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Monday's Asia Sell-Off Helped Drive Down U.S. Markets; Protesters Call for New Interim Government Led by Muhammad Yunus; New British Prime Minister Vows to Quell Riots with Army of Police; Analysis Finds Evidence of Hamas Resurgence in Gaza. Historic Rainfall, Flooding Expected Across Southeastern U.S.; Why Some Israeli Soldiers Refuse to Return to Gaza. Aired 12-1a ET

Aired August 06, 2024 - 00:00   ET

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

[00:00:50]

JOHN VAUSE, CNN INTERNATIONAL ANCHOR: Hello, I'm John Vause, live in Studio H here in Atlanta. Ahead on CNN NEWSROOM.

After Monday's historic plunge, now comes the rebound. Stocks in Tokyo up 10 percent and higher across the region.

(BEGIN VIDEO CLIP)

ANTONY BLINKEN, U.S. SECRETARY OF STATE: Parties must take steps to ease tensions.

(END VIDEO CLIP)

VAUSE: The chasm between must-do and are doing. Iran prepares to strike Israel while the Israeli military reportedly recommend a preemptive strike.

(BEGIN VIDEO CLIP)

KEIR STARMER, BRITISH PRIME MINISTER: This is violence. This is not protest. It doesn't matter what the motivation is.

(END VIDEO CLIP)

VAUSE: Well, actually it's all about the motivation with the worst unrest in the U.K. in years driven by misinformation and demonizing of migrants.

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM, with John Vause.

VAUSE: We begin this hour at the Tokyo Stock Exchange where the Nikkei is up about 10 percent, throwing back almost all losses from Monday's historic 12 percent plunge. Nikkei's biggest one-day fall in percentage terms since October 1987 and the biggest point drop in history. And across Asia, markets are higher.

So will this rally in Asia carry through to a rebound on U.S. markets after the Dow closed down more than 1,000 points Monday, its worst percentage loss in nearly two years? The Nasdaq closed down 576 points or 3.4 percent after a big stock selloff in companies involved in artificial intelligence like Nvidia, Apple, and Microsoft. According to some analysts, expectations for an AI global revolution may be premature and AI profits are basically nonexistent for now.

More now on the U.S. market plunge from CNN "FIRST MOVE" anchor, Julia Chatterley.

(BEGIN VIDEOTAPE)

JULIA CHATTERLEY, CNN ANCHOR, FIRST MOVE: It was a pretty ugly session for U.S. stock markets. We're talking the worst performance in a daily session for almost two years. At the first few minutes of the trading session beginning we saw around $1 trillion worth of wealth wiped off some of the biggest tech stocks. So that really set the tone. This wasn't panic, but there is a palpable fear that the U.S. economy is slowing far quicker than people thought.

We're not talking about an imminent recession, but we are talking about higher risks of a recession. And that fueled a lot of the finger-pointing over why the Federal Reserve didn't cut rates last week when it could have done.

My context here is, is I think that we are seeing a slowdown in the U.S. economy, but we are still adding jobs overall. So there isn't the need to panic that some people are at the moment. I'd even go as far as saying that actually if the U.S. data were the only problem here, then U.S. stock markets could arguably be overreacting at this stage.

Unfortunately, there's other things going on. The big pillar of support all around the world has been tech stocks. And we're seeing a shakeout in performance of those and a lot of money being taken off the table. The second thing was what we saw in Monday's session across in Asia with Taiwan, with the Japanese stock market, with the South Korean stock market all falling incredibly heavily.

Don't underestimate how important the Asia trading session is on Tuesday for what we see in the United States to follow. The other thing that we have to remember, these are summer markets. A lot of investors are on the beach and not trading. So that makes things choppy, too. There are some silver linings. The whole conversation now about the Federal Reserve cutting rates has changed. It's not a case of if they cut rates in September. It's a case of how much.

And for that we just have to watch the data over the coming days and watch how the stock markets perform in the coming days, too. And that will give us a sense of what the Fed will do then. Some are talking about the prospect of emergency rate cuts. I think it's too soon. Keep calm. Carry on. And we'll see what this session brings.

