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U.S. Attacks Southern Iran as Negotiations Ongoing between the U.S. and Iran Now in Final Stages; Cornyn, Paxton to Challenge in the Texas Republican Senate Runoff Today; Pope Leo Calls for A.I. Disarmament in his Encyclical; New York Knicks Sweeps Cleveland Cavaliers for the NBA Eastern Conference Championship, Heads to the NBA Finals. Aired 3-4a ET

Aired May 26, 2026 - 03:00   ET

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

[03:00:00]

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POLO SANDOVAL, CNN ANCHOR AND CORRESPONDENT: Hey everybody, it's wonderful to have you with me. I'm Polo Sandoval, live in New York, and this is "CNN Newsroom."

Working through the language. The U.S. says that it's currently trying to finalize an agreement with Iran as talks stall over wording disputes. And all eyes on Texas as John Cornyn fights to hold a Senate seat from

his Trump-backed opponent in a Republican primary. Plus a call to disarm AI, as Pope Leo is saying in his manifesto on the dangers of Artificial Intelligence.

UNKNOWN (voice-over): Live from New York, this is "CNN Newsroom" with Polo Sandoval.

SANDOVAL: And we do want to begin in southern Iran, where U.S. Central Command says that the U.S. military conducted self-defense strikes targeting Iranian missile launch sites as well as boats around the Strait of Hormuz. These attacks come as Washington and Tehran continue to negotiate, putting them perhaps closer than ever to ending the war. But disputes remain over Iran's nuclear program and the lifting of sanctions.

President Donald Trump laying out his plans for destroying Iran's enriched uranium, or nuclear dust as he calls it, saying that it will either be transported to the U.S., dealt with on site, or possibly taken to another acceptable location.

Meanwhile, some Republican allies of the President, who support a hardline stance against Iran, they worry that the pending framework to end the war may put the U.S. at a disadvantage. In fact, the chairman of the Senate Armed Services Committee said that Trump was, quote, "being ill-advised to pursue a deal that would not be worth the paper it is written on, and that ceasing military action risks the perception of weakness." Let's go now to Beijing, where I'm joined by CNN's Mike Valerio. Mike, I understand you're closely following the overseas trip of Secretary of State Marco Rubio. Is he offering any insight into where the U.S. and Iran are running into issues?

MIKE VALERIO, CNN CORRESPONDENT: You know, he had some very interesting comments on this side of the world, Polo. He said that the disagreements are down to a sentence, a word.

But in terms of what those disagreements are, the crux of your question, we're not completely sure. I was talking with Rosemary about an hour ago, Rosemary Church, and we were talking about we had the opportunity to hear from Marco Rubio as he was leaving India en route to Armenia, and he didn't give reporters anything of substance as it relates to Iran. But he did speak with reporters as he was going to Delhi earlier today.

Let's listen to what he said about potentially Iran tolling the Strait of Hormuz. Not many people want that in the international community. I think that could be the understatement of the afternoon. And let's talk about Rubio's comments on the other side of this soundbite.

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MARCO RUBIO, U.S. SECRETARY OF STATE: The straits have to be open.

They're going to be open one way or the other. So they need to be open. What's happening there is unlawful.

It's illegal. It's unsustainable for the world. It's unacceptable.

I don't know of any country in the world that doesn't. The Russians are not in favor of a tolling system. The Chinese are not in favor of a tolling system.

I mean, there's no country in the world that's in favor of a tolling system except with the regime in Iran. So that's not acceptable, that cannot happen. The strait's need to be open unimpeded without tolls and obviously that needs to happen to me as soon as anything's agreed to

(END VIDEO CLIP)

VALERIO: Okay, so the Strait of Hormuz is in that bucket, but the main bucket or reporting target for today is whether or not these American strikes that led the top of our show with, whether or not those American strikes could potentially derail these peace talks.

So the American side, as we talk about what we're looking for over the next 24 hours, are trying to be as optimistic as possible, saying that during the ceasefire period, the two sides, be it the Americans and the Israelis and the Iranians, have exchanged fire before during the ceasefire period. This time may be no different. A couple more details about this strike.

The Americans are saying that this is in retaliation for the Iranians attacking American warships in the Strait of Hormuz. So let's put that up there as bullet point number one. Number two is that Trump is seeming to move his position on how to deal with this enriched uranium, he started the war saying that the Americans needed to potentially go in there and get the around 1000 pounds of enriched uranium out of there.

But with that truth post that he showed a couple minutes ago, he's saying that perhaps it could be transferred to another country, be it Russia, maybe here in China to oversee that process.

[03:05:02]

And perhaps the Atomic Energy Commission, the independent American agency, or its analog from the United Nations, the IAEA, could be responsible for making sure that that enriched uranium is dealt with.

