Blockade in Hormuz

Good morning. Donald Trump orders his own blockade of the Strait of Hormuz. Global policymakers meet in Washington to assess the geopolitical impasse. Hungary ousts Trump-backed Prime Minister Viktor Orban after 16 years. Listen to the day’s top stories.

— Tiago Ramos Alfaro

Donald Trump vowed to begin a full naval blockade of the Strait of Hormuz and threatened retaliation if Iran resists, a move that risks widening the war to high seas. The US president said he does not care whether Iran returns to talks after weekend negotiations in failed. Markets reacted swiftly with oil prices surging while gold and global stocks fell amid uncertainty over the war and growing inflation risks. Watch this video for more.

Repercussions: The UK said it won’t join the blockade, setting up another point of contention between President Trump and Prime Minister Keir Starmer. Spain’s leader Pedro Sánchez, visiting Beijing, urged China to use its influence to help end the wars in Iran and Ukraine. Oil tankers in the Gulf renewed attempts to transit Hormuz by sailing close to the Iranian coast, while supertankers carrying Iranian crude, anchored off Indian ports, potentially the first such cargoes to arrive in the country in almost seven years.

The world’s leading economic policymakers are gathering in Washington for the IMF and World Bank meetings, with the war’s economic fallout high on the agenda. Even before the summit kicks off, IMF boss Kristalina Georgieva told CBS that prices will take time to ease even if a ceasefire with Iran holds. That could be painful as central banks look increasingly unlikely to take unified action to support the global economy.

Trump Attacks Pope for Iran War, Immigration Criticism

The US president attacked Pope Leo XIV for his criticisms of the US-Israeli war on Iran, calling the leader of the Catholic Church “WEAK on crime.”

Read more

Trump’s ally in Budapest, Viktor Orban, lost the weekend election, ending a 16-year grip on power in Hungary. Winner Peter Magyar outlined sweeping changes after a landslide victory that is set to redefine the country’s ties with the European Union, Russia and the US administration. Markets reacted strongly: the forint surged to a four-year high and local stocks hit a record. Here’s a profile of the incoming prime minister and a guide to his next steps.

Deep Dive: Anxious Parents

The old parental anxiety over getting their kids into college has been followed by a new one: getting their kids a job after graduation.

• Coaching packages range from a few thousand dollars to more than $30,000, with some elite programs topping $50,000, to help students land competitive roles in an increasingly cutthroat environment.
• As demand surges, life coaches are increasingly focusing on students, as families treat career prep as a return on rising tuition costs.
• For parents, it can seem like a wise investment given the total annual cost of attendance at a private four-year college—including room and board—is expected to surpass $65,000.
  

The Big Take

Illustration by Arnaud Aubry via Bloomberg

Retail-trading apps that got famous for “democratizing finance” with free trades, fractional shares and meme stocks are going elite. They’re piling on luxury perks from F1 access to premium credit cards to keep wealthy clients from leaving, mimicking the big banks.

Opinion

Photographer: Pool/Getty Images AsiaPac

The collapse of peace talks between the US and Iran is a reminder of the fragile limits of middle-power diplomacy, Karishma Vaswani writes. An ambitious coalition of nations, led by Pakistan, pulled off something remarkable just by getting Washington and Tehran to the table. Keeping them there is a different thing.

More Opinions:

Andreas Kluth

It’s the Worst Time to Be an American Ally

John Authers

Whoever’s Stopping It, the Oil Doesn’t Get Through

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Before You Go

Photographer: Eva Marie Uzcategui/Bloomberg

Miami’s wealth boom is now driving demolitions as well. The waterfront Mandarin Oriental was imploded on Sunday to make way for a new luxury development that will include a larger hotel. The demolition—the largest in Miami in more than a decade—shows just how much Miami’s real estate market is changing.

One More:

The Eternal Love Affair Between Watches and Architecture

Bloomberg Tech returns to San Francisco June 3-4, 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.

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