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Defense Secretary Hegseth Gives Update on Iran War; Goldman Sachs Forecast Higher Oil Prices for 2026; Iran Marks Al Quds Day with Mass Rallies; Israel Expands Operations in Lebanon; Civilians Caught in the Middle as Israel Targets Hezbollah; Global Oil Markets Face Historic Levels of Disruption; European Countries Shore Up Defenses in Cyprus. Aired 10a- 11a ET
Aired March 13, 2026 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[10:01:03]
ANNOUNCER: This is CNN Breaking News.
BECKY ANDERSON, CNN INTERNATIONAL ANCHOR: And welcome to what is the second hour of CONNECT THE WORLD from our Middle East programming headquarters
here in Abu Dhabi. I'm Becky Anderson. Time here is just after 6:00 in the evening on Friday the 13th, the 14th day of this war.
And we start with the U.S. Defense secretary and the Joint Chiefs chair saying the U.S. and Israel are conducting their biggest day of strikes in
the nearly two-week-old war with Iran. Here's more of what Pete Hegseth told reporters at a Pentagon briefing a little earlier.
(BEGIN VIDEO CLIP)
PETE HEGSETH, U.S. DEFENSE SECRETARY: As of two days ago, Iran's entire ballistic missile production capacity. Every company that builds every
component of those missiles has been functionally defeated, destroyed. Buildings, complexes and factory lines all across Iran destroyed. So we're
shooting down and destroying what missiles they still have in stock but more importantly, ensuring that they have no ability to make more.
(END VIDEO CLIP)
ANDERSON: Well, Hegseth is speaking as U.S. Central Command says that four of six crew members on a U.S. Air Force refueling plane were killed when
that plane went down in Iraq. CENTCOM says it was not due to either enemy or friendly fire. The Joint Chiefs chairman also providing an update on the
situation in the Strait of Hormuz.
(BEGIN VIDEO CLIP)
GEN. DAN CAINE, CHAIRMAN, U.S. JOINT CHIEFS OF STAFF: Weve made progress, but Iran still has the capability to harm friendly forces and commercial
shipping. And our work on this effort continues. But I want to make something clear. The only thing preventing commercial traffic and flow
through the straits right now, which there is some through the straits, is Iran. They are the belligerents here holding the straits closed, although
there is some traffic moving through there.
We've made it a priority to target Iran's mine laying enterprise, their mine layers, their naval bases and depots in addition to the missiles that
could influence the straits. And CENTCOM continues to attack those efforts.
(END VIDEO CLIP)
ANDERSON: Well, the Strait of Hormuz remains a focal point of this war. 16 oil tankers and other vessels in and around the area have been attacked
since the war started bringing commercial oil shipping to a virtual halt as energy prices spike worldwide.
Well, inside Iran, smoke from explosions seen near Al Quds day rally in Tehran. Thousands marching in the capital and across the country in what is
annual support for Palestinians including some top Iranian officials. One of them, Ali Larijani, criticizing the U.S. president as he talked about
the attacks that happened during the rally.
(BEGIN VIDEO CLIP)
ALI LARIJANI, SECRETARY, SUPREME NATIONAL SECURITY COUNCIL OF IRAN (through translator): Trump's problem is that he does not understand that the
Iranian nation is strong, determined and resilient. The more pressured the United States applies, the stronger the people's resolve becomes.
The Israeli regime attacks along the march route shows its desperation and fear. Someone who is truly strong would not bomb the middle of a march.
(END VIDEO CLIP)
ANDERSON: Well, that is the national security chief there, Ali Larijani, a powerful man.
Haley Britzky joining us now from Washington.
Let's just break down what we heard in this briefing, Haley, if you will.
HALEY BRITZKY, CNN NATIONAL SECURITY CORRESPONDENT: Absolutely, Becky. There was a lot to get to in today's briefing. As we have heard the last
several briefings from Secretary Hegseth and General Caine, they came out with a very confident posture saying that significant progress was being
made towards the military's objectives against Iran as we heard specifically with ballistic missile production and the U.S.'s targeting of
those missiles.
Secretary Hegseth said that Iran has no air defense, no navy, no air force, that the military -- U.S. military has destroyed those capabilities.
[10:05:01]
He said that very soon Iran's defense companies who are producing these weapons will also be destroyed and he specifically talked -- was asked
about an investigation that the U.S. military is carrying out into a strike on a children's school in Iran, which the U.S. has not claimed
responsibility for. They've said that it's being investigated. And the secretary said today that an investigating officer outside of the U.S.
Central Command has been appointed to lead that investigation. He also spoke a little bit about Iran's current leadership and gave an update on
that.
Let's take a listen.