Julia Chatterley in New York.

(END VIDEOTAPE)

[00:05:02]

VAUSE: Rana Foroohar is CNN's global economic analyst, as well as global business columnist and associate editor for "The Financial Times."

Good to see you.

RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Hey, great to be with you.

VAUSE: OK, so markets in Tokyo rebounded when trading began Tuesday and across the region stocks opened higher. Is that a sign that maybe the big sell-off on Monday was bit of an overreaction? And what does it actually say about U.S. markets?

FOROOHAR: Yes, for sure. I mean, you know, listen, I've been saying for the last day that I think this was an overreaction. You know, this was a predictable unwinding of the yen carry trade. As the interest rate environment changed, you've got the disappointing jobs numbers on Friday. You had a market that was frankly ready to blow off some steam at any given point. You got some bad news from tech companies or, you know, not even that bad, but just a few bad data points.

And markets are jittery. I mean, they know we've had it pretty good for a pretty long time and that some stocks are overvalued. And so I think this kind of correction is pretty natural. Now, if we go into the fall and we see another bad jobs report or we start to see some other data that really says, hey, there's something amiss on main street, then I would be much more worried. But this is really to me a kind of a predictable August markets correction-slash-blip.

VAUSE: Yes. Among the reasons you touched on this for the sell-off Monday fears that the Federal Reserve in the U.S. keeping interest rates too high for too long. So here's the Fed chair Jerome Powell.

(BEGIN VIDEO CLIP)

JEROME POWELL, U.S. FEDERAL RESERVE CHAIR: The question will be whether the totality of the data, the evolving outlook in the balance of risks are consistent with rising confidence on inflation and maintaining a solid labor market. If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September.

(END VIDEO CLIP)

VAUSE: What did he say?

FOROOHAR: He says that it's no longer if we're going to cut rates, it's probably when we're going to cut rates. And I think that what this means is that, you know, they're looking at September, maybe a quarter point. They're realizing that, OK, maybe they're a bit behind the curb and it's time to act. We're not going to see an emergency meeting. We're not going to see, I don't think, a half percentage point rate cut unless something else really dramatic happens between now and then.

VAUSE: Yes, and we test them the recession fact, you know, apart from a very brief recession, the V-shaped one back in 2020 during the pandemic, the U.S. economy has not seen a true recession in 15 years. And one analyst noted this, it seems like an overreaction, especially given the limited economic data and Fed communication expected this week. So, you know, the word from there is, you know, just chill, baby, chill.

FOROOHAR: Totally, and I mean, I think you're making the really key point here, which is that we are due for a slowdown. You know, they used to come -- recessions and recovery cycles used to come about every seven or eight years, stretching out to 15 years with a lot of quantitative easing, a lot of easy money, both after the financial crisis and after COVID, has distorted markets to a certain extent.

And there's, you know, going to be a price to be paid for but that hopefully won't be too big. I'm not selling, I'm sitting tight, and, you know, we'll see what happens in the fall.

VAUSE: Well, the twice impeached, four times indicted, convicted felon, former and wannabe president Donald Trump weighed in on the market sell-off. "Voters have a choice. Trump prosperity or the Kamala crash and great depression of 2024." Wow. "Not to mention the probability of World War III if these very stupid people remain in office. Remember Trump was right about everything." Make that note.

A trillion-dollar corporate cut during his administration did a lot to fuel the U.S. markets. Here's Neil Cavuto, though, a rare voice of reason over at FOX News.

(BEGIN VIDEO CLIP)

NEIL CAVUTO, FOX BUSINESS NEWS: The Donald Trump thing of the market amazes me. When they're up, it's all because of him and looking forward to him. When they're down, it's all because of the Democrats and how horrific they are. You have some of our biggest point fall lost, three of the biggest of the top 10 occurred during his administration. Now a lot of those were in the COVID years, I get that. But, you know, you either own the markets or you don't.

