Bloomberg — 2026-04-03#

Lead Story#

Iran shot down a US F-15E fighter jet for the first time in the war, while also targeting energy facilities across Arab Gulf states. The escalating conflict forced Abu Dhabi to suspend operations at its largest natural gas processing facility. As President Trump issues fresh threats against Iranian infrastructure, the disruption has effectively shuttered the Strait of Hormuz and is sending major shockwaves through global energy supply chains.

Markets & Economics#

• US Jobs Gain Tops Forecasts, Sinking Fed Cut Hopes: The US added 178,000 jobs in March as the unemployment rate fell to 4.3%. The surprisingly strong data triggered a selloff in Treasuries as traders scaled back bets on Federal Reserve interest rate cuts this year.
• US Services Activity Contracts for First Time Since 2023: A gauge of new business in the US services sector shrank in March, marking its first contraction in three years as the outbreak of the Iran war stifled demand.
• Italy Breaches EU Deficit Ceiling in Blow to Meloni: Italy’s deficit hit 3.1% last year, breaching the European Union’s limit in the biggest fiscal setback for Prime Minister Giorgia Meloni since she took office in 2022. Compounding the misery, the Bank of Italy slashed its economic growth forecast to 0.5% due to the ongoing Middle East conflict.
• Middle East Conflict Drives Up Global Food Prices: The UN’s Food and Agriculture Organization reported a surge in global food costs for March. The increase is being driven by soaring energy prices and freight rates directly linked to the war.

Business & Industries#

• OpenAI Reorganizes Executive Bench Ahead of Potential IPO: The AI giant’s chief operating officer is changing roles, and two top executives are taking medical leaves. The leadership shakeup comes as the company readies for a potential Wall Street debut as soon as this year.
• Tokyo Steel Surges on Oasis Activist Stake: Shares of the Japanese steelmaker rocketed as much as 21% after activist fund Oasis Management disclosed a new position. Oasis indicated it may push proposals to spark restructuring at the firm.
• US and Partners Double Hormuz Insurance Guarantees to $40 Billion: The US has doubled its financial commitment to provide reinsurance for ships navigating the volatile Strait of Hormuz. The program has brought on new partners including AIG and Berkshire Hathaway to backstop vessels amid the ongoing conflict.
• Blue Owl Capital Faces Investor Pullback: The alternative asset manager is facing severe pressure as the early investors who fueled its aggressive expansion are now seeking to pull their funds, posting top-line numbers described as definitively ugly.

Policy & World#

• Trump Seeks Massive Defense Hike in 2027 Budget: President Trump’s fiscal 2027 blueprint asks Congress for a massive defense increase, including a request for 85 Lockheed F-35 jets to boost the military’s largest weapons program. To fund it, the administration is pushing steep cuts to domestic programs and nearly halving NASA’s science budget to prioritize a lunar base.
• US Munitions Deficit Delays Tomahawk Deliveries to Japan: Japan’s order for hundreds of US Tomahawk missiles is under threat as the war in Iran burns through American inventories. The delay highlights how the Middle East conflict is drawing resources away from defending against Washington’s primary strategic rival, China.
• European Nations Scramble to Blunt Fuel Shock: Prime Minister Meloni’s government committed €500 million to extend Italy’s fuel tax cut through May 1 to blunt war-induced energy prices. Meanwhile, the French government is actively preparing targeted financial aid for citizens dependent on cars as pump costs surge.

Opinion & Analysis#

• Trump’s America Is Slouching Toward State Capitalism: Bloomberg Opinion argues that US conservatives have abandoned pure free-market ideology, shifting from “markets good, state bad” to embracing a new state capitalism characterized by massive corporate intervention.
• The US Labor Market Is Still in a Vulnerable Place: Despite strong top-line payroll growth, the delicate balance between worker supply and demand is highly fragile, with the escalating Iran war threatening to upend the entire employment recovery.