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CNN International: Houthis Release Video Claiming To Show Downed Saudi F-15 Jet; Rising Fuel Spark Protests Around The World; Fed Raises Interest For First Time Since 2023; U.S. Lawmakers Scramble To Catch Up On A.I. Safety; A Look At How China Is Embracing The Novel Technology; AP: Court Awards Kim Kardashian One Euro After 2016 Robbery. Aired 4-4:30a ET

Aired September 17, 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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[04:00:36]

POLO SANDOVAL, CNN ANCHOR AND CORRESPONDENT: Hey, welcome to our viewers around the world. I'm Polo Sandoval live in New York.

And ahead here on "CNN Newsroom," Donald Trump says that the war with Iran is hopefully nearing an end, but an escalation in attacks between an Iran-backed proxy group and a U.S. Gulf ally to a different story.

And public outrage intensifying as fuel prices soar around the world. We'll speak to an expert about just how bad it could get as the conflict in the Middle East keeps driving energy costs up.

Plus, a historic invitation from the European Union to Canada would strengthen their security and economic partnership. Donald Trump is not happy about it.

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

SANDOVAL: We do want to begin with the war in Iran and the potential for some new diplomacy to address the ongoing tensions in the region. President Donald Trump is scheduled to meet with Gulf leaders on the sidelines of the U.N. General Assembly next week here in New York to discuss the issue.

And on Wednesday, he again claimed that Iran wants to make a deal and he also said that he hopes that the war is nearing an end.

Well, meanwhile, Iran-backed Houthi rebels have released this new video of what they say is the wreckage of a Saudi F-15 fighter jet. And the group is also claiming that they shut it down over Yemen.

In a statement, the Houthis say that the jet was down with a surface- to-air missile as it conducted what they called "hostile operations."

Saudi Arabia not commenting on this at this point, but the Saudis are accusing the Houthis of what they call a red line attack saying that a Houthi drone was shot down near Mecca. That's Islam's holiest city.

Well, the Houthis are denying that claim and their military spokesman says that the group was targeting Saudi oil facilities and military bases, quote, far remote from the holy places.

CNN's Eleni Giokos is following this and more from Dubai. So, Eleni, let's start on -- on some of this new video that was released by the Houthi group. Of course, my -- my first question is, can the Houthis truly take on the Saudis if this -- if this is all true, this footage?

ELENI GIOKOS, CNN CORRESPONDENT: Yes, exactly. And this is sort of the big question. I mean, CNN hasn't been able to independently verify this footage. We don't have location of this and timing of this.

But CNN military analyst Cedric Leighton says that this footage seems to be legitimate. And if it is legitimate, then we're talking about a massive escalation. And, of course, we've been seeing the Houthis, which is an Iranian proxy taking on Saudi Arabia, Saudi Arabia, purportedly the Saudi Crown Prince Mohammed bin Salman called President Trump twice requesting for intervention by the United States to intervene with the Houthis.

That request was denied and big questions around why and where the American security umbrella exists in the Gulf region and seeing these images, specifically, of that part of the F-15 that has the Saudi insignia really does show how dangerous and serious the situation is with regards to a new front potentially opening up here, as the Houthis are starting to make headway in the Red Sea.

You know, a lot of the analysts that I spoke to this morning saying that countries are hesitant to intervene because they want to protect traffic through the Bab al-Mandeb Strait to try and get some of the oil out through that key waterway.

You also mentioned that President Trump is going to be speaking to Gulf leaders on the sidelines of the UNGA. I want you to take a listen to what President Trump says where he says the Iranians want to make a deal.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, hopefully we're toward the end of the war. They want to make a deal and we'll see how that works out. They're very much wanting to make -- Iran is very much wanting to make a deal. We'll see how that works out.

(END VIDEO CLIP)

GIOKOS: Yes. And the Iranians are talking about getting, you know, back to the memorandum of understanding. We've seen deadlock in negotiations and diplomacy. Could this be something that could be discussed and, you know, sort of finding an end to this?

But I just spoke to Kpler. I've got the numbers in terms of vessels crossing the Strait of Hormuz yesterday, Polo. Only five vessels transited. For context, normally 130 vessels transited. Bab al-Mandeb Strait yesterday, 26 vessels went through. Normally, it's about 60 a day.

[04:05:08]

We've also got news that the Federal Reserve hiked interest rates by 25 basis points. You've got inflationary impact in the United States. Inflationary impact across the world because of the war in Iran and this ongoing conflict where you're seeing timelines consistently changing as well.

