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CNN International: Iran: Trump's Latest Threats Will Bring "Further Defeat"; Harry And Meghan Planning Move Back To U.K., CNN Understands; Trump: U.S. To Begin "Crushing Economic Operation" On Iran. Aired 4-4:30a ET

Aired August 20, 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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[04:00:34]

POLO SANDOVAL, CNN ANCHOR: Hi everybody. Welcome to CNN News. Your mind, Paulo Sandoval. And here's what's coming your way.

Russia unleashes an early morning barrage of missiles on Ukraine's capital, killing multiple people and wounding dozens. While the live report. Plus, six years after their shocking royal exit, Prince Harry and Meghan getting ready to head back to the U.K.

And later, what to do, or actually, what do you get when you mix a group of scientists, a popular adult content website, and a potato- shaped rodent? A pretty unconventional way to bring awareness to a noble cause. We're going to bring you up to speed on that in a moment.

UNIDENTIFIED MALE: Live from New York, this is CNN Newsroom with Polo Sandoval.

SANDOVAL: Iran's foreign minister says that Donald Trump's latest threats against the country will, quote, "only bring further defeat." On Wednesday night, the U.S. President took to social media, threatening an economic D-Day as he announced the most crushing economic operation ever taken against any country.

He did not, though, offer any details on what that could entail. But his comments sitcom as a deal to end the war remains at an impasse. And also after he said that the situation with Iran was so good.

CNN's Paula Hancocks is joining me live from Abu Dhabi. So how else is the president framing this economic threat against Iran?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Polo, the words economic D- Day really say it all. We've been hearing for the past week or so from the U.S. President that economic isolation was the way he wanted to deal with Iran, that when it comes to negotiations, to talks, he's putting that on hold, and that's going to be really disengaging diplomatically.

So, what we've heard from the President, late Wednesday night, he had a post on Truth Social. I'll read you part of it. He said, quote, "I am announcing the most crushing economic operation ever taken against any country. This will be economic warfare and isolation on an unprecedented scale. He also spoke of the economic problems that Iran has, the currency being worthless at this point.

Now, it's worth mentioning that this is a country that has been under sanctions, in many cases crippling sanctions, for well over 40 years. And it's a country that has built its economy in such a way that it can survive those sanctions. We heard a couple of weeks ago when the U.S. put more sanctions on individuals, on exchange houses, companies from several different countries who were trying to support Iran's shadow banking system.

Iran responded to that and said that this will not affect us. We're able to -- to be resilient given the fact we have dealt with this for decades.

So, what we're hearing from the US President is he is going to be looking at targeting other countries, not just Iran, but those countries that, that are alleged to be supporting the shadow banking system, and the ability of Iran to, to withstand these sanctions. Now we've heard from the Iranian Foreign Minister, Abbas Araghchi. I'll read you part of his post in response to Trump, saying that this move will only bring further defeat. Saying quote, "The so-called economic D-Day is a diversion from America's own crisis, unprecedented debt and surging interest costs."

Now that's referring to the news from Tuesday that the U.S. federal debt has hit a record $40 trillion.

So this is being rejected by Iran. The issue that the Trump administration has is if they are going to go after countries that are supporting Iran. China is the number one trading commercial partner with Iran. So it'll be interesting to see what, if anything, President Trump is willing to do to penalize China for working with Iran.

Now, one of the other largest commercial partners, the UAE, just this week announced that it was putting on hold all financial and trade transactions with Iran. Now they quoted regional escalations. We saw earlier this week a couple of missiles being fired towards the UAE. They fell in waters off the Emirati coast.

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And just last week we saw a number of Emirati tankers being targeted as they were transiting the Strait of Hormuz. And of course, during the worst of the war, the UAE was by far the -- the most targeted of any of the Gulf nations. In fact, including Israel itself. It was the -- the joint Israeli-U.S. war against Iran. But the UAE was targeted by Tehran far more.

So that could have an economic impact. The fact that the UAE, which has a centuries old trade relationship with Iran, has said that they are putting that on hold potentially this could have an impact. Iran is admitting that their economy is struggling.

It was struggling before the war. They now have a scapegoat. They can now say it's because of the war that the, that it is struggling.

But they have said that the naval blockade is making it very difficult for -- for imports to come in. Prices are rising. We've heard from state media saying that working-class people are struggling to -- to be able to afford even the basics, saying that inflation is reaching quote, "alarming levels." And of course, there is the other argument that this kind of sanctions do hit the poorer elements of a country potentially far more than the Revolutionary Guard who -- who itself does -- does direct a lot of the -- the smuggling and those kinds of businesses that -- that circumvent these sanctions.

But we will have to wait and see and see exactly what President Trump means when he does say this will be an economic D-Day. Polo.

