US-Iran War Stalled; Diesel Hits Four-Year High

**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 this morning with the latest from the Middle East. Iran says it has targeted US bases in the United Arab Emirates and Kuwait this morning. That word from state-run media comes after the US carried out a second wave of attacks on Iran's southern coast Tuesday night. President Trump says the strikes targeted offensive and defensive equipment near the Strait of Hormuz.

**Donald Trump** (0:35)
We blew up much more than their radar last night. It was a very heavy attack last night. And we're prepared to do another one anytime we want.

**Nathan Hager** (0:43)
The President spoke yesterday from the Oval Office. Now, since then, the US has not announced any new attacks, but the Wall Street Journal is reporting that the Pentagon is extending Middle East deployments that could last into next year to maintain a level of 50,000 personnel and give the President flexibility on military options.

**Karen Moskow** (1:00)
Well, Nathan, we continue to see an impact on the war in the energy market. US retail diesel prices have hit the highest level since mid-2022, and that tops the peak seen during the early stages of the Iran War. The national average pump price of diesel is now just above $5.78 a gallon.

**Nathan Hager** (1:18)
Karen, we're learning more about the dispute between the US and China at this week's G20 Finance Minister's Summit that kept the group from issuing a joint communique. Sources tell Bloomberg News the disagreement came down to one word, non-market. We're told Chinese officials saw the term as a veiled attack on state-owned companies that are a pillar of their economy. Bloomberg's Jill Desus reports Treasury Secretary Scott Besant focused on China's trade surplus in his statement after the meeting.

**SPEAKER_5** (1:43)
China had a trade surplus, record trade surplus last year of $1.2 trillion, again record largest ever. We've seen Besant talk about this multiple times throughout the course of the summit.

**Nathan Hager** (1:55)
Bloomberg's Jill Desus reports China proposed a tweak to the wording that would have addressed trade imbalances without putting a spotlight on its state-owned enterprises. Besant's final statement included a line calling on nations to eliminate non-market policies.

**Karen Moskow** (2:08)
Nathan, Chinese President Xi Jinping is in Egypt and he's sharpening his rhetoric and urging Middle Eastern nations to pivot away from the US. During a meeting with Egyptian President Abdel Fattah el-Sisi, Xi said the people in the Middle East should be the masters of their own affairs. In an availed swipe at the US, he also said China would back efforts to reshape the security architecture in the region. This is the Chinese president's first trip to Egypt in a decade and it comes before he heads to Washington for a highly anticipated summit with President Trump at the end of the month.

**Nathan Hager** (2:41)
In New York, Karen, Nicolas Maduro is making a new bid to have his criminal case thrown out. Lawyers for the deposed Venezuelan leader submitted a court filing yesterday arguing that he is immune from prosecution as the head of a sovereign state. Federal prosecutors argue Maduro and others partnered with designated foreign terrorist groups and sought to enrich himself while in office. Maduro and his wife face drug trafficking and conspiracy charges. After they were captured in a US military raid on Venezuela in January, they face life in prison if convicted. Trial is set for June of next year.

**Karen Moskow** (3:13)
Nathan, the Trump administration's latest attempt to limit birthright citizenship has been blocked in federal court. A judge in Maryland has temporarily blocked an executive order that President Trump issued last month. The order would deny citizenship to children whose parents took part in a commercial transaction to ensure they gave birth in the US. The judge said the Supreme Court already decided that children in that class are citizens at birth. The Justice Department could now ask a federal appeals court to lift the judge's order and let officials move ahead with the president's plan while the legal fights play out.

**Nathan Hager** (3:46)
In Washington, Karen, now that Congress has passed a stopgap funding bill to keep the government open until December 11th, there are more spending bills that need attention. Bloomberg's Amy Morris reports from the nation's capital.

**SPEAKER_6** (3:59)
Texas Republican Jody Errington chairs the House Budget Committee. He tells Balance of Power he wants to get the defense bill passed, but he says the Senate's not cooperating.

**Donald Trump** (4:09)
Unfortunately, I don't know that the will is there. I don't think there's a more important endeavor for us as Congress to deal with than to support the common defense and back our troops. That's after the election. I just hold very little hope out prior to the election at this point that we'll get a return served from the Senate.