(BEGIN VIDEO CLIP)
HEGSETH: Iran's leadership is in no better shape. Desperate and hiding they've gone underground, cowering. That's what rats do. We know the new
so-called not-so supreme leader is wounded and likely disfigured. He put out a statement yesterday, a weak one, actually. But there was no voice and
there was no video. It was a written statement.
(END VIDEO CLIP)
BRITZKY: So he -- the secretary also, I want to point out, took issue with a lot of the press reporting around this war, specifically saying, taking
issue with the fact that media has said that this operation is intensifying, but at the same time saying today, as he did on Tuesday, that
today would be the most intense day of strikes yet in this campaign. So twice now this week they said that that day would be the most intense day.
He said that again today.
And speaking about the Strait of Hormuz, it was a big topic in the briefing today. He said it's not a strait they're going to allow to remain
uncontested, but did not provide a ton of answers about what the military would be doing specifically, only saying that they are exploring options
and they have a plan for every one of those options in place.
ANDERSON: That's right. Haley, I also want to ask you about CNN's reporting that the Pentagon and the National Security Council significantly
underestimated Iran's willingness to close that Strait of Hormuz. Hegseth denying this and insisting the Pentagon was prepared. Have a listen.
(BEGIN VIDEO CLIP)
HEGSETH: We planned for it. We recognize it. Because ultimately we want to do it sequentially in a way that makes the most sense for what we want to
achieve and ensure that we're sending the right signals to the world when we do so. So when Chris Wright speaks or we speak, it's based on a full
assessment of what we're up against, what we want to say to the world, how we want them to see and understand the conflict.
(END VIDEO CLIP)
ANDERSON: Just explain this for our viewers if you will.
BRITZKY: Absolutely. Yes. So CNN reporting showing that the administration that the Pentagon, the National Security Council did not fully prepare for
the possibility that Iran could close this strait, which as we know is so crucial for crude oil production and transferring it out of the region.
Sources told CNN that in a closed door briefing with lawmakers, top Trump administration officials acknowledged that they did not plan for that
possibility well enough because they believed that closing it would hurt Iran more than the U.S., so did not think that it was something that would
happen, certainly in the way that it has.
As we heard Secretary Hegseth saying that that was not accurate, that they have plans for that, but we heard General Caine earlier this week saying
that, you know, if tasked the Navy would come up or the military would come up with options to sort of set the military conditions around the strait in
order to help escort ships. That has not started yet despite Energy Secretary Chris Wright saying on social media earlier this week and quickly
deleting it that the Navy had begun escorting ships.
That has not started yet. But General Caine said, as we heard earlier, that Iran still has the capability to harm friendly forces and commercial
shipping in the strait. This is obviously one of the most pressing issues regarding this war and how it is unfolding for the administration, and
certainly something we're going to continue to press for answers on -- Becky.
ANDERSON: And not just for the administration, for the entire world as we look at its impact, the impact of energy and security and stability on
prices and global economy, and the global economy.
It's good to have you, Haley. Thank you very much indeed.
I want to bring in retired U.S. Army Lieutenant General Mark Schwartz now. He is a CNN military analyst and former U.S. security coordinator for
Israel and the Palestinian Authority.
It's good to have you. I know you were listening in to the briefing today at the Pentagon. Hegseth and Caine both say the U.S. has made significant
progress in degrading Iran's military and navy. And there have been some 6,000 strikes on targets to date, as they explained. 15,000 in coordinated
action with the Israelis.
I just want to get your assessment of U.S. operations on this day 14 and your broader takeaways from what you heard today.
LT. GEN. MARK SCHWARTZ (RET.), CNN MILITARY ANALYST: Thank you, Becky. Great to be with you this evening. So I did listen to the entire briefing,
of course, and the assessment in terms of going after, you know, launchers and going after the industrial base that supports the building of their,
particularly the weapon systems that they've been employing, the long range weapon systems, I think CENTCOM has done a very good job and I think that's
an accurate assessment based on the reduction that we've seen over the course of the last 13 days.
[10:10:18] However, you know, there's the key terrain, which is the Strait of Hormuz, which is, you know, where everybody is focused on because of the strategic
economic impact that the closure is having. I think General Caine more somberly spoke to the challenges that are still ahead. That area still has
to be secured. And when -- while there's been a significant reduction of weaponry that can range the Strait of Hormuz, there's still a significant
amount left. Fast boats, surface-to-surface missiles.
ANDERSON: Like mines, like drones, seabound drones. I'm sorry. I'm jumping in on you. I just wanted to pick you up on that. Mines, seabound drones,
for example. Those are the sort of things that we hear discussed particularly, you know, around the region where I am.
From your vantage point then, as we hear Hegseth and Caine talk about having a range of solutions for any scenarios, what is the solution to
protecting that small 21-mile Strait of Hormuz, when there's this kind of asymmetric threat from the IRGC through these mines and naval drones? This
isn't just the sort of regular warfare here.
