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Adam Farrar is Interviewed about the War with Iran; Gas Prices Climb; Rep. Mike Haridopolos (R-FL) is Interviewed about Oil Prices; Democrats Infighting over Endorsements. Aired 6:30-7a ET
Aired May 05, 2026 - 06:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[06:34:01]
AUDIE CORNISH, CNN ANCHOR: Good morning, everybody. I'm Audie Cornish. I want to thank you for joining me on CNN THIS MORNING.
It's half past the hour. Here's what's happening right now.
The truce going through the ultimate test this morning after both the U.S. and Iran fired shots in the Strait of Hormuz. The U.S. Navy claims to have destroyed six small Iranian boats while providing protection for the waterway. President Trump warned Iranian forces they would be, quote, "blown off the face of the earth" if they targeted U.S. ships.
And the president is looking for revenge in Indiana after Republicans rejected his redistricting proposal late last year. Hoosiers head to the polls today, and Trump endorsed primary challengers to seven of the eight Republican state senators who are up for re-election. That's on the ballot. And voters will cast those ballots in Ohio as well today, where several Republicans are fighting for Democratic Representative Marcy Capture's seat. This could be the GOP's best pickup opportunity in the midterms.
Tonight, you can watch the California primary debate right here on CNN, or on the CNN app.
[06:35:04]
That coverage begins at nine.
(BEGIN VIDEO CLIP)
DOLLY PARTON, MUSICIAN: The good news is, I'm responding really well to meds and treatments, and I'm improving every day. Now, the bad news is, it's going to take me a little while before I'm up to stage performance level.
(END VIDEO CLIP)
CORNISH: Something tells me people will think she is worth the wait. Dolly Parton has canceled her Las Vegas residency over lingering health challenges. The country legend updated fans, as you can see, through social media, saying that her health has been improving. Parton also said she's, quote, "like an old classic car," that, once restored, can be better than ever.
So, this morning, Defense Secretary Pete Hegseth is set to deliver an update on the war with Iran. That's supposed to be happening around 8 a.m. Eastern. The ceasefire between Iran and the U.S. appears to be honestly just hanging on. The U.S. military claims two U.S. merchant ships made it safely through the Strait on Monday after it shot down Iranian cruise missiles and drones.
So, just for some context, about 120 ships would have passed through the Strait daily before this war started. So, is Project Freedom working?
(BEGIN VIDEO CLIP)
SEN. LINDSEY GRAHAM (R-SC): We're close to victory. Victory, to me, would be regaining freedom of navigation of the Strait of Hormuz, degrading a little bit further, short, big, strong response to degrade their military capability a bit further.
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CORNISH: Joining us now in the group chat, Adam Farrar, senior geoeconomics analyst for Asia Pacific at Bloomberg Economics. He's also a former member of the White House Security Council.
So, I'm glad you're here because, as of now, we are kind of in a ceasefire. Meaning, I ended the weekend on Friday hearing from Hegseth, look, you don't have to worry, Congress, because we're in a ceasefire. So, don't talk about the war resolutions, we're in a ceasefire. Come Monday morning, Iran says, not so fast. And now we're in this kind of complicated moment where we don't know quite what's going on.
I want to play for you something that the former defense secretary said, Leon Panetta, and get your reaction coming out.
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LEON PANETTA, FORMER DEFENSE SECRETARY: We may have crossed a line here. We aren't involved in a -- anymore in a six to eight week war that was going to end in a few days. I think this is beginning to smell very much like a forever war.
What you're left with is continuing to try to use military action in order to make the other side blink. And the reality is that right now neither side is blinking.
(END VIDEO CLIP)
CORNISH: What do you think of that? He's like, military action is the only action here. And since peace talks are stalled, I'm curious about what you think. ADAM FARRAR, SENIOR GEOECONOMICS ANALYST, BLOOMBERG ECONOMICS: So, the
defense secretary clearly understands and looks at what's in front of the U.S. and Iran right now and realizes that there are huge, vast differences in how each regime -- each country is looking at potential outcomes in a negotiated settlement. And with that space, both are looking for opportunities to increase leverage and get the ball moved closer to them. And that is driving, you know, these kind of short- term escalations in military engagement.
And what we saw on Monday was exactly that, right? The United States put out a new plan, theoretically --
CORNISH: Right.
FARRAR: To move ships through, to diminish Iran's control of the Strait of Hormuz, which has become their critical element of power at this point. And Iran pushed back immediately, right, but in a calibrated manner, both asserting their ability to both target ships in the Strait, and then also go after the ways in which the region is getting around the Strait to get oil out of the region.
