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Bessent: Iran To Face Economic Pressure Never Seen Before; Oil Prices Trending Up After Thursday's Decline; Democrats Want Answers On Situation On USS Abraham Lincoln. Aired 4-4:30a ET

Aired August 14, 2026 - 04:00   ET

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

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[04:00:39]

SALMA ABDELAZIZ, CNN ANCHOR: Hello and a very warm welcome to our viewers joining us from around the world. I'm Salma Abdelaziz in London. Let's get into the headlines.

The U.S. is looking to add economic pressure on Iran, as the war itself puts more pressure on the global economy. And U.S. service members are reportedly under strain from the conflict, but relief is now on its way. We're going to have the latest for you from a U.S. carrier group's concerns.

And Nigel Farage is headed back to Parliament. Details on a very unusual contest and the significance of his win for U.K. politics.

UNIDENTIFIED MALE: Live from London, this is CNN Newsroom with Salma Abdelaziz.

ABDELAZIZ: The U.S. is moving to squeeze Iran economically, as the country refuses to budge after nearly five months of war. Treasury Secretary Scott Bessent says the U.S. will announce economic measures never seen before, and this is going to be next week. He says they're going to include what he described as an unprecedented economic isolation of Iran. And this warning comes after more vessels took fire in the Strait of Hormuz.

An oil company based in Abu Dhabi says two of its vessels were attacked Thursday night. The company says there are no injuries, and it's still unclear who is behind those attacks. Oil prices are now trending up. This is following a slight drop on Thursday. U.S. gas prices are more than a dollar above their pre-war levels. However, Vice President J.D. Vance was optimistic after Thursday's decline.

(BEGIN VIDEO CLIP)

J.D. VANCE, VICE PRESIDENT OF THE UNITED STATES: I know that oil is down today, and it's way down from the highs in the early days of the conflict. That's goal number one, keep oil and gas cheap for Americans all over our country. And then obviously goal number two is ensure that Iran never gets a nuclear weapon. I feel confident we're accomplishing both of those goals, but it's inherently an unpredictable thing because the Iranians themselves are unpredictable, and they sometimes don't honor the commitments they've made to us.

(END VIDEO CLIP)

ABDELAZIZ: The statement by Secretary Bessent was short on details, but as Paula Hancocks reports, a separate set of U.S. sanctions could give us an idea of what could be announced next week.

PAULA HANCOCKS, CNN CORRESPONDENT: And we're waiting for a response to what we've heard from the U.S. Treasury secretary, which was, as you pointed out there, that there is going to be some economic isolation, the likes of which have not been seen before. So it's uncertain exactly what this would mean and what exactly they have in mind.

But what we have seen, for example, just a week ago, was further U.S. sanctions against individuals, against exchange houses and companies in several different countries, which the U.S. had accused of helping Iran's Shah Bank to move hundreds of millions of dollars around. So potentially we could see more of these kind of sanctions.

Now, we also heard from the Treasury secretary that that naval blockade is going to continue. This is the U.S. Navy preventing ships from approaching Iranian ports, trying to put a real stranglehold on the economics of the energy sector in Iran. And we've certainly seen from U.S. Central Command well over 50 boats have been redirected.

A couple have been disabled as they are trying to get to Iranian ports. And it follows what we've been hearing from the U.S. President as well. He told "Axios" recently that they're really only semi- negotiating because, as he said, we're just watching Iran with its huge inflation and the fact that they have no money.

Now, this does suggest that negotiations have taken a back seat and that they really are waiting to see whether the economy can be further crippled. In the past, we've heard Iran say we have been sanctioned for decades and we've managed to continue. So this isn't a plan that's going to work.