Is the U.S. not capable of naval escorts at present because of that asymmetric threat?
SCHWARTZ: I would say right now it is extremely high risk. And that's why we haven't seen naval shipping escorting yet at this point. And, you know,
the range rings that you're showing there are very relevant. So, you know, the strait, it's a bathtub really. I mean, you're talking about a two-mile
wide area that both Navy vessels and those, you know, very slow-moving oil -- I'm sorry, I'm having a senior moment here, but, you know, the oil
vessels that are going to be moving the products as well as commerce through that strait.
So you first have to deny, if you look at those rings, you have to be able to deny those areas for them to reach, not just, you know, right on the
shore, but all the way out to where the longest range of those missiles are. And that's several hundred kilometers. So -- and they have precision
guided munitions. We've seen that over and over. So it is going to take a significant number of more strikes to go after launch locations, as well as
stockpiles, not to mention the fast boats that are still remaining.
And there are still, you know, I would estimate dozens left, even though that has been a concerted focus on where to strike over the course of the
last seven or eight days.
ANDERSON: Yes. Yes, this is really good information. Thank you.
When it comes to the question of Iran's nuclear capabilities, here's what Pete Hegseth had to say a little earlier.
(BEGIN VIDEO CLIP)
HEGSETH: We've said from the beginning, deny Iran nuclear weapons as a core mission. We have. We retain options across the spectrum to ensure that they
never do. And President Trump has said that. And that's why this mission actually couldn't have been possible without Midnight Hammer, without what
those B-2s did going across and obliterating those facilities. That set the condition for the opportunity to do what we're doing now. So he's kept, the
president's kept his eye focused on nuclear capabilities.
And I will say we have a range of options up to and including Iran deciding that they will give those up, which of course, we would welcome. They
weren't willing to do a negotiations. I would not -- never tell this group or the world what we're willing to do or how far we're willing to go, but
we have options.
(END VIDEO CLIP)
ANDERSON: The U.S.'s goals on Iran's nuclear program have gone back and forth throughout this process. I wonder what your assessment of whether the
-- whether or not the U.S. can actually destroy Iran's nuclear program.
SCHWARTZ: Well, based on the outcome of Midnight Hammer, I would agree that, you know, the ability to enrich -- further enrich uranium has been
significantly, you know, disabled, if not completely destroyed, particularly after all the, you know, strikes that have occurred during the
course of this part of the campaign. However, there's still, you know, what the secretary didn't mention was the already enriched uranium, you know,
about 1200 pounds still out there and, you know, assessments are it's still underground.
I don't know the degree by which they have it located but leaving the options on the table, potentially if it's excavated and moved, the ability
to go in and try to secure that, you know, through a limited ground operation probably involving special operations, certainly if in fact that
decision is made to do that.
[10:15:12]
So further development, further production, further enrichment, I think has certainly been degraded significantly over the course of last June and the
present operations that have been ongoing but there's still, you know, highly enriched uranium there that is not far away from further enrichment
to achieve, you know, some type of nuclear device and the know how is still there, which is really key.
ANDERSON: It's good to have you, sir. Thank you very much indeed. We'll have you back. Thank you.
Let's take a look at oil prices, shall we, folks? Brent crude sitting just below 100 bucks on the barrel. Prices settling at that marker on Thursday,
100 bucks, for the first time since 2022 and Iran vowing to keep the Strait of Hormuz at a standstill.
Let's cross over to CNN's Eleni Giokos. She's joining us from Dubai this hour.
So we've seen that price creep back up, it has to be said, in the past couple of hours. While the Defense secretary and the Joint Chiefs chairman
are trying to sort of project confidence that the U.S. can eventually surmount these threats in the Strait of Hormuz, President Trump saying that
oil tankers, and I'll quote him here, "should show some guts."
What's the market making of what we are seeing out there today?
ELENI GIOKOS, CNN CORRESPONDENT: Yes. There's a lot to take into consideration actually. And you've got sort of oil Brent crude sitting just
below that $100 a barrel. And yesterday's session it breached that really key threshold of closing above $100 a barrel and sort of tallying up all
the efforts, you know, all the new policies that are coming into play to try and, you know, stop this hike that we've been seeing over the past two
weeks frankly.
So the other really important thing, Becky, that happened this morning was that the United States Treasury decided to lift sanctions on Russian oil
and petroleum products that are already out at sea. It is a temporary lift of that ban. It's only going to last until April 11th. But it's quite
fascinating. You've got the United States unilaterally making this decision, which basically in many ways reverses the efforts to try and stop
Russia's war machine, funding Russia's war machine in the, you know, invasion of Ukraine.
So that's really important. I mean, a lot of the people I've spoken to today, they don't know if it's really going to fill in that supply gap that
has been created. And of course, you've been talking about the Strait of Hormuz, the supply disruption there. You had the International Energy
Agency stepping in with the release of 400 million barrels of oil. But the flow rate is the big question. How much can they release every single day?