CORNISH: Right. But the U.S., in kind, did not attack the sort of land capabilities of Iran in launching those missiles. And I sort of saw that as some caution.
FARRAR: That's right.
CORNISH: You know, I'm interested in the fact that, as you said, Iran is making different calculations. The foreign minister, Saed (ph) Abbas Araghchi, was saying, look, "events in Hormuz make it clear that there's no military solution to a political crisis." And then he said, "Project Freedom is project deadlock."
Can you talk about that? What are the president's options here? He's talk -- they're going to come out and say, our military is the best. This military operation is amazing. And Iran's like, this is not -- you're not going to solve it this way.
MEHEK COOKE, SENIOR ANALYST, "THE DAILY SIGNAL": Well, Iran can say what they want. They're out of options today because the only thing they're relying on is fear. Remember, in 1980 --
CORNISH: But is the president out of options today? I think that's what we're trying to figure out.
COOKE: He isn't. While we have leverage over the Strait of Hormuz right now, the fact that we were able to take out the six ships and then move vessels through --
CORNISH: Two, I think, yes.
COOKE: Just shows you. But it's -- we're still moving vessels, right? Do you remember 47 years, we've not had this. We've had a stalemate with Iran where we've been held hostage. U.S. embassies to American soldiers have died. This is the first time. Every single time something happens in the Strait of Hormuz, America is betting against the president, and we should be with him.
We're looking at a war.
[06:40:00]
That means that every single second things are going to change. That doesn't mean we should stop cheering for America today. 1980s, President Reagan did the same thing. When Iran was attacking vessels, we were actually able to push through and win.
CORNISH: Well, I want -- make sure to clarify that -- because I think Hegseth is going to come out and say something similar about the cheering or not cheering. I want to know about, like, on the ground, when we look at what's there, is there a military solution or are they at a stalemate, or are those two ships progress?
FARRAR: So, the question here is about how much the United States is willing to move forward on expanding the military conflict. Iran is showing that with a asymmetric capabilities, it can continue to hold back, which is what is a vastly superior U.S. force in the region by, you know, continuing to grow uncertainty among shippers and oil exporters around the world.
And so the question is not, does the United States have the preponderance of force? Absolutely. The question is, is the U.S. willing to escalate to a level that can actually clear the area and give, you know, the shippers the sense that they can reliably transit safely? And what that could take is a vastly expanded strike campaign, whether it be just along the coast or going after other targets further inland, but also the potential of leveraging these ground forces that the United States brought in. And --
CORNISH: OK. Stay with us for a second, because the fallout to this economically, as you're pointing out, is becoming more and more visible to particularly American consumers who, let's face it, are still spending as we go through this crisis.
So, you've got most vessels still blocked, as we said, two and through, but most vessels are still blocked. Americans don't seem to be buying the argument from the administration. You had Treasury Secretary Scott Bessent's claim that relief is already on the way.
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SCOTT BESSENT, TREASURY SECRETARY: Help is on the way as of today. The way to think about it is the market, because the -- of the conflict around the Strait is in deficit, about 10 million barrels a day. Between eight and 10 million barrels a day right now. So, every crude carrier that goes through has about two million barrels. So, four or five crude carriers a day coming through of the pent up demand. We think there are more than 150, 200 crude carriers that can come out. So, I think the market's going to be very well supplied.
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CORNISH: So, oil prices are pulling back at the moment after reaching the highest of the year. Many analysts don't expect prices to come down anytime soon. Here's what we're seeing in terms of businesses and the economy. You've got some restaurant chains, including Wing Stop, Dominos, Shake Shack, Jack In the Box, they're all reporting declining sales. New this morning, according to AAA, the national average of regular gas is $4.48 a gallon, up nearly 30 cents in one week.
The group chat is back.
The reason why I wanted to talk about this is, one, having a few numbers, right? But, two, when you look at the marquee -- and by marquee I mean internet, MAGA voices, your Megyn Kellys, your Tucker Carlson, all those types, they are saying, this is not America first. And they are pointing to the same economy and economic problems and saying, look, White House, this is a problem for you. Does the White House think it's a problem for them?
ALEX THOMPSON, CNN POLITICAL ANALYST: Yes. I mean that's why you have Scott Bessent going out saying relief is on the way. I mean --
CORNISH: But Trump is saying the polls are fake. So, like, what am I --
THOMPSON: Well, I would say that there has long been a disconnect in Trump world between what the president says and what like the political messaging --
CORNISH: Really?