The Iranian team, most notably, is also still in Qatar right now. They haven't left. They haven't cut off talks.

And Qatar, of course, Doha, is where those Iranian funds are located, where they've been frozen since the start of this conflict. So we are waiting to see as Washington, D.C. starts to wake up in the next few hours, Polo, where this is going, whether or not these strikes potentially derail the talks. But so far, both sides are telegraphing that these talks are still on.

SANDOVAL: That's right. It's barely 3:00 a.m. there in the nation's capital, Mike Valerio, with that live report from Beijing.

Let's bring you to the United States now. Republican voters in Texas, they will be casting their ballots today in the runoff between incumbent Senator John Cornyn and State Attorney General Ken Paxton. An endorsement from President Trump and also a string of new nicknames from the Democratic candidate are shaking up this race. CNN's Arlette Saenz with the preview.

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ARLETTE SAENZ, CNN CORRESPONDENT (voice-over): A Republican duel in Texas heading to its final faceoff.

SEN. JOHN CORNYN (R-TX): I think Ken Paxton's flaws and the baggage he brings to the general election is going to be exploited to the fullest by James Tallarico and by Democrats.

SAENZ (voice-over): Senator John Cornyn in his last stand against State Attorney General Ken Paxton, who received President Donald Trump's endorsement despite concerns raised by GOP leaders in Washington.

KEN PAXTON (R), TEXAS SENATORIAL CANDIDATE: I don't know if you all noticed this, but Donald Trump endorsed me this week.

SAENZ (voice-over): In a Sunday appeal to Texas Republicans, the President writing on Truth Social, "Paxton was very loyal to your favorite President, me," while Cornyn "was very disloyal to me as President."

Despite Trump's opposition, Cornyn is pressing forward to keep the Senate seat he's held since 2002, insisting he's on the President's side.

CORNYN: I really don't think it was about me. I think it's very different from the Cassidy and Massie situation because I've been a Trump ally. I think he got frustrated with the Senate, not able to get what he wanted when he wanted it.

SAENZ (voice-over): Many GOP senators are not falling in line with Trump's support for Paxton, who has survived a series of personal and political scandals.

SEN. THOM TILLIS (R-NC): This guy is an empty suit and will do us no service by being in the U.S. Congress.

SAENZ (voice-over): And some Republican voters say they're not swayed by Trump's pick.

RANDY MARSHALL, REPUBLICAN VOTER: I'm going to stay with Cornyn and vote for him. I think stability is the name of the game right now.

SAENZ (voice-over): Paxton is ready to turn the page. He's stopped airing negative ads against Cornyn and is targeting James Tallarico, the Democratic nominee.

PAXTON: Look, the party's an open door. We have to unite. We have a common enemy, James Talarico.

SAENZ (voice-over): The GOP is testing out lines of attack against Talarico, starting beef over a common breakfast taco order.

JAMES TALARICO (D), TEXAS SENATORIAL CANDIDATE: Yes, breakfast tacos. That's right.

SAENZ (voice-over): And his past comments about reducing meat consumption.

PAXTON: How about tofu Talarico? How about Talarico?

Talarico?

TRUMP: He's a vegan. He's a vegan in Texas. And you can't get elected as a vegan in Texas.

SAENZ (voice-over): Talarico, who is not a vegan, has pushed back and argued Texas is primed to turn blue in November.

TALARICO: They're going to throw everything they have at us. They'll call our movement un-Texan, un-American. They'll call us a threat.

The only truth is we are a threat. We are a threat to their corrupt system.

SAENZ (voice-over): For now, Republican voters, even Cornyn supporters, still feel confident Paxton would defeat Talarico.

BOBBY WAITE, CORNYN SUPPORTER: I think we're red enough that it doesn't matter whether it was Paxton or Cornyn, whoever the Republican is, is going to win.

CYNDEE BALDWIN, UNDECIDED REPUBLICAN VOTER: I think he would fare well against Talarico. I think it would be a good race.

SAENZ: The Texas Senate primary has already amounted to the most expensive U.S. Senate primary in history, with more than $30 million spent in this GOP runoff alone. Pro-Cornyn forces have outspent Paxton in advertising by 4-1, and whoever emerges from this GOP runoff will face off against a formidable fundraiser and Democrat James Talarico. The Democratic nominee raised more than $27 million in the first quarter of 2026.

The big question going forward is how much each of the national parties will invest in this state come November, as Texas could be critical to both Democrats and Republicans in their path to the Senate majority in this year's contest. Arlette Saenz, CNN, McKinney, Texas.