The estimates are sitting at two million barrels of oil every single day. So there is a discrepancy here. But again, if the strait doesn't open and
go back to normal days where we're talking about 50 oil tankers passing through, there is going to be a deficit. And President Trump coming up and
saying that shippers and crews need to have more guts and pass through the straits. The issue is, you've had 16 vessels that have been hit over the
last two weeks by Iranian strikes.
So just even the threat of a possible strike is going to, of course, avert any kind of movement through the strait. Not only for insurance purposes,
but also ensuring the safety of crews. And for as long as Iran is saying, especially the new ayatollah in the statement saying, vowing to keep the
Strait of Hormuz closed, Iran has this lever to be able to inflict economic pain across the board. Jet fuel prices are up around 60 percent. You have
fertilizer prices up around 40 percent.
We're talking about every industry already feeling the pain and the pinch because of the supply constraints.
ANDERSON: Eleni, thank you. Eleni is in Dubai today.
I want to get to Nada Bashir. She is in London monitoring what have been these mass rallies across Iran today.
And tell us more about what is this annual Quds rally today. We saw images from Tehran and very specifically those who were in attendance.
NADA BASHIR, CNN CORRESPONDENT: That's right. This is an annual international rally. It is Quds Day in support of the Palestinian people.
It takes place, of course, annually in Iran specifically on the last Friday of the month of Ramadan. And so this was a planned scheduled rally. Of
course, this comes just a day after we heard the purported statement from the new supreme leader Mojtaba Khamenei of Iran. That message was delivered
by an anchor on state media, a seven-part statement.
And as you can imagine, this rally today was once again a show of force, a show of support for the regime.
[10:20:04]
Of course, we saw many holding images and pictures of the new supreme leader, and we did also see the presence of senior government officials,
regime officials, taking part in this march in Tehran. We saw the foreign minister participating, Iran's security chief, and we also saw the police
chief. Take a listen to his message.
(BEGIN VIDEO CLIP)
GEN. AHMAD REZA RADAN, IRANIAN CHIEF OF PEACE (through translator): People came out today to tell the enemy that we are not afraid. The people
responded to the sound of explosions with chants of Allahu Akbar. To the enemy's dismay the people will not leave the scene and victory is near.
(END VIDEO CLIP)
BASHIR: Now what was quite shocking, stunning to see in the videos emerging from this rally in Tehran was a seeming strike or explosion taking place
just a short distance away, and you could see the large plumes of smoke emerging as demonstrators continued to march through the streets of Tehran
as we heard there in the statement from the police chief, continuing to chant in support of the regime.
We've heard very strong anti-American, anti-Israel rhetoric. Some protesters in other parts of the countries, or the demonstrators in other
parts of the country were seen burning U.S. flags, Israeli flags, as we've typically seen in some of these rallies in the past. But of course, the
explosions taking place so close to the vicinity of this march has really sent that strong message again. And of course, real concern over the safety
of Iran's civilians.
Now, we heard over that the Israeli military had targeted overnight some 200 targets. They say they were military targets. But we have seen in
Tehran in the past these strikes coming so close to civilian infrastructure, at some points targeting civilian infrastructure. But that
message from the Iranian officials has been clear. They remain resolute and defiant.
ANDERSON: Nada, thank you.
Well, you're watching CONNECT THE WORLD with me, Becky Anderson, live from our Middle East programming headquarters here in Abu Dhabi in the UAE.
Next up, Israel expands its operations in Lebanon. We get the reaction from Tel Aviv as questions are raised about a potential ground operation. More
on that is after this.
(COMMERCIAL BREAK)
ANDERSON: Well, let's connect you to Lebanon and new video showing the aftermath of a strike in the west of Beirut. The IDF is expanding
operations to target the Iran backed Hezbollah after saying a barrage of more than 200 rockets and drones was fired at Israel. Israel also raising
the specter of a major ground operation.
Jeremy Diamond with more from Tel Aviv.
Jeremy, what has Israel said about its latest operations in Lebanon to target Hezbollah? And what might we expect going forward?
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, the Israeli military has said that they've conducted dozens of waves of strikes in Lebanon over the
course of the last 24 hours or so.
[10:25:02]
We've seen strikes not only in southern Lebanon, but also in the Lebanese capital of Beirut including several in central Beirut, where we saw strikes
on financial assets of Hezbollah, including a strike that took place in the central part of the central part of the Lebanese capital, not those
southern suburbs known as the Dahiya, which have taken the brunt of Israeli fire in the capital.
