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Orban Concedes Election Defeat after 16 Years in Power; Pope Leo Continues to Criticize War in Middle East; U.S. CENTCOM: Naval Blockade in Hormuz to Begin Monday; Netanyahu Enters Southern Lebanon to Assess Seized Territory; Police Clear Fuel-Coast Protest Blockades in Ireland; Rory McIlroy Wins Second Straight Masters; U.S. Inflation Hits Highest Rate Since Trump Took Office. Aired 12-1a ET

Aired April 13, 2026 - 00:00   ET

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

POLO SANDOVAL, CNN ANCHOR: Hey, everybody. Thank you so much for starting your workweek with us. I'm Polo Sandoval, live in New York, and this is what's coming your way here on CNN NEWSROOM.

[00:00:45]

Celebrations in the streets of Hungary after a historic defeat. The current prime minister on his way out after more than 16 years.

And after talks between the U.S. and Iran break down, President Trump now says that he will be the one that will be closing the Strait of Hormuz. We'll explain.

And fuel prices skyrocket. Protests skyrocket, as well as protests at Rock, Ireland. How the government is trying to calm the price hike caused by the war in the Middle East.

ANNOUNCER: Live from New York, this is CNN NEWSROOM with Polo Sandoval

SANDOVAL: Let's begin with Viktor Orban's crushing defeat after holding power in Hungary for 16 years.

The outgoing Hungarian prime minister, a key ally to both Donald Trump and Vladimir Putin, he was ousted in a Parliamentary election on Sunday. He congratulated opposition leader Peter Magyar, calling the result painful but clear.

Magyar told his supporters that together they, quote, "liberated" Hungary from the Orban regime.

(BEGIN VIDEO CLIP)

PETER MAGYAR, TISZA PARTY LEADER (through translator): We did it. Tisza and Hungary won this election. Not in a small way, but in a big way, a very big way. Together, we replaced the Orban regime. Together, we liberated Hungary. We took back our country.

(END VIDEO CLIP)

SANDOVAL: Let's begin our coverage of this historic election by going to Melissa Bell in just a few moments.

But first, this record number of Hungarians, they actually came out to vote, with thousands pouring onto the streets of Budapest to celebrate Magyar's victory. He said that he received 3.3 million votes, and that would make it the highest number that any Hungarian party has ever seen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I'm really excited, because it's going to be a new thing. It's going to be a better and exciting thing, because we are the most poorest and corrupted country in the E.U. So, it's going to be -- I think it's going to be good.

(END VIDEO CLIP)

SANDOVAL: All right. As promised, let's go now to CNN's Melissa Bell, who's got the latest from the capital city of Budapest.

(BEGIN VIDEOTAPE)

MELISSA BELL, CNN INTERNATIONAL CORRESPONDENT: There is so much enthusiasm on the streets of Budapest tonight. People can barely believe --

BELL (voice-over): -- that Peter Magyar has not only won the election, but that his party, Tisza, have achieved that two-thirds majority, supermajority, that will allow him, as he promised on the campaign trail, to return Hungary to the rule of law.

It is for the youngest amongst the crowds tonight that it is perhaps the most moving. For many of them, they have never known anything but Viktor Orban's rule for as long as they can remember.

And again, a certain sense of disbelief that this has been achieved. Some have spoken to us tonight of the fact that this feels revolutionary. It feels like they're living through a revolution, not an election result.

Peter Magyar himself has thanked them and spoken of the fact that he believes that it is for Hungary, that not a small majority, but a very large majority, has spoken tonight, has voted.

Over the course of the day, 3.3 million Hungarians voted for his party. And they will now, he said, be able to put Hungary back on track.

We've also had people tonight --

BELL: -- coming up to us and apologizing for the last 16 years and the role that Hungary has played on the world stage and in the European Union.

Melissa Bell, CNN, Budapest.

(END VIDEOTAPE) SANDOVAL: All right. Let's now bring in CNN contributor Jill Dougherty, who has recently visited Budapest, speaking with leaders there. She's also an adjunct professor at Georgetown University and a fellow at the Woodrow Wilson Center.

Jill, it is great to have you today. Thank you so much for joining us.

JILL DOUGHERTY, CNN CONTRIBUTOR: Glad to be here, Polo.

SANDOVAL: So, let's start with why this was arguably one of the most consequential elections, not just for Hungary, but especially for parts of the E.U. where leaders were certainly sending their notes of congratulations to -- to the future leader.