(END VIDEOTAPE)

SANDOVAL: So let's discuss this next round of runoffs in the United States and head over to Ron Brownstein. He is a CNN senior political analyst and also an opinion columnist for Bloomberg. Ron, it's always great to see you.

[03:10:07]

Ron, I also want to get your thoughts on what Mike Valerio was reporting a little while ago, which is the negotiations around Iran's nuclear stockpile.

But first, let's start in my home state of Texas. Senator John Cornyn is clearly in a fight for his political life, trying to hang on to that seat that he's held since 2002. In your view, can he reverse this trend of Republican lawmakers losing to Trump-preferred candidates or do you think he should start packing?

RON BROWNSTEIN, CNN SR. POLITICAL ANALYST AND OPINION COLUMNIST, BLOOMBERG: Well, I think it's going to be tough for him. He won the first round of the primary in March, but as the incumbent, he finished well under 50. And that's usually a tough sign for an incumbent heading toward a runoff, plus of the obvious, you know, elephant literally in the room, Donald Trump's endorsement of Ken Paxton.

So it would be a surprise if John Cornyn, I think, prevails today. Paxton, as Arlette said, is, you know, would still have to be the favorite in a very red state. But it is going to be a competitive race.

You know, you go back to 2018 when Democrats had their good midterm during Donald Trump's first midterm. Beto O'Rourke came within 2.5 points of Ted Cruz in Texas, the best Democratic showing in a long time. It would not be surprising if polling consistently shows Talarico at least that close and maybe closer against Paxton, but those last few points are tough for a Democrat in the long-star state.

SANDOVAL: That would make for an absolutely fascinating face-off come November. We've got to get through tomorrow, or rather Tuesday first, Ken Paxton already focusing on his potential Democratic opponent, James Talarico. If we do see these two on a midterm ballot, do you expect the Texas voters may be open to seeing past Paxton's personal and political scandals?

BROWNSTEIN: You know, negative partisanship is a very powerful force in modern politics. I mean, you know, you have flawed nominees on each side who win now, basically by making the argument that you cannot tolerate letting the other party be in power.

You've got to go back, as I said, to 2018 as your baseline. In a year where Democrats won the national popular vote by 8.5 points in 2018, Beto O'Rourke lost by 2.5 points in Texas.

Now that suggests you need a bigger wave than you had even in 2018 for Democrats to win down there. There might be a bigger wave for Democrats to win, there might be a bigger wave this year, that the Democratic lead in the generic ballot is larger now than it was at this point in 2018.

And also, Texas, though, has changed in these eight years. I mean, basically all population growth in the state since that 2018 race has been among voters of color. The white share of the electorate, particularly those non-college whites who are the core Republican voters everywhere, but especially in the South, they are a smaller share of the electorate than they were.

On the other hand, Republicans have made inroads since 2018 among Latino and to a lesser extent black voters. I suspect the key for Talarico will be to push those Latino margins back as close to the 64 percent that Beto won as he can, but then to run better among those college-educated white suburbanites.

Beto got 44 percent of them, he's going to need more, and they are presumably the voters who will be most resistant, I think, to PACs and those fiscally conservative, socially moderate voters who are just kind of put off by all of the various personal and political and even financial scandals swirling around PACs that still are reached because of negative partisanship, but one that I think is more possible than against Cornyn.

SANDOVAL: Yes, and I expect that compared to 2018, this time around among the constituency, there will certainly be an increased sense of frustration around affordability and around the war. So it's certainly going to make for an interesting round of politics.

Before I let you go, you're in California. I'm wondering if I could just get a few thoughts on the governor's race in your state. What do you expect in this last week leading up to voting? Is the race wide open?

I mean, my understanding is it's basically a crowded field that's trying to secure one of two spots. BROWNSTEIN: Yes, it's one week left as of today, and of course, to

remind viewers, in California it's kind of an all-under-one-umbrella primary, a jungle primary, where all the candidates from both parties are running, the top two finish. It seems to be-go on to November, it seems to be a three-person race at this point between the Republicans, Steve Hilton, and two Democrats, Xavier Becerra, former attorney general in the state, national HHS secretary, and the self-funding billionaire Tom Steyer.

You know, the assumption, I think, of most people is it's going to be Hilton and one of the Democrats, with Becerra having the edge, but certainly not insurmountable. Steyer has really unleashed a barrage against Becerra in the last week, attacking him relentlessly, accusing him of being kind of the corporate candidate.

[03:15:06]

But Becerra has kind of been eh in all of the debates. I had a chance to kind of close this out, I think, with strong performances. Didn't deliver them.

