00:00:53.860Now it's the whole NATO allies refused to join Trump's Iranian port blockade, according to Reuters.
00:01:00.000Allies said on Monday they would not get involved in U.S. President Trump's plan to blockade Iranian ports,
00:01:05.320proposing to intervene only once fighting ends in a move likely to anger Trump and increase strains in the alliance.
00:01:12.080Trump said the U.S. military would eliminate any Iranian ships that came near the blockade that began on Monday after the weekend talks
00:01:18.660failed to reach an agreement to end the six-week conflict with Iran.
00:01:23.040Trump initially said the U.S. would work with other countries to block ships passing through the Strait of Hormuz,
00:01:28.320But the U.S. military later specified that the blockade would only apply to ships going to or from Iranian ports.
00:01:34.400Since the war started February 28th, Iran has largely blocked the waterway for all ships, but its own.
00:01:40.720It has been seeking to make its control of state permanent and possibly collect levies from ships that use of the blockade will begin shortly.
00:01:49.220Other countries will be involved with the blockade, Trump said in a post on Truth Social on Sunday.
00:01:53.760But NATO allies, including Britain and France, have said they would not be drawn into the conflict.
00:08:16.140They let that go on in Bosnia until what?
00:08:18.340Until I think it was Clinton finally agreed to drop tomahawks on enemy positions to see if they could break the back of the rebel general that was committing the genocide in the fields.
00:09:00.720But I'm certainly no expert on, you know, maybe think maybe think about it from the economic side, because you watch how the market reacts to certain things.
00:09:08.900Right. How how would the market react if all of a sudden say things are not going the right way?
00:09:14.580Say the Thursday negotiation gets nasty and behind closed doors, the president's not happy with the way NATO's supporting him.
00:09:21.520Hypothetically, he announces because, you know, he's capable of announcing anything.
00:09:25.000He announces we're out. How do you think the market reacts?
00:09:27.820My guess would be more muted than one might think.
00:09:30.300I mean, I think, you know, the market could have a sell-off that day.
00:09:32.720I don't think it would be particularly catastrophic because when the market says,
00:09:35.800okay, what does this mean over the next, let alone weeks, what does this mean over years?
00:09:40.060Are we worried about any of those NATO members getting attacked more than they might otherwise,
00:09:43.720especially if the rest of NATO stays intact?
00:09:45.700So some of the smaller members are still defended by some of the bigger members.
00:09:48.520You know, multiple of them are nuclear powers.
00:09:52.220So I don't think anyone would seriously worry about the safety of NATO countries
00:09:56.860just because the U.S. was out in any sort of multi-year time frame.
00:09:59.720Obviously, that has long-term implications for deterioration between the U.S. and Europe in particular.
00:10:05.580But probably the market would just look through that, kind of like how it's been surprisingly resilient
00:10:09.420looking through all the current energy shortages.
00:10:11.620Yeah, it's interesting you're saying that because I don't know if you guys saw that or not.
00:10:14.760Zelensky the other day said in a press conference, he's been kind of quiet.
00:10:18.040He says U.K. should come back into NATO.
00:14:57.060Okay, keep playing it. Keep playing it with Jesse.
00:14:58.860The oil and petrochemical industries have been wiped out. Without oil revenue, all they can sell are pistachios to Pakistanis. It could get worse. The president's still weighing limited airstrikes, saying a number of additional targets are very easy to hit. The Iranians are losing their cards here. And Vance, who just spent 20 hours negotiating with them, says that we're in the driver's seat.1.00
00:15:49.860And so, yeah, it's hitting them and it's hitting them hard. And yes, you've got this. And yes, drill, baby, drill and the renewed relationship with Venezuela and all that Venezuela oil coming out and benefiting the people of Venezuela, hopefully more and more next year than this year.
00:16:07.980that's all good you know but i i look at it yeah it is are they going to break are they going to
00:16:13.720negotiate are they going to give up the nuclear option and so a rational player would but you
00:16:19.200have to remember these are irrational players that would allow their own people they'd allow
00:16:24.66090 of their own people to die before they give up the card because it's a theocratic it's a
00:16:30.940suicidal theocracy that believes in that endgame. And so in that way, they're not a rational actor.
00:16:38.940So, Lynn, I'll give you this last thoughts on here. And I know it's more you're more economy
00:16:43.720than some like this. But have you thought about what would be an ideal situation where the market's
00:16:48.660going to sit there and Trump comes out the winner? What could happen where Trump comes out the winner
00:16:53.380in this issue with Iran? I can certainly see an agreement like years ago where Iran agrees to
00:16:59.660kind of defer any sort of nuclear program it has observers in in exchange for letting off the
00:17:04.500attacks and things like that that's kind of the a possibility here there's also just i mean they
00:17:09.140can declare themselves a winner the u.s can declare themselves a winner and kind of back out
00:17:12.640and you know see how the optics go i think you know with that clip we saw there's some
00:17:17.800simplification of talking points because even though the u.s does produce a lot of oil and gas
00:17:22.360it's not as though we have just a bunch of spare capacity sitting around we we export a lot we
00:17:27.380import a lot not all oil is the same because it has to be matched at certain types of refineries
00:17:31.700uh and so we i mean we've seen pretty clearly obviously gasoline prices and other energy
00:17:35.500prices have spiked here in the u.s just like many other parts of the world we're not you know we're
00:17:39.400not the most vulnerable in the world that's mostly going to be the uh the the poor per capita
00:17:43.640development developing countries that have to import a lot and are now being outbid by all
00:17:47.500the wealthy nations in the east and and elsewhere um but we are impacted and you know right now
00:17:52.640there's obviously iran's on a clock i mean they you know they've hyperinflated not for the first
00:17:56.960time. They've got severe economic issues. They've got all sorts of issues. You know, but as Tom
00:18:02.700pointed out, they're ideological more so than they're pragmatic. The U.S. is also on a less
00:18:08.140severe ticking clock. But I mean, just politically speaking, there's the midterms coming up right
00:18:12.100now. Consumer sentiment is a record low, lower than 2008, lower than the peak of COVID, lower
00:18:17.300than the late 70s. Those were kind of all other low points. We hit new lows. And that's partially
00:18:21.540because, I mean, gasoline prices at the pump are up. And then even things we don't see directly,
00:18:25.520all the transportation costs and you mentioned seven dollar dorito bags crazy that part of that
00:18:30.340i mean going forward all all these things that have to move around the country that's impacted
00:18:33.720by transportation costs five dollar diesel yeah exactly uh and so the u.s consumer is being
00:18:39.200squeezed uh and then that of course has you know the polls are already shifting pretty greatly
00:18:43.600toward the midterms uh so i think that the trump administration has an incentive to try to get this
00:18:48.020wrapped up sooner rather than later uh and then it's it's a force of wills between obviously
00:18:52.300You know, the average Iranian is a lot more impacted than the average American here, but they are a very resilient ideological type regime there.