DOUGHERTY: Yes, there are so many implications of this. But, you know, if you start with Hungary itself, as you pointed out, this is the biggest turnout, actually, the biggest turnout since 1989 when communism ended in Hungary.

And the thing that Melissa was talking about, this super majority, as it's called in Parliament, is really crucial, because that was the system that Viktor Orban created.

And they got the -- now, the opposition party, which will be now the party in power, is able to change the constitution. And they can restore some of the protections for democracy that had existed before Viktor Orban started changing it.

And significantly, it can free up money that the E.U. was going to give to Hungary, but had been blocked for a while temporarily because of these violations of human rights.

And that would be very helpful for the new incoming government, because they need money.

And then finally, implications for Ukraine. Because Hungary was blocking, using its veto in the E.U., to block money, 90 billion euros for Ukraine.

And then of course, we can talk about other places. But implications certainly for Russia, which supported Viktor Orban, and for the United States, the administration of Donald Trump, which also supported Viktor Orban.

SANDOVAL: Exactly. On that last point, too, Jill, what does Orban's defeat tell us about what the people in Hungary want, not just from their government, but also what it means to Orban's allies, be it Donald Trump in Washington or even Vladimir Putin in Russia?

DOUGHERTY: You know, I think, if you look at the implications for, let's say, the United States or the American administration, it's really that these bread-and-butter issues, what a government can deliver to its people, is very, very important.

Viktor Orban tried to make it about traditional values, as he would call it, or fear about being dragged into the Ukraine war. But people really look pretty much at their pocketbooks. And they

thought, what is my life like? As Magyar himself has mentioned, you know, Hungary had turned into the -- one of the poorest countries in the E.U. Everybody else was moving forward. Hungary was moving backwards. Social services like health care, et cetera, were deteriorating.

And so, I think that's the message that governments have to deliver. And Peter Magyar will have to deliver, as well. That's why, you know, the E.U. money coming back would be very, very important.

And these values issues, yes, they can affect certain people. But in the end, it's really how people are living that's the most important thing.

SANDOVAL: What is it you think the rest of the world should know about Hungary's future leader, about Peter Magyar?

DOUGHERTY: Well, you know, I think he's kind of depicted sometimes as the opposite of Orban. So, that would be Orban, you know, conservative, ultra-right. Therefore, Magyar is left, which is not the case.

Magyar is a conservative person. He came from the Fidesz Party. But what he's saying is he wants to restore the relations and the good relationship with the E.U.

But he is not pro-migration. And there are some other things. You know, he has talked about, let's say, energy coming from Russia. Ninety percent of the oil and gas that Hungary uses comes from Russia.

And so, Magyar is saying we want to wean Hungary off that, but that may not come really quickly.

So, there are these other sides to him. This is essentially a center- right government. It is not a liberal type of leftist government at all.

SANDOVAL: Yes. And you're talking -- quickly, too, before we let you go, in your time there in Budapest and speaking to not just leaders, but perhaps even some -- some voters, did you get any sense that there are perhaps some concerns about the future leader's ability to -- to govern in a time when we've seen -- when we continue to see multiple wars, rising fuel prices, et cetera? It's certainly a complicated time to govern.

DOUGHERTY: It is a complicated time. And, you know, Magyar didn't really get into the weeds on policy.

I mean, his thing was, let's restore Hungary. Let's have a good life and kind of, you know, general ideas.

Now, I do know he has a team behind him that has been working on a lot of the reform measures that they were very quickly have to put into place. So, I think that's a challenge for him. He's -- people were fed up -- I think that's the best way to put it --

about the economic situation. And now, Magyar will have to, as quickly as possible, reverse the democratic backsliding and make life better for Hungarians. And that is a big challenge.

SANDOVAL: Jill Dougherty, with your knowledge on the region, we really appreciate your time and walking us through this election for the last several days. Thank you.

DOUGHERTY: Thank you.

[00:10:02]

SANDOVAL: Let's turn now to the situation in the Middle East following the failed U.S.-Iran talks. U.S. President Donald Trump, he's ordered a blockade on all traffic entering and exiting Iranian ports at the Strait of Hormuz.

U.S. Central Command says it will begin enforcing the maritime blockade beginning Monday evening, local time. So, in about ten hours or so.

