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Iran Faces "Economic D-Day", U.S. Treasury Secretary Warns; Iran Releases Rare Video Of Supreme Leader Mojtaba Khamenei; Trump Admin Blames Failed Trade Talks On Canada; Fast Growing, Uncontained Fire Forcing Thousands To Flee Reno; Data Center Becoming A Hot Issue Ahead Of U.S. Midterms; Kyle Kirkwood Wins IndyCar Freedom 250 Grand Prix; Andy Burnham Arrives In Kyiv For First International Trip As PM. Aired 4-4:30a ET

Aired August 24, 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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[04:00:32]

POLO SANDOVAL, CNN CORRESPONDENT: Hi, everybody. Thank you so much -- thank you so much for joining me for another episode of CNN Newsroom. I'm Polo Sandoval in New York. And here's what's coming your way in the coming hour.

The U.S. looking to ramp up economic pressure on Tehran. We'll go live to the Gulf as the White House threatens economic D-Day for Iran.

And Andy Burnham arrives in Kyiv as Ukraine marks its independence day and he makes his first one foreign visit as British prime minister. While a live report from London.

Plus, a wildfire burning near Reno prompting a state of emergency as residents flee their homes. The latest on efforts to contain this blaze.

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

SANDOVAL: The White House is expected to announce new sanctions on Iran today. The U.S. Treasury secretary is vowing what he calls an economic D-Day that's coming for Iran. In a Financial Times op-ed, Scott Bessent wrote, and I quote, the world should understand that our objective is to sever every economic lifeline that sustains the tyrannical regime until Tehran stands alone.

Well, the secretary also says that Iran won't be the only target, but the economic consequences would impact anyone working directly with Iran. In the meantime, this recently released footage of Iran's supreme leader is prompting more questions about his condition and his whereabouts. Take a look.

An Iranian news site posting this short clip of what is believed to be archive footage of Mojtaba Khamenei. He has not been seen in public since being appointed to the role following his father's death was killed in the U.S.-Israeli attack that launched the war with Iran in the first place.

And earlier this month, Iranian state media shared another undated video of Mojtaba, this one apparently recorded before the war. Tehran insisting that security considerations are the primary reason for his absence in public.

Live now to CNN's Leila Gharagozlou in Abu Dhabi. So Leila, is there any expectation that this next round of sanctions will actually make an impact?

LEILA GHARAGOZLOU, CNN PRODUCER: Hi, Polo. No. So analysts and experts have essentially said that it's very unlikely that any extra economic pressure, any extra sanctions are going to forced Tehran to change course. You know, they've been under sanctions for many decades and it's never really changed the behavior of the government, let alone in a time that they are facing a ongoing war.

So, it's very unlikely that we see anything come out of this. On top of that, it's unclear what the U.S. is actually even going to sanction. As I said, Iran has had decades of sanctions on it. It is literally one of the most sanctioned countries in the world. Everything from the petrochemical industry to pharmaceuticals to the national airliner have already been sanctioned.

So the question really is, what is there even left to sanction that would bring enough pressure to have Tehran change course?

Now, the foreign minister did speak out and he said, we've seen this movie play out before and, you know, it hasn't impacted us. Take a listen.

(BEGIN VIDEO CLIP)

ABBAS ARAGHCHI, IRANIAN FOREIGN MINISTER (through translator): This is a repetitive scenario. From the crippling sanctions imposed during the Obama administration to the maximum pressure campaign during Mr. Trump's first administration, and now to the latest sanctions, all of these measures have been introduced under different titles, but they represent the same kind of bullying that we have always seen in American policy.

In other words, it's the same movie they keep playing over and over again. We know this movie, so we know how to confront and deal with it.