(END VIDEO CLIP)

VAUSE: Yes, it's the old rule. You know, if you take credit for the sunshine, then you get blamed for the rain, or at least you should. And it's also important that the stock market is not the economy.

FOROOHAR: A hundred percent, I mean, you know, it always amazes me when presidents get the blame or take the credit. I mean, they really don't deserve that much. If anything, it's the Fed that deserves more blame or credit. But you're absolutely right. The markets are not the economy. We forget that because we have been in a bull market for so long. But, you know, we live on main street and most people get most of their money in a paycheck, not through stocks, and it's a good time to remember that.

VAUSE: Rana, as always, great to see you. Thanks for actually being with us.

FOROOHAR: Great to be with you.

VAUSE: A huge legal blow for Google after a U.S. court ruled the search engine is acting as an illegal monopoly, using its market dominance to stifle competition.

[00:10:08]

According to the 277-page ruling, Google violated antitrust laws by paying other companies like Apple and Samsung billions of dollars a year to have Google automatic handle search engines on their smartphones. U.S. Attorney General Merrick Garland issued a statement which read in part, "This victory against Google is an historic win for the American people. No company, no matter how large or influential, is above the law." No comment yet from Google, which is expected to appeal.

Student protesters in Bangladesh are now pushing for a new interim government after the president announced the release of detained protesters and opposition leaders. That's according to state media. This follows the ouster of longtime prime minister Sheikh Hasina, who stepped down Monday after weeks of deadly anti-government protests.

CNN's Kristie Lu Stout joins us now live from Hong Kong with more.

So what do we know about the situation inside Bangladesh after the prime minister resigned and fled the country?

KRISTI LU STOUT, CNN CORRESPONDENT: Yes, John, students inside Bangladesh are still defiant after the prime minister resigned and fled the country, and after the army chief said that an interim government would be formed. Student protest leader in Dhaka in fact told CNN that, quote, "The movement is not over," and that the next step is, quote, "to abolish the fascist systems forever."

Student protest organizers are now calling for an interim government under the Nobel Laureate Muhammad Yunus. I want you to watch this.

(BEGIN VIDEO CLIP)

MUHAMMAD ISLAM, ORGANIZER, STUDENT AGAINST DISCRIMINATION (through translator): We have given our blood. We have been martyred. Our vision of forming a new Bangladesh will now have to be realized.

(END VIDEO CLIP)

LU STOUT: Meanwhile, the president of Bangladesh is promising to consult all parties on an interim government and has announced the release of detained student protesters as well as an opposition leader.

Now, after the Prime Minister Sheikh Hasina fled the country, huge crowds took to the streets in Dhaka. Let's bring up the video for you.

In this aerial video, you can see the numbers, you could see the scale of these protests, thousands just taking to the streets of Dhaka. Meanwhile, thousands also stormed the prime minister's official residence. And in this additional video, you could see people breaking into and vandalizing what was once a highly protected government compound. Now, all this upheaval comes after some of the worst violence that

Bangladesh has seen in decades. Earlier on Monday, armed forces opened fire with live rounds on protesters. In the capital last month about 150 people were killed during clashes and protests. And all this turmoil, it began last month when students wanted an end to this controversial quota system for government jobs.

That then spiraled into a wider campaign to oust the prime minister. And right now, the political fate of Bangladesh is unclear. A protest leader says that student representatives will be meeting with the army chief this afternoon, a meeting that is expected to take place around 2:00 p.m. local time.

Back to you, John.

VAUSE: Well, it's a situation where, you know, the internet has been cut off for some time, which essentially means the country is isolated. What about any concerns about the fate of those inside, those opposition leaders and, you know, the actual protesters themselves?

LU STOUT: A lot of concern about the fate of the protesters, about opposition leaders. We've heard voices from all around the world calling for calm and restraint, including from the United Nations. We also heard from the U.N. secretary general calling for the respect of human rights. We also heard from the World Bank saying it's hoping for a swift and peaceful resolution to this political turmoil.