SANDOVAL: Right. Those sanctions potentially trickling straight down to Iranian civilians, as you point out. Paula Hancocks, thank you so much. Reporting from Abu Dhabi.

Now to some heartbreaking scenes from Ukraine, capital of Kyiv following another night of deadly Russian strikes. We want to show you what some Ukrainian civilians and first responders experienced only hours ago.

That's a woman who mourned the loss of her grandson after seeking emergency workers. After seeing some of those emergency workers carrying the body of her grandson from the rubble. Officials are saying that he was likely 12 of -- 1 of 12 people who were killed in the barrage of missile strikes, and more than two dozen others who are wounded.

We're also getting reports of damage and fires across the city. Officials are saying that some victims were rescued from the rubble, and emergency operations are still underway there in Kyiv, where It's just after 11:00 a.m.

Let's go to Berlin now. And CNN's Sebastian Shukla, who's closely following the situation. So Seb, what are our colleagues in Kyiv telling you about what happened overnight?

SEBASTIAN SHUKLA, CNN PRODUCER: Yes. Good morning again, Paolo. What we're seeing from Ukraine right now is an increase in that death toll, incremental but still devastating nonetheless, that has risen now from 12 to 13. And as for what our colleagues in Kyiv have been telling us about this attack last night, which lasted for hours, it began at some 6:00 p.m. at least that was the first time the air raid sirens went on, is that there has been plumes of smoke engulfing the city and fires across as well, really showing the devastation that's been wrought once again by Moscow from these aerial attacks.

What we know from the local city administrations is that 13 people have now died across the city. So that's the region of Kyiv as well as the capital itself, and that various targets were hit, including warehouses, logistics centers, apartment buildings and the like. And that this is just another night of deadly attacks wrought on the Ukrainian people launched by Moscow, as it really looks to take advantage of the superiority in numbers that it has, particularly when it comes to ballistic missiles.

The Russian Ministry of Defense alluding to that in a post on Telegram earlier, saying that they launched a massive strike using high- precision weapons against military facilities, warehouses, and logistics. The Ukrainian president has also taken to social media, Vladimir Zelenskyy, to say that the Russians have been planning for this night's attack for quite some time.

And I think it just highlights all once again, as those rescue workers are combing through the rubble looking to find any survivors, dragging anybody out that they possibly can save. About the discrepancy in numbers between the ballistic missile interceptors, those Patriot missiles that the Ukrainians saying that they only have 10 percent of what they need, versus the increasing numbers that the Kremlin is now able to produce of ballistic missiles. And those two live symbiotically together. The Russians fire these ballistic missiles, and the Ukrainians need these Patriots to be able to take them down.

[04:10:09]

And they are really the only air defense system capable of doing that on the market at the moment. But supply, Polo. Supply and replenishment is the issue for Ukraine.

The Ukrainian president, Volodymyr Zelenskyy, has been calling on allies and partners to try and help him unblock bottlenecks and shortages to enable those Patriots to be Patriot missiles to be delivered, because they are only manufactured by the U.S. at least by the U.S. and in the U.S. unless they are under license. And even then, you don't clip your fingers.

And a Patriots missile System and the PAC2, PAC3 missiles themselves just appear. And the Europeans have been at pains to try to also support Ukraine and work as an intermediary. They have stockpiles too, which Zelenskyy is asking for. And the Europeans are reticent to give that up because they know that they won't be able to replenish their own.

It's a really difficult situation, particularly as the Ukrainians head into winter. More specific targeting like this could wreak another devastating winter unless this shortage can be fixed. Polo?

SANDOVAL: Yes, and any help in their air defense systems unfortunately be too little, too late for at least that one Ukrainian grandmother that we just saw morning, the death of her grandson. Sebastian Shukla, thank you so much for that live report from Berlin.

All right, now to the United States, where the national debt has crossed a staggering new threshold in what economists are calling an unsustainable path forward. The Treasury Department says the federal debt has now topped the $40 trillion mark, and that will have some serious consequences for years to come.

See, a number of factors are involved. And Congress has passed multiple packages that cut taxes and increased spending over the past few decades. Interest payments are expected to top $8 trillion this fiscal year. An aging population means more spending on things like Social Security and Medicare.

Well, CNN does understand that the Duke and Duchess of Sussex are planning to return to the U.K. after leaving for the United States about six years ago. Prince Harry and his wife Meghan left Britain in 2020 after stepping back from their royal duties, and they've lived in California ever since. The couple said that racism, tabloids, online abuse, and complex family problems are all what prompted their original move.

Let's go to CNN's Nada Bashir, who joins me from London just outside of Buckingham Palace. So, we take it that this does not mean a return to royal duties, Nada?