Now, when it comes to the Strait of Hormuz itself, we have seen, as you mentioned there, those two Emirati tankers that were attacked in the Strait of Hormuz. We hear from ADNOC, the Abu Dhabi National Oil Company, that there were no injuries and that the situation is under control. But it does, again, go in the face of what we've heard from the U.S. President, that the Strait is open, that the U.S. is in control of the Strait. And certainly shipping data also shows there are very few ships that are willing to try and make that very dangerous trip. It is a trickle, a fraction of what we have seen in the pre-war levels.

[04:05:28]

Now, we did hear from Iran's foreign minister, Abbas Araghchi, talking to the fact that Trump believed the Strait was open, saying, the U.S. has long miscalculated due to intelligence failures. Case in point, the war on Iran. Now, an even bigger miscalculation on the Strait of Hormuz, worse than fake news, is fake intelligence. Be careful.

So at this point, both sides are still claiming sovereignty or control, I should say, of the Strait of Hormuz, both trying to use it as leverage.

ABDELAZIZ: I want to go live now to Bern, Switzerland, where energy expert Cornelia Meyer is standing by. She is an economist and the founder and CEO of Meyer Resources. She's also the chair and chief economist at LBV Asset Management. Good morning, first of all, to you.

Thank you so much for joining us, Cornelia, because I want to get a sense of how traders are reading the headlines this morning. You just heard our reporter Paula Hancocks there going through this renewed threat of an indefinite U.S. blockade of Iran, these competing claims, of course, over who controls the Strait of Hormuz. What's actually being priced into oil right now?

CORNELIA MEYER, ECONOMIST & FOUNDER CEO, MEYER RESOURCES: Good morning, Salma, and thank you so very much for having me on your show. Well, that is really the difficulty, right? Because what I have seen over the past now six months is oil taking wide swings based on statements. Now, we've had the statement from Mr. Bessent. We've had the statement from Mr. Araghchi.

And obviously, oil trended up. Then you have the President saying, we are getting along again. We are talking to Iran. Oil goes down. So it's not trading on the fundamentals. It's trading on sentiment and on statements.

The fundamentals are not very good, because if you look at it, the world has been living off borrowed barrels of inventories, and at some stage they will need to be replenished. This huge uncertainty about Hormuz, even if there is more oil coming through than we thought is coming through, is not helping. It's also not helping insurance rates.

Plus, what alleviated a bad situation was that we had the east-to-west pipeline in KSA that was able to get about 5 million barrels of crude out, but now also hampered with the Bab el-Mandeb, and that we had the Habshan-Fujairah pipeline of the UAE. So, yes, we had some alternative routes, but oil has not flown as it flowed before the conflict.

ABDELAZIZ: And I very much like your point that what's being priced in is sentiment rather than facts. I think that's the word you used, and you said we're living off of these borrowed barrels. And that's absolutely right, of course. We've seen the market repeatedly bet that some kind of U.S.-Iran deal will eventually reopen the Strait, but those bets have been disappointed time and time again.

Are traders going to still assume that this disruption is temporary, or are they going to begin to price in a much longer standoff? And if so, when would we see that?

MEYER: Well, I think at this point they're not yet doing that. But you see also talks about alternate routes, right? And we're not just talking about oil. We're talking about solids. We're talking about fertilizer, aluminum, all things incredibly important to food security or supply chains. So at some stage, one hopes that this is going to be resolved. But the global economy has been quite resilient, surprisingly resilient. But at some stage, you know, we need to be able to price in what's happening.

ABDELAZIZ: And I want to play a bit of futures perspectives here with you, because you're saying at some point we have to price in what is actually happening. So take us six months down the road. Where does the oil market expect flows through Hormuz to be at that time? Are we back towards anything resembling normal? Are we pricing in what's actually happening, as you said, or is the assumption that Gulf producers will have to just permanently reroute a significant share of their exports?

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MEYER: Well, the rerouting will be difficult because you will have to build new pipelines. You will have to build railroads and so on. So that will take years. I think the markets are hoping that it will open up. But where I would caution is even if it's opening up, you will have ships in the wrong place. A lot of production had to be shut in in the Gulf because the oil had nowhere to go and they were running out of space for storage.