The White House has also weighed in, urging for a democratic formation of an interim government. It also commended the army of Bangladesh for restraint and we're still trying to get a picture of the situation inside the country this day to see how much violence is taking place even after the exit, the dramatic exit of the prime minister. Meanwhile, I also want to add that the U.S. embassy in Dhaka is advising all U.S. citizens who are still in the country to shelter in place. It says that further violence in Bangladesh is possible -- John.

VAUSE: Kristie, thank you. Kristie Lu Stout, live for us in Hong Kong with very latest. Thank you.

Well, Britain's new prime minister says a standing army of police will be deployed to end violent protests which have swept the country. Facing his first major crisis since taking office, Keir Starmer created his first emergency response meeting known as Cobra Monday. He says far-right agitators have seized upon the deadly stabbing of three young girls in Southport, England last week, using that tragedy to spread anti-immigrant and anti-Muslim disinformation. Starmer says it's nothing more than violent, organized thuggery.

CNN's Nada Bashir has our report.

(BEGIN VIDEOTAPE)

NADA BASHIR, CNN CORRESPONDENT (voice-over): Violent clashes in the northern English town of Rotherham. Far-right rioters among hundreds across the country seen here facing off with police.

[00:15:03]

The target of their rage, this hotel reportedly housing asylum seekers.

Like many hotels across the country, this hotel behind me had become a vital shelter for asylum seekers coming to the country, many of whom have fled war and persecution at home, including countries such as Afghanistan, Syria, and Sudan. This should have been a safe haven for them, but instead, over the weekend, this became the target of violent and racist attacks by far-right rioters.

You can see behind me the smashed windows have now been boarded up. At one point rioters even attempted to torch the building. And this is just one of several locations across the country that have been targeted by these far-right rioters.

(Voice-over): Britain's Home Secretary Yvette Cooper has pledged swift action to bring perpetrators to justice, with hundreds said to have already been arrested and police warning that their search for those involved will continue.

LINDSAY BUTTERFIELD, ASSISTANT CHIEF CONSTABLE, SOUTH YORKSHIRE POLICE: Please be assured if you were there, we will find you and you will be held accountable for your part in yesterday's violence.

BASHIR: Violent anti-immigration riots have been sweeping across the country in the wake of the horrific killing of three young girls in Southport. Six-year-old Bebe, 7-year-old Elsie, and 9-year-old Alice stabbed to death while at a dance workshop in late July. While the tragedy brought members of the local community together in mourning, a troubling disinformation campaign centered around false claims that the attacker was an immigrant has been seized on by members of the far-right, drawing condemnation from the country's prime minister.

STARMER: If you target people because of the color of their skin, or their faith, then that is far-right.

BASHIR: With renewed calls for further riots across the country this week, there is growing concern for the safety and security of Britain's minority and ethnic communities. The Home Office announcing on Monday that mosques in the U.K. will be offered greater protection with new emergency security. But this latest spate of violent racism and in some instances Islamophobia has also inspired others to take a stand.

CROWD: Say it loud, say it clear, refugees are welcome here.

BASHIR: Including in Lancaster, another flashpoint for anti- immigration riots. And in Hull where dozens of volunteers arrived with broomsticks and trash bags ready to clear up the debris in the wake of this weekend's unrest.

NADIDE BALMER, HULL RESIDENT: If people are going to bring 200 people out to incite hate, we're going to bring 20,000 out to incite good. BASHIR: But it remains to be seen whether cooler heads will prevail as

the government ramps up efforts to crack down on rioters and the country braces itself for yet more violence.

Nada Bashir, CNN, in Rotherham, England.

(END VIDEOTAPE)

VAUSE: Well, U.S. diplomats tried to deescalate tensions between Israel and Iran from escalating into a regional conflict. U.S. forces are now under attack in Iraq. Details on all of that in a moment.