Markets already reacting to the news. Oil prices surpassing $100 a barrel again. The future of the Strait of Hormuz and the war, it's still unclear after the talks ended with no deal. But President Trump says that the temporary ceasefire is still valid.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: It's holding well. Their military is destroyed. Their whole navy is underwater. You know that; 158 ships are gone. Their navy's gone. Most of their mine droppers are gone. We have a lot of people. As you know, at 10 p.m. tomorrow, we have a blockade going into effect.

I think they're very desperate. We had a meeting that lasted 21 hours. We understand the situation better than anybody. And Iran is in very bad shape. And just so you understand, Iran will not have a nuclear weapon. We will not have.

(END VIDEO CLIP)

SANDOVAL: So, what's Iran saying? Well, the speaker of Iran's Parliament posting this warning about the blockade, writing, "Enjoy the current pump figures with the so-called blockade. Soon, you'll be nostalgic for $4 to $5 gas." He actually headed the Iranian delegation there.

Oil prices, they are also on the rise again as global markets brace for the potential U.S. blockade on maritime traffic near the Strait of Hormuz.

Both U.S. Crude and Brent crude, which is the global benchmark, they remain high after climbing back above $100 a barrel on Sunday. You see it there, talking about a 7 percent climb. Let's bring in CNN's Ivan Watson, live in Hong Kong, to tell us a bit

more. About this blockade, in terms of the vessels that are likely going to be affected, Ivan, and also how the markets are reacting. Tell us more about that.

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Sure. I mean, we -- we already, for the past month, had effectively an Iranian blockade on most of the shipping coming in and out of the Strait of Hormuz. There were some governments that made side deals, reportedly Iran charging $2 million a tanker to pass through. And also again, making some side deals with countries with which it had better relations.

Now, what President Trump has announced is a blockade on top of that existing de facto blockade, which would put a stop, if it is enforced, on the Iranian-approved shipping that was going through.

One of the strange contradictions about the last month of fighting was that Iran's export of crude oil actually went up; up 100,000 barrels a day additionally, was being exported, as opposed to what it had been exporting in the three months prior to the beginning of the U.S.- Israeli bombardment of Iran; and that the Trump administration actually issued licenses for Iran to sell oil that had already been loaded onto tankers.

This was an effort to try to bring down some of the squeeze on low amounts of oil available to the international markets, to try to bring some of the prices down.

So, this is going to tighten that even more right now. And don't expect the prices to go down any time soon, as long as both countries are announcing that they're not going to allow tanker traffic to go through this vital chokehold.

SANDOVAL: And with that potential blockade, at the same time, there's also the fighting. That continues, especially in Southern Lebanon. What's the latest on that front, Ivan?

WATSON: Right. The fighting has been quiet for the weekend around the Gulf. At the beginning of this two-week ceasefire. Israel has made it very clear that that ceasefire does not apply to Lebanon.

And in fact, the Israeli prime minister traveled into Israeli-occupied Southern Lebanon to meet with troops. And he said that the enemies -- his enemies are simply fighting for their survival.

He's referring, of course, to Hezbollah, that Iranian-backed militia in Lebanon, which claimed to have carried out some 45 strikes on Israeli troops in Southern Lebanon and targets in Northern Israel, cities and towns there, over -- over a 24-hour period.

Meanwhile, the Israeli warplanes and drones continued to bomb what they describe as Hezbollah targets. Recall that on Wednesday, they killed -- that was the deadliest day -- at least 300 people in a single day, in some ten minutes of bombardment, including more than 30 children, as part of their bombardment.

[00:15:11]

On Sunday, the Lebanese government says at least 13 people were killed, among them a paramedic with the Lebanese Red Cross named Hassan Badawi. The Lebanese Red Cross say that he was killed by an Israeli drone, as well as another paramedic who was injured in that attack.

The United Nations peacekeepers who were deployed around Southern Lebanon, they described an Israeli tank repeatedly ramming an Israeli -- a United Nations peacekeeper vehicle in a separate incident.

And the United Nations peacekeepers say that Israeli troops have also fired what they describe as warning shots in the area, striking and damaging clearly identifiable United Nations peacekeeper vehicles.

Meanwhile, there is diplomacy on the horizon that there has been a phone call mediated by the U.S. ambassador to Beirut between Israeli and Lebanese ambassadors.

And the diplomats from both of these countries are expected to meet for talks on Tuesday at the State Department in Washington. That will be historic, because these countries do not have relations.