Something unusual, though, I saw tonight while watching local television was Steve Hilton attacking the other Republican, Chad Bianco, from the right in an ad, which suggested to me that he's at least a little worried that Steyer and Becerra could both squeeze past him and get to a Democrat-on-Democrat finale.

You know, you get unusual kind of geometry and dynamics from a top-two race across party lines. But right now it does look like three candidates for two spots.

SANDOVAL: The political punches are certainly flying, as stakes are high in elections in two of the nation's largest states. Ron Brownstein, as always, I appreciate your insight. Thank you.

BROWNSTEIN: Thanks for having me.

SANDOVAL: This all the way, Pope Leo tapping into the fight over the ethics of artificial intelligence, issuing a stark warning in his first theological publication as pontiff. We'll get some expert insight into the Pope's arguments in a moment.

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[03:20:03]

SANDOVAL: Pope Leo is issuing a stark warning about artificial intelligence. It's his first major theological publication as pontiff. The text, titled Magnifica Humanitas, Latin for Magnificent Humanity, calls for the disarming of A.I. to prevent it from dominating or degrading human life. It covers topics ranging from the consolidation of global power and modern warfare to workers' rights and the ethical risk of the ever-growing technology.

(BEGIN VIDEO CLIP) POPE LEO XIV, HEAD OF THE CATHOLIC CHURCH: Artificial intelligence already touches many areas of our lives and affects decisions that shape human coexistence. It is also dramatically changing how war is waged. Artificial intelligence needs to be disarmed.

The word is strong, I know, but deliberately chosen because this moment needs words capable of attracting attention, awakening consciences, and indicating paths forward for humanity.

(END VIDEO CLIP)

SANDOVAL: Let's get some analysis now on Pope Leo's landmark publication.

I want to bring in now Elise Allen, she's a senior correspondent with Crux Now, who's been closely following developments at the Vatican and closely analyzing and watching also the text that was revealed on Monday. Thank you so much for joining us, Elise.

Elise, you can hear us okay? I tell you what, let's see if we can work out some of the issues there and go back to Elise for more analysis on Pope Leo's text.

Again, it is a remarkable development out of the Vatican.

Stay with us, more of your headlines in a moment.

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[03:25:00]

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SANDOVAL: Welcome back. I'm Polo Sandoval in New York, these are today's top stories.

The U.S. Secretary of State, Marco Rubio, says that talks to end the war with Iran are being held up by disputes over wording of the deal. Rubio telling reporters earlier that the negotiators may need a couple more days, but that the disagreements are down to a sentence or even just a word. U.S. officials have said that the disputed language involves Iran's nuclear program and the lifting of sanctions.

Republican voters in Texas will soon head to the polls. Four-term incumbent Senator John Cornyn facing a challenge from State Attorney General Ken Paxton, who was President Trump's endorsement in a closely watched and very expensive race. The winner will be facing Democrat James Talarico in the midterms come November.

Pope Leo calling for ethical limits on artificial intelligence in his first major theological publication as pontiff. He warns that the technology could reshape warfare, that it could threaten jobs and also concentrate power in the hands of a few companies and governments, deepening inequality and degrading human dignity, according to the pontiff. Protesters and politicians are denouncing the treatment of detainees at a federal immigration detention center in New Jersey. Those protests came to a head early on Monday morning with masked armed ICE agents crashing with demonstrators, you see some of what happened there in Newark. CNN's Gloria Pazmino with more.

(BEGIN VIDEOTAPE)

GLORIA PAZMINO, CNN CORRESPONDENT: That's right. And confrontations between demonstrators and law enforcement officials outside of Delaney Hall began early on Monday morning after federal officials were in the process of moving a detainee that was being held inside Delaney Hall in Newark to another detention center in Elizabeth.

Now, for days now, the detainees inside of Delaney Hall have been holding a hunger strike in protest of conditions there. We have heard from local officials who have been able to access the inside of the facility and they have reported bad conditions, including a lack of medical care for detainees. That's what prompted the hunger strike, which has been going on for the past few days.

But when officials inside Delaney Hall tried to move one of the detainees, protesters tried to prevent that from happening. And that's what led to clashes outside of the facility.

Now, we should mention it's not the first time that we are seeing this outside of Delaney Hall, which is in Newark, New Jersey. This is the same facility where a few months ago we saw Mayor Ras Baraka of Newark and Congresswoman Monica McIver also in a skirmish with federal officials. Congresswoman McIver was in fact arrested after she tried to access the facility.

And early this morning, New Jersey Governor Mikie Sherrill also trying to get access to the facility, but was denied. We are told by the Department of Homeland Security officials that visits have been suspended at Delaney Hall for now as a safety precaution.

