Trump Dismisses ‘Little War’ With Iran, Woman Shot Dead by NYPD

**SPEAKER_1** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News.

**Nathan Hager** (0:09)
Good morning, I'm Nathan Hager.

**Karen Moskow** (0:11)
And I'm Karen Moskow. Here are the stories we're following today.

**Nathan Hager** (0:16)
Karen, we begin with the latest from the Middle East. In new attacks this morning near the Strait of Hormuz, the maritime security consultant Marisks says two oil supertankers were hit with unknown projectiles this morning in quick succession while transiting the choke point near Oman. This follows the first US strikes on Iran in about a month. At the White House, President Trump says Iran is a failed nation.

**Donald Trump** (0:39)
Their leaders are largely dead.
Their Navy is gone, their Air Force is gone, their surveillance equipment is almost entirely gone. That doesn't mean we won't smack them.

**Nathan Hager** (0:53)
President Trump is dismissing concerns that the return to conflict will drain US firepower. He says it's a, quote, relatively little war for us. But the war is flaring up as we hear from Bloomberg Middle East correspondent Abirah Bouamar in Dubai.

**Abirah Bouamar** (1:05)
We saw the first military strikes in the region for the first time since July, so in over a month really bringing back those tensions in the region. Iran retaliating against the initial US strike by hidden countries in the region, namely Jordan and territorial waters in the United Arab Emirates.

**Nathan Hager** (1:24)
Meanwhile, Bloomberg's Abirah Bouamar reports Iran's president is calling on the US once again to return to the interim peace deal that both sides agreed to in June. He tells Iran's state television his country will reciprocate if the US does so.

**Karen Moskow** (1:36)
Well, Nathan, as the war continues, the army is losing its top civilian leader. A source confirms to Bloomberg Army Secretary Dan Driscoll has submitted his resignation to President Trump. Driscoll had clashed repeatedly with Defense Secretary Pete Hegseth over personnel and leadership decisions.
He reportedly resisted efforts to remove women and black officers, among others, from promotion lists. Driscoll's departure comes nearly a year after Hegseth fired Army Chief of Staff Randy George. The two work closely together on efforts to modernize the army and often tag team on speaking engagements. With both leaders gone, the army now has no Senate-confirmed leadership.

**Nathan Hager** (2:16)
In New York City, Karen, a woman randomly stabbed two people in Times Square, killing one of them and wounding the other.
This happened just before 4:30 p.m. next to a New York City Police Department substation just outside one Times Square. That's the building that hosts the city's annual New Year's Eve ball drop celebration. Here's New York City Police Commissioner Jessica Tisch.

**Jessica Tisch** (2:38)
During the encounter, she told the officers, quote, I'm not dropping anything. I would rather kill both of you. She repeated, I will kill you.

**Nathan Hager** (2:48)
A police shot and killed the 49-year-old woman from Queens. They say she had mental health issues.

**Karen Moskow** (2:54)
In Massachusetts, Nathan, Democrats will decide the latest head-to-head matchup between the party's moderate and progressive wings with a recurring theme, progressives versus moderates and longtime incumbents versus significantly younger challengers. Bloomberg's Amy Morris reports.

**Amy Morris** (3:12)
Senator Ed Markey faces a competitive Democratic primary challenge from Representative Seth Moulton in his bid for a third full term. Markey, who turned 80 in July, is the second oldest sitting senator seeking re-election in 2026
Moulton is a six-term congressman who will turn 48 in October. Markey has had a slight financial advantage, raising and spending more than $8 million compared with Moulton's $6 million. Massachusetts voters will also choose nominees for US House, Governor and several state and local offices. Amy Morris, Bloomberg Radio.

**Nathan Hager** (3:45)
Amy, thank you. Back in Washington, President Trump has scored a major legal victory in his bid to keep building a White House ballroom. The Supreme Court is letting the construction continue for now, brushing aside two lower court rulings that the project probably violates the law. Bloomberg Legal Reporter Zoe Tillman has more.

**Zoe Tillman** (4:02)
What it came down to was whether the historic preservation group that sued had standing to bring this case in the first place. Lower courts had determined that they did, and the justices here determined that they were likely to lose on that question.

**Nathan Hager** (4:17)
Bloomberg's Zoe Tillman reports Chief Justice John Roberts joined with the court's three liberals in arguing that Congress needed to give express authority for the construction. The majority did not rule on the merits of whether the ballroom project is lawful. White House says it's 65% complete and is on track for full completion by August of 2028

**Karen Moskow** (4:36)
Well, let's turn to the markets now, Nathan, where global bond yields are jumping to the highest levels in almost two decades. Bloomberg's John Tucker joins us with the very latest. John, good morning.