(END VIDEO CLIP)

GHARAGOZLOU: Now, he's right. They've seen this movie play out before. They've been under sanctions and they've built an economy that is purposely designed to resist sanctions to be able to withstand that pressure. Now, when it comes to that economic lifeline, what is really important to remember is that the people are the ones who bear the brunt of this. It's very unlikely to change the government's behavior. But the people who are living in Iran, the businesses in Iran, those are the places where we're going to see the impact of these sanctions. Sanctions are very, very destructive to civilian populations. The

Lancet had a very big study published last year that showed that almost 500,000 deaths in annually have been impacted, have been a result of sanctions globally. So not just Iran, but across the world.

So that is where you're going to see that economic lifeline being cut, really impact Iran. Not in the government's behavior, but in how the people are able to live their lives. Polo.

[04:05:00]

SANDOVAL: Leila Gharagozlou, thank you so much for that reporting this morning. And as Leila just mentioned, that this next round of sanctions unlikely to change Tehran's way of thinking. But if you look at oil prices, well, it's already having at least some impact. As you see Brent crude oil, which is essentially the global standard, down a little over 1 percent there, while the WTI crude oil now at $85 a barrel, also down as well, certainly as traders prepare for a potential shortage in supply. So we'll certainly see how that impact is felt after that announcement from the White House in the coming hours.

And the Trump administration is also blaming Canada for the collapse of trade talks, with the transportation secretary accusing Canada of, quote, taking advantage of the United States. Canada walked away from the negotiations late Friday, as you may recall. Prime Minister Mark Carney said that the U.S. had introduced last minute demands that would have harmed his nation's economy.

He's now promising to match the United States' new tariffs on Canadian goods dollar for dollar, he said. Well, despite the standoff, White House officials insist that they do expect talks to resume soon.

(BEGIN VIDEO CLIP)

SEAN DUFFY, U.S. TRANSPORTATION SECRETARY: We want fairness for the American worker. And some of our best friends are the worst offenders that treat us the worst. And the fact that we provide their security for them and they take advantage of us, I think President Trump was the first one to go. You know what, that's not the kind of relationship that friends should have.

And so the president's calling them out. I think you're going to see Mark Carney come to the table very, very quickly because it's going to be devastating for his country.

(END VIDEO CLIP)

SANDOVAL: CNN's Julia Benbrook explaining how the trade talks went wrong.

(BEGIN VIDEOTAPE)

JULIA BENBROOK, CNN CORRESPONDENT: Taking a step back here throughout the week, President Donald Trump and Canadian Prime Minister Mark Carney, as well as top trade officials from both countries had been in direct contact. That was after Trump put a three day pause on the tariffs.

Both sides had expressed optimism that they would be able to come to an agreement before that new deadline. In fact, hours before everything fell through, Trump said that things were moving along with Canada and that the United States and Canada should be able to come to a deal.

There is now, though, that 50 percent tariff on roughly $20 billion worth of Canadian goods and Canada has vowed to match that tariff dollar for dollar, start starting September 8th. This all just injects more uncertainty when it comes to the relationship between these two countries. And as of right now, there is no sense of when the two sides might come back to the table.

Over the weekend, while speaking with CNN's Dana Bash, former Vice President Mike Pence said that he hopes that the two sides are able to come to the negotiating table again soon, adding that the last thing Americans need right now is a trade war with Canada.

And some important context to add there, during Trump's first term, when Pence was serving as his vice president, Trump touted the U S., Mexico, Canada trade agreement as a fair and balanced trade deal. He has in recent months though decided not to renew it. That doesn't mean that it goes away entirely but that they try and maintain the status quo and that some of these bilateral conversations on specifics continue.

The latest though is that these recent talks with Canada have failed. Both sides said that last minute changes to the deal really unraveled a delicate balance that was struck in recent days. We have reached out to the White House to see if there are any plans to start these conversations again. Julie Benbrook, CNN, the White House.

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SANDOVAL: And as we wait to hear back from the White House, want to give you a look at where U.S. Futures are ahead of the start of the trading week. You see them across the down slightly, of course, this after a weekend packed full of uncertainty and now a potential looming trade war between the U.S. and Canada as we as people on both sides of the border certainly hoping for a quick resolution and a deal between those two countries.