Meanwhile, we heard from the Iranians this morning putting out a message to Iranians on the ground saying they know that economically it's very tough there. Even Iran is buckling under the pressure of this war.

So, remains to be seen what diplomacy we are going to be looking forward to perhaps, if any. The question becomes, can both eye -- you know, both sides see eye to eye.

SANDOVAL: Yes, just absolutely incredible. Only five ships transiting to the Strait of Hormuz based on those numbers that you just shared with our viewers. The seven months into this conflict. It really is alarming.

Eleni Giokos, thank you so much for that full report.

Now, to some protests that are erupting around the world. And, of course, a source of many of those tensions are the rising costs of fuel prices.

In the U.S., for example, Americans there, they are facing this rise in energy prices and also warnings at the costs of heating oil could even jump about 30 percent this winter. And all of this in -- in countries where incomes are lower where the strain is even greater with some people they're saying that they simply can't afford to put fuel in their car or to even keep their businesses running.

And crude oil futures, you may recall, they jumped to more than a hundred dollars a barrel last week. First time in about four months. And you see right now though that -- that not only Brent Crude but also the WTI Crude Oil index all down trading at anywhere between $104 and $101 a barrel at this hour.

Let's go to Robin Mills, the CEO of the energy consultancy, Qamar Energy. He joins me from Dubai for more. He joins me live for more on this right now.

Robin, thank you so much for joining us as we try to just get a better sense of what's happening and -- and, of course, what the future has in store for us.

ROBIN MILLS, CHIEF EXECUTIVE OFFICER, QAMAR ENERGY: Yes, thank you. Well, you know, you showed all these fuel protests around the world, and I think that's a reminder of where the challenge is. Crude oil, yes, that is -- that is certainly a problem, but we have seen some more crude oil escaping from the Gulf over the past few weeks, but this pressure is very much on the refined products and particularly on diesel, also on gasoline. Diesel is a key industrial fuel, key transport fuel, and that's helping drive inflation.

And if we think that crude oil is only just over $100 per barrel, but diesel right now is effectively selling at more than $200 per barrel, so that's really where the crisis is.

SANDOVAL: Robin, diesel costs have -- have risen more than 55 percent since the start of the war with Iran. Those numbers coming from AAA.

And just for some comparison here, diesel actually outpaced the 40 percent jump in gasoline prices, so that alone is telling.

In addition to the factors that you just told us about right now, do you, at all, see any potential relief in sight? And -- and I think obviously the answer is no. I mean, you just heard from Eleni say that only five ships were able to successfully transit to the Strait of Hormuz recently.

MILLS: Right, and we've seen more efforts by the U.S. to help escort ships out of the Gulf, most of those carrying crude oil, a few of them carrying the refined products like -- like diesel.

The Gulf is a very important exporter diesel before the war. And -- and also that the Saudi Red Sea refineries which are, of course, not inside the Gulf but on the other side of the country, but their -- their supplies are cut off because of the -- the attacks by the Houthis and the -- the -- the Iraqi forces that have -- that have damaged the -- the pipeline and that damaged Saudi refineries as well.

So, you know, maybe some relief there in the Gulf if the U.S. effort on escorting ships is successful.

But, otherwise, no, you know, Russia a major diesel exporter, the Ukrainian attacks in its refineries have been very successful. So -- and -- and all other refineries around the world are running as hard as they can.

SANDOVAL: Robin, let's explore more of this issue of how consumers around the world are -- are being impacted right now when it comes to diesel. Of course, for -- for most, they don't necessarily use diesel. However, it's power -- it's used to power trucks, the tractors, ahead of the -- the harvest season, trains, boats.

How are these incredibly high diesel prices trickling down to cus -- consumers around the world?

MILLS: Well, they -- as -- as you say, they affect all industrial activity, so lots of factories are running on -- on diesel. Diesel pad generators. You have all of the transport. You have trucks, of course, as you say. You have rail. You have also some -- some shipping.

And then you have also bear in mind that diesel is -- is chemically very close to jet fuel. So the two, jet fuel and diesel prices tend to move together, so also air travel. And, of course, all kind of cargo, through -- through air, also going up.

[04:10:01]

And the harvest season, the autumn harvest season coming. Farm machinery uses huge amounts of diesel. The mining sector which I'm not hearing people comment on, but the mining sector is a huge consumer of diesel too, so that -- that pushes up prices for metals and so on.

So, this is just an inflationary shock pretty much wherever you look.

SANDOVAL: Yes. And, of course, the price also to heat homes with winter around the corner for so many.