So this will not be an easy thing. And when we had this temporary lull and ships could easily go through Hormuz, you saw ships coming out. You didn't see ships going in. And that's another thing. We have to see what pain threshold do our shippers are happy with and what do insurance companies say.

ABDELAZIZ: That pain threshold, as you just described it, is being tested right now in that critical chokehold of the Strait of Hormuz. Cornelia Meyer, thank you so much for coming to us with that analysis.

U.S. Defense Secretary Pete Hegseth is pushing back on reports of a deteriorating situation on the USS Abraham Lincoln. A U.S. official tells CNN another aircraft carrier, the USS George Washington, is now headed to the region to replace the Lincoln in operations against Iran. The switch is described as previously planned. But it comes after multiple reports of crew members trying to jump overboard from the ship. Family members say sailors and Marines are dealing with horrid living conditions on the vessel. Hegseth reacted during a trip to Central America on Thursday.

(BEGIN VIDEO CLIP)

PETE HEGSETH, U.S. DEFENSE SECRETARY: Completely misrepresented. Listen, we make sure that every ship, every crew, every captain has everything we can provide them at every single moment. Some deployments are longer than others, and I have more respect and gratitude for those sailors than anybody.

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ABDELAZIZ: The ship has been deployed since last November. And according to one U.S. senator, it has broken a modern day record for sailing without a port call. One of the incidents of crew members going overboard reportedly happened last month. CNN's Brian Todd has that story for us.

BRIAN TODD, CNN CORRESPONDENT: This is new reporting from our colleagues Pamela Brown and Ross Adkin. They cite three U.S. officials saying a sailor on board the aircraft carrier, the USS Abraham Lincoln, went overboard earlier this month. Two of the officials tell CNN the sailor was quickly rescued and was medically evaluated. Once, officials said the sailor went overboard wearing a life vest and was not injured.

The official added that the Navy considered the incident a mental health episode. This incident, which has not been previously reported, adds to growing concerns about the crew of the USS Lincoln. The news outlets Stars and Stripes and the Navy Times reported this week that there had been multiple attempts by crew members on the Lincoln to jump overboard.

Those outlets cited interviews with sailors and families of those on board who described the impacts of a very lengthy deployment. Since the Lincoln left its home port of San Diego last November, it's been deployed for more than 250 days after being redirected to the Middle East to take part in the war with Iran. According to Democratic Senator Richard Blumenthal, who sits on the Armed Services Committee, the Lincoln has not made a port call in more than 200 days.

That's about six and a half months. The Navy Times and Stars and Stripes report that about a week ago, around 200 family members of the sailors on board the Lincoln voiced concerns over the sailors' mental health and safety conditions when they met at a town hall meeting in San Diego with acting Navy Secretary Hung Cao and other senior officials. The Stars and Stripes reported that during that town hall, one spouse was in tears when she said she had received a message that same day from her husband saying, "He hopes he doesn't wake up tomorrow."

Democratic lawmakers are now demanding answers from the Defense Department over all of this. Senator Blumenthal has written a letter to Defense Secretary Pete Hegseth and the acting Navy Secretary relaying what Blumenthal called widespread reports of shortages of basic supplies, water contamination, plumbing issues, deteriorating mental health and deck safety concerns. In a statement to CNN, the Navy said, "We have not observed an increase in suicidal ideations or attempts aboard the ship. We take every service member's well-being seriously and have religious, medical and mental health professionals available to assess and address concerns as they arise."

One U.S. official told CNN the Navy's internal tracking of reports of suicidal ideation on the ship had actually gone down in recent months. Brian Todd, CNN, Washington.

