after this deal is signed. Again, though, it is our understanding that only sustained progress when it comes to maintaining to the deal will mean that those financial benefits will keep accruing. We should say that our own reporting does caution that both sides have indicated that they are still in these technical discussions, which means that ultimately the final draft language could change. President Trump himself did indicate and confirm that we are expecting this signing ceremony to take place this Friday in Switzerland. Vice President JD. Vance is expected to represent the US side, and Joe and Kayleigh were expecting Iran's parliament speaker to be there to sign on behalf of their country.

**Joe Mathieu** (3:40)
It will be quite a moment, Tyler. You're, of course, surrounded by stakeholders. What kind of optimism or concerns are you hearing, specifically from European leaders, about the nuances, to the extent that we understand of this deal and the reopening of the Strait?

**Tyler Kendall** (3:55)
Well, Joe, at this point, we know that the first phase of this agreement is going to be to get the Strait of Hormuz reopened. Yes, we're going to see the 60-day extension of the ceasefire, but the Strait needs to be reopened and the US will be lifting its naval blockade. But there are both short- and long-term concerns here when I'm talking to people on the ground here at the G7 summit. In the immediate term, we know that the US is looking for allies to help ultimately deploy assets to reopen and secure that waterway. But I spoke earlier today with the spokesperson for France's Foreign Ministry that said that they need to get these concrete details in the deal in front of them. They need to see that agreement ultimately signed in assurances that their own military assets wouldn't be put at risk considering that we know that the Strait is still mined. And then, of course, Joe and Kayleigh, there are concerns here that even as Iran says that they will not be able to do this for 60 days, there will not be tolls. There are serious concerns that Iran is looking to impose fees once those 60 days are over, but they are trying to reframe them as being tied for navigational or insurance services.