Good morning. Iran escalates attacks in the Middle East. The turmoil in oil markets is unprecedented, the IEA says. If all the churn is fraying your nerves, a quiet fishing trip may be what the doctor orders. Listen to the day’s top stories.

— Angela Cullen

Iran escalated attacks on parts of Dubai and shipping assets, causing more concern about the length of the Middle East war and the effective closure of the Strait of Hormuz. Brent crude jumped back above $100 and global bonds surrendered year-to-date gains as inflation angst swirled. The conflict is causing unprecedented turmoil on oil markets, hitting 7.5% of global supply and an even bigger swath of exports, the International Energy Agency said. Vladimir Putin’s envoy discussed the energy crisis with US officials in Florida. Follow the latest in our live blog.

The widening war has triggered more than 46,000 flight cancellations across the region, hitting Asia-Europe routes especially hard and driving prices higher. An economy class round-trip ticket from Sydney to London in April has increased by more than 80% in the past two weeks, while a business class ticket for the same route was running about 40% higher. After spending decades positioning themselves at the center of global air travel, Gulf air carriers’ long-term growth plans are in disarray.

Hedge funds are experiencing their steepest drawdown since April’s tariff turmoil, according to JPMorgan strategists, with Citadel’s GFI and Diego Megia’s Taula among the hardest hit. Morgan Stanley and Cliffwater capped withdrawals from their multibillion-dollar private credit funds after investors looked to redeem vastly more than the vehicles allow.

President Donald Trump’s administration started the first of several sweeping trade investigations that set the stage for new tariffs, the centerpiece of a push to replace levies struck down by the Supreme Court. Canada wasn’t among the initial batch of targeted trading partners, but China, the European Union, Mexico, India, Japan, South Korea and Taiwan were.

A customer uses an Apple iPad mini. Photographer: Jeenah Moon/Bloomberg

India is drafting a new round of smartphone manufacturing incentives that would link government subsidies to exports and deeper use of locally made components in a move that will benefit Apple, Samsung and their suppliers, people familiar with the matter said. Apple’s forthcoming foldable iPhone will feature an interior display the size of an iPad mini. That’s in addition to an external screen the size of a small iPhone display.

Deep Dive: Role Model

Photographer: Jeenah Moon/Bloomberg

Bill Ackman’s bid to become a modern-day Warren Buffett is finally taking shape as he moves to list Pershing Square in the US alongside a new closed-end fund. But the billionaire contrarian still has his work cut out.

• Closed-end funds aren’t exactly in vogue, and London-listed Pershing Square Holdings has lagged the roaring US bull market. Nor is it Ackman’s first swing at courting Main Street.
• A plan for an NYSE-listed vehicle collapsed two years ago in a humbling moment for an investor who’s endured his share of painful losses.
• Still, the IPO would be a major coup. Ackman’s move in May to increase Pershing’s stake in Howard Hughes Holdings advanced his ambition to build a Berkshire-style conglomerate with controlling shares in myriad businesses.
• He’s done little to discourage those comparisons with this week’s IPO filings and has even floated the idea of an in-person annual meeting that would have shades of Berkshire’s annual confab in Nebraska.
• But structure and strategy alone didn’t make Buffett the Oracle of Omaha. He earned the long-term trust of investors with a distinct blend of candor, discipline and patience—not just permanent capital.

The Big Take

Photographer: RB/Bauer-Griffin/Getty Images

Investors are pouring money into special purpose vehicles as a way to get a piece of hot companies like SpaceX and OpenAI before they go public. But some are paying hefty fees for stakes they may not actually own.

Opinion

Donald Trump clearly doesn’t want a prolonged disruption to oil supplies or a long war, John Authers writes, as the political fallout would be toxic. But for the next few months, it appears that the Strait of Hormuz may remain closed, and that’ll hurt.

Our daily word puzzle with a plot twist.

Today’s clue is: Buzzy new hire

Play now!

Before You Go

Photographer: Emli Bendixen for Bloomberg Businessweek

Gone fishing. So-called social prescribing—nonmedical interventions like sending patients fishing, volunteering or to a museum—has become a trend in health care worldwide. Even the US is dipping a toe in the water.

Bloomberg House Miami: For the first time, Bloomberg House goes beyond Davos, arriving on April 29-30 at the Formula 1 Miami Grand Prix. Join global leaders for compelling conversations and exclusive gatherings across finance, entertainment, technology and sports. Learn more.

Enjoying Morning Briefing Americas? Get more news and analysis with our regional editions for Asia and Europe. Check out these newsletters, too:

• Markets Daily for what’s moving in stocks, bonds, FX and commodities
• Breaking News Alerts for the biggest stories from around the world, delivered to your inbox as they happen
• Supply Lines for daily insights into supply chains and global trade
• FOIA Files for Jason Leopold’s weekly newsletter uncovering government documents never seen before

Explore all newsletters at Bloomberg.com.