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Iran's Disputed Election; Riot Police at Tabriz Protest; Critics Demand Tougher Stance from Obama; Deadline in Iraq

Aired June 22, 2009 - 09:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

T.J. HOLMES, CNN, ANCHOR: All right. John and Kiran, thank you. It is now being called a revolutionary confrontation. That word coming from some Iranian authorities who are now using some of the strongest words we've heard so far against the protestors. We'll tell you what they are warning now.

Also North Korea upping the ante in a nuclear standoff. We'll tell you what the regime is saying now. Some of it may sound familiar to you.

Also, we'll tell you what a U.S. destroyer is doing.

Plus, what will your future health care look like? We show you a new reform plan aimed at cutting costs. It is Monday, June 22nd. Hello to you all. I'm T.J. Holmes, sitting in today for Heidi Collins. You are in the CNN NEWSROOM.

Well, the sights and sounds of Iran over the weekend. It was a weekend of violence. And now we are getting a new warning from the embattled government. This one is coming through us from the security forces who are now warning that they will crush anyone who dares to demonstrate. Now will that silence be outraged? Or will it fuel this outrage even more?

CNN's Ivan Watson is pulling together all the latest developments in this historic challenge to the regime. He's standing by for us at our international desk. Also our Kara Finnstrom talking to Iranians now living in the United States. For them, home is where their heart break is right now. And home for them we're talking about is in Iran.

But we do want to get you up-to-the-minute updates on what we saw over the weekend. First now, we've got new questions on voting irregularities. They're not coming from outside sources or the opposition. Actually coming from the government itself.

Well, according to Iran's government-funded press TV, state-run television here, the election authority has discovered that excessive ballots were cast in 50 cities. But the government says the extra votes did not affect the election's outcome.

Also saying it's not that much of a new phenomenon given that some people can actually register and then vote in two different places. So really dismissing what happened there. Also, meanwhile, Tehran stepping up its claims that the west is meddling and exaggerating reports of police violence against protestors. Also press TV confirming that there have been 13 fatalities. Again, this is state-run television, also unconfirmed reports put the number as high as 150.

We're going to continue to get the latest on this developing story throughout the day. Ivan Watson who has been manning our Iran desk over the weekend for us, past several days. A lot of work you're -- you guys are doing over there.

Ivan, give us the latest you're keeping an eye on now.

IVAN WATSON, CNN CORRESPONDENT: Some dramatic developments right now, T.J. Demonstrators are trying to gather in a square in Tehran called Haft-e Tir Square to hold a memorial for a woman who was killed in those bloody clashes on Saturday.

She's known around the world as Neda. And we've gotten a report from eyewitnesses on the ground. We can't identify them within the last half hour. Now let me just try to set this up for you a little bit. This is a Facebook page for one of the opposition candidates in this month's controversial presidential elections, Mehdi Karroubi.

And here we see a statement in Farsi calling for people to gather in Haft-e Tir Square more than an hour ago to hold a memorial for this woman named Neda who was shot in the chest and died in front of cell phone cameras on Saturday. Very dramatically and she has become a symbol of this effort to try to protest the results of those controversial elections.

Well, according to a source that we've spoken to on the ground, recently in Haft-e Tir Square, describing hundreds of people trying to gather and being dispersed by large numbers of security forces by Basiji militia in plain clothes, some in uniforms, beating batons, trying to spread the crowd away.

There are helicopters flying overhead, shopkeepers, closing their shops, pulling down the steel shutters on those shops. I think we may have a map to show our viewers where the Haft-e Tir Square is in Tehran. In a central square in that city. Let's try to take a look at that right now. Zoom in on that area where this dramatic standoff is taking place.

Now this is very dramatic because a warning came out from Iran's Revolutionary Guard Corps. A warning came out today indicating that people are not allowed to demonstrate. This is yet again another warning against what the government describes as illegal demonstrations.

Let's take a look at some of what the statement said right now from Iran's Revolutionary Guard Corps. We'll try to get that statement up on the screen. Quote, "While some candidates have asked people to illegally get together in protest, their inability to manage the crowds has led to some people committing crimes, creating mayhem, and disturbing of the security.

"Obviously the security forces and the people's militia of the Basij will not hesitate to confront these disturbers of the peace."

Now again, these people in Haft-e Tir Square being beaten back by security forces, not allowed to hold a memorial for this woman gunned down there in Tehran on Saturday. T.J.?

HOLMES: All right. Ivan Watson for us. Thank you so much. We're going to continue now to talk about that woman Neda as she's become known as. Social networking sites have helped spread images and video of the protests across Iran. But again it is this one woman in particular that has really -- become a really rallying cry for a lot of people around Iran and across the world.