Now, I want to show you a statement from the governor of New Jersey saying, in part, quote, "The people inside Delaney Hall are fathers and mothers, sons and daughters and members of our community. In New Jersey, we believe in the rule of law and that everyone deserves to be treated with basic dignity. We have a duty to safeguard the rights, health and well-being of everyone within our borders."

Now, this facility in Newark has capacity for about 1000 people. About 300 detainees are currently in custody and we did hear from the Department of Homeland Security who told us that several protesters tried to block the exits while they were trying to move a detainee.

I've also heard from advocates who are on site telling me that the presence of law enforcement officers has significantly increased and that they are expecting that more detainees may be transferred out of that facility in the coming hours, so we'll be watching closely to see if things continue to escalate. Gloria Pazmino, CNN, New York.

(END VIDEOTAPE) SANDOVAL: All right, we do want to get you now back to this landmark publication on the dangers of A.I. I do want to bring in Elise Allen, senior correspondent with Crux Now. Elise, thank you so much for joining us.

ELISE ALLEN, SR. CORRESPONDENT, CRUX NOW: Thank you, guys. It is wonderful to be with you this morning.

SANDOVAL: Yes, likewise. What is the significance of Pope Leo's essentially stepping up amid this AI revolution, you think?

[03:30:00]

ALLEN: I think this is incredibly significant, Polo. I think this is going to be one of his most important documents.

I mean, it's his first major teaching document that he has released here. The fact that he chose to do it on A.I., I think, says a lot. It says a lot about the direction he sees humanity going in, but one of the key issues that is going to define humanity's future, and it's something that doesn't just touch, you know, one nation or one people.

This is across the board, you know, and there are a lot of really critical questions that he raised in this document in terms of our basic understanding and, you know, have we lost respect and understanding of what it means to be human at the most very basic level, but also in terms of how wars are waged.

And he talked about, you know, new colonialisms and modern forms of slavery that this could bring about if there are not, you know, clear moral and ethical criteria in place developing these technologies. So I think it's a very important discussion that the Pope has just launched here.

SANDOVAL: Yes, it is significant, it's historic, but will it be influential, you think? I mean, when you, as you read through the text, Elise, do you think that it will actually have at least a small impact in the development of A.I.?

ALLEN: I think it could. You know, I think that the Pope has opened a door here. He's made an invitation to get big tech and governments around the world involved in this.

You know, he called on government and political leaders especially to be involved, you know, in ensuring that the technology that, as he said, remains in the hands of a few, doesn't just stay there, and that it is available to people broadly. You know, the benefits of it, but that also that there are many actors involved in shaping how this develops, you know, in an ethical way.

So I think he's opened the door to a conversation here, and I think the presence of Christopher Olah, you know, the head, the co-founder of Anthropic, at the presentation in the Vatican yesterday is a signal that there are at least some in the big tech world that are open to having this conversation.

So I think there could be some, at least there are initial signs that some are listening at this point.

SANDOVAL: The Pope also argued that we should not fear A.I., but instead to keep the question of the human in play. Speak to the significance of the pontiff issuing this challenge to some of the tech companies, including the one you just mentioned, to keep humans at the heart of tech change.

Obviously, we cannot ignore that even in recent graduations we've seen even young students booing, criticizing A.I. So it is heavily on the mind of people, and it's not just college communities, but artists themselves as well, that have serious concerns about the rise of A.I.

ALLEN: I think all these concerns are absolutely legitimate, and I think that that's one thing Leo wanted to highlight.

You know, I think he sees the development of these technologies as inevitable, and the question he posed in this document was not, you know, whether we want this technology. He sees that as inevitable. It's what kind of world do we want to build with it.

It's coming whether we want it or not, you know, so we can either build something, he says, you know, from the eyes of faith, you know, we can try to, you know, hold on to dominion and this culture of power that he described and this sort of lust to dominate, you know, that it leads to greater conflict and war, or we can build something better for humanity. And those are the two paths that lead, you know, that are in front of us.

And so I think some of these protests, the resistance to technology or resistance, you know, to this other path that he's talking about, you know, this thirst to dominate and holding on to power, you know, instead of trying to build something better, you know, for humanity. So I think the conversation that he wants to start is, you know, this is going to be present.

And instead of, you know, getting caught up in this ultimately useless debates with one another, how can we build a debate and dialogue that is constructive. So we know that these technologies that are going to be present no matter what are being used in a useful and productive way for humanity, you know, keeping humanity at the center, not losing what it means to be human beings, you know, seeing that technology does not replace the human being and trying to ensure that at every stage.

But how can it enhance human existence?

You know, and those -- that's where he says that the need for clear ethical guidelines shaping the development of this technology are so necessary to ensure that the human being isn't lost, but that it's really at the service of humanity, preventing wars, you know, and being used for things such as, you know, education, medical progress.