The Lebanese government has made moves to try to sideline Hezbollah and call for what it calls a monopoly of the use of force of weapons in Lebanon.

But the fact of the matter is that Hezbollah is still the country's strongest militia and acts outside of the authority of the Lebanese government. So, there are strong contradictions and polarization inside Lebanon amidst this ongoing, very deadly conflict, Polo.

SANDOVAL: CNN's Ivan Watson, helping us preview what will be another historic attempt at peace in the Middle East. We'll be watching that along with you on Tuesday. Thank you, Ivan.

Let's keep the conversation going with Ali Alfoneh. He's a senior fellow at the Arab Gulf States Institute. He comes to us live from Copenhagen, Denmark.

Ali, it's wonderful to have you back with us again. Thank you for your time.

ALI ALFONEH, SENIOR FELLOW, ARAB GULF STATES INSTITUTE: Good to be with you.

SANDOVAL: Let's start off on this on this looming blockade and get your assessment. Per U.S. Central Command, this maritime blockade will apply only to traffic that's entering or exiting ports in Iran. All other vessels, according to them, will be able to pass freely, according to CENTCOM.

If that's the case, do you still see this further destabilizing oil markets? We're already seeing them going beyond $100 a barrel again today. ALFONEH: I wish that the president had listened to the advice of Vice

President Vance, the vice president, engaged in extremely important negotiations with strongman of Iran, Parliamentary Speaker Ghalibaf.

But these kind of negotiations require more time and patience. And despite many of his virtues, patience is not among the virtues of President Trump.

Now, we are in a situation where Iran believes it can endure the blockade. And the United States also believes it can coerce the Islamic Republic to give concessions at the negotiation table.

Now, it is very difficult for the oil market to try to understand the implications of the blockade. And we are also not knowing at the time, for the time being, what will happen to third countries such as India and China. So, it's a very, very tense moment also for the markets.

SANDOVAL: The closure of the strait, it was pretty much the result of the war, not one of the actual initial causes of the war.

Do you think that it's now evolved into -- into pretty much a focus of any potential further conversations or talks that -- that may happen?

ALFONEH: Absolutely. And this also shows the wrong approach of President Trump.

He initially had only the nuclear problem with the Islamic Republic. Now there is also the issue of the Strait of Hormuz. And very soon the United States will also be dealing with third countries such as China and India.

Had the president chosen the approach of Vice President Vance and not entangled the United States in another forever war in the Middle East, this situation could, of course, have been avoided.

But I also still believe that there is a chance. Perhaps small, but there is a chance for continued negotiations between the prudent and patriotic Vice President Vance and pragmatic Mr. Ghalibaf of the Islamic Republic.

SANDOVAL: Ali, even though the last, or the previous attempt at peace failed in Pakistan over the weekend, the president maintains that ceasefire, it still holds. It's still in place. So, that potentially leaves the window open for any further discussions.

Do you see both sides returning to the negotiating table in the next week and a half or so?

[00:20:08]

ALFONEH: I certainly hope. And President Trump has also, in the past, demonstrated flexibility and has managed to maneuver in very difficult circumstances. At times, his threats were just tactical, but it remains to be seen.

SANDOVAL: What do you see as the next potential move here? I mean, in about ten hours, a little under ten hours, according to the White House, that blockade will be in place. Iran doesn't really see that as a threat, apparently, based on what we've heard from members of -- of their government.

ALFONEH: What I'm expecting is Iran threatening to activate the Yemeni Ansar Allah, also known as the Houthis. The Houthi movement could retaliate by closure of the Bab el-Mandeb Strait. That would be an escalation on the Iranian side.

And therefore, I'm also hoping that the United States will be very prudent in its approach to -- to the Islamic Republic.

And I genuinely hope that both parties return to the negotiation table and continue the very important conversation and negotiations that Vice President Vance and Mr. Ghalibaf are engaged in.

SANDOVAL: Yes, the future of global markets, not to mention the millions of people in the Middle East, certainly depending on that. So, we certainly hope. Your lips to God's ears on that.

It's also incredible how fast this has evolved. I mean, I feel like you and I were spoke -- speaking about the possibility of military deployments just a couple of weeks ago, and here we are, hoping for further diplomatic talks.

Ali Alfoneh, as always, really appreciate your time. Thank you for joining us.

ALFONEH: Thank you.