Octavia Nasr has the story for us. But you need to hear this first. This report contains extremely graphic video. A lot of you will find it disturbing. It is disturbing. Also many parents, this is where you may want to decide this is not appropriate for your children.

(BEGIN VIDEOTAPE)

OCTAVIA NASR, CNN CORRESPONDENT: Her name is Neda. The facts surrounding her life and death difficult to verify. She appears to have been a young student who joins thousands of countrymen to voice her disapproval of Iran's election results. Eyewitnesses say Basij militia men hiding on a building rooftop shot Neda in the chest silencing her forever.

A man who appears to be her father desperately calling on her to open her eyes. A stranger begging her to stay awake. "Don't be afraid, don't be afraid, Neda," the man says, but Neda doesn't respond. She dies right there on the streets, another protester capturing her last moments on a cell phone camera.

And just like that, Neda, who came to the square thinking she's one voice among thousands, turned into the voice of an entire opposition movement.

Neda, which means "the calling," is now on millions of clips across the globe, on the Internet in especially designed avatars. A young life cut down in its prime. One woman's gripping story speaking volumes. A grim reminder of the price Iranians could pay for freedom.

Octavia Nasr, CNN, reporting.

(END VIDEOTAPE)

HOLMES: And there are tight restrictions on international reporting in Iran. And many of our most dramatic images have come from citizen reporters like the one you just saw. Here's a sampling now of some of the iReports.

You see here protesters walking down the street clapping chanting, a peaceful demonstration. This one didn't last too long, though. The crowd began to run as the sounds of gun shots draw closer.

Also some pictures we can saw you snapped by an iReporter in Tehran because of the government crackdown. IReporters have asked that we not identify them.

Also the outrage in Iran, it's also spilled across the world. This is the scene this weekend in San Francisco. Demonstrators marched peacefully through the streets there.

More protests took place in the United States over the weekend, as well. Take a look.

Now this is in New York, the chants were loud, the message clear, demonstrators demanded answers on the disputed election results in Iran.

Take a look at another here.

Some of the same calls we saw in other cities echoed outside the White House. They're in D.C. The protesters bearing Iranian flags, demanding new elections there in Iran.

Also some demonstrators even showed their outrage by burning the Iranian flag. This protest was held outside the scene in headquarters right here in Atlanta.

For a lot of native Iranians now living in the United States, the distance may never have seemed to great. They worry about family and friends back home and the uncertainty of where they homeland is headed now.

In Southern California, many will find comfort in the familiar sights and smells of a Persian market.

CNN's Kara Finnstrom is in one such spot in Los Angeles for you.

Good morning to you, Kara.

KARA FINNSTROM, CNN CORRESPONDENT: Good morning, T.J. Well, all around me here, you can see the hustle and bustle of an outdoor food market. This is where grocers and restaurant owners come to buy their foods. Things that they need for throughout the day.

And as you can see there are a lot of international shops here in this food market. The one that we've come to is uniquely Persian. And that's because you'll find items here like Persian pickles, which have a distinctive taste, certain kinds of dates, and also even lemons that are sweet, that are hard to find anywhere else.

Now the owner here, his name is Mohammed. That's how he wants to be identified.

Thanks for joining us. When we first came here this morning, there was a large group of Persian men here gathered inside of your shop talking. Tell us what the tone has been here throughout the week and kind of what it's been like to work in the midst of all of this?

UNIDENTIFIED MALE: (INAUDIBLE) Iran. Everybody's talking about Iran, everybody's talking about the family, everybody they are worried about their family, what's going to happen in the future of Iran. And that's basically what we are talking about.

FINNSTROM: And you were able -- you said to get in touch with a sister inside Iran?

UNIDENTIFIED MALE: Yes, as a matter of fact, I talked to her yesterday. And she told me everything is all right. But I don't believe her. I know that they don't have that kind of freedom to talk right now.

FINNSTROM: Like so many other folks we've spoken with here this morning, you said you really -- it's very important to you for your family, your friends in Iran to know that they have your support here?

UNIDENTIFIED MALE: Of course, of course. I just want them to know not only my family for all brave men and women that they are in the streets. I want to tell them you're fighting for your freedom. Freedom is a basic right of every human being. And I want you to know every human being in this world are (sic) precious.

FINNSTROM: Thank you for your time here this morning. Very difficult time for these people who obviously very concerned, T.J., about their families and friends and trying to continue with their business, although certainly not business as normal.

HOLMES: Yes, and well put by that man there. Kara Finnstrom, we appreciate you this morning from Los Angeles. And we will never be too far from our coverage of Iran. This is a fast-moving and developing story. And as things happen, as news pops out, we will certainly bring that to you.