And then just finally, perhaps your thoughts on -- on what we've heard from President Donald Trump, essentially hoping to -- to shift focus, claiming that the target, that Ukraine's targeting are Russian refineries was a major factor in influencing diesel prices.

In your view though, I mean, how much of a factor is it really?

MILLS: It's an important factor, but it's -- but the -- the main factor is the war in the Gulf. That's pretty clear. That's where we've lost most of the refined product supplies, you know.

And I think also that the Ukrainians, they're under attack from the Russians, their own energy for some of these are attacked. They -- they rightly think they have the -- the right to strike back.

SANDOVAL: Robin Mills, it is fairly a grim outlook, but we're all in this together as we continue to watch markets. Thank you so much for your analysis, as always. Appreciate your time.

MILLS: Thank you.

SANDOVAL: All right. Speaking of Ukraine, that nation's president is praising the possibility of more sanctions on Russia, just as Moscow unleashed another drone and missile assault on his country.

Volodymyr Zelenskyy says that Kyiv and other areas were struck overnight, and that left more than 10 people wounded. He says that the new sanctions bill passed by the U.S. Congress is exactly the kind of tool that could force Russia to make peace.

And that measure allows for new tariffs of up to 100 percent on countries that buy Russian oil and gas. But sources are saying that some lawmakers, from both parties, were concerned that giving President Trump new tariff powers could possibly lead to more price hikes and further hurt the economy.

And U.S. President Trump is defending his handpicked Federal Reserve Chairman, Kevin Warsh, but attacking the rest of the Fed's board and this after the Central Bank unanimously voted to raise interest rates, for the first time, in more than three years. The Federal Open Market Committee hiked the key overnight lending rate by a quarter point, and that bumps it up to a range of 3.75 to -- to four percent. And 16 of the 18 policymakers on the committee are expecting that at least one more rate hike is likely to happen later this year.

And this move really underscores the Fed's concern about persistently high inflation, which has worsened in recent months due to the war in Iran.

And the president accused the Fed of raising rates for political reasons rather than economic ones. Here's the president.

(BEGIN VIDEO CLIP)

TRUMP: I mean, I'm relying on Kevin, but he's got, you know, very tough board. He's got a board that was put there by a lot of other people. And the interest rates are too high. They're not appropriate.

And I told -- I talked to Kevin, and I said, you might as well vote with the board because it's not going to matter. The board is very hostile. They're very political. They're doing the wrong thing.

(END VIDEO CLIP)

SANDOVAL: CNN's Matt Egan is in Washington with more now on the significance of the Fed's rate hike and what it means for borrowers, as well as the economy.

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MATT EGAN, CNN SENIOR REPORTER: This was a big moment for Kevin Warsh and the Fed. This is the first interest rate hike in three years. And notably, the first rate hike under Warsh, the Trump-nominated Federal Reserve Chair.

And this is, of course, the exact opposite of what the White House wants. The president has been demanding, not slightly lower interest rates, but dramatically lower rates, the lowest on the planet. And the irony here is that the president's handpicked Fed chairman is doing the exact opposite.

But what's important to stress here is that this was a unanimous vote, unlike the historic amount of dissent seven weeks ago, all 12 Fed officials voted in favor of this interest rate hike, including not only Kevin Warsh himself, but some other Trump-nominated Fed officials like Christopher Waller and Jerome Powell, the former Fed Chairman, and Lisa Cook, the Fed governor who the president has tried to fire.

So, this is really the first concrete evidence that the Warsh-led Fed is willing to be truly independent from the White House. And that Warsh, he's willing to back up all of his tough talk on inflation with real action.

So, why did the Fed hike? Well, first off, worse noted that the economy, in his view, has strengthened in the last seven weeks. And that suggests that the economy can handle slightly higher interest rates.

The other factor, of course, is inflation. Warsh flat out said that inflation is a problem. He noted that the Fed has been missing on its inflation target for five and a half years now. And he's suggesting that that's just not going to stand under his watch.

So, what does this mean for borrowers? Well, it means slightly higher borrowing costs, especially for floating rate debt. So think credit cards, home equity lines of credit. Anything that has an adjustable rate like certain personal loans and some student debt, but also means slightly higher cost for auto loans going forward.

[04:15:14]

Now, hopefully, it means some relief from historically high inflation that we've seen over the last five and a half years. Of course, that's going to be decided in large part by what happens next with the war which has driven up the cost of diesel, gasoline, and other forms of energy.

Now, the Fed has signaled that it's likely not done yet. The officials are penciling in, at least one more interest rate hike this year, but again, that's largely going to be decided by what happens next on the inflation front.

CNN, Matt Egan, Washington.