ABDELAZIZ: The Japanese government is sending soldiers to help with disaster relief efforts from deadly flooding and record-breaking rainfall. Authorities say at least eight people have died as powerful rain bands swept across Chiba Prefecture overnight into Friday, bursting riverbanks, flooding homes and submerging cars. Some areas received nearly three times their average rainfall for August in just a single day. Tens of thousands of homes were plunged into darkness from power outages. Around 7,000 air travelers were left stranded at Narita International Airport from the torrential rain. For the first time, Chiba Prefecture was issued a level five emergency weather warning. This is the highest level warning. A short time ago, as the flooding reached the escalators and stairs of a very popular mall.

[04:15:51]

We have this story now just into CNN. A Christian organization says U.S. missionary Kevin Rideout has been released. This is nine months after he was abducted in Niger. The group says he is in good health and in the care of U.S. officials. Rideout was kidnapped outside his home in the capital in October of last year. He was believed to be taken to an area in western Niger where Islamist militant groups are active. Now, it is not clear why he was released now and why.

It's not often you see a name like Count Binface on a ballot. But he was the main challenger to populist reform party leader Nigel Farage. We're going to have a live report for you on the election results. And a critical deadline passes as rescue teams in Colombia search for earthquake victims. Just ahead, we're going to update you on the devastation and the emergency operations.

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ABDELAZIZ: Emergency rescue teams in Colombia are still searching for survivors of Monday's earthquake. At least 281 people have died. And the president says that some 379 people remain missing. Eight agencies warn the chances of finding survivors dropped sharply after 72 hours. The government is only accepting help from just a few countries that have certifications. This includes the U.S., El Salvador, Ecuador and Israel. A group of rescuers from Mexico is ready to go help, but they have been not approved. However, Mexico did send more than 19 tons of aid to Colombia. For more information on how you can help the earthquake victims in Colombia, go to CNN.com/ImpactYourWorld. We're going to add some vetted organizations as they begin their operations on the ground.

The train derailment in southern England has injured 18 people too seriously. This accident happened about 45 miles south of London. There was 150 people who were on board when the last three carriages of that train left the tracks and tumbled onto their sides. As you can see there, the emergency services say 10 fire engines and rescue units responded to the scene.

Now, it's not immediately clear what caused the accident, but inspectors are on site and several train services have been canceled or are running at a slower speed because of heat reaching 95 degrees Fahrenheit. That is 35 degrees Celsius in the U.K.

Firebrand Reform Party leader Nigel Farage has won back his seat in the British Parliament. His main challenger, a self-described intergalactic space warrior dressed as a trash can. The comedian, who goes by the name Count Binface, got more than 9,000 votes. Farage had just over 22,000. Earlier he told his reporters he received more votes in this by-election than he did in the general election of 2024. Farage called for the vote after abruptly resigning from Parliament last month.

We have our Nada Bashir standing by and following all of this for us. I mean, Nada, it's a comedy, right? But you are looking at Nigel Farage having won against a bin, which did receive, by the way, more than a quarter of the votes. Does this win actually make his problems go away? And can you remind us what those problems are?

NADA BASHIR, CNN CORRESPONDENT: Well, this by-election, Salma, has certainly become a point of ridicule, not least in the British media, but also amongst parliamentarians as well. In fact, none of the major political parties in the U.K., including the Conservative Party, the Labour Party or the Liberal Democrats, fielded candidates for the constituency of Clacton, where Nigel Farage has declared his victory at more than 22,000 votes, as you mentioned. We did see some 34 candidates on the ballot paper.

The majority of them appeared to be novelty candidates like that key opponent, Count Binface, as he's self-described. But, of course, Nigel Farage had declared this by-election by stepping down or triggered this by-election by stepping down, following intense scrutiny over his finances and questions around him sticking to party finance rules and regulations. Now, of course, those investigations into his finances are set to resume as soon as he is once again sworn in as a member of parliament.

He has long denied any wrongdoing and, in fact, triggered this by- election, saying this was an opportunity for the people of Clacton to judge his actions, that this would represent the people versus the establishment, in his words. But, again, this really has become quite a bit of a circus, actually, and whether or not this has raised his standing in parliament as a serious candidate, particularly as we have now seen, of course, the political ties changing somewhat within the House of Commons, with, of course, Andy Burnham taking the leadership of the Labour Party and as prime minister, a more left-wing socialist candidate there.