NADA BASHIR, CNN CORRESPONDENT: No, at this stage, that is not what we are expecting to see upon the return of the Duke and Duchess of Sussex, Prince Harry and Meghan, as well as their children, Prince Archie and Princess Lilibet. It's understood, in fact, that King Charles was only made aware of their decision to relocate back to the U.K. later this month on Sunday, indicating this wasn't necessarily a topic of discussion or wasn't raised during their visit and meeting with the King in July.

This is understood to be a personal decision taken by the couple to relocate their family back to the United Kingdom after, of course, moving to California in 2020, after quite a public falling out with the Royal family, quite publicized falling out with the Royal family.

But it is understood, according to reports, that they will be planning to move to a private residence just outside of London, so not taking up any royal residences in the country. And according to reports in the British newspaper The Telegraph, they are expected to enroll both of their children in British schools in December.

So, it is expected, and it is seen to be a private decision taken by the family. We have understood, according to sources and officials, that King Charles, of course, has said that he would welcome the opportunity to be able to spend more time with the Sussex family in a personal and private capacity.

So, again, really underscoring that the couple and the family overall are not expected to return as working members of the Royal family, as, of course, we have seen, for example, his brother, Prince William, the Prince of Wales, and the Princess of Wales, as well as their family members. So, this will be a very different setup and lifestyle, of course, in the United Kingdom for the couple.

They have, of course, established a very private lifestyle in the United States, and that is expected to continue. And, of course, we've seen them exploring various business and charitable ventures in the United States. It remains to be seen what those ventures may translate to here in the United Kingdom as well. But as you can imagine, this house has gained quite a bit of attention in the media and, of course, in the newspapers as well.

We've got a couple here. You can see the front page of the Daily Telegraph: Harry's Coming Home. A similar headline here with the Sun Newspaper: Harry and Meg Coming Home. And this is, of course, being talked about quite a bit in the British tabloids and also in the media.

And of course, the couple has come under a significant amount of scrutiny, as you mentioned, that was part of the reason cited by the couple for their decision to exit the royal family as working members and also to relocate their family further away from that media scrutiny. Whether that situation changes upon their return, whether we see a very different treatment of the couple, that of course, remains to be seen.

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SANDOVAL: That's right. Well, anxiously await to see what kind of reception is rolled out from people in U.K. Nada Bashir, thank you so much. Reporting live from outside Buckingham Palace.

I want to get you some information that's just into CNN. Chinese state media reporting that Evergrande's embattled founder has been sentenced to life in prison. Hui Ka Yan was ordered to forfeit all of his personal assets and was also stripped of all of his political rights for life.

Evergrande Group was once China's largest real estate developer, but was that has since become a true symbol of the country's property crisis. Hui and the company were hit with some of the biggest corporate criminal fines ever imposed by the Chinese government. And they were found guilty of several charges, including financial fraud, inflating assets, and concealing liabilities.

So, on the way, there is a new deadline for the U.S. and Canada to finalize a new trade deal. Negotiators meeting in Washington will have to work out the details before 12:01 a.m. on Saturday. And that's if they want to avoid new tariffs proposed by President Trump. So, here's what we know.

The president has paused the 50 percent duties for now, saying that a deal had been struck. But Canadian Prime Minister Mark Carney says there's still more work to be done.

And in the last hour, I did get a chance to speak to Michael Devereux. He's an economist and also a professor at the University of British Columbia. And I asked him for his assessment of this tentative agreement between the U.S. and Canada, or at least what we know at this point.

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MICHAEL DEVEREUX, ECONOMIST AND PROFESSOR, UNIVERSITY OF BRITISH COLUMBIA: The deal is going to require concessions from Canada. It's also going to require some benefits from the U.S. what we know is that Canada is going to open up. At least the strong conjecture is that Canada will open up its dairy industry somewhat. And also Canada will remove the boycott on U.S. alcohol, which has been kind of a major sticking point for the last year or so. Many of the provinces in Canada removed U.S. beer and wine from their government liquor store shelves. And that's been a major irritant. So that will be a concession.

The difficulty is that the Canadian government has to persuade the provinces to do that because that decision is the remit of each individual province and not the prime minister or the Canadian government itself.

SANDOVAL: Right. Yes, I'm interested in talking a bit more about that, the booze ban. But back to the dairy. Just to explain our viewers why the U.S. has been particularly interested in securing more access to Canada's dairy exports.

DEVEREUX: Well, Canada has an unusual dairy policy called supply management in which the Canada puts on large tariffs on all imports of eggs, milk, and cheese from the rest of the world. Now, in the original USMCA agreement of 2018, the dairy industry was opened up somewhat, with some quotas that were offered to the U.S. in that agreement.

Now the U.S. has been displaced with the way the quotas were allocated. A lot of the quotas were given actually to Canadian importers rather than the U.S. exporters. And now apparently the agreement now will open up more of the quotas.