SANDOVAL: The war of words between the leader of the U.S. And the leader of the world's Catholics heating up. Just ahead, President Trump slams Pope Leo as the pontiff continues to call for peace.

(COMMERCIAL BREAK)

[00:26:27] SANDOVAL: Pope Leo continues to speak out against attacks by the U.S. and Israel in the Middle East, and this as he calls for peace. American President Donald Trump hit back on Sunday against the leader of the world's Roman Catholics.

(BEGIN VIDEO CLIP)

TRUMP: I don't think he's doing a very good job. He likes crime, I guess.

He -- he hit us. Think of it. He's worried about fear. What about the fear when the ministers and the priests and the -- all of those great people that were arrested during COVID, and in many cases, they're outside ten feet apart. And they were arrested.

So, we don't like it. We don't like a pope that's going to say that it's OK to have a nuclear weapon. We don't want a pope that says crime is OK in our cities. I don't like it. I'm not a big fan of Pope Leo. (END VIDEO CLIP)

SANDOVAL: You recall earlier this month, the pope called Trump's threat to destroy Iranian civilization unacceptable.

All of this comes as Pope Leo is preparing to leave for his first trip to Algeria as pontiff, kicking off a ten trip -- a ten-day trip to four African countries. And it marks his first major overseas trip this year.

The pope will also visit Cameroon, Angola, and also other regions.

On Sunday, he spoke out once more against what he called the madness of war. CNN's Vatican correspondent Christopher lamb, with the latest from Rome.

(BEGIN VIDEOTAPE)

CHRISTOPHER LAMB, CNN VATICAN CORRESPONDENT: We've just heard from Pope Leo at the Sunday noontime prayer from St. Peter's, where he has appealed now for a ceasefire in Lebanon, saying that the civilian population need to be protected.

This comes after his vigil at St. Peter's Basilica was packed with thousands of people, even hundreds outside in the square, following it on big screens, where he made an impassioned appeal for the end to the madness of war.

And he also called on leaders to get around the negotiating table to avoid the delusion of omnipotence.

So, it was very strong words from the pope on Saturday night. It was especially organized peace vigil as the talks were going on in Pakistan between the U.S. and Iran.

We have seen Leo in recent weeks, really become more outspoken on the war in the Middle East. He spoke to me just before Easter, saying that he hopes President Trump can find an off-ramp to end the conflict.

So, you know, increasingly outspoken from the first American pope. And of course, you know, that gives his words added resonance at a time of a U.S. military operation in Iran.

And of course, tomorrow, Pope Leo heads to Africa for a marathon trip, over ten-day trip with four countries. And he's going to start by going to Algeria, which is a Muslim-majority country, to continue that call for peace, for dialogue.

Leo really emerging as a moral voice on the world stage during this uncertain time.

(END VIDEOTAPE)

SANDOVAL: Our thanks to Christopher Lamb, reporting from the Vatican.

Well, Israel has been ramping up strikes across Southern Lebanon despite upcoming talks between the two countries in Washington. Still ahead, an update on the fighting and also a rare trip by top Israeli officials into Southern Lebanon.

(COMMERCIAL BREAK)

[00:34:41]

SANDOVAL: Welcome back. You're watching CNN NEWSROOM.

Orthodox Christians in Lebanon celebrated Easter on Sunday, but their gatherings were darkened by fresh Israeli strikes against Hezbollah targets across the country over the weekend.

The escalation, coming just days before the two countries are set for direct talks in Washington to try to end the fighting, as we mentioned earlier on Sunday, the Israeli prime minister made a rare visit to Southern Lebanon to survey territory seized by the IDF.

CNN's Oren Liebermann has the latest from Jerusalem.

(BEGIN VIDEOTAPE)

OREN LIEBERMANN, CNN JERUSALEM BUREAU CHIEF: For the first time since the start of the war with Iran, some time since the start of the war with Iran some 40 days ago, Prime Minister Benjamin Netanyahu crossed the Northern Israeli border and visited troops in Southern Lebanon, in territory seized by Israel over the course of the past number of weeks here.

He went with his defense minister, Israel Katz, as well as the Israeli military chief of staff, Netanyahu. In visiting troops, talked about what he called the significant accomplishments not only against Iranian proxy Hezbollah in Lebanon, but also against Iran.

