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 The Iran war has begun to escalate in recent days after Israel targeted an Iranian gas field and Iran responded by targeting one in Qatar, further destabilizing the global energy landscape. The Iranian missile strike on the Ras Laffan complex caused extensive damage to the world's largest liquefied natural gas plant. Two facilities that produce 17% of the country's LNG exports, or about 13 millions tons a year, were affected and it will take three to five years to repair them, QatarEnergy Chief Executive Officer Saad al-Kaabi told Reuters. Israeli Prime Minister Benjamin Netanyahu on Thursday said his country would avoid future attacks on Iran's energy infrastructure, after a fissure appeared to open up between him and Donald Trump, with the US president saying he had no prior knowledge of the attack. Israeli officials reportedly said he did. —David E. Rovella What You Need to Know TodayFrom the history rhymes department, Wall Street is licking its collective lips at the prospect of relaxed capital requirements under proposals unveiled by the Federal Reserve on Thursday. It's a move that could potentially unleash billions of dollars for lending, share buybacks and dividends. "These changes would strengthen our overall capital framework, which would remain robust under the new regime," said Fed Vice Chair for Supervision Michelle Bowman, appointed to the role last year by Trump.  Michelle Bowman Photographer: Bloomberg The proposals represent a major win for banks after their lobbyists attacked a Biden-era plan to significantly hike capital requirements. Top banking agencies have since largely embraced Trump's deregulatory drive, as the administration looks to loosen guardrails for an industry desperate to compete with non-banks and private credit. If finalized, the plans—along with moves to ease the enhanced supplementary leverage ratio and overhaul stress tests—would amount to some of the biggest bank-capital rule changes since those enacted following the 2008 financial crisis. The sharks are out for private credit. Goldman Sachs and JPMorgan are said to be among investment banks offering hedge fund clients ways to bet against the $1.8 trillion market. Private credit is facing a wave of redemptions driven in part by fears lenders may be too heavily exposed to the software industry. The sector is perhaps the most prominent example of one that could be laid low by artificial intelligence. Much of the market turbulence is centered in the US, where private credit funds have attracted tens of billions of dollars from retail investors. Firms including BlackRock, Morgan Stanley and Cliffwater have recently imposed limits on withdrawals after redemption requests exceeded allowable thresholds. Pimco president Christian Stracke warned yesterday that 20% to 30% exposure to single industries like software is prompting investors to "not wait around to see how bad it gets." At least 16 US military aircraft have been lost since the start of the Iran war, including 10 Reaper strike drones hit by enemy fire and a half-dozen other planes badly damaged in attacks or accidents. The most serious losses were because of accidents, according to the Pentagon: three US F-15s downed by friendly fire in Kuwait, and a KC-135 tanker destroyed during a refueling operation, killing six. Five other KC-135s were reportedly damaged by an Iranian missile strike while parked at an airfield in Saudi Arabia. The tremendous use of incredibly expensive weapons meant for wars with peer powers like Russia and China, as well as the degrading of US assets in combat, has defense experts worried Trump is leaving the US vulnerable if another conflict were to occur. For its part, the Pentagon has asked for an additional $200 billion from Congress to pay for the war. What You'll Need to Know TomorrowFor Your CommuteBloomberg Tech returns to San Francisco June 3-4, led by Emily Chang and Tom Giles, convening leading CEOs, investors and innovators shaping the future. Drawing on Bloomberg's global newsroom and Terminal data, we'll explore the capital, connectivity and ideas driving the industry forward. Register here. More from BloombergEnjoying Evening Briefing Americas? Get more news and analysis with our regional editions for Asia and Europe. Check out these newsletters, too:
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