I did speak with political scientist Benjamin Radd on that very same theme. I asked him where he saw this trade war going after Mark Carney's promise to potentially respond with tariffs of his own.

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BENJAMIN RADD, POLITICAL SCIENTIST: So both sides have tremendous incentives to wrap this up. This is not something that I see is going to be long term and enduring. And really the issue is one of language, not one of actual terms in terms of finances. You had the United States, you know, inserting language or at least a president made some comments about the French giving up, excuse me, the Canadians giving up the French culture, language related to Quebec and, you know, cultural matters that go really beyond the financial terms that we see.

And then the Canadians have taking an issue with some of the automotive provisions that were in the agreement. At the end of the day, these are two countries that are really bound not just by border but by massive codependence on trade, on imports, on exports. And so it's just a matter of time before they work this through.

[04:10:04]

SANDOVAL: Yes, certainly consumers in both countries are listening to you and hoping that will, in fact, be a short term unraveling that we experienced on Friday. So what are, in your view, some of the off ramp options?

RADD: Well, at this point, from the Canadian standpoint is one of the legality of what the president can do. We saw at a Supreme Court ruling earlier this year, Chief Justice Roberts in his majority opinion, basically saying that the president's abilities to institute these sweeping tariffs are limited by something that's called the major questions doctrine. That's something that Congress has the power to do and that has not explicitly delegated to the executive branch.

So President Trump's options here might be limited. And I think the Canadians understand the legal implications of what he's trying to do. And that would give an off ramp to really go back to the table and work through the rhetoric and not the numbers. Because, again, it's really the rhetoric, the terms and not the numbers themselves.

And then the other issue is this language about, you know, Canada being the 51st state or imposing conditions about the use of French language and culture. I think these are things that can easily be worked through and moved and pushed aside for the goals of reaching a broader deal.

(END VIDEO CLIP)

SANDOVAL: A wildfire that's uncontained and growing quickly near Reno, Nevada, has prompted widespread evacuations. The Hawk fire, as it's known, has grown to more than 15,000 acres. Already, nearly 90,000 people have been told to leave their homes or prepare to leave as crews try to get the flames under control. Residents are saying that they are shocked by the scale of this fire and are scrambling to find places to go and seek shelter.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: When we came through, it looked like a movie scene. Like, you don't expect to see something like that in real life. And then we looked over the overpass and we could see like the top of the flames and then the smoke overhead or whatever.

UNIDENTIFIED FEMALE: It's just really scary right now. We've never had to do this before. There was no hotel room at all.

(END VIDEO CLIP) SANDOVAL: And the worst could still be ahead. According to the forecast, Reno's fire chief says that wind gusts and unusually high nighttime temperatures are currently making this fire behave erratically and very difficult to contain. Forecasters believe that those windy conditions could get even worse later this afternoon, with wind gusts as high as 25 miles per hour. And even stronger winds are expected through Thursday.

Officials there in the region say that the fire appears to have been caused by human activity. But there's no indication that it was intentionally set.

Hawaii being hit with more rainfall after being lashed by Hurricane Lala just last week. The National Hurricane Center says the Tropical Depression Moki is now passing just south of the islands, the Big Island and Maui. They've already seen some rainfall on Sunday afternoon, but parts of the islands could see anywhere from 3 to 6 inches going into Monday.

Maximum sustained winds now near 35 miles per hour with stronger wind gusts in the storm, and it is expected to continue weakening potentially as it moves westward over the next few days. But still, the Hurricane Center is warning that downpours could cause life threatening flooding and mudslides in places that were already flooded by Hurricane Lala on the Big Island.

Also to come this hour, one of the top Democrats in Congress says that he's pushing the Trump administration to make transformational change to solve the affordability crisis. More on his conversation with Donald Trump's son in law will return.

Plus, the backlash against data centers is now mounting ahead of the U.S. midterms, A look at how a public outcry in one Georgia community has helped cancel plans for a massive project.