Meanwhile, there are other major stories of international concern we need to bring you, including North Korea. Some more fighting words from that country. But the United States not backing down here. What this latest bout of nuclear aggression is about and why President Obama says we've got this.

ROB MARCIANO, CNN METEOROLOGIST: And I'm Rob Marciano in the CNN Severe Weather Center. Severe heat again, much of the nation sizzles on this first full day of summer. Complete weather details coming up in just a little bit. Stay with us.

ANNOUNCER: CNN NEWSROOM brought to you by...

(COMMERCIAL BREAK)

HOLMES: Turning to some weather here now. And clean-up that's going on in the upper Midwest after severe storms over the weekend. Tornadoes destroyed or heavily damaged at least three homes and several other buildings in western Michigan. No injuries reported.

Meanwhile, flooding in Michigan left hundreds of cars stuck in the water at an outdoor music festival.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: And next thing you know, the water got higher, and we can't get out.

UNIDENTIFIED MALE: The war was way down there and I got it out eventually.

(END VIDEO CLIP)

HOLMES: Heavy rains pushed the Grand River out of its bank. You see this mess going on here. Officials say it won't be until Wednesday that the water will recede enough to start getting the cars out of there.

Rob, that is not a good situation to be in.

(WEATHER REPORT)

HOLMES: All right. And certainly here in Hotlanta. Rob, we appreciate it. We'll be checking in with you again here shortly.

With so much attention on Iran and rightly so, that's a story of major international implications, well, North Korea still going on right now. And a major situation or that situation escalating or threatening to with North Korea saying they may be planning a missile test launch for the 4th of July.

Also the regime reminding the United States today that it has nuclear weapon and will attack retaliate if it attack.

Suzanne Malveaux covering the story for us from the White House.

Suzanne, we hear North Korea threatening once again. We hear the defense secretary in the U.S. saying we're taking further measures to further protect Hawaii. We're trailing this ship out there. A U.S. destroyer. I mean all this going on, it sounds like almost we're on the brink of war here, Suzanne. What's the president talking about?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: You know, President Obama is keeping a very watchful eye on this, T.J., because you mentioned some very important things that are happening.

It's approaching the July 4th weekend. Obviously these threats from North Korea that perhaps it will launch a long-range missile to Hawaii. The defense secretary adding more protections and then you've got a U.S. naval ship that's tracking this North Korean ship they believe could have illegal weapons.

President Obama was asked about this over the weekend. What are you doing about North Korea? What kind of threat does the United States face as well as North Korea's neighbors? And he made it very clear, T.J., that he says all options are on the table, that clearly if there's any threat from North Korea that the United States is going to respond.

I want you to take a listen on CBS.

(BEGIN VIDEO CLIP) BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We are prepared for any contingencies. I don't want to speculate on hypotheticals. But I want -- I do want to give assurances to the American people that the T's are crossed and the I's are dotted in terms of what might happen.

More broadly, I think the international community here has spoken.

(END VIDEO CLIP)

MALVEAUX: And T.J., one o the things that the president is trying to emphasize is not the military response per se. He's saying, look, we have everything on the table, we're ready to go if necessary, but he's also emphasizing the role of the international community that you have these tougher sanctions from the U.N. Security Council that was passed a couple of weeks ago.

You've got Russia, China, South Korea, Japan, all of these players that are united behind those sanctions, and that he feels because there is this group that is working together that North Korea is not going to be as defiant as it was in the past.

We'll certainly have to see what plays out particularly when you talk about that ship. What's aboard that ship and what happens July 4th weekend.

HOLMES: All right. Suzanne Malveaux for us from the White House today. Suzanne, thank you as always.

Once again to our viewers, we have some developments coming to us out of Iran. Today word on the ground of more possible demonstrations and gatherings there. We will never be too far away from that story. And as news happens, we certainly will continue to bring that along to you.

Meanwhile, there are other new developments to tell you about in the effort to reach health care reform. If you have Medicaid coverage or know someone who does, you need to hear what's happening. Stay here.

(COMMERCIAL BREAK)

HOLMES: So let's turn to health care reform now. The next few weeks are seen as critical to whether a bill gets passed this summer. The message is that lawmakers received from voters over the July 4th congressional recess could have a lot of weight.

Democrats are pushing their plan for a government option, an idea that Republicans say could drive private insurance companies out of business.

(BEGIN VIDEO CLIP)

SEN. RICHARD LUGAR (R), INDIANA: Not this year because the president is trying to solve the economic crisis in our country and the world. Reforms might occur incrementally even this year. But this is such an audacious move it threatens more than the health care problem, it threatens our basic structure of our economy. FEINSTEIN: To be candid with you, I don't know that he has the votes right now. I think there's a lot of concern in the Democratic caucus.