We also know from the Israeli military, they are saying that they've also targeted weapons storage facilities in the Bekaa Valley in eastern Lebanon,
and also facilities north of the Litani River where they say Hezbollah fired recent barrages of rockets. Indeed, last night in Israel, we saw
another series of heavy barrages of rocket fire from Hezbollah targeting northern Israel. That also coincided and was likely coordinated with a fire
from Iran of ballistic missiles including one that landed -- that struck a building in northern Israel and in a community there -- Becky.
ANDERSON: So Israel threatening to seize more territory in southern Lebanon, this threat of a ground offensive, I mean, how likely does that
seem? And if likely, when?
DIAMOND: Well, it's important to note, first of all, that Israel already maintains several positions in southern Lebanon. Some of those stem from
the ceasefire agreement that was struck over a year ago, and that Israel then retained control of five different points there. They then expanded
that control somewhat after -- during this latest war. And we know that Israel has also been conducting special operations raids beyond those
positions in southern and eastern Lebanon.
But now the Israeli Defense minister, Israel Katz, is warning the Lebanese government that if it doesn't act to disarm Hezbollah, then it is going to
pay the price, he says, in loss of territory and also in terms of loss of national infrastructure. We don't know exactly what that means, but we know
that Israel has issued threats to the Lebanese government before, which have prompted Lebanon to actually outlaw Hezbollah's military activities in
Lebanon.
But so far, the Lebanese military has not been willing or able to actually take action against Hezbollah, as Israel is carrying out, you know, series
after series of heavy airstrikes in Lebanon. The Lebanese government instead calling for negotiations, direct negotiations at the ministerial
level with Israel and also asking for a ceasefire at this time. Those entreaties, though, so far have been ignored by the Israeli government.
ANDERSON: Jeremy, good to have you there. Jeremy is in Tel Aviv in Israel for you today. Thank you.
Humanitarian concerns growing for Lebanon's civilian population. The International Organization of Migration told me that the number of
displaced people could reach more than a million in the next few days.
Isobel Yeung has been speaking to people in the capital Beirut many of them now frankly fleeing for their lives.
(BEGIN VIDEOTAPE)
ISOBEL YEUNG, CNN CORRESPONDENT: We're back in Beirut now. We can smell the smoke and see these big plumes of smoke from where explosions are going off
in the city itself.
Oh, look at that. Look at that smoke there.
(Voice-over): Israel has intensified its air campaign on Lebanon over the last 24 hours. In the aftermath of Iran-backed militant group Hezbollah
firing a barrage of rockets towards Israeli territory last night. Earlier in the day, we traveled to the Bekaa Valley in eastern Lebanon, where many
residents have already been ordered to leave by the Israeli military. As we arrived, another strike warning buzzed our phones.
Let's get out of it quickly. Maybe put your camera down because there's military. Making it difficult because roads are getting shut because of
this warning from the Israeli military to evacuate. We're actually trying to get out of here quickly because this is the exact spot that the Israeli
military is saying that could be a potential strike.
(Voice-over): For journalists to operate here, we need the permission of Hezbollah, who enjoy significant control and support in this area. We
arrived at the site of a building that was struck just yesterday. A neighbor came over to tell us his version of events.
So did you see the strike happen?
MAJDAMHAZ, LOCAL RESIDENT: Yes.
YEUNG: What did you see?
MAJDAMHAZ (through text translation): I saw the explosion and the rocket falling. We picked up fingers belonging to small children. These are the
"terrorist targets" that Israel's targeting. That's it.
YEUNG: We can hear Israeli jets overhead and these guys are saying that we have to get out of this area now.
(Voice-over): According to Hezbollah and the neighbor, eight people were killed here, including three children. This is not the only accusation of
civilians being killed in this war, though Israel maintains that it only targets Hezbollah infrastructure. Yesterday, a building in the nearby town
of Temnine et Tahta was struck.
[10:30:02]
Sixteen-year-old Syrian boy Mohammed was dragged from under the rubble. He says at least six of his family members didn't make it.
MOHAMMED, AIRSTRIKE SURVIVOR (through text translation): We were sleeping in the morning. A jet came and my dad died, and my mom died, and my sister-
in-law and her kids.
YEUNG: I'm so sorry. When did this happen?
MOHAMMED (through text translation): I was sleeping. The strike woke me. I saw my father in pieces.
YEUNG: I'm so sorry. That must have been terrifying.
MOHAMMED (through text translation): I wish it was me and that I hadn't seen my dad like that.
YEUNG (voice-over): One of so many lives torn apart by a war with no end in sight.
Isobel Yeung, CNN, Beirut.
(END VIDEOTAPE)
ANDERSON: Well, you're watching CONNECT THE WORLD with me, Becky Anderson. Let's get you up to speed on some of the other stories that are on our
radar right now.
An attacker is dead after ramming his vehicle into a synagogue near Detroit, Michigan. The FBI calling Thursday's attack a targeted act of
violence against the Jewish community. The attacker has been identified by the U.S. Department of Homeland Security as a naturalized U.S. citizen born
in Lebanon.