(COMMERCIAL BREAK)

[00:20:23]

VAUSE: The Israeli military returned 89 bodies to Gaza on Monday where Palestinian officials are preparing them for a mass burial. A warning, the images you're about to see are disturbing. Family members of missing people gathered at the burial site hoping to find information about their loved ones. Palestinian officials say the bodies were handed over in a shipping container and the Israelis did not provide identities or information about where, when, or how they died.

Gaza Civil Defense official say some of the body bags contained the remains of more than one person and some of the bodies were killed several months ago. Now forensic specialists are examining the bodies to find out what details they can.

Israel's more than nine month-long offensive in Gaza has taken a toll on Hamas, but an in-depth forensic analysis shows nearly half of the militant group's military battalions in northern and central Gaza have rebuilt some of their fighting capabilities.

CNN's Tamara Qiblawi has this report.

(BEGIN VIDEOTAPE)

TAMARA QIBLAWI, CNN SENIOR INVESTIGATIONS WRITER (voice-over): Israeli soldiers in Gaza fighting street by street, house by house, in Israel's longest war in decades. The goal, they say, to destroy any semblance of Hamas. Netanyahu's message is clear.

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER (through text translation): We are fighting. And we are winning. Goals including the elimination of Hamas. We are going to win with all our force. Are you ready?

QIBLAWI: The destruction of Hamas imminent. The objective within reach. But the data paints a very different picture. CNN, the American Enterprise Institute, and the Institute for the Study of War, all combed through thousands of claims by the IDF and Hamas' military wing Qassam Brigades. What we found was evidence of a significant Hamas resurgence.

Have a look at the Gaza Strip. Israel believes there are 24 Hamas battalions spread throughout the territory. We analyzed 16 of these in northern and central Gaza, the most targeted areas in Israel's nine- month offensive. Our research shows that out of these 16, only two have been destroyed. Nine degraded, but still functional. Five are currently combat effective, able to carry out missions against Israeli forces.

Even as Israel uses its full military might, Hamas has been able to partially rebuild nearly half of these battalions. And, it says, it's replenishing its ranks.

UNIDENTIFIED MALE (through text translation): We have been able, with God's help, to recruit thousands of new fighters.

QIBLAWI: A high-ranking Israeli officer told CNN they agree.

UNIDENTIFIED MALE (through translator): Everywhere Hamas rears its head, we will enter. Can this ping pong stay forever? No. Our society is not built for this, and neither is the international community.

QIBLAWI: Take a look at Jabalia, where Israel's problems are laid bare. Back in December, Israel declared the three battalions stationed here destroyed. In May, less than six months later, Israeli forces faced fierce fighting by all three battalions. Now as a guerrilla force, emerging from the rubble.

We see this scenario play out across Gaza. The IDF says it has killed or captured more than 14,000 Hamas combatants, as well as half of the military leadership, including its top commander, Mohammed Deif. But Hamas continues to recruit, to regroup, to regenerate. Military experts we spoke to say Israel's heavy handed bombing campaign has accelerated Hamas' recruitment from among the civilian population.

Retired U.S. Colonel Peter Mansoor helped lead the 2007 surge in Iraq, considered one of the most successful counter insurgencies in U.S. history.

COL. PETER MANSOOR, U.S. ARMY (RET.): The fact that they're still in Gaza, still trying to root out elements of the Hamas battalions shows me that Prime Minister Netanyahu is wrong. The ability of Hamas to reconstitute its fighting forces is undiminished.

QIBLAWI: Is this an unwinnable war, would you say?

MANSOOR: This conflict will only end with a political solution. It won't end with a military victory.

QIBLAWI (voice-over): Netanyahu faces growing pressure over the spiraling humanitarian catastrophe in Gaza and around 115 Israeli hostages who remain there. More than 39,000 Palestinians have been killed according to health authorities. Gaza has been largely destroyed yet Hamas' hold over the territory endures.

[00:25:06]

Tamara Qiblawi, CNN, London.

(END VIDEOTAPE) VAUSE: Israel's military has now responded to our reporting claiming the majority of Hamas brigades have been dismantled and most battalions are at a low level of readiness and able to function as a military framework. Notably, our analysis uses U.S. military definitions which differ from those used by the Israelis.