(END VIDEO CLIP)

HOLMES: Some new developments taking place in the ongoing work in Washington to craft health care reform and one new plan would cut Medicare drug costs.

Our senior medical correspondent Elizabeth Cohen here with some more about that cuts.

All right. People hear cuts and they get nervous sometimes. So what are we looking at here? What are we talking...

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: No, this should...

HOLMES: This will be a good one.

COHEN: ... hopefully cut in a good way. Right.

HOLMES: This will be a good one.

COHEN: Right. Senator Max Baucus, the Democrat said, that he has reached an agreement with the pharmaceutical industry for a 50 percent cut on medications that fall in the so-called Medicare donut hole.

So example, if an elderly person is paying $3,000 a year now for their drugs, under this plan they'd be spending $1,500 a year now for their drugs. And this is seen as sort of one of the first steps in overall health care reform. And this is just focusing on one little slice. Drugs for people on Medicare.

HOLMES: OK. That would sound good to a lot of folks when you say a 50 percent cut. But then after you said that you mentioned something called a donut hole. Explain this to people.

COHEN: I know. And we medical journalists talk about this all the time without explaining it.

HOLMES: OK.

COHEN: So I'm going to be different now and I'm going to explain exactly what the donut hole is.

When an elderly person spends up to $2,700 on drugs, Medicare helps out. They pay about 75 percent. But then once you spent $2,700 a year, Medicare says see you later, we're out of here and they don't pay anything.

And then once you get up to spending about $6,100, then Medicare kicks back in. But between spending $2,700 and $6,100 a year, you're not getting any help. So that is a huge coverage gap. And that's where...

HOLMES: That's the hole. COHEN: Right. That's the hole, and that's where this plan from Baucus, theoretically would, come in handy. It would help people who are spending anywhere between the $2,100 and the $6,100, which is a lot of people.

HOLMES: OK, that sounds like a big deal. Historic proportions, we're talking about here?

COHEN: Yes, if this actually happens, this really could be historic. They've been trying to fix this donut hole problem for quite some time. And actually President Obama later this afternoon is going to be talking more about health care reform and we hope to hear more details on this.

HOLMES: All right. Elizabeth Cohen, explaining the donut hole for us.

COHEN: There you go.

HOLMES: Thank you so much, Elizabeth.

COHEN: Thanks.

HOLMES: Folks, stay here. Father and daughter divided by miles, united in protest. She's worried about his safety in Iran especially after he was attacked during a weekend protest.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, T.J. Holmes.

HOLMES: All right. Have we hit the wall? We had a three-month run- up in stocks and maybe we could be slowing a bit.

Susan Lisovicz is with us at the New York Stock exchange. What do we see here? We saw the Dow fell last week for the first time in five weeks. We're starting this off. What are we expecting?

SUSAN LISOVICZ, CNN CORRESPONDENT: More of them, unfortunately, T.J.

HOLMES: More of the same.

LISOVICZ: Sort of like the weather. A lot of rain falling and stocks have been falling recently, as well.

T.J., some analysts say the recent rally has run out of steam because it's run too far ahead of reality. The economy, after all, is in recession. Unemployment is still rising, and a new forecast from the World Bank sees the global economy shrinking by nearly 3 percent this year. So we do expect some pressure in stocks.

At the open which is coming in just a couple of seconds. Gas prices have finally dropped after 54-day run-up. AAA says the national average for a gallon is $2.69, comes as oil prices fall below $69 a barrel despite the unrest in Iran, which of course is a major oil producer. Three regional banks in North Carolina, Kansas and Georgia expected to reopen today by new owners. Cooperative Bank, First National Bank of Anthony, and Southern Community Bank were seized by regulators late Friday and then taken over by rival banks.

But Apple had a successful weekend. The company says one million new iPhones were sold between Friday and Sunday well over analysts' estimates. Apple released those numbers along with a statement from CEO Steve Jobs which said customers are voting and the iPhone is winning.

Of course, this comes on another big headline. This from the "Wall Street Journal" that says Jobs received a liver transplant about two months ago. He's been on medical leave since January to treat an undisclosed illness. He's expected to return to work at the end of this month.

Apple shares right now are up nearly one percent, but in the early going, you're seeing pressure on the Dow. And the NASDAQ, did you notice who rang the opening bell, T.J.?

T.J. HOLMES, CNN ANCHOR: I did not notice. Who we got?

LISOVICZ: Well, some folks from Travelers. They're going to start the 2009 Travelers Championship, which is a golf tournament.