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SANDOVAL: All right. Let's take a look at U.S. Futures right now. So, hours ahead of the official start of training where you see across the board they are -- they are up, the Dow up, gaining about 326 points. While the NASDAQ, just shy of actually a little over 240 points. The S&P trading or features showing at little over 50 points there.

And that, of course, we should also mention that the key 10-year U.S. Treasury yields could close on Wednesday just above five percent which was its highest level since 2007. So, keep a close eye on markets there.

And there's still much more ahead here on "CNN Newsroom" including artificial intelligence as it advances at a -- actually, well, for the Asian markets right now. Apologies for that.

All right. Still ahead here on "CNN Newsroom," artificial intelligence advancing at a breakneck pace. And some lawmakers saying that Congress seems to be falling behind. When we come back, the push to bring numbers back to Washington to regulate A.I. safety.

Also a little later, we head to Paris where court has decided on the compensation for Kim Kardashian 10 years after she was a victim of an armed robbery. We'll tell you the amount and it may surprise you.

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[04:20:57] SANDOVAL: Hi, welcome back.

The U.S. Congress is under pressure to act on artificial intelligence. Conversations around the need for guardrails on A.I. development follow warnings by industry insiders about the dangers that the rapidly developing technology poses to jobs, privacy, and humanity altogether.

Here's CNN Michael Yoshida with more.

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MICHAEL YOSHIDA, CNN CORRESPONDENT (voice-over): Some U.S. lawmakers urging immediate action on artificial intelligence's safety.

REP. DON BEYER (D-VA): We cannot wait for the A.I. disaster to occur.

YOSHIDA (voice-over): Members of the bipartisan Congressional A.I. caucus say, the technology is moving faster than Washington's and the industry's ability to regulate it.

They asked House and Senate leaders to delay an upcoming recess and keep lawmakers in Washington to work on A.I. legislation.

REP. LORI TRAHAN (D-MA): Let us get this done so that we can take it up as soon as possible. The families we represent don't get a recess from this technology neither should we.

YOSHIDA (voice-over): Fears around rapid advancement of A.I. have made headlines, with warnings from researchers and calls for a slowdown from some top A.I. leaders.

The concern is also creating some unusual political overlap. On Tuesday, former Trump adviser Steve Bannon and Senator Bernie Sanders both spoke at the pro-human assembly, calling for stronger action to rein in A.I.

STEVE BANNON, FORMER WHITE HOUSE CHIEF STRATEGIST: We're trying to raise above partisanship.

SEN. BERNIE SANDERS (I-VT): Our job, as human beings in our country and throughout the world, is to make sure that A.I. works for all of the people.

YOSHIDA (voice-over): But there's also pushback from some who argue too much regulation to give U.S. competitors an advantage.

REP. NANCY MACE (R-SC): The one who wins when American A.I. slows down or pauses is China.

YOSHIDA (voice-over): That global competition is expected to be front and center next week when Chinese President Xi Jinping visits Washington to meet with President Trump. The two leaders have discussed A.I. guardrails before, but so far, those talks have produced limited results.

In Washington, I'm Michael Yoshida.

(END VIDEOTAPE)

SANDOVAL: And both the U.S. and China are currently trying to find the correct balance on A.I. They're looking for regulations that protect people, but also let the technology advance.

But when it comes to concerns about what A.I. might be able to do in the future, each side has a very different view.

Here, CNN's Mike Valerio gives us China's take from Beijing.

(BEGIN VIDEOTAPE)

MIKE VALERIO, CNN CORRESPONDENT: Here in Beijing, you can walk into a bar. Come on, walk with me. Come inside. Walk into a bar, order a beer, and get unlimited free access to some of China's A.I. models.

It's just a small example of how A.I. is quickly embedding itself into the fabric of the city.

VALERIO (voice-over): This is Beijing's AGI bar, where the signature drink is mostly froth, partially in homage to A.I. bubbles, and free A.I. computing power for customers is the new free Wi-Fi.

VALERIO: (SPEAKING IN FOREIGN LANGUAGE)

ZUO SHENG, A.I. DEVELOPER: (SPEAKING IN FOREIGN LANGUAGE)

VALERIO: OK. Let's go. So, let's see what you're working on.

VALERIO (voice-over): Zuo Sheng is a customer using the bar's two NVIDIA supercomputers and free access to an advanced version of the Chinese A.I. model, DeepSeek, to build this website.

It's part of his business where you speak a few words.

VALERIO: That's our Tuesday night. That's what we're doing.

VALERIO (voice-over): And by the time you've had a pint, his A.I. code creates a song based on me just speaking.