The timing here is significant. This rare visit into Lebanon, crossing the border into seized territory there, comes just two days before Israel and Lebanon are set to have direct talks in Washington, D.C., to see if it's possible to end the war and the hostilities and come to a ceasefire agreement.

Now, Netanyahu, who said he directly approved these direct talks with Lebanon, has said any agreement has to have two elements. At least one is the complete disarmament of Hezbollah. And a second is what he called a real peace agreement that would last for generations.

Now, both of those are incredibly difficult to achieve. And in fact, the war between Israel and Hezbollah continues. Israel has continued to carry out strikes in Lebanon, targeting Hezbollah, and Hezbollah has continued to fire rockets into Northern Israel.

That complicates these negotiations, of course. Lebanon has said they will not negotiate under fire, and Israel has not indicated that it's willing to stop the hostilities and stop the attacks on Lebanon in exchange for these negotiations.

So, it's unclear if these will succeed. Noteworthy though, they are for direct talks here.

It is also worth noting that the defense minister, Israel Katz, on his visit to Lebanon with Netanyahu, said that the Southern Lebanon, South of the Litani River, is evacuated and will remain evacuated as Israel expands its grip on territory there until there is security for the residents of Northern Israel, suggesting as of right now, this is very open=ended.

Oren Liebermann, CNN, in Jerusalem.

(END VIDEOTAPE)

SANDOVAL: Let's take you to Ireland now, where police have been dismantling blockades set up by protesters angry over soaring fuel prices there.

Tractors and trucks have been used to block roads, ports and also access to Ireland's only oil refinery. And that's left many petrol stations without fuel.

Diesel prices in Ireland, they have jumped more than 20 percent since the start of the war. The Irish government, it has started providing police escorts for oil tankers and even announcing more than $500 million worth of tax cuts and other support.

But officials have refused to negotiate with the protesters, who say they're like -- that their livelihoods are at stake.

(BEGIN VIDEO CLIP)

CHRISTOPHER DUFFY, AGRICULTURE CONTRACTOR: Because with the price we're paying for fuel, I'm probably two months away me business folding up.

People can't absorb these increases in fuel. It's very difficult to pass it on to the -- it's very difficult to pass it on to the == to the customers. And just -- we're just backed into a corner.

(END VIDEO CLIP)

SANDOVAL: For more now on this fuel crisis that's affecting the people of Ireland, I want to bring in European affairs commentator Dominic Thomas.

Dominic, it's great to have you back with us again.

DOMINIC THOMAS, CNN EUROPEAN AFFAIRS COMMENTATOR: Thanks, Polo. Thanks for having me on.

SANDOVAL: It's our pleasure.

The situation in Ireland. I was looking over it. I mean, it's clearly pretty serious right now.

You have some roads and highways still closed because of these protests. And as we mentioned, many of these petrol stations are still dry. How did the situation in Ireland get to the -- get to this point?

THOMAS: Well, what we're watching here is not just in Ireland, but, you know, other parts of Europe, let alone other areas of the world, are experiencing the ripple effects of the disruption caused in the Middle East with the short supplies of -- of products.

And in this particular case, the way that it has impacted consumption at gas stations and allowing, you know, businesses to operate and so on.

And prices have gone up, supplies are limited and, and restricted. And on the heels of other economic worries and, and concerns.

These have essentially come to a head to protest around this particular issue. But I think they have to be framed in a broader way of expressing their discontent with the way that the cost-of-living matters have been handled there.

SANDOVAL: Do you think that other countries around the world that, you know, as you point out, are feeling those trickle down effects of the ongoing war can look at the current situation in Ireland and basically see it as a preview of what could happen as this war continues indefinitely?

THOMAS: Yes, 100 percent. And throughout Europe -- not just the European Union, but that's just one particular place -- we're seeing lines at petrol stations. We're seeing businesses struggle to make ends meet as they are experiencing higher costs when it comes to distribution of products.

[00:40:16]

So, by all means, the longer this conflict goes on, the longer the chain of delivery is disrupted, this is going to play out.

And we know that this is not just a simple short-term solution. It is far easier to disrupt the global market than it is to restore it into some kind of official functioning order.

So, what we see here is ultimately, and sadly, a strong indicator as to where -- where things are going in a broader context of serious discontent with the actions of the American administration internationally.