HOLMES: Today, yes.

LISOVICZ: Yes. And you know the weather, 17 out of 22 days in June have been raining. So yes, and the U.S. open, as a matter of fact, has been affected by that, as well. So good luck to Travelers. Good luck to the folks on Long Island. Maybe they'll be able to finish the U.S. open today.

HOLMES: Suppose to wrap up today. We will see. It's kind of unknown to the top of the leader board, but that's for another topic.

All right, Susan Lisovicz --

LISOVICZ: See you later.

HOLMES: Good to see you. See you again here soon.

We want to turn now back to our top story. A fast-moving story, developing story -- Iran's disputed election. Here's the latest on what we have now. Eyewitnesses say protestors crowding in a square in Tehran.

Hundreds of militia, riot police are present, but there have been no reports of violence just yet. However, like I said, this is a fast- moving and developing story. Things change on the ground minute-by- minute there. We're unable to confirm some of these reports. Again, due to the Iranian restrictions on international media.

Iran's Revolutionary Guard issued a stern warning against new protests. Also, Iranians state-run TV reporting lawmakers are calling for a review of ties with Britain due to what they call interference in post-election unrest.

And again, despite the Iranian government restrictions on international media reporting from Iran, we're still able to hear from Iranian citizens, especially through a lot of those social networking sites, including on Twitter.

We got some new developments here. Ivan Watson, keeping an eye on this.

What do you have now?

IVAN WATSON, CNN CORRESPONDENT: Just taking place in Tehran's Haft-E- Tir Square. A central square where despite numerous threats from security forces, hundreds of people, at the very least, hundreds of people are trying to gather in that square to hold a memorial for a woman who was gunned down, shot in the chest on Saturday during violent clashes between demonstrators and the Iranian security forces.

Here you can see those images, those graphic images of this woman who is known around the world now as Neda.

So what we have now is that there were opposition, declarations, calls for people to gather. I'm showing you a Facebook site for an opposition leader, calling for people to gather at 4:00 p.m. Local Time, it's 6:00 p.m. now. And the eyewitnesses that we have been talking to described large numbers of security forces on the ground there. Helicopters overhead. And people trying to gather in the square. Periodically being pursued by security forces.

In one case, a man fled the area chased by two paramilitary Basijis, and as he ran down an alley, a crowd of at least 100 people behind them started cheering against a defiant war, against those Basijis. And then started chanting "Don't be scared, don't be scared, we are all together."

In other cases, women standing up to these enormous security officers, telling them not to beat the crowd, saying, why won't you let me sit here in this park? That is another eyewitness who has described this situation.

People trying to gather there and being dispersed. We've also had reports of pepper spray or mace being used to try to push this crowd back. Now, you mentioned that warning that came. It comes from the Iranian Revolutionary Guard Corps, powerful force in Iran that controls a lot of the economy.

This statement coming out today, quote, "while some candidates have asked people to illegally get together and protest, their inability to manage the crowds has led to some people committing crimes, creating mayhem and disturbing of the security."

Obviously, the security forces and the people's militia of the Basij will not hesitate to confront these disturbers of the peace. And despite these threats, despite the deadly force that was used in some cases on Saturday, you have hundreds of people trying to remember the death of this young woman on Saturday.

T.J.?

HOLMES: All right. Ivan Watson, covering the very latest for us over there at our Iran desk.

Ivan, thank you so much. We will get back to you for the latest developments.

I want to turn now to Badi Badiozamani, who has been with us all weekend. Really working longer hours than a lot of us quite frankly. Author and expert on Iran.

We appreciate you being here.

Let's start with the Revolutionary Guard and the statement they've come out with. What does this tell you now? If they had to put out, really I guess probably one of the toughest statements we've heard from anybody within the regime.

BADI BADIOZAMANI, IRAN EXPERT: Yes, but it's not unprecedented. We have heard this before. Still, it's very ominous. But we have heard from people, especially, I remember, Khatami in his open letter. It was yesterday or the day before yesterday saying that we do not need to militarize the environment. That's what he was thinking when he said that.

And I think what I have heard from some of my sources, there is a rift among the military, among the past Iran. So they are very hesitant to get involved. And they have seen how people are gathering and working together, watching, walking together, demonstrating.

We're going to show pictures later on. They're going to be prepared. They're going to be prepared from one of my sources. It shows the clergy demonstrating alongside the demonstrators. And one instance that somebody's trying to throw a rock and these people are trying to protect that clergy who is walking along.

HOLMES: And you mentioned some new video. I'm told you do have some.