(SINGING)

SHENG: This technology has blown my mind. I want to leverage it as much as I possibly can.

VALERIO: You don't think China should slow down?

SHENG: I don't think so.

VALERIO: Tell me why.

SHENG: We don't think so.

VALERIO: Tell me why. Tell me more.

SHENG (through translator): The general consensus is that China still lags behind the U.S. in A.I., whether in foundation models, real-world applications, or cutting-edge agent technology. So, we are largely in a position of catch-up.

VALERIO (VOICE-OVER): Some experts in China, quoted by state media say, slow down please from the U.S. are aimed at stopping others from narrowing the technological gap.

Just as Chinese A.I. models rapidly improve, Beijing's push to stay competitive or even ahead in A.I. goes all the way to the top.

This summer in Shanghai, Chinese leader Xi Jinping called for a new global system to govern A.I., as China focuses, not just on the technology, but having a greater say in writing its rules.

[04:25:03]

MS. LI, BEIJING I.T. EMPLOYEE (through translator): I think we should actually accelerate our A.I. efforts and boost our overall competitiveness.

We should encourage everyone to embrace A.I.

SHI HONGHAO, BEIJING TOURIST (through translator): It feels like an unstoppable force. After all, look at me, I'm over 50 and I use A.I. too.

VALERIO: I'm curious what you think this kind of bar, existing in Beijing, says about Beijing in this moment.

UNIDENTIFIED MALE: It's like a cultural symbol.

VALERIO (voice-over): A symbol, the bar's manager says, that A.I. is already part of this community, one where the future is on tap. But growing global concerns on A.I. safety, even potential A.I. warfare between superpowers, don't seem to be on top of people's minds here.

VALERIO: For all the U.S. warnings about where A.I. could be going, here in Beijing, especially at this bar, it hardly seems like last call.

Mike Valerio, CNN, Beijing.

(END VIDEOTAPE)

SANDOVAL: Well, Britain's King Charles is set to host an artificial intelligence summit in Scotland in just the coming hours.

Thought leaders and other senior figures from governments and A.I. sectors are expected to discuss how A.I. can be developed and how it can be used in ways that will benefit people and the planet.

King Charles will not take part in the discussions and will attend for only about 20 minutes, as British royals are constitutionally bound to remain above politics.

And the European Union has announced plans to ban social media for children 13 and under and also to restrict digital technology for older children.

The E.U. plan would allow 13 and 14 year olds to have so-called mini accounts with limited features. And they could be used for up to one hour a day with mom and dad supervision.

The KIDS Act would also have to be approved by an -- by individual E.U. member states before it actually takes effect.

A Paris court has awarded Kim Kardashian one whole euro in compensation following an armed robbery in the French capital 10 years ago, and that's according to the "Associated Press," which reports that the lawyer involved in the case says that, well, that is the exact amount that Kardashian had asked for.

Here's CNN's Melissa Bell reporting from Paris.

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MELISSA BELL, CNN CORRESPONDENT: Just one euro is what billionaire, Kim Kardashian, will receive in the wake of the 2016 armed robbery here in Paris. That's according to "Associated Press" reporting from the courts looking into the damages awarded as part of the case.

It was last year that at this court here in Paris, eight men were found guilty of the 2016 robbery that had seen several of them enter the exclusive hotel in which Kim Kardashian was staying for fashion week.

She was then tied up and threatened in what she later described on "Keeping up with the Kardashians," as one of the most terrifying experiences that anyone can go through.

(BEGIN VIDEO CLIP)

KIM KARDASHIAN, AMERICAN MEDIA PERSONALITY: My door was open like this. And then I saw two guys holding another guy down in police uniforms, but right outside of my bedroom, five feet away.

So, I slid off my bed and picked up my phone, and I'm like, I don't know how to call 911 in a different country. And so I called Pascal, and then the guy came and grabbed the phone for me, threw me on the bed. And I was like, this is it.

(END VIDEO CLIP)

BELL: In all, the robbers made off with $6 million worth of her jewelry, including a diamond ring that was reportedly given to her by Kanye West.

Most of that jewelry has yet to be recovered, but those eight men have now been found guilty. The one Euro worth of symbolic damages was exactly what Kim Kardashian had asked for because she explained what she was after was acknowledgement of the crime rather than compensation.

Melissa Bell, CNN, Paris.

(END VIDEOTAPE)

SANDOVAL: And still to come here on "CNN Newsroom," all eyes are on Canadian Prime Minister Mark Carney. He's getting ready to speak to European lawmakers about a proposed partnership.

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