THOMPSON: Yes. And what the political, you know, messengers want him to say.
CORNISH: But on the economy, sometimes they hear it.
THOMPSON: Well, Trump --
CORNISH: Every once in a while they're like, he's going to give a speech, or all of a sudden he's out there with cereal boxes. Like, are we going to see playing to the economic issue?
THOMPSON: Well, Trump is never a sort of, I feel your pain politician. Trump has always been, I'm going to try to brag and try to, you know, say -- like basically say, this is the best ever. You know, it's the golden age of America. America is the hottest country in the world. And I don't think that's going to change. But it doesn't take a political genius to say that having $4.50 (ph) gas nationwide is a political liability for every single Republican going into this fall.
CORNISH: What's the scuttlebutt in the Bloomberg room? Are you guys all just like, what business is struggling today? You know what I mean? I'm sure the oil corner of the room is looking at a bunch of millionaires, but for everyone else, how are you looking at this economic divide that's facing the fallout?
FARRAR: So, in the U.S., right, what we're seeing is really this price shock and this question of how high can it go? Our initial estimates actually saw oil at a much higher rate right now after two months of closure. And that speaks to both the ways in which the Saudis and the UAE have been getting around the blockade, via their pipelines, but also kind of some underpricing in the market of the vast supply shock that may be coming towards the United States and other parts of the world. And, you know, while in the United States that's limited, you know, right now to prices and increasingly in inflation, other parts of the world, we're really starting to see supply shocks. And --
CORNISH: Yes. We're talking with potential global recession and things like that.
FARRAR: That's right.
CORNISH: You know, I was thinking about Democrat messaging around this kind of thing.
[06:45:00]
They know this pain. During the Biden years it was the vibe session. Gas prices are high. Y'all didn't really have an answer for that. And here we are.
MARIA CARDONA, CNN POLITICAL COMMENTATOR: Yes.
CORNISH: And so, do they have an answer now? Because mostly when you look at these primaries, it's people who want a billionaire tax --
CARDONA: Right.
CORNISH: And people who were talking about security issues. I don't know if there's somebody who's really saying like, hey, y'all who can't afford Jack In the Box and Shake Shack, this is what we have for you.
CARDONA: There is a lot of candidates talking about what they will do for voters on the affordability crisis. And that's why you're seeing Democrats winning so many elections across the board in ruby red, deep red states and districts.
CORNISH: But it's not without struggle. I mean if there was an agreement on the path forward, there wouldn't be these big clashes in the primaries between the establishment candidates and the more progressive candidates.
CARDONA: But I actually think that's a good thing because what you're seeing across the board, again, is the candidates who respond to what the voters want. What the voters want right now are people who are going to fight for them. Why do they want candidates who are going to fight for them? Because they see a huge betrayal coming from this White House, from President Trump, from Republicans who promised in '24 to deal with prices, to have gas prices, to deal with the economy, and to deal with forever wars. And they're doing exactly the opposite.
CORNISH: Yes, the economy.
All right, I'm going to hold on to you there, because we're actually going to take a beat and talk about this very thing later in the show, because I do think there's a question about what the path is forward.
Adam, as always, I love having you. Thank you so much. One day we will end up talking about China when the president actually has that meeting.
Next, we're going to talk about those lawmakers waking up in their home districts this morning. What they're telling constituents about the war, about what Maria said about gas prices. Next, we're going to talk about, again, Democrats versus Democrats. What is this party infighting? What does it mean for the midterms?
Later on CNN NEWS CENTRAL, we're just hours away from a high stakes debate in California. We're going to look ahead to CNN's California governors' debate in our next hour.
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[06:51:10]
CORNISH: So, before the break we were talking about those gas prices. And the Trump administration says help is on the way. Is that going to be fast enough for you? The president of one oil consulting firm warns that if the Strait of Hormuz doesn't open by June, U.S. gas could hit $5 a gallon.
Here's the take from Megyn Kelly.
(BEGIN VIDEO CLIP)
MEGYN KELLY, HOST, "THE MEGYN KELLY SHOW": And I believe he needs to be focused on America.
UNIDENTIFIED MALE: Well, this is what I was going to say.
KELLY: The United States of America. And gas prices do matter.
UNIDENTIFIED MALE: This is --
KELLY: They may not matter if your last name is Trump, but they matter to middle America who are obsessively -- if you look at these social media boards -- checking the gas prices and trying to find the lowest -- the cheapest gas in their neighborhood. That's how most Americans live.