Let's go ahead and go to that now. This is some new video we are just getting in. Again, a lot of this coming in to us from cell phone videos. Be you see, you can make out some, some obviously, we assume some of the militia here chasing people through the streets here. But we just got this in. I'm seeing it for the first time here. I'm going to watch it with you. All of this. Look at this.

BADIOZAMANI: Yes.

(VIDEO CLIP)

BADIOZAMANI: They are throwing rocks, too, back at the people.

HOLMES: First thing I want to ask you, Tabriz. What do we know about this area? BADIOZAMANI: Tabriz, yes. Tabriz is a huge city, big city in the northwestern part of Iran. The significance of Tabriz having some demonstrations is, so far, first of all, you didn't have anything until today. And this is very important. People are Azari. They speak Azari. Khamenei is Azari. Moussavi is Azari. So this is another sign of the rift of the difference, the gap between two sides. Again, people are going to the streets and we are going to the streets against the regime and Ayatollah.

LEMON: What do we expect to hear? Because, again, we just heard from the Revolutionary Guard. The first statement we're hearing from them which is, like you said, pretty ominous, but this is not unprecedented as you said. So people know what to expect. And they know that when the Revolutionary Guard speaks they mean business.

So do we expect people to continue to defy the Revolutionary Guard now given their history? And they know this military force means business?

BADIOZAMANI: The way that things have been proceeding it shows, yes. There's going to be defiance, absolute defiance. If you remember, yesterday, we were talking about some young people who have answered to the question. It's dangerous. Why do you want to go to the street. And they said, we don't care. Even if one million of us get killed, at least 70 to 71 million people are going to enjoy democracy and freedom.

My opinion is that there is going to be defiance absolutely. And let me put this in, as well. My sources again tell me that many embassies, foreign embassies, not necessarily Western, foreign embassies accept China and Russia are accepting our injured people. So this is, again, huge.

HOLMES: What can Moussavi at this point even do? He has come out a few statements, we believe that are from him on his Web site, telling his Facebook page, things like that, telling people to be peaceful but still encouraging them to demonstrate.

But is it going to get to a point where, or maybe even at that point that no matter what he says, people will continue to demonstrate. If he came out and said, "I lost this election. You can stop now."

Has the movement just become greater than him?

BADIOZAMANI: Too, late.

HOLMES: Too late now?

BADIOZAMANI: Too late for that. Absolutely.

From the beginning, if you remember, we were saying that some people are saying Moussavi is not the leader. Moussavi is not the point. This election is not the point. That was the beginning. That was step one. Electing or choosing between bad and worse. Now, it has evolved to something more. We can't still probably call it revolution, but it seems like it. It has all the signs of a revolution.

HOLMES: All right. Badi Badiozamani, you've been working some long hours with us. We appreciate you, again.

BADIOZAMANI: My pleasure.

HOLMES: An author and expert on Iran.

I know we're going to have you close by. You're right here working with our international desk. We appreciate you and really good to have you on.

BADIOZAMANI: My pleasure. Good to be here.

HOLMES: I know I will be talking to you again here soon. But we're going to take a quick commercial break. As we go to this commercial break, let's just roll that video one more time if we can here and tell you the latest we're getting in. Another day of protests and demonstrations in the streets of Iran today.

This is some of the latest we are getting showing certainly the military force, trying to at least disperse some of these crowds that are gathering and clashing once again with demonstrators there in Iran. We are following the fast-moving and minute-by-minute developments in Iran.

Stay here.

(COMMERCIAL BREAK)

HOLMES: Again, still talking here about the crisis unfolding minute- by-minute in Iran. Some in Washington, some Republicans in particular criticizing President Obama in his response to the situation in Iran. They say his hands-off approach may be a little soft with the explosiveness of the situation, and they want him to take a tougher stand.

CNN's Jim Acosta with the story.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN GENERAL ASSIGNMENT CORRESPONDENT (voice-over): With Iran quickly becoming one of the biggest foreign policy tests of his administration, President Obama is feeling the heat in Washington where key Republicans argued the White House is being too cautious at exactly the wrong time.

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: There's a monumental event going on in Iran. And, you know, the president of the United States is supposed to lead the free world, not follow it.

SEN. JOHN MCCAIN (R), ARIZONA: And, again, it's not so much about Iran, although it certainly is at the moment, but it's also about being on the right side of history.

ACOSTA: At first, determined to keep the U.S. on the sidelines and avoid any appearance of meddling in Iranian affairs --

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: It is a concern to me and it's a concern to the American people. That is not how governments should interact with their people.

ACOSTA: The president is now dialing up his rhetoric on the violent backlash against protestors in Iran. Mr. Obama said in a statement over the weekend, "We call on the Iranian government to stop all violent and unjust actions against its own people."