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[04:17:46]

SANDOVAL: Welcome back. CNN is learning about a private meeting between President Trump's son-in-law and the Democratic leader of the A source is telling CNN that Jared Kushner and Hakeem Jeffries met in New York several weeks ago. And we are told that they discussed ways for the White House and Democrats to collaborate on key issues.

They include immigration, housing availability, and also the cost of living. And this meeting comes as Democrats eye the possibility of winning a House majority in the upcoming midterms. Jeffries is considered the frontrunner to become House speaker if that happens.

And he told CNN that Democrats are holding the Trump administration's feet to the fire to fix the affordability crisis and also reminding them that it is not a hoax.

And we are just weeks away from the U.S. midterm elections that will determine the balance of power on Capitol Hill. And one issue has taken many candidates by surprise, the creation of AI data centers. It is drawing the outrage of voters across the country. And also politicians are tapping into that backlash with some Republicans now shifting their positions to oppose these facilities, even though President Trump is making clear that he's all for them.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: If a Republican's against the data center, that's OK with me. If I were a community, I would want the data center. It means jobs, it means income, and it means lower taxes.

(END VIDEO CLIP)

SANDOVAL: CNN's Rafael Romo looks at how some cities are fighting back against the construction of these centers.

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RAFAEL ROMO, CNN CORRESPONDENT: Data centers have prompted a national debate that has been raging for a while, a debate that is heating up as we approach the midterm elections here in Georgia. The city of Lovejoy, population of 13,000, considered a proposal that would have included a 15 building, 403 acre data center campus that would have been located between two schools and several residential neighborhoods.

The proposal generated such a public outcry that city officials and the developer canceled the data center plan.

UNIDENTIFIED MALE: We don't need something like that within our community right here. Yes, it's come across as a very negative thing. I think many people are against it and I'm one of those people as well.

[04:20:02]

UNIDENTIFIED FEMALE: This is a place to have families grow, not data centers.

UNIDENTIFIED FEMALE: We're not against data centers. We're against data centers in our communities. That's not what we came here for.

ROMO: Lovejoy Mayor Marci Fluellen told me she's happy that consensus was reached on what's best for her.

MARCI FLUELLEN, LOVEJOY, GEORGIA MAYOR: Residents accomplished. That's the way I feel for the residents. They had a chance to have their voices heard, which is very important for such a subject, as large as and important as data centers.

ROMO: When you heard from your residents, what were some of the concerns that they had?

FLUELLEN: The most common concerns that the residents had were the environmental impacts, water consumption, power consumption, air and noise pollution. ROMO: A recent Gallup poll showed 71 percent of Americans opposed the construction of data centers in their communities. About a dozen states have proposed data center building moratoriums, and New York has recently enacted one for other states have taken up similar bills, but they failed to get enacted.

In spite of the opposition, Shelly Palmer, a professor of advanced media at Syracuse University, says data centers are here to stay.

SHELLY PALMER, CEO, PALMER GROUP: The velocity of data is increasing and will always increase. There is no version of the world where there's less data tomorrow than there is today. Every time you pick up your smartphone, every time you sit down at a computer, every time you do practically anything, swipe a credit card, data centers are involved. In order to make data actionable, to turn it into something tangible and valuable, you must process it. And that happens in a data center.

ROMO: The United States had more than 5,400 data centers at the end of last year, according to Stanford University's AI Index report. That number is set to nearly double. Data research center Atirio found AI companies have announced plans for nearly 4,000 additional data centers. Rafael Romo, CNN, Atlanta.

(END VIDEOTAPE)

SANDOVAL: The first ever IndyCar race in the U.S. capitol is now in the books. President Trump, along with thousands of fans on hand as they watched Kyle Kirkwood win the Freedom 250 Grand Prix on Sunday. This special event commemorated the nation's 250th birthday, and it saw racers zipping past some of Washington's most iconic landmarks.

The race follows an announcement by First Lady Melania Trump that she's teaming up with IndyCar and Fox Corporation to provide $2 million in scholarships, and their goal is to provide that support to young adults moving out of foster care.