A United Nations investigation has found nine employees from UNWRA, the U.N.'s biggest aid agency in Gaza, may have been involved in the October 7th Hamas attack. The investigation found evidence indicates that the staff members may have possible involvement, but they no longer work for the agency.

(BEGIN VIDEO CLIP)

UNIDENTIFIED REPORTER: you said involvement in October 7th, that can mean different things to different people. Can you give us any clarity on what you mean by that?

FARHAN HAQ, U.N. DEPUTY SPOKESPERSON: For us any participation in the attacks is a tremendous betrayal of the sort of work that we are supposed to be doing on behalf of the Palestinian people.

(END VIDEO CLIP)

VAUSE: The investigation began earlier this year after Israel accused some UNRWA employees of participating in the October 7th attacks. Meantime, soon after the findings, Israel's military spokesperson posted on X, saying, "Your relief agency has officially stooped to a new level of low."

We'll take a short break. We'll be back in a moment. You're watching CNN.

(COMMERCIAL BREAK)

VAUSE: Welcome back, everyone. I'm John Vause. You're watching CNN NEWSROOM.

We should know in the coming hours who Vice President Kamala Harris has picked to be her running mate. A key decision that will come just two weeks after she launched her presidential bid. Multiple sources tell CNN, Harris focused on two Democratic governors in the final hours of research. Josh Shapiro of Pennsylvania and Tim Walz of Minnesota. Harris met both men, separate meetings, on Sunday.

She also met with Arizona Senator Mark Kelly. As of Monday afternoon, a source said all three were still in the running to be number two on the ticket. Harris is expected to appear with her running mate at a rally in Pennsylvania later Tuesday.

Tropical Storm Debby has slowed to a crawl in the southeastern U.S. and is dumping extreme amounts of rain in parts of Florida, Georgia, and South Carolina. It's blamed for at least five deaths and the flood threat will continue through this week as the storm slowly moves north.

CNN's Isabel Rosales has more now reporting in from the coastal city of Savannah, from Georgia.

(BEGIN VIDEOTAPE)

ISABEL ROSALES, CNN CORRESPONDENT (voice-over): Pounding rain, whipping winds, powerful currents.

[00:30:07]

UNIDENTIFIED MALE: The water hasn't quite made it up to the top of (INAUDIBLE).

ROSALES: Tropical Storm Debby no longer a hurricane after making landfall as a Category 1 storm. The Big Bend of Florida seeing first impact.

GOV. RON DESANTIS (R-FL): We have seen significant storm surge. We have seen inundation. We have seen, and will continue to see, flooding in varied parts of the state of Florida.

ROSALES (voice-over): But Debby is still bringing life life- threatening storm surges and rain as it crawls inland. More than a month's worth of rain has already fallen in Florida, triggering at least ten flash flood warnings.

Hundreds of Sarasota residents were transported from flooded homes by water rescue teams.

DESANTIS: There's going to be a lot of water that's going to be dumped throughout the state, and we're going to see effects of that not just today, but in the ensuing days.

ROSALES (voice-over): The rain will likely be Debby's biggest danger. Strong winds and potential tornadoes will continue to be a threat.

Four storm-related deaths now confirmed in Florida. A teen crushed by a tree that fell on his mobile home and multiple driving fatalities, including a tractor-trailer driver, who lost control on a wet roadway near Tampa, plunging off a bridge and into a canal, the second death blamed on Debby's severe weather conditions.

The storm did wash up one rather unusual find: $1 million worth of cocaine near the Florida Keys, according to the U.S. Customs and Border Protection.

JAY MELDER, SAVANNAH, GEORGIA, CITY MANAGER: This is a once-in-1,000- year potential rainfall event.

ROSALES (voice-over): Debby is slowing down in speed, and officials are expressing concern over the amount of rain forecast as it continues into Georgia and South Carolina.

In Savannah, emergency crews are already receiving their first call for a water rescue.