He only had to look out his windows at the pro-democracy demonstrators gathered outside the White House to note how the issue has come home.

But President Obama has his defenders, ranging from conservatives, Henry Kissinger and Pat Buchanan to congressional Democrats who say an aggressive stance against the Iranian government would have tainted the protestors in the streets as American tools.

SEN. DIANNE FEINSTEIN (R), CALIFORNIA: It is very crucial as I see that we not have our fingerprints on this. That this really be a truly inspired by the Iranian people. We don't know where this goes. And I sure wouldn't want to be responsible for thousands of people being killed, which is a distinct possibility.

ACOSTA: Even GOP elder statesman Richard Lugar warns that the U.S. has no choice but to engage Iran diplomatically in the future no matter how the current standoff is settled.

SEN. RICHARD LUGAR (R), INDIANA: We would sit down because our objective is to eliminate the nuclear program that is in Iran.

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Even though -- even though, they are shooting people in the streets and beating people in the streets and arresting political opponents.

LUGAR: Yes. In order to have any kind of a relationship when you'd be able to talk to people, hear from people, argue with people.

(END VIDEOTAPE)

HOLMES: And Jim Acosta joining us now from Washington.

Jim, we saw the president put out a bit of a tougher statement over the weekend. But other than that, are we expecting anything more from the White House?

ACOSTA: T.J., I think that's going to depend a lot on what happens on the ground. I think if we see more violence on the streets, I think if we see a tougher crackdown in Iran, we may see the president ramp up some of his statements, but right now, the president is very committed to taking this measured stance on what's happening on the ground over there.

Just earlier this morning on one of the other networks, he said, he just doesn't want to be seen as meddling in Iranian affairs. And as Richard Lugar pointed out on our Sunday program "STATE OF THE UNION" yesterday, he said, this may open up a diplomatic opportunity in the future. If the Iranians, and they appear to be doing this are now criticizing other Western leaders like those in Great Britain for what they have said instead of the Americans, that may give the Americans greater bargaining power down the road.

But a lot of this is, as you have been noting, just in the past few minutes. All of this is changing minute-by-minute. And I guess, that is also what's happening over at the White House as they watch all of this.

T.J.?

HOLMES: All right. Jim Acosta for us today from Washington.

Jim, thank you so much.

ACOSTA: You bet.

HOLMES: As Jim just mentioned there, the stories changing there in Iran. We will not be too far from that story at any moment.

But still other stories to tell you about, including what's happening in Iraq. U.S. troops just days away from a new mission there. Are Iraqi Forces ready to step in as American troops pull out?

(COMMERCIAL BREAK)

HOLMES: And police hunting for at least two more suspects in the deadly robbery in Albuquerque, New Mexico. Our affiliate KOAT says, two others under arrest right now. Police say the whole group went into a Denny, Saturday, just started shooting. They allegedly killed a 19-year-old woman who worked there. The two in custody right now facing homicide and other felony charges.

Also, one person dead when an SUV slammed into a tour bus on an Indiana highway. More than a dozen others are hurt. The bus was carrying the London silver bag. That's a Canadian football team. He was driving down I-69 yesterday, when an SUV went over the median and hit it head on. No word on why that van lost control.

Also, a four-story building collapsing to the ground in Brooklyn. Four people hurt. Not too badly, however, when that building fell yesterday. Look at that.

Inspectors have cited the owner last month for cracks on the outside. Officials clear six buildings nearby to check them over. No word yet on what exactly caused this collapse.

Well, we got a whole lot going on this morning, and our CNN crews are in place to cover it for.

Let's get a peek on what we're going to be talking about the rest of this morning and the rest of the day. We want to start with Ivan Watson over our Iranian desk.

Ivan? WATSON: T.J., Iranian security forces are trying to stop at least, at the very least hundreds of protestors from attending a memorial vigil in a Tehran's Square for the woman Neda who was gunned down in violent rallies on Saturday. I'll have more for you, T.J., at the top of the hour.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: How can 140 typewritten characters change the world? We'll tell you at the top of the hour.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: I'm Jeanne Meserve in Washington. The TSI pulled aside an airline passer to question him about money in his carry-on bag, unaware that he's a champion of individual liberty and constitutional rights, and that every word is being recorded.

I'll have the full story at top of the hour.

HOLMES: Yes, Jeanne, that is an interesting story there. People need to stick around for that one.

But Ivan, Barbara, Jeanne, thank you all. I'll talk to you all again here shortly.

We'll also look at the latest health threat that could be lurking in your refrigerator. Say it isn't so. Not the cookie dough.

(COMMERCIAL BREAK)

HOLMES: Eighteen people dead and dozens injured in Iraq this morning after four separate bombings. The bombs all exploded in Baghdad. Five people died after a bomb went off on a commercial street.

