Iran, US Reach 'Principles' of New Nuclear Deal
Watch on YouTube ↗  |  February 17, 2026 at 16:53 UTC  |  3:20  |  Bloomberg Markets
Speakers
Danny — Anchor, Bloomberg
Mark — Analyst, Bloomberg

Summary

  • US and Iran have agreed on "principles" for a new nuclear deal in Geneva, though no date is set for the next round; the core friction point remains Iran's insistence on domestic enrichment capacity.
  • Despite diplomatic efforts, the US is bolstering military presence, deploying a carrier strike group to the Arabian Sea, while Iran conducts drills closing parts of the Strait of Hormuz.
  • Contrarian Insight: Bloomberg Economics asserts that even if the US takes military action (which they view as a "high likelihood"), it may not result in lasting oil market impacts, citing a precedent of avoiding energy infrastructure in previous conflicts.
Trade Ideas
Ticker Direction Speaker Thesis Time
WTI /XLE
WATCH Mark "Bloomberg Economics... say that even if the US military does decide to do a strike, it doesn't necessarily mean that we will see lasting impacts on the oil market." Markets typically panic-buy oil on news of US military strikes in the Middle East. However, the analyst suggests a specific "Second-Order" outcome where combatants intentionally avoid energy infrastructure (similar to "Operation Midnight Hammer"). If infrastructure is spared, any war-driven oil spike would be a "fade" opportunity rather than a sustainable rally. WATCH. Monitor for knee-jerk rallies to potentially fade if infrastructure remains intact. A change in military strategy that targets oil refineries directly would invalidate this thesis and send prices higher. 2:46
LONG Mark The Trump administration has "confirmed it has sent over that additional carrier strike group to the Arabian Sea" and analysts see a "high likelihood that the U.S. could take military action against Iran." While "diplomacy is the top agenda," the physical movement of high-value military assets and the explicit prediction of kinetic action by Bloomberg Economics signals increased utilization of defense hardware and logistics. LONG. The deployment itself validates revenue generation for defense contractors regardless of the diplomatic outcome. A sudden, comprehensive peace deal that de-escalates the region immediately.
WATCH Danny President Trump is monitoring the "potential threat... to disruption of shipping routes" following Iran's "partial closure of the Strait of Hormuz for military drills." Even temporary closures of the Strait of Hormuz create bottlenecks in global shipping. Uncertainty regarding shipping routes generally leads to higher freight rates and premiums for shipping equities. WATCH. If the "drills" turn into a prolonged blockade, shipping rates will spike. The closure was stated to be only "for a few hours," so the impact may be negligible if normal transit resumes immediately.