WILLIAM HANDY, DEPUTY CHIEF, SAVANNAH FIRE DEPARTMENT: You just saw one of our marine units or water rescue teams roll out to a vehicle stalled with people trapped in the vehicle.

ROSALES (voice-over): After preparing for the impact of 20 inches of rain in just two to three days.

HANDY: There's been a lot of behind-the-scenes prep work, working with the city as a whole, with them clearing out the obstructions of drains, working with the city to make sure we have sand for the residents.

UNIDENTIFIED FEMALE: We flood so easily here.

ROSALES (voice-over): Residents in Savannah heeding the warnings and bracing for unprecedented flooding. Multiple sandbags stations ran out of supplies Sunday night and were resupplied by the county.

ADRIAN HILL, SAVANNAH, GEORGIA, RESIDENT: The storm's sitting on top of us for 24 to 48 hours. I know that's just going to be a lot of precipitation, a lot of rain coming down. It's just going to be -- it's going to be unheard of, really.

ROSALES: The concerns here for Savannah are historic rainfall, the potential for tornadoes and coastal flooding.

So, if the forecast verify in terms of all of that expected rainfall, well, all of that water has to make its way from the West through the Savannah waterway.

So, the big question here is, does the river have enough capacity for all of that water to get out? If not, that's a big problem. That means serious flooding.

So, the moral of the story here is that this is not a one-day event, especially with Debby just stalling and going at a crawl here. This is not a sprint. It is a marathon.

Isabel Rosales, CNN, Savannah, Georgia.

(END VIDEOTAPE)

JOHN VAUSE, CNN INTERNATIONAL ANCHOR: In a moment, we'll head back to the Middle East.

And as the war drags on in Gaza, the growing number of Israeli reservists refusing to return to the front lines.

(COMMERCIAL BREAK)

[00:35:26]

VAUSE: With an Iranian strike on Israel expected within the next 24 to 48 hours, the U.S. now reporting a rocket attack on the al-Asad Air Base in Iraq, which injured a number of U.S. service members.

The Pentagon says an Iran-aligned militia are responsible for the attack, calling it a dangerous escalation. Damage assessments are underway. The White House also released this photo of the U.S. president, vice president, and secretary of state discussing the attack in the Situation Room and a statement saying they went over the steps now being taken to defend U.S. forces, as well as support the defense of Israel.

They also discussed efforts to lower regional tensions. Intense diplomacy has been underway to try and prevent an attack that could lead to a wider war.

For now, it's still unknown when Iran will actually strike Israel and what that strike will actually look like. But the Iranian foreign ministry stressed Monday that Tehran is determined to, quote, "deter Israel," and no one should doubt its resolve.

(BEGIN VIDEO CLIP)

NASER KANANI, IRANIAN FOREIGN MINISTRY SPOKESPERSON (through translator): And using its inherent right, based on the principles and rules and regulations of international law, the Islamic Republic of Iran will definitely take serious and deterrent action with strength, determination, and firmness and ensuring security and punishing the aggressor.

(END VIDEO CLIP)

VAUSE: Iran has promised retaliation after its ally Hamas's political chief, Ismail Haniyeh, was assassinated on Iranian soil last week, allegedly by Israel, even though Israel has not claimed responsibility for that killing.

Some Israeli soldiers who fought in Gaza are reconsidering what they were ordered to do in the enclave.

One former reservist tells CNN that he witnessed serious misconduct. He says many troops were motivated by anger or revenge for the October 7 attack.

CNN's Jeremy Diamond speaks to some Israelis who now refuse to go back to war.

(BEGIN VIDEOTAPE)

JEREMY DIAMOND, CNN CORRESPONDENT (voice-over): Michel Ofer Ziv is protesting Israel's war in Gaza. He served in it. And now, as the war enters its 11th month, he is refusing to serve again.

MICHAEL OFER ZIV, FORMER ISRAELI RESERVIST: It just feels like this is my duty now. Like, after doing whatever I did there, I feel like my duty to oppose this as much as I can; to raise my voice; to be part of this, of this fight.