There's a lot of creativity here, and that's the direction we have to go in. So I think that's ultimately the challenge that he posed and what he would like to see happen. SANDOVAL: Yes, keep human beings at the heart of the development. It's

an argument that we've seen really around the world. It's absolutely just incredible to hear it now coming from the head of the Catholic Church.

It certainly is a sign of the times. Elise Allen, always grateful for your perspective and for your reporting. Thank you for your time.

ALLEN: Thank you.

SANDOVAL: Now the Backyard Barbecue, it may cost you a little bit more this summer. We're going to tell you some of the items that may actually take a bite out of your budget. Stay with us.

[03:35:06]

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SANDOVAL: Welcome back, I'm Polo Sandoval in New York, and these are your business headlines.

The average price of gas in the U.S. is now $4.50 a gallon, making this Memorial Day the most expensive for drivers in four years, but that didn't stop some Americans from hitting the road this weekend. AAA estimated that a record-breaking 45 million people were likely on the move.

U.S. tourism, it is down 5.5 percent in 2025 as international travelers look elsewhere for their holiday getaways, and that translates to roughly 4 million fewer foreign visitors, and also a spending decrease of some $8 billion throughout last year here in the U.S. Tourists are citing several deterring factors, including Presidential rhetoric, public involvement in wars, and also mounting travel fees.

A growing coffee chain in the U.S. could give Starbucks and Dunkin' Donuts a run for their money. Seven Brew has now been expanding quickly since it first opened in Arkansas in 2017. It operates through small, non-dining spaces, just drive-thrus and walk-up windows, it now has more than 700 locations in 38 states, and expects to open 340 more soon.

Memorial Day weekend marks the unofficial kickoff to summer, and for many, that means it's time to hit the grill. But if you're planning a cookout this summer, you better brace yourself for some serious sticker shock. You see, meat prices, those have been soaring.

CNN's Jenn Sullivan looks at what will cost you more this year, and also some of the ways that you can still save some money at the checkout counter.

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JENN SULLIVAN, CNN CONSUMER REPORTER (voice-over): Firing up the grill this summer? The high cost of meat may burn a hole in your wallet.

STEW LEONARD JR., PRESIDENT AND CEO, STEW LEONARD'S: I've been in this business, and I've never seen the meat prices so high.

SULLIVAN (voice-over): Stu Leonard Jr. is the President and CEO of Stu Leonard's Grocery Stores in the New York Tri-State area. He says he's been splitting the rising cost with his meat suppliers, instead of passing off those costs to consumers.

[03:40:08]

LEONARD: I can't pass 100 percent of our cost increases on to customers, and they're fed up right now.

SULLIVAN (voice-over): The average retail price for beef was a record $9.64 per pound last month, that's 13 percent more than last year, according to the USDA.

Rising operating costs have forced many cattle farmers to reduce their herds. The USDA says herd levels are at a 75-year low. But the demand for meat in the U.S. is still sky high, and that's one of the reasons we're seeing record-high beef prices.

Instead, Leonard suggests buying hamburgers and hot dogs.

LEONARD: We're going to see a little shift away from the expense of meat. We are noticing customers switching from beef down to chicken.

SULLIVAN (voice-over): Chicken is cheaper this year. The average price for boneless chicken breast is about $4.17 per pound, and salmon prices have fallen.

But many fresh vegetables will cost you a lot of green this summer. Tomato prices are up nearly 40 percent from last year due to weather hurting supply. Potatoes are cheaper, though.

So how can you save?

LEONARD: There's always something out on the market where they want to move a product, so they'll give you a great price on chicken, great price on lobster tail.

SULLIVAN (voice-over): Another tip? Leonard says don't buy pre-sliced items like watermelon. It's a lot cheaper to buy it whole and slice it yourself.

And avoid buying products being offered as a free sample. He says many retailers jack up those prices.

For Consumer Watch, I'm Jenn Sullivan.

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SANDOVAL: For our international viewers, "World Sport" is next, and for those of you watching in North America, I'll join you again in a moment.

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[03:45:00]

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SANDOVAL: Welcome back. I'm Polo Sandoval, in New York.

And the threat of a catastrophic explosion of a chemical tank at a Southern California aerospace facility, it has been eliminated. But officials there are warning that the crisis is still far from over.

You see, emergency crews say that a crack in that tank has actually relieved a significant amount of pressure, and that a constant deluge of cold water that's actually brought down the temperature of the toxic and highly flammable chemical inside. Authorities have also significantly scaled back their evacuation orders.