Well, in Virginia, a fatal shooting at Old Dominion University is being investigated by the FBI as an act of terror after a gunman opened fire in a
classroom. One person killed in that incident. The attacker was also killed. Officials identified the man as Mohammed Jalal, a convicted ISIS
supporter and U.S. military vet.
We'll be back after this quick break.
(COMMERCIAL BREAK)
ANNOUNCER: This is CNN Breaking News.
ANDERSON: And welcome back to CONNECT THE WORLD with me, Becky Anderson, from our Middle East programming headquarters here in Abu Dhabi. These are
your headlines.
Top U.S. Defense officials say today will be the biggest day of strikes against Iran in the nearly two-week-old war. At a Pentagon briefing,
Defense Secretary Pete Hegseth described Iran's missile production as functionally destroyed but Joint Chiefs chair Dan Caine said Iran still has
the ability to harm friendly forces and shipping interests in the Strait of Hormuz.
U.S. Central Command has announced the death of all six crew aboard an Air Force refueling plane, which crashed in western Iraq. It says their
aircraft and another Air Force jet were involved in a mid-air incident. The other aircraft, which you can see here, landed safely.
Well, Iranian state media are reporting at least one person died in an airstrike during a rally marking the annual Al Quds Day in Tehran.
[10:35:05]
Several explosions reported near the gathering, which was held in support of the Palestinian cause. Demonstrators were seen burning American and
Israeli flags and are holding portraits of Iran's new supreme leader.
Well, global oil production is facing historic levels of disruption by the war with Iran. And Americans are seeing the consequences at the gas pump.
CNN's Tom Foreman explains why that is.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT: This conflict is far away. The United States produces a tremendous amount of oil and gas so why is it affecting
your corner gas station? Because we're talking about another part of the world that also produces a lot of petroleum products. Places like UAE,
Saudi Arabia, huge producer, Kuwait, Iraq, and Iran as well. And almost all of that has to come out through this body of water and through the Strait
of Hormuz. About 3,000 ships a month, 20 million barrels a day and Iran is putting so much pressure, military pressure on those ships with the threat
of attack that they're effectively closing the metaphorical gates here and saying nothing can get out from this area at the time.
How are they doing that? One of the ways is with the threat of mining the area, which is believed to be underway in some fashion there. We don't know
exactly what kind of mines they're using at this moment or how effective they would be but we know what they have. For example, they have these.
These are called influence mines. They sit in the water and they wait for ships to pass overhead if they see a small boat, they might let it pass.
A medium sized one let it pass but they see one of those big tankers that they're after that's when they'll blow up. We don't really know how
effective they can be, but we know they've already disrupted the flow here immensely. Now, most of this is going out to go to Asian countries,
principally China. Why would that affect you? Because oil is traded on a global market.
Let me fill the back of our hanger here with a bunch of barrels representing all of the oil being traded in the world right now. And
because of the trouble around the Strait of Hormuz, 20 percent is now being held up. You simply can't take that out of the market without affecting
manufacturing and shipping and trade, and yes, what you're going to pay when you try to fill up your car for this weekend.
(END VIDEOTAPE)
ANDERSON: Well, joining me now is Simon Gass. He's the former British ambassador to Iran and he led the British negotiating team on the 2015
nuclear deal.
Sir, it's fantastic to have you on. Your insight here will be so valuable for all of us. You've argued for containment of escalations and a
diplomatic pathway to end this conflict. I just wonder how realistic that is at this point. Do you see a path for an offramp?
SIMON GASS, FORMER BRITISH AMBASSADOR TO IRAN: Well, I think there are offramps, but I don't think these are likely to be negotiated offramps
between the United States and Iran. Iran, before it went into the most recent round of negotiations with the United States over the nuclear issue,
there was a lively debate in Tehran about the wisdom of negotiating with the United States, and what the hardliners will tell you is that there was
a nuclear agreement in 2015. The U.S. pulled out of it in 2018.
The Iranians and the United States negotiated on the nuclear deal last year, and that ended up with Israel and the United States bombing Iran. And
on this occasion, too, there were negotiations going on and the United States concluded those by attacking Iran. What that means is that the
hardliners in Tehran, and they are very much the ones who are in the driving seat at the moment, will certainly say that Iran never wins
anything by negotiating with the United States. In the end we just have to fight out this war until the other side becomes tired.
ANDERSON: Simon, the argument from the U.S. is that it was the burgeoning ballistic missile program providing a sort of curtain around the further
development of the nuclear program. They want that ballistic missile program as part of a deal. Certainly the region where I am wants that
ballistic missile program as part of any deal going forward. The last two weeks has really flushed out the threat that these Gulf countries face from
that program, which of course wasn't on the table and involved in that 2015 deal. The last, the last set of negotiations very much focused on the
nuclear deal.