DIAMOND (voice-over): Michael served as a fire control officer, monitoring threats to Israeli forces in Gaza, and approving airstrikes from across the border.

DIAMOND: You were watching live feeds of these airstrikes happening?

OFER ZIV: Yes.

DIAMOND: And what were you seeing?

OFER ZIV: There was no audio, just video. We just see the feed. And then all of a sudden, you see just a building goes. Boom, you know, goes up in flames like big mushroom clouds.

DIAMOND: It looks like a video game.

OFER ZIV: Exactly and then you start seeing the aftermath of those strikes. At some point, your brain cannot disconnect those two things anymore, and they start to connect.

This is happening in real life and has actual effect on those people. So, you start connecting the dots.

Once he connected those dots, there was no going back. At the end of May, he and 40 other military reservists said they would not serve again, signing an open letter declaring, "Our conscience does not allow us to stand up and lend a hand to the desecration of the lives of the hostages, and to sabotage another deal."

OFER ZIV: I'm actually supposed to be there now. I was called back and told them I cannot come. I cannot, in clear conscience, come and do this; in clear mind and clear heart, cannot- - just cannot participate in this thing.

The main vibe was we shoot first, ask questions later.

DIAMOND: It became clear to you that the system was not doing all it could to protect civilians?

OFER ZIV: Yes. Yes. Very, very clear at some point.

YUVAL GREEN, FORMER ISRAELI MILITARY: Because most of the pictures are taken --

DIAMOND (voice-over): Yuval Green is taking the same stand after wrestling for months with his service as a combat medic in Gaza.

GREEN: I was always in conflict, wasn't simple, but I felt like I abandoned my friends at this moment, you know, when they need me the most.

DIAMOND (voice-over): But the measurable destruction around him became impossible to ignore, and so was the language of revenge. He says that seemed to imbue everything is really soldiers in his unit did in Gaza.

GREEN: The way they spoke, the -- the violent way they spoke, you know, ideas like killing the entire population of Gaza suddenly became almost -- almost normal.

DIAMOND: What was that moment when you decided, I can't be a part of this anymore? GREEN: Basically, they told us to -- after one of the houses we've

used to -- to protect ourselves. We went out of it. And this was a house in the middle of Khan Younis, a place that would be definitely rehabilitated by -- by the Palestinians afterwards.

[00:40:10]

And they told us to burn it down, because we're burning down every house we're coming out of.

I said, all right, this is just not a good enough reason to take away the house of two or three families. I'm not doing that. And if we're doing that, I'm leaving.

The commander of my company just didn't have good enough answers, and I just left.

DIAMOND (voice-over): The next day, Yuval jumped into a vehicle making a supply run out of Gaza. He never went back.

DIAMOND: There is a sense in Israel that, if you refuse to serve or if you criticize the war, that you can be viewed as a traitor in some ways.

GREEN: Yes, a lot of the closer -- of my closer friends and, you know, families are -- you know, are more afraid that I will be harmed because of those interviews than it was in Gaza.

Crazy, right?

DIAMOND (voice-over): The Israeli military has yet to try and call Yuval back to active duty.

But as the war rages on, and a wider regional war looms, the military could prosecute Yuval and Michael for refusing to serve.

OFER ZIV: I do prefer to go to jail than to participate in what we're doing Gaza. But I prefer to do neither, if it's possible.

DIAMOND (voice-over): He may need a ceasefire to turn that hope into reality.

DIAMOND: Now, in response to Yuval Green's allegations, the Israeli military says that it follows Israeli and international law and that buildings are only destroyed in order to, quote, "remove a threat."

They say that any destructions of buildings that don't fit operational needs are, quote, "contrary to the army's orders and the IDF's values and will be examined.

Jeremy Diamond, CNN, Haifa, Israel.

(END VIDEOTAPE)

VAUSE: I'm John Vause. Thank you for watching back at the top of the hour with more CNN NEWSROOM, but please stay with us. WORLD SPORT starts after a short break.

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