Now, I have to say this, in fact, would be a win-win for both countries because by allowing more imports of U.S. milk and dairy products would actually reduce the price and benefit to Canadian consumers. So, lots of Canadians actually are on board with this concession. And so hopefully this will be helpful in getting the deal over the finishing line.

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SANDOVAL: And still on the way this hour, new testimony in the murder trial over the killing of rapper Tupac Shakur. A former LA police detective now saying that a suspect on trial spoke to him years ago about the shooting while the detective was investigating a different case. I'll tell you more.

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Plus, you also hear from the psychologist who treated the mother who killed her three children in Massachusetts as he testifies about a key factor in the murder trial. Stay with us.

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SANDOVAL: To Las Vegas now and the murder trial over the killing of rapper Tupac Shakur 30 years ago. A former FBI special agent testified in court on Wednesday about a confidential agreement made in 1998. It was supposedly made with Duane Davis. This man who's the one on trial on one count of murder with a deadly weapon and death of the rap legend. Well, the former agent said that he spoke with Davis to try to get more information about gang activity as part of an investigation into drug trafficking. Well, the court also heard from a former Los Angeles police detective who was part of a 2006 investigation into the killing of rival rapper Christopher Wallace, Notorious B.I.G.

Well, the detective said that when Davis was asked about Biggie's murder, he denied any connection with that incident, but he volunteered the Tupac killing.

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DARYN DUPREE, FORMER LAPD DETECTIVE: Mr. Davis had the gun at first, but they came up on the passenger side of Suge Knight and Mr. Shakur's vehicle, so he couldn't shoot across the driver. So, we handed the gun to Dre in the backseat, Andre Smith. He was afraid to shoot.

Mr. Anderson grabbed the gun and shot across Mr. Smith into Mr. Knight's car that Tupac Shakur was in with Mr. Knight.

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SANDOVAL: Tupac was 25 when he was gunned down at a drive by shooting near the Las Vegas Strip. The trial expected to resume Thursday afternoon in Las Vegas.

Now to the murder trial of a Massachusetts mother, Lindsay Clancy. Her psychologist told the court on Wednesday that she didn't know right from wrong when she killed her three young children more than three years ago. And that's a key factor in her defense, and it could possibly determine whether she will be convicted in this case. Here's CNN's Jean Casarez to explain.

JEAN CASAREZ, CNN CORRESPONDENT: Paul Zeidel, forensic psychologist, extremely important witness for the defense. He said that he met with Lindsey Clancy about 60 times and it took him almost 40 hours to assess her criminal responsibility or lack thereof.

He testified that on December 2nd that she was having intrusive thoughts, that she thought her brain was damaged. She thought that she wanted to end her life, that she never thought she was going to get better, and she was concerned that these intrusive thoughts that people were hearing them.

He also testified that she called the suicide hotline two different times. They would not accept her because she did not have a plan. She checked herself into a mental hospital at the end of December. She was on three different medications, including Seroquel.

Here is a little bit of that defense direct examination.

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UNIDENTIFIED MALE: Can you tell us when we say intrusive thoughts, is she referring to intrusive thoughts like you might think of something coming up next week that's bothersome, or is this a indication, in your opinion, to a reasonable degree of medical certainty as to what she was experiencing at that point in January of 2023?

DR. PAUL ZEIZEL, FORENSIC PSYCHOLOGIST: She wasn't just having everyday thoughts that we all have, reminding ourselves to do something which we make note of and then we move on. Intrusive thoughts are unrelenting. They don't stop. They're what we call ego dystonic.

You don't want them. They keep interfering with your ability to get through the day.

UNIDENTIFIED MALE: Did she have, at this point, intrusive thoughts continuing regarding voices in her head that she heard constantly?

ZEIZEL: Yes.

UNIDENTIFIED MALE: What were these voices saying to her?

ZEIZEL: They were getting worse, and they were telling her to kill herself.

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CASAREZ: Paul Zeidel was also asked by the defense about a Google search that Lindsay Clancy made four days before she killed her children. It was, "Can you treat a sociopath?" The response was that when someone is in psychosis, they can make a search that has no relevance to reality at all.

On cross-examination, the prosecution brought out records from the hospital that Lindsay Clancy has been in for the last few years documenting certain dates, dates of when Dawson would have been 4 years old or when Cora would have been 6 years old, dates of the anniversary of the event of when she killed her children.

And all of the notes, hands down from that hospital said normal day, no behavioral issues, playing dominoes, going to the coffee club. Her parents came to visit her. The prosecution will use that to show that there was no emotion in regard to these events. And the fact was, she was not in psychosis anymore, and this was premeditated, at least deliberate murder. Jean Casarez, CNN New York.

SANDOVAL: So the way a tourist helicopter trip turns tragic as the aircraft goes down with seven people on board. Right now, recovered crews are scouring that crass site in Kenya as officials investigate a cause. We'll be right back.

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