This is, of course, raising questions of what the future looks like for Nigel Farage as an M.P. and, of course, for the Reform Party as well, which had appeared to be raising in opinion polls or rising in opinion polls. And now, of course, questions as to whether that can be sustained, given the shifts that we have seen in the Labour Party. But, of course, this has been a significant point of ridicule, as I've mentioned, and has gained significant amount of attention.

[04:25:23]

ABDELAZIZ: Thank you so much, Nada, for bringing that to us.

I now want to bring in John Rentoul, who is the chief political commentator at The Independent and a visiting professor at King's College London. Good morning, first of all, to you. You're hearing there our reporter, Nada Bashir, talking about how this has become such a point of ridicule in the British media. And I think some are laughing, some are crying, some are doing them both at the same time this morning. I mean, he's won back his seat, of course, literally against a bin. Is this funny? Is it depressing? Is it a metaphor for the state of British politics? What is your take this morning?

JOHN RENTOUL, CHIEF POLITICAL COMMENTATOR, THE INDEPENDENT: Well, we've had a tradition of novelty candidates in by-elections in Britain for a long time. And Count Binface is the latest manifestation of that. I mean, I'm just amazed that he can wear that thing on his head. When, as you point out, the temperature is 35 degrees in Britain over the past few days, he deserves a medal for that.

But it is dangerous for Nigel Farage because he's presenting himself as a possible prime minister, alternative prime minister at the next general election, although that may be three years away. And the fact that this has descended into such a circus, as your reporter described it, does rather -- it damages his dignity, I think, because all the other parties have derided this as a P.R. stunt.

And although he has been endorsed by the people of Clacton, a very good result for him, increasing his vote, it doesn't really take away from the fact that the whole thing has just been ridiculous.

ABDELAZIZ: The whole thing's just been ridiculous. And as you were speaking, we had the split screen, as you do, of Nigel Farage and the bin. I mean, even Nigel Farage seemed to be a bit upset with the state of things. He said apparently because he did not attend the vote, of course, citing security concerns, "I am damned if I am going to stand on a stage having won a resounding victory and be demeaned and humiliated by nobodies. Does this win actually resolve that controversy around his spending? Or does it just make a farce of him, as you indicated there?

RENTOUL: No, it doesn't. It doesn't resolve anything. And the fact that he's been so touchy about it and refused to attend the count, refused to deliver his victory speech, does suggest that he, you know, there are questions about his character, about whether he has the temperament really to be a serious politician at the head of a government. And I think that's his problem.

And this by-election, of course, doesn't resolve any of the questions about whether he should have declared donations he received before he became an M.P., which is which is the issue that that he felt was being used against him, although perfectly legitimate questions were being asked. He could have just said it was it was an oversight. I didn't realize I had to declare it. I'm sorry. And he could have just carried on and we wouldn't have had to go through this slightly demeaning for him episode.

ABDELAZIZ: And I think you've touched on the wider and more serious issue here, if we can take a moment, which is that Nigel Farage has so far and reform has so far capitalized on the disillusionment with politics, right? This class of people who felt disillusioned by Labour and felt disillusioned by the Conservatives and found space here, can he continue to be that voice of the disillusion or does this now lump him in with the rest of Britons who feel like the political system belongs in the bin?

RENTOUL: Yes, well, I think he can still speak for those disillusioned voters, especially as the problem of cross channel migration has not gone away. The Labour government is pointing out that the numbers coming across the channel have reduced. But the fact that people can still come across and they, you know, very rarely sent back gives Nigel Farage his big issue because people just see that as absolutely unfair and intolerable. But he has damaged his credibility with these antics and with the actual issue involved is the fact that he received a 5 million pound.

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