The Global Reach of Iran Sanctions & Royal Caribbean’s Premium Push

**John Creteau** (0:00)
This episode is brought to you by Charles Schwab. Timing the market, fighting inflation, managing risk? Financial decisions can be tricky. Investing isn't just math, it's psychology. Your neurons are playing favorites, and the market doesn't care. Financial Decoder, an original podcast from Charles Schwab, can help.
Join host Mark Reapy as he breaks down practical strategies to help overcome the mental traps that may affect your investing decisions.
Listen at schwab.com/financialdecoder.

**Ann Berry** (0:32)
Crypto, after months of declines, the digital asset is on a tear. We look at the treasury moves that have some investors once again getting back into Bitcoin.
Royal Caribbean or Caribbean, private islands, swim up bars and towering waterslides. We dive into the cruise line's premium push. And sanctions, the US is ramping up pressure against Iran. But the latest move could hit countries far beyond its borders. For Monday, August 24th, it's Brew Markets Daily and I'm Ann Berry.
More market details to come. But first, Iran, the Trump administration, preparing to dramatically expand economic pressure on Tehran as talks to reopen the Strait of Hormuz continue to stall. New sanctions announced could affect not only Iran, but foreign companies, banks and governments that continue to do business with the country. Well, the new measures are expected to broaden the use of so-called secondary sanctions. Well, unlike sanctions that directly target Iranian officials or companies, secondary sanctions can punish foreign businesses and financial institutions for dealing with Iran. In practical terms, Washington can force companies to make a choice, continue doing business with Iran or maintain access to the US financial system. It's one or the other. That's according to US. Treasury Secretary Scott Besson as he launched what he dubbed Operation Economic Outcast. Well, the administration says the goal is to cut off Iran's remaining sources of revenue and increase pressure on Tehran. Iran has spent years finding ways around existing American sanctions using intermediaries, front companies and a so-called shadow fleet of tankers to continue selling oil overseas. The United States has increasingly targeted those networks, including ships and companies accused of helping to move Iranian petroleum. Well, a wider sanctions campaign could have consequences far beyond Iran. And let's talk about who's actually buying some of those assets and commodities moving off radar. Well, China is a major buyer of Iranian oil, and Washington has already targeted some Chinese companies accused of participating in that trade. Expanding the pressure to foreign banks and other institutions could, as a result, create new tensions between Washington and Beijing, where tensions are already high, forcing companies around the world to reconsider where they want their exposure to lie, literally being caught between the two economic giants. Well, the announcement also comes as Iran faces mounting pressure economically at home. The real, the Iranian currency, has fallen about 15% since strikes began in February, increasing the cost of imported goods and adding to the financial strain on ordinary Iranians. Now, Iran has warned that it could retaliate against countries that cooperate with the American pressure campaign. Taking a look at the market reaction right now, mixed across the board, we saw a slew of red, that was the S&P 500, the NASDAQ, down between 0.3 and 0.8%.
Dow Jones, on the other hand, shrugging it off a little bit, a little bit up at 0.3% today. We're coming up in a moment, a spin through the headlines that are moving the markets, including why Paramount is threatening to move out of California.
But first, this episode is brought to you by Charles Schwab. Timing the market, fighting inflation, balancing risk. No one says financial decisions are easy. In fact, it's the exact opposite. Financial decisions can be really tricky and it's often your own thinking that can lead you astray.
Financial Decoder, an original podcast from Charles Schwab, can help.

**John Creteau** (4:08)
Join host Mark Reapy, head of the Schwab Center for Financial Research, as he offers modern strategies to help combat the, wait, what, in your head.
Mental traps like overconfidence, loss aversion and recency bias could cloud your investing decisions. When you understand these patterns, you can take steps to make better informed financial decisions. Listen at schwab.com/financialdecoder or wherever you get your podcasts that schwab.com/financialdecoder.

**Ann Berry** (4:36)
Well, let's take a quick spin through some of the headlines that have been moving the markets today, starting with a new plot twist in the Hollywood drama that is Paramount's acquisition of Warner Bros. Discovery.

**John Creteau** (4:46)
That's right. California Attorney General Rob Bonta's office canceled a planned meeting today with Paramount CEO David Ellison. The parties were expected to discuss settling a lawsuit brought by the state seeking to block the purchase of Warner Bros.
The state accused Paramount of leaking details of their previous meeting, with Bonta saying, quote, As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.