Within the American context, within the specific environment in which President Trump is operating, there is a feedback loop. But internationally, people are incredibly upset about this. They're letting elected officials know about it, and they are themselves endeavoring to mitigate the damage that's being done in the Middle East, while at the same time trying to find solutions domestically and internationally -- Polo.

SANDOVAL: Dominic, I'm also curious if I can get your thoughts on the opposition here, expected -- as I read, it's expected to bring a -- my understanding is a motion of no confidence against the government for its response to the crisis. Do you think that this has done some long-term damage to the ruling

party's ability to govern?

THOMAS: Yes, and not just there, but -- but elsewhere. Because it's clear that, at this particular moment, so many of these non-confidence votes or votes of disapproval against governments are anchored in outgrowths of growing, discontent with the political parties or with the leadership. And in these particular cases, they are compounded. And it's a way of expressing the frustration.

Now, it's not as if an opposition party automatically can solve this particular issue overnight. But it is a way of expressing discontent with very serious consequences for sitting administrations, sitting officials, many of whom will be up for reelection, and so on, Polo.

So, as the situation unfolds, unfortunately, it brings more uncertainty and more instability to these particular environments, which are the oxygen that drive these particular issues and problems here.

SANDOVAL: Dominic Thomas, we have to leave it there. Thank you so much for all your expert insight. Really appreciate your time.

THOMAS: Thank you so much.

SANDOVAL: And still to come on CNN NEWSROOM, the war with Iran impacting the U.S. Economy. We just talked a little bit about that, how Americans are feeling as fuel costs and inflation are creeping higher. Don't go anywhere.

(COMMERCIAL BREAK)

[00:47:33]

SANDOVAL: We want to share some new data with you that shows economic uncertainty seems to be growing among Americans amid the war in Iran.

Fuel prices and other expenses, they are starting to rise steadily. And one economist is warning that this is only the beginning.

Speaking with FOX News, President Trump also seemed unsure about whether there was any relief on the horizon.

(BEGIN VIDEO CLIP)

MARIA BARTIROMO, FOX NEWS HOST: So, do you believe the price of oil and gas will be lower before the midterm elections?

TRUMP (via phone): I hope so. I mean, I think so. It could be. It could be, or the same, or maybe a little bit higher. But it should be around the same.

I think this won't be that much longer. They're wiped out.

Well, it's going to be -- eventually, it's going to be lower. No, it might not happen initially, but it's going to -- it's going to go down.

(END VIDEO CLIP)

SANDOVAL: I mean, plenty of uncertainty in that statement.

A consumer survey from the University of Michigan showing the consumer sentiment fell to its lowest level on record due to the war.

Economists fearing that the pessimism could affect consumer spending and possibly trigger a recession down the road. Here's CNN's Matt Egan to break down the numbers for us.

(BEGIN VIDEOTAPE)

MATT EGAN, CNN SENIOR REPORTER: This is the highest that inflation has ever been under President Trump in either of his two terms in the White House. And it's all about the war in the Middle East.

Consumer prices, they surged by almost 1 percent between February and March. That's triple the pre-war monthly inflation rate, and it's the highest in almost four years.

The annual inflation rate, it was actually a little bit lower than expected but still surged to 3.3 percent. That is the highest level in nearly two years. And when you look at the trend for annual inflation, you can see that at the start of the year, was trending in the right direction. And then boom, the war hit, and inflation went straight up.

Now, not surprisingly, the biggest driver here is the fact that gasoline just got so much more expensive. This is a 21 percent increase between February and March. That's the most since when the BLS started tracking back in the 1960s.

It's not just about gas, though. Delivery costs going up by 3 percent, and that's likely linked to some of those fuel surcharges.

Also, airfare going up by 3 percent. That's strong demand. And it's starting to be the early impact of the fact that jet fuel costs have almost doubled since the war started.

Toys also went up in price, and we know a lot of toys are imported, so that could be linked to the presidents historically high tariffs.

The news wasn't all bad. Eggs went down dramatically in price again. And groceries overall, groceries actually got a little bit cheaper in March.

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Unfortunately, that's not likely to continue, because we know that diesel has skyrocketed. And that's going to make it more expensive for farmers to operate their machinery and more expensive to get all that food to the grocery store.

Now, the good news here is that core inflation, which excludes food and energy, core inflation remains relatively tame. So, that does suggest that this inflation shock, at least in March, was mostly contained to food and energy.

The bad news is that's not likely to continue. As the energy shock continues to ripple through the economy, we're likely to see those price increases spread out beyond food and energy.