Two hours later, a roadside bomb blew up a minibus carrying students. Three died there. An hour later, another roadside bomb exploded in a busy market killing three.

And just a few hours ago, a car bomb exploded in another busy district and seven people died.

Well, all of this coming as a major deadline looms in Iraq just a week from tomorrow. That's when U.S. troops are set to withdraw from urban areas. But as U.S. troops step back, are Iraqi forces to step up.

CNN's Phil Black goes looking for answers in one of the most dangerous cities in that country.

(BEGIN VIDEOTAPE)

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT (voice-over): In many of Iraq cities, it can be hard to find an American soldier now. Not here. This is Mosul, in the country's north, where America's military presence is still very obvious. And insurgent attacks are still coming.

(on camera): This unit has heard another American convoy traveling elsewhere in the city has just been attacked. Two grenades hit one vehicle. Damaged, but no casualties. The U.S. military says attacks like this is still happening on average five times a day in Mosul.

(voice-over): Mosul became Iraq's most dangerous city after America's troop surge drove many insurgents here. Securing this city is a key priority as America's agreement with Iraq says at the end of June, U.S. forces must stop combat operations in all cities, including Mosul.

(on camera): How would you says its security situation now?

LT. JASON REED, U.S. ARMY: In the last five months, it's been significant. We've seen a significant reduction of violence.

BLACK (voice-over): But has it reduced enough for Iraq security forces to control the city on their own?

(on camera): And pushed one truck over to the far west side.

BLACK (voice-over): This is typical of the strategy in Mosul now. A clearing operation through neighborhood in the city's west. Iraqi soldiers take the lead going door-to-door, searching for weapons, building intelligence, while U.S. soldiers provide support on the ground and in the air.

After June 30, they will largely be restricted to providing advice and information.

Iraqi Colonel Dhiya Mohammed tells me his army is ready for the extra responsibility and is expecting insurgents to step up the attacks.

American soldiers say their Iraqi allies have recently come a long way.

CPT. NICHOLAS FRANKLIN, U.S. ARMY: We would not have seen this level of proficiency in like 2003 when we first got here, or even in 2005 or in my last tour.

BLACK (on camera): Are they ready to go alone, though.

FRANKLIN: I don't know. I know that they like to have support from us.

BLACK: Almost every local resident we interview says the same thing.

"God willing, the Iraqi army will do well," they say.

All sides here agree that the Iraqi army is far more capable than it used to be. And this is a far more stable city than it was. But the Iraqi civilians and the Iraqi soldiers we've spoken to off camera say they have real concerns about what's going to happen here at the end of the month.

(voice-over): America's commanding officer here admits there's a lot at stake.

COL. GARY VIOLESKY, U.S. ARMY: We have some reluctance just because we have so much invested in this. But, again, on 1 July, I'm not just going to turn my back and say, it's all yours.

BLACK: The U.S. army has closed most of its bases within Mosul. Not all of them. It's recommended some stay open. But says it's still waiting for a decision from Iraq's government. America's commander say Iraq's wishes will be respected even in this most dangerous of cities. And even if it means U.S. soldiers can only fight outside of the city limits.

Phil Black, CNN, Mosul, Iraq.

(END VIDEOTAPE)

HOLMES: We'll now check stories happening now. A former medical student accused of killing a masseuse he met through Craigslist is doing a false report next hour. Phillip Markoff is his name. You see him there. He was indicted by a grand jury, Thursday, after a two- month investigation.

Also in court this morning, a blogger accused of inciting violence against Connecticut lawmakers. Howard Turner is a former radio talk host who now broadcast commentary on his Web site.

Earlier this month, he urged readers to take up arms against lawmakers suggesting that the government officials should, quote, "obey the constitution or die."

Also, President Obama delivering a statement on what White House officials are calling a historic agreement to lower drug costs for seniors. We'll bring you the president's remarks right here, coming your way live at noon Eastern.

HOLMES: Also, we got this in just moments ago. Will he or won't he run for governor of California?

Well, today at 4:00 p.m. in the "THE SITUATION ROOM," the L.A. mayor Antonio Villaraigosa will announce whether or not he will run for governor of California. But a lot of speculation out there. He has never given a hard answer. Well, he's going to give it today to our Wolf Blitzer. That's today, beginning at 4:00 p.m. in "THE SITUATION ROOM," 1:00 Pacific. Again, the situation room with Wolf Blitzer.

A look here at some of the latest images coming to us out of Iran. After a bloody weekend, protestors turning on government forces. This is more amateur video of the riot police running from the crowd. This is just in to CNN.