UNIDENTIFIED MALE: Well --
(END VIDEO CLIP)
CORNISH: All right, so I'm bringing in Republican Congressman Mike Haridopolos from Florida.
Thank you for being here.
And I want to just start with that comment from Megyn Kelly. I don't think there's anything more clear and succinct than that. What is your response to what she's saying, that gas prices matter and that this president doesn't seem to understand that?
REP. MIKE HARIDOPOLOS (R-FL): Well, I would just say this, Audie, I agree, gas prices do matter. It is a huge part of our economy. It's the everyday cost that Americans hate paying.
We were enjoying much lower gas prices throughout the early part of President Trump's second term. Clearly, this conflict in Iran has caused those prices to go up. And we're looking at alternative ways to fill that gap. That's why there's opportunities, as you know, in Venezuela, the Saudis are being smart about using their western pipeline. But we need to solve this problem for the good of not just America, but the world, to finally take this Iranian crazy regime off the map.
CORNISH: So, what are you telling constituents? Are you just commiserating on the gas prices or telling them to be patient? Like, what's your argument?
HARIDOPOLOS: Now, good point, Audie. And I'm saying this. We all know the crisis with Iran is real. We know it's been going on since 1979. We all hope that this is an aberration for a few months, that were dealing with higher prices in order to get some stability in the Middle East, which we've not enjoyed my entire lifetime. And I think that we have allies finally in the Middle East.
I mean, you think about all the Iranian neighbors, especially the UAE recently. They've said, I've had enough of Iran, and we're going to gang up together and finally take out this crazy regime.
CORNISH: Yes.
HARIDOPOLOS: In the meantime, the -- just one last thing, Audie, is I would say, I talk to citizens who are like, we hate gas prices, where they're at, Mike, and we're all hoping - again, the key word is hoping, that we can get through this crisis in the next couple of months so we can enjoy long term, lower gas prices and a world that's a lot safer considering the fact that Iranians can actually fire missiles more than 2,000 miles away.
CORNISH: So, we've got new polling showing that Americans don't think that gas prices will come down over the next year. We also have some polling earlier in the show about whether or not people approve of Trump's handling of the war. Why do you think those disapproval numbers are so high?
HARIDOPOLOS: Well, Audie, there's no doubt about it, the gas prices are too high. We all want to win the war against Iran. Every --
CORNISH: But can I stop you for a second? Outside of the gas prices, why don't they look at Hegseth who's out every week, look at Trump who's out talking about this and the diplomatic back and forth with Iran and think, my president is doing a good job with this war that he kicked off?
HARIDOPOLOS: Well, two things I'd say. One is, I can't emphasize that when gas prices are high, everybody's upset, including me. Second is the part is that we don't understand sometimes these foreign relation issues. They're -- we're (INAUDIBLE) out pocketbook issues. So, I think there's more than legit to be upset about it. And as you know, the media is pretty pushing hard on the idea about failure in Iran.
Remember, we've knocked out their entire navy. We've knocked out most of their military capabilities. And they're feeling the pinch right now because their own army might not get paid because they're not bringing in that oil revenue as usual.
[06:55:00]
CORNISH: We're also seeing the fallout here and there in businesses. For example, Spirit Airlines basically shutting down mid service. That's going to impact some of your constituents. I think upwards of 4,000 Florida residents have lost their jobs, 17,000 nationwide when it went out of business.
Here's one flight attendant.
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SEMONE WESTMAAS, SPIRIT FLIGHT ATTENDANT: You know, it's bittersweet. There's a lot of memories. We had good days. We had bad days. Like any other job. But it was that job that I loved. There was no job that compared.
(END VIDEO CLIP)
CORNISH: I know in Orlando this hit hard. So, what are your concerns going forward about the economic fallout?
HARIDOPOLOS: Well, as you know, companies like JetBlue are taking up some of the slack. But I feel for this woman. I mean she's in a difficult situation, especially given how chaotic things are around the world today.
But let's also remember in 2024 they had the opportunity to actually join with JetBlue and the Biden administration bragged about stopping that merger acquisition.
That said, I think you're seeing JetBlue step up, taking over a bunch of those routes, offering low-cost fares. I wanted to see Spirit stay in business because the more competitors mean lower prices. But as you know, Audie, the challenge was that the Biden administration chose not to allow that merger, and here we are.
CORNISH: Congressman Haridopolos of Florida, thank you so much for your time.