CNN's Brian Todd was at the race. He's got this report.

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BRIAN TODD, CNN CORRESPONDENT: So a successful conclusion to the Freedom 250 Grand Prix won by Kyle Kirkwood. They're breaking this track down already here in the aftermath of the race, some of the equipment being lifted and then loaded to be taken out. But it's going to take a while.

This was turn four, one of the tightest turns of the race. And this came down here on 7th Street. Then they would take a left on Independence Avenue. We'll show you some of the grandstands.

These were packed during the race. That grandstand was full of fans. And then to your left there, you've got the suites, which east cost about 200 to $250,000 for each suite. There are about 80 suites total and we were told they were sold out as well. The organizers said they expected about 100,000 people each day of this race Saturday and on Sunday. We talked to several race goers about their experience overall.

I'm here with Liz Eustace and Chris Richardson, race fans here. Chris is a you've been to several races. You said OK. Liz you have not. OK. Got to get your impression. First time. How do you like it?

LIZ EUSTACE, VIRGINIA RESIDENT: This -- I saw the warm up and it was so cool. I didn't think I was kind of like, oh, they're just cars running. But the speed they're going, it was so freaking cool. And I got goose bumps. I got all shaky. It was really cool.

TODD: And now, you're a veteran, Chris. You've been to some of these races. What do you think? What stands out to you about this particular one?

CHRIS RICHARDSON, WASHINGTON, D.C. RESIDENT: It's a road course and that's always fun. You know, a road course on my own home roads. I definitely love that. And just having a point of reference for how fast they're going on these city streets is insane. It's like inhuman.

TODD: Now one of the biggest questions coming out of this is could this happen here again? The mayor of Washington, D.C. Muriel Bowser, has said she hopes that they can bring it back here, but Ms. Bowser is actually going to be out of office as of January. She's serving out the last part of her term. So let's see if the city powers that be here can coordinate with IndyCar and with Penske Racing to maybe bring this race back.

I think by most measures it was a success. We talked to so many people coming here who said they had a really good fan experience. What we are told though is it's going to all told, it's about a two month operation to set everything up, which they started in mid to late July. And in order to break everything down, it's going to take probably at least until the end of the first week in September.

So all told, about a two month operation to set everything up and then break everything down. Brian Todd, CNN, Washington.

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[04:25:08]

Ukrainian President Volodymyr Zelenskyy says that Russia is gearing up to send hundreds of thousands more troops into its war with Ukraine. Coming up, we'll be taking a look at the diplomatic push that he's hoping will bolster Ukraine's defenses.

Plus, the White House saying that it will launch the single greatest financial offensive ever against Iran. I had a look into how the economic front of this war could be fought between Washington and Tehran.

(COMMERCIAL BREAK) SANDOVAL: Hey everybody, welcome back. I'm Polo Sandoval live in New York. We are closely watching the British Prime Minister Andy Burnham's visit to Ukraine. He's just arrived in the capital city of Kyiv.

This is his first trip abroad as Prime Minister. And While in Kyiv, Mr. Burnham will be meeting with President Volodymyr Zelenskyy. He will also be co-chairing his first meeting with the Coalition of the Willing, which is that group of countries that are working to bolster Ukraine's security and their defense. And this trip coincides with Ukraine's Independence Day.

See, it was 35 years ago today that Kyiv voted to break with the Soviet Union.

For more on this, I want to head over to CNN correspondent Nada Bashir who's joining me live from London. Good morning to you Nada. So it is mid-morning in Kyiv right now. Is there anything that's come out of this meeting so far as you watch it closely?

NADA BASHIR, CNN CORRESPONDENT: Well, we are already hearing of course from the United Kingdom with Andy Burnham's first official visit as the new U.K. Prime Minister, another boost in support from the United Kingdom when it comes to military support.

[04:30:02]

And of course that is something that President Zelenskyy has long been push in Ukraine. We are learning that the U.K. has confirmed that it will.