Only about 16,000 of the nearly 50,000 people originally displaced will remain under evacuation orders for now, as they hope conditions will continue improving. Earlier, CNN spoke with the interim fire chief, T.J. McGovern, who offered an update on the response effort.

(BEGIN VIDEO CLIP)

T.J. MCGOVERN, INTERIM FIRE CHIEF, ORANGE COUNTY FIRE AUTHORITY: There's still a fire threat, and we have to mitigate that. And so what we're looking at is controlling the internal temperatures, we don't want those temperatures to rise and cause a fire.

So after the threat for the levee was undone, now we can go in and we're starting to skin the outer shell of the tank. And as we're skinning the outer shell, what we're doing is we're pulling away the insulation. And that's allowing us to use our copious amounts of water, our unstaffed deluge systems that we have.

And now we're able to focus our hose streams to cool more of the internal tank and watch those readings firsthand.

(END VIDEO CLIP)

SANDOVAL: A Spanish national was tested positive for hantavirus after two weeks of quarantine in Madrid. The country's health ministry says that person was aboard the M.V. Hondius cruise ship that had been monitored as a close contact case.

That individual is now the second Spaniard aboard that cruise ship to test positive and has also been placed under specialized medical supervision. Officials are saying that it could take up to six weeks for symptoms to appear, but they are insisting that the newly confirmed case does not alter the current risk for the general public.

The Ebola outbreak in Central Africa, it will likely get worse before it gets any better. And that is according to the World Health Organization's director general. They are expected to travel to the Democratic Republic of Congo on Tuesday to get a first-hand assessment of the crisis.

Health officials say that the deadly virus has already killed at least 220 people, with more than 900 suspected cases already reported, and some reports suggesting that response efforts are being disrupted by regional conflict as well as violent public disputes over burials for the victims of Ebola.

And while the threat of local exposure remains high, the WHO insists that the likelihood of a global epidemic remains low. And this comes as Italy's Ministry of Health says the two symptomatic people who recently returned from Uganda have now tested negative for the virus in Milan.

And this will be a wet week for parts of the United States. The east is expected to get hit hard with heavy rain and thunderstorms until about midweek.

The risk of excessive rainfall, it has been spreading from North Carolina to Louisiana. One person in Mississippi has already died as a result of some of this flooding, and more than 12 million people in at least seven states are currently under flood watches. Parts of Alabama are now trying to recover from an apparent tornado that caused some widespread debris.

Meanwhile, in the northeast, people are preparing for warmer-than- usual weather, stint of weather. In fact, much of that region is going to start up to 20 degrees below normal, then a rapid warm-up will build up later in the week. For the rest, it will likely be the opposite, warmer weather now than a noticeable drop in temperatures by midweek.

People are searching for ways to stay cool in the U.K. while enduring their first heat wave of the year. On Monday, Britain broke its record for the hottest day in May with temperatures well over 30 degrees Celsius. Western London reached nearly 35 degrees, which is about 94 degrees Fahrenheit, and today, it's also expected to be quite the scorcher.

And in Western Europe, it's also suffering through an early heat wave as you see temperatures across the board there. Most areas in the region experiencing temperatures 10 to 15 degrees Celsius above what's normal this time of year.

[03:50:01]

And in a time when affordability is top of mind for many Americans, one company says that they are currently sticking with a low-priced model for a high-quality cup of coffee. Matto Espresso is now causing a stir on the New York coffee scene by charging just, get this, $3. CNN's Richard Quest stepped behind the counter to get a first-hand look.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN BUSINESS EDITOR AT-LARGE: Are you going to give me a job?

Well, maybe not. Maybe not.

Very nice. That really is excellent. Cheers.

JENNIFER MAMAN, COFOUNDER, MATTO ESPRESSO: I was in Italy with some friends, and wherever we would go in Italy, we would have the most incredible cappuccinos and lattes with the perfect foam. It didn't matter if we would go to the most expensive place or inexpensive place. You could get an incredible cup of coffee.

And so that was really the big moment where we said, why doesn't something like this exist in the United States?

QUEST: Right, because the coffee you're talking about in Italy is a couple of euros. It was the price point that became important as well, wasn't it?

MAMAN: Right. The big part of the business is the $3 menu. So when you say, I want to charge $3 for coffee, then you build an entire system around that.

QUEST (voice-over): The Matto app is the key to that system, and it's the only way to get your hands on that coveted $3 coffee.

MAMAN: We decided to put together a menu that really targets the most popular items that people order every day, and we decided we want the top quality. So we partnered with a coffee roaster from Italy that's been roasting coffee for over a hundred years.

QUEST: Right, but you also have to be very attuned to what people need. So for instance, we've got an affordability crisis at the moment. Are you going to be able to keep $3, bearing in mind every one of your costs are going up at the moment?