[10:40:02]
Do you buy that argument from the U.S. and from this region that whatever happens next, this program, destroyed or not, is always going to have to be
part of any comprehensive deal and is it your sense that Tehran simply isn't willing to go that route?
GASS: Well, you put your finger on exactly the choice. The most recent negotiations, which we referred to earlier between the U.S. and Iran,
really hit the buffers because the United States, for exactly the reasons you give, was insistent that ballistic missiles should be involved and
limitations placed upon them. Iran's position has been for many, many years that it is not prepared to negotiate on those missiles because it believes
that they are the only main force of protection, which Iran itself has against attack by Israel.
Now, we may not agree with that assessment, but what it means is that Iran is not prepared to negotiate on the missiles and the United States, for
understandable reasons, insists that they should be included. What that suggests is that the diplomatic track, which we've been talking about, is
not going to bear fruit. And therefore we find ourselves in the middle of a conflict in which the outcome remains uncertain.
ANDERSON: It's a mess. And it has regional repercussions in the part of the world where I am. Reckless and unprovoked attacks here and around the Gulf
region and further afield. We're just showing images of the Persian Gulf where we see tankers on fire and serious disruption, really providing a
chokehold, as it were, for this global economy.
To that end, the U.S. has issued a limited license allowing some Russian oil transactions. Were you surprised to see that? And what does that tell
you about America's strategic priorities?
GASS: Well, I wasn't entirely surprised to see it, but I am rather dismayed to see it. As a European we are facing on the European continent the
biggest conflict since the Second World War, and it's been going on now for four years. Russia is clearly determined to try to bring Ukraine to its
knees. And one of the relatively few ways we have of changing the Kremlin's calculation is by increasing pressure on the Russian economy.
Sanctions on oil are a critical part of that and therefore releasing those sanctions is just one way in which I think Russia is benefiting from the
present conflict. In terms of United States strategy that I think is quite clear and what actually hurts the United States, as we were hearing just
now, is the gasoline price, and therefore, the administration is trying to find whatever means it can of reducing that and the cost to American
consumers.
That is understandable in American terms. But I think that it ignores the strategic threat from Russia, which I regard as being very severe indeed
including to the United States.
ANDERSON: And including at present, we have CNN reporting on this, Russian involvement with Iran and intelligence with regard to the Shahed drone
programs, for example. More on that as we get it.
It's good to have you, Simon. I very much appreciate your time today. Thank you very much indeed.
And we are following more developments in the U.S.-Israeli war against Iran. Stay with us. We're going to take a very short break. Back after
this.
(COMMERCIAL BREAK)
[10:46:02]
ANDERSON: Well, Israel has expanded its operations targeting Hezbollah in Lebanon following including in the capital Beirut. I want you to see this
video from earlier today showing the aftermath of the strike in what's known as the Jnah district of western Beirut, western Beirut. The
destruction also causing a humanitarian crisis in Lebanon as the intense fighting has forced hundreds of thousands of people to flee their homes.
Well, last hour I spoke to an official with the International Committee of the Red Cross about what is the growing impact in Lebanon, the humanitarian
impact. Here's part of my conversation with Dr. Shawky Amine Eddine.
(BEGIN VIDEO CLIP)
DR. SHAWKY AMINE EDDINE, HUMANITARIAN AFFAIRS ADVISOR, ICRC IN LEBANON: What we care about is the humanitarian consequences that result from any
kind of hostilities. Usually in any escalation of conflict, in any conflict, the people who suffer the most, the people who pay the highest
price, are the civilian population.
In Lebanon these hostilities are coming on top of years of compounded crisis. Many of these people that we are talking about are actually being
evacuated and experiencing this evacuation for the second or even the third time.
What is of utmost importance for us is to remind all the parties to the conflict to respect their obligations under international humanitarian law,
to avoid the incurring additional suffering on the civilian population, who again paid the highest price in these situations.
(END VIDEO CLIP)
ANDERSON: European countries working together to shore up defenses in Cyprus following an Iranian drone attack on a British military base this
month. The U.K. is preparing to send a second vessel after deploying a Royal Navy ship earlier on this week. In the past hour, I spoke to
Konstantinos Combos, who is the foreign minister of the Republic of Cyprus, and I asked him about the security risks and how Cyprus is responding.
(BEGIN VIDEO CLIP)
CONSTANTINOS KOMBOS, FOREIGN AFFAIRS MINISTER, REPUBLIC OF CYPRUS: We are taking all the measures that we should to make sure that our people and our
visitors and our residents are safe. But let me clarify that the incident we had related to the British bases and right now there is an increase in
terms of capacity and capabilities in place according to the advice of our experts, to make sure that we have the protection that is needed.