I want to talk more about Congress, because we're just a few months out from midterms. Democrats hoping for a blue wave. They're fighting about how to achieve that.
On Nonday, the Democratic Congressional Campaign Committee made eight endorsements in races to flip Republican seats. Now, most of those handpicked candidates still face contested primaries. And some of them, frankly, are being outraised when it comes to money. One Democratic lawmaker tells "Axios," quote, "I think the DCCC owes House Democrats an explanation, and I would not be surprised if a number of members decide to put their DCCC giving on hold. Some of these decisions are very perplexing."
So, we're hitting up Alex, talking about "Axios" reporting, because earlier this week I was just talking with the panel about Senator Schumer's recruits, who are also in tough primaries. And we saw that the biggest issue in Maine, where the Democratic candidate, Janet Mills, dropped out. And you have Plattner, who is going to the forefront without that establishment backing. Is the House seeing the same problem?
THOMPSON: Well, actually, I would say, there were some Democrats that wanted Hakeem Jeffries and the DCCC to be doing this much earlier, the way that Schumer is. And --
CORNISH: You mean just announcing who they want?
THOMPSON: Yes, exactly.
CORNISH: OK.
THOMPSON: And trying to clear -- also trying to clear the field ahead of time.
CORNISH: Yes.
THOMPSON: Because now, as we were talking about, they have these contested primaries.
Now, there is something to be said for the Democratic establishment, not necessarily reading the mood of the voters. And just because you recruit somebody who is, quote/unquote, "electable," the definition of electability and what is, you know, disqualifying is changing clearly but with --
CORNISH: Yes, very much.
THOMPSON: But with voters. And that's one of the things that you saw in Maine, which is one of the things that was a debacle for Schumer.
CORNISH: Yes.
THOMPSON: Although he would argue he got some other good recruits in North Carolina and Ohio.
CORNISH: Can you guys talk about that? Because at the end of the day we are now seeing Democrats go through what Republicans went through back in 2023, '22, where it was like candidate quality. What does it mean to be a quality candidate in the age of Trump, where people cannot get away with what Trump gets away with, but it's not clear scandal and controversy is going to take you down?
CARDONA: Well, I think for Democrats, they are looking at a field where they have very good candidates. And again, and I will keep repeating this, that is why Democrats continue to win in places where they really don't have any business winning.
CORNISH: Right, in all these little off year elections.
CARDONA: Exactly. And I think that is the trend that voters have said, this is what we want. They want fighters, like I said before, because they feel like they have been left behind by this White House, by this Congress.
CORNISH: It's always the style of fight that is the question, right?
COOKE: Yes, and that --
CORNISH: That happened with Trump. When Trump came along, Republicans were like, this is not how we do things well.
COOKE: Well, but I think what the Democrat Party today is facing is what we -- they should have actually looked at when the midterms were going on and before when Trump won. Remember, they actually never did a postmortem to see, why did we lose?
So, the infighting is because you have radicals today. You want to tax the rich. So, in New York you have Mamdani, you have Gavin Newsom that has billions of dollars but can't get rid of homelessness. They don't actually have solutions. And I'm asking Democrats today, what is your solutions to keep costs down? It can't continue to be tax the rich.
Most of this party is imploding because they have forgotten the Obama days and even Bill Clinton. The common sense they continue to attack and it's tedious. It's never about solutions for the American people, it's continuing to push down against President Trump.
CORNISH: There's a lot to unpack here. But I do think it's worth --
CARDONA: I do -- I don't -- I don't think -- I don't think you can --
CORNISH: I remember when the Tea Party came along. It was like, what?
CARDONA: Yes.
CORNISH: None of these things are -- you know, there was a lot of complaining.
CARDONA: I don't think you can say --
CORNISH: And I think Democrats might be going through something similar now.
CARDONA: I don't think you can say --
COOKE: I just don't hear solutions.
CARDONA: I don't think you can say that the Democratic Party is imploding when we are trouncing Republican candidates left and right and up and down.
CORNISH: Yes. Well, at least we can say disarray. [07:00:02]
I stayed away from that Acme (ph) term, Democrats in disarray.
CARDONA: Right.
CORNISH: You're welcome.
CORNISH: We are in a very good position.
CORNISH: You are not in disarray, but you will be on display. See what I did there? Because there's going to be a special tonight on CNN where you can watch how things are unfolding in California. And it is a little microcosm of some of these big questions across the country.
So, thank you for being in our group chat. Thank you for waking up with us. We know there's a lot of places you can spend your time. Thanks for being with us. The headlines are next.
