Trump Reverts to Economic Squeeze of Iran; Colombia Quake Toll Tops 260

**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** (0:15)
Karen, we begin with the latest on the war in Iran. President Trump is reverting to economic pressure as the two sides remain in a stalemate. It is a marked reversal from the president's recent military threats against the Islamic Republic. Bloomberg Washington correspondent, Tyler Kendall, says the war is still a long way from resolution.

**Tyler Kendall** (0:33)
It's very evident that both sides are trying to dig in to their positions when it comes to the Strait of Hormuz, but there's very little sign that Iran is going to give up the leverage it has when it comes to the waterway, not just in terms of its grip on shipping in Hormuz, but also importantly, we should point out the other disruptions to global shipping. As Yemen's government confirmed that at least six people died in a Houthi attack in the Red Sea, marking the first such fatalities of a Houthi attack since this specific conflict has started.

**Nathan Hager** (1:02)
And Bloomberg's Tyler Kendall adds the Trump administration's relying on a steady increase in sanctions and its naval blockades to stifle Iran's oil exports. A White House official says the strategy has left Iran completely broke, and it comes as Iran is reorganizing its military to be more aggressive abroad. It's a sign Tehran is preparing for a protracted era of regional conflict.

**Karen Moskow** (1:24)
Well, Nathan, oil is falling this morning. Brent is coming off a six-day advance as traders await signs of progress on a reopening at the Strait of Hormuz. President Trump claims to have total control over the waterway, while Iran says users should remediate any local environmental harm. Checking prices right now, NIMEX screwed oil down 1.9% at $81.66 a barrel. Brent is at $87.41.

**Nathan Hager** (1:48)
And elsewhere in geopolitics, Karen, a European intelligence official is telling Bloomberg Russia may ramp up hybrid attacks against the Baltic States and Poland. The warning comes amid concern Moscow is trying to intimidate countries that support Ukraine. Bloomberg Chief Europe correspondent Oliver Crook says the Kremlin is not preparing a conventional attack or invasion, but is enhancing its shadow war with European nations.

**Oliver Crook** (2:11)
The broader context here is sort of important with all of these attacks that we're seeing that are landing to much damaging effect on the Russians, whether it's the refining operations, whether it's these ports in the Black Sea. The Russians are under serious pressure, and so there's a real question in terms of what retaliation from the Russians are going to look like. Obviously, they've been bombing the Ukrainians very aggressively over the last couple of months, but there is some question now with that desperation, with the impact it's having on the Russian economy, will they expand it further? So that's the warning we've been getting obviously from the Baltic nations.

**Nathan Hager** (2:40)
And Bloomberg's Oliver Crook says the warning comes as Germany has already been talking about a Russia-linked influence campaign ahead of its country's regional elections next month.

**Karen Moskow** (2:49)
Well, back in this country, Nathan, the White House is about to lose its most prominent voice. Bloomberg's Amy Morris supports Press Secretary Caroline Levitt is leaving the role later this month.

**Amy Morris** (3:00)
President Trump made the announcement in a social media post. He said Levitt was leaving in order to spend time with her family and would, quote, now be one of my top outside advisors. Levitt has served as press secretary since Trump returned to office in 2025
She recently gave birth to her second child. Levitt said in her own social media post that the job was taking a toll on her family. The president did not immediately name a successor to Levitt. In Washington, Amy Morris, Bloomberg Radio.

**SPEAKER_7** (3:27)
Amy, thanks.

**Nathan Hager** (3:28)
Turning to markets now. US government borrowing costs at auction have climbed to their highest level since the global financial crisis. A sale of benchmark 10-year treasuries produced the highest yield since 2007
Demand did hold up reasonably well. Today, attention turns to the 30-year auction. That's expected to carry the highest rate in 25 years. Persistent inflation and swelling budget deficits are adding to the pressure alongside rising oil prices and competition from corporate debt sales.

**Karen Moskow** (3:56)
Well, Nathan, stocks traded close to record highs yesterday following a July consumer price rating that reinforced hopes the Fed won't raise rates. Ed Yardeni with Yardeni Research tells Bloomberg he expects a rate hike next month, but he thinks equities will continue to melt up.