At the same time, I have to clarify also that the situation on the island in terms of our citizens, of our visitors, is back to normal. In terms of
the flight disruption, there is no more flight disruption. Life goes on normally in terms of the private sector, the public sector, the schools.
Everything is proceeding as normal.
ANDERSON: Good, and that's good to hear. And I'm glad that you've provided that measure of assurance for people. Several European countries have sent
ships and aircraft to help in support of Cyprus. I wonder, do you believe the response from European partners has been strong enough to effectively
deter further attacks and guarantee the island's continued safety and security?
KOMBOS: I think we have seen an expression of tangible solidarity from European partners on the basis of requests from my government. We have seen
remarkable show of solidarity and support. At the same time, we are part of this geography and at the same time also we are not part of the conflict. I
want to make this absolutely clear.
Of course the European Union is affected by what's happening. There is this illusion of a regional conflict, especially as regards our part of the
world, if I may say so this is rather a global region. Everything happening in the Middle East is affecting markets, affecting everywhere.
[10:50:01]
We are the E.U. member state closest geographically to what's happening around us. We are also the presidency of the Council of the European Union.
So for us it's important that we have this expression of solidarity. But at the same time, it's important that the European Union is more present in
terms of the diplomatic efforts for de-escalation and for a diplomatic solution an end to the war.
ANDERSON: Yes. And I wonder just where the E.U. will get more involved. There are those who say it gets -- there is a danger of the European Union
getting further dragged into this war as you say. I mean, it has had sort of regional implications not least in the part of the world where I am,
sir, here in the Gulf. I mean, I wonder, can you explain what has the U.S. requested as far as use of the U.K. bases on your island?
KOMBOS: I'm not, I'm not in a position to respond on behalf of the British, but the British have clearly stated that they are participating only in
defensive operations in specific bases they have around the world so they have clarified that. Our relation now to the European Union it's not about
getting dragged into the conflict, we are already suffering from the consequences of the conflict.
In terms of maritime security, energy costs, the impact on the economy, disruption of supply links, all this is already happening. Cyprus, when we
are putting together our priorities for our presidency of the Council of the E.U., the main priority was to place the emphasis on this region. And
this has proven to be a very wise choice if I may say so because this region, either you have a crisis or you have a huge opportunity.
And right now we are seeing that we need to focus on this. It's affecting Europe, but we also need to make sure that we express our solidarity to the
GCC countries. I just came back from UAE just this morning. I will be returning back to the region in the next few days. For us, it's a deep,
strong historical relationship we have with these countries and the European Union as a whole needs to be supporting at this time of need.
(END VIDEOTAPE)
ANDERSON: Well, we are back after a very quick break, so go away.
(COMMERCIAL BREAK)
ANDERSON: Will American forces will eventually, quote, "pack up" and leave the Middle East? That is, according to Bader al-Saif, a professor at Kuwait
University, fellow at Chatham House. In an article published on CNN Digital he is quoted as saying, "They've left Afghanistan. They are leaving Iraq
and they are going to leave our region as well. So we need to take matters into our own hands."
Well, I spoke with Bader earlier today. Here's what he has to say about Kuwait and other Gulf nations and their ability to defend themselves.
(BEGIN VIDEO CLIP)
BADER AL-SAIF, PROFESSOR, KUWAIT UNIVERSITY: Our resolve is strong. We feel vindicated in the amount of investments and trainings and capacity building
that the Gulf states have been going into in the past few decades. The moment has come for them to show up their skill set, and they have been
delivering, whether it's our brave men and women across the gulf defending our lands, or the use of the technologies in which we've, you know,
invested in these partnerships with various countries around the world.
[10:55:06]
And this is not limited to the Gulf alone. I mean, you saw the death of a French serviceman yesterday and the injury of others. We saw the Italians
being hit and Iraq as well, and we saw the interests of various countries being put on the line with the closure of or the attempted closure of the
Strait of Hormuz by Iran. So it's hitting the various parties across the world, and it needs to be taken with very serious undertones that this
cannot continue as it is.
The Gulf states have been holding themselves. And I think this is something that has shown that the brand is working. Many have been undermining how
we've been managing this conflict in the past two weeks. If anything, Becky, we've been through so many conflicts in the past. This is not the
first time that the Iranians have hit us. Go back to the Iran-Iraq war in the 1980s we've sustained attacks then and we survived.
We overcame an occupation. My country was occupied for seven months in 1990-'91. We overcame that. The war on terror in the early 2000 hit across
various Gulf cities. And we also overcame that, as well as the Houthi attacks on various Gulf cities. So this is one among various episodes that
have come across the Gulf. We've confronted it and we've moved to a stronger path forward.
(END VIDEO CLIP)
ANDERSON: Stronger and fitter going forward. That is certainly the hope here.
"ONE WORLD" is up next. We will see you same time, same place.
(COMMERCIAL BREAK)
END