MAMAN: Our model was designed to be profitable at $3. So we have small store footprints, so that lends to lower operating costs. And our app has been really revolutionary in terms of serving the customer and how they experience Matto.

QUEST (voice-over): All that talking has made me thirsty.

QUEST: Would one of you come here, please, and make me a nice, hot cappuccino?

Now, what have you discovered works and what have you discovered doesn't?

MAMAN: It's really the simple things. Make a good quality cappuccino espresso, give it to them on time, give them friendly and quick service. That's what they want.

You don't need to sell a lot of things. You just have to make it right, and you have to give them what they want.

QUEST: So you know that being a barista was my pandemic project.

MAMAN: No, I didn't know that.

QUEST: So during the pandemic, I decided, right, everybody else was making banana loaf. So I went out and I bought myself a proper espresso machine and learned how to make espressos.

And I realized that my first ones were truly awful. And my latte art is awful. How's your latte art?

MAMAN: I have to confess, I'm not good at that at all. I leave it to the baristas.

QUEST: Let's do a latte.

UNKNOWN: Let's do a latte. Okay, so first we need to shut off the espresso. Take the tamper and press it, just try to press it like straight, yes.

QUEST: Lock it in?

UNKNOWN: Yes. Take the cup.

QUEST: Okay.

UNKNOWN: Put a little bit of milk, then swirl the cup a little bit with the milk. Yes.

Now, hold the cup like this, and now we take it in. You want to wiggle, right?

QUEST: I need to wiggle.

UNKNOWN: Try to do like this.

QUEST (voice-over): Let me just say, it took a couple of tries to get this right.

UNKNOWN: It's not good.

QUEST: Try it again?

UNKNOWN: Yes. Like, really relax. Like, all the hands.

QUEST: Try again.

UNKNOWN: Let's do it again.

QUEST (voice-over): Eventually, I got it. Well, sort of.

UNKNOWN: So when you're going to put the milk, try to put like, make circles. Wiggle. Yes.

QUEST: Well, there's a sort of wiggle. That's the best wiggle I've ever done.

UNKNOWN: Do it again.

QUEST: I mean, it's sort of.

UNKNOWN: Flour. Hard.

QUEST: Finally, the name Matto.

MAMMAN: It means crazy in Italian. People think we're crazy for charging $3 for coffee.

(END VIDEOTAPE)

SANDOVAL: Not every day Super East End suspenders. Here in New York, it is electric.

The New York Knicks, punching their ticket to the NBA Finals. They swept the Cleveland Cavaliers with a dominating 130-93 win on the road last night. Carl Anthony Towns leading the Knicks with 19 points, Jalen Brunson was named the series MVP.

[03:55:03]

Knicks fans who couldn't make it to Cleveland, they got together at the famous Radio City Music Hall for a watch party as they took in the game and some performances. This will be the team's first appearance in the NBA Finals since 1999.

(BEGIN VIDEO CLIP)

UNKNOWN: Oh my goodness, this isn't boring. The fact that they swept. Well, they beat the Hawks, then they swept the 76ers and now they swept the Cavs. I just can't even imagine the excitement.

The Knicks are doing it all today. They're making-- we're not sleeping tonight, we're so ecstatic.

(END VIDEO CLIP)

SANDOVAL: We have about 10 days to recover from all that excitement. You see, the Knicks will eventually face off with either the San Antonio Spurs or defending champs in Oklahoma City in the Finals. The Spurs-Thunder series is tied at two games apiece with game five tonight in Oklahoma City.

New Yorkers on a budget, they may now have a chance to buy World Cup tickets at a pretty deep discount. A thousand tickets are now available for just $50 each. This is part of a lottery program so they won't be easy to get.

They're split across five group stage matches and two knockout games at MetLife Stadium, which will be temporarily renamed as New York-New Jersey Stadium for the tournament. I still don't know why it's not New Jersey first if it's in Jersey.

New York Mayor Zohran Mamdani announcing the lottery last week. Ticket prices for World Cup matches have soared into $1,000 and getting there is also quite pricey as train fares from New York City to that stadium almost 12 times the regular price. Let's close with some Major League Baseball now.

Three Houston Astros pitchers, they threw a combined no-hitter. Starter Tetsuya Imai and relievers Steven Ockert and also Alan Bersanta did not, they actually give -- they did give up five walks to the Texas Rangers but kept them scoreless throughout the game. This is the first no-hitter in the Major Leagues in nearly two years, the Astros' bats were also on fire, driving in nine runs in their shutout.

I really appreciate you watching, I'm Polo Sandoval in New York. I'll join you again in a few moments with more of your headlines here on "CNN Newsroom."

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