Now, the fact the cost of living has gotten worse is the biggest reason why consumer sentiment unexpectedly plunged in early April to all-time lows.

University of Michigan says sentiment fell by 11 percent from March. And these were widespread declines across income groups, ages, and political affiliation.

The survey found that consumers are bracing for higher prices to come, and they're blaming the war in the Middle East.

Now, we should note that this survey took place early in the month. Most of the responses came in before the ceasefire was announced.

And this is a preliminary figure. As it gets finalized, it could get revised higher, depending upon what happens next in the war and gasoline prices.

But look at the trend for consumer sentiment. This chart goes back to 1980. Here we are now. You can see that consumer sentiment in early April was at lower than at any other point in history, which is pretty stunning when you think about it. Right?

Lower than when gasoline was at $5 a gallon a few years ago, lower than the worst points of COVID, lower than even during the Great Recession.

This is a reflection of how sensitive consumers are to high prices.

Now, this is not just an economic problem. It's a political problem for the White House, too, right? President Trump, he promised to not just fix the cost of living. He promised to make prices plunge.

But the latest reports show that the war in the Middle East is making inflation worse, and that the American public is increasingly frustrated.

Back to you

(END VIDEOTAPE)

SANDOVAL: Matt Egan, thank you.

And still to come here on CNN NEWSROOM, Rory McIlroy's Masters tournament win was anything but a sure thing when he started the final round of that tournament. How he pulled off his second straight championship title.

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SANDOVAL: He's done it again. Northern Ireland's Rory McIlroy has clinched a second straight title at the Masters golf tournament. His victory was hard-won after a dramatic day on Augusta National's famous greens.

Four other men, they held the lead at various points in the final round, but McIlroy's ultimate win, that's what put him in the rare brotherhood of just three other players who have won back-to-back green jackets.

CNN's Andy Scholes bringing us the highlights.

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ANDY SCHOLES, CNN SPORTS: Well, this was quite the roller coaster here in Augusta, but somehow Rory did it. Ever since he had the largest 36- hole lead in Masters history, Rory has been trying to hang on for dear life.

And on Sunday, in the final round, Rory actually fell behind Justin Rose by two shots at one point. But the difference, like it's been at so many Masters, came down to Amen Corner, and on 12, Rory, a fabulous shot off the tee. He would birdie the hole.

Rose, meanwhile, had bogeyed 12 moments before.

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Rory then went to 18, up two strokes. But then he made that an adventure, hitting his tee shot way right, but he was able to get around those trees and would putt in to win the Masters, letting out a huge scream.

He then shared an awesome moment with his daughter, Poppy; wife, Erica; and his parents, as he's the champ once again.

RORY MCILROY, 2-TIME MASTERS CHAMPION: I was a little kid with a dream. And the support that I have from my family, my friends, everyone back home. You know, some people probably thought it was outlandish to dream of the things that I wanted to do, but I had amazing support from back home. And I can't thank them all enough for -- for that continued support.

SCHOLES: Now, the win makes Rory just the fourth golfer ever to win back-to-back Masters, joining Jack Nicklaus, Nick Faldo and Tiger Woods.

And this is the sixth major win of his career.

And Rory had said this week that he was playing here in Augusta this time around, with the weight lifted off of his shoulders because he had finally won here at the Masters. Well, now he's on top of the world as the Masters champ once again.

(END VIDEOTAPE)

SANDOVAL: Andy Scholes, Thank you. India mourning the death of legendary singer Asha Bhosle. She was

famous across generations for her playback singing in countless Bollywood movies.

Her son confirming the 92-year-old's death on Saturday in Mumbai. During her decades-long career, she was nominated for two Grammy awards and given India's top arts honor.

Prime Minister Narendra Modi joining the flood of tributes, saying that Bhosle touched countless hearts across the world.

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USHA UTHUP, INDIAN SINGER: Asha was a in a million. This is the end of an era. An era of iconic work, biggest volume of work, quality and quantity.

UTHUP (through translator): There can be no one. Unlike her.

UTHUP And I'm so -- so, what can I say? So glad to say that I got a chance to be with her.

(END VIDEO CLIP)

SANDOVAL: Just heard from one of Bhosle's fellow singers.

Thank you so much for watching the last hour of news. I'm Polo Sandoval New York. I'll join you again in a moment with more of your headlines after a break.

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