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Trump Accuses Iran of Violating Ceasefire Ahead of Planned Talks; Second Round of Israel-Lebanon Talks Scheduled for Thursday; Former UK Foreign Office Official Testifies to Lawmakers; British Royals Mark Late Queen Elizabeth's 100th Birthday; Jordan's Economic Minister on Middle East Conflict, Rail Deal. Aired 9-9:45a ET

Aired April 21, 2026 - 09:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[09:00:00]

(COMMERCIAL BREAK)

BECKY ANDERSON, CNN HOST, CONNECT THE WORLD: Well, a split screen live look at Washington and Islamabad as the world waits for news that the U.S. Vice

President leaves the one city to head to the other. This hour, it is all about the talks. It's 09:00 a.m. in Washington, 06:00 p.m. in Islamabad,

and it is 05:00 p.m. here in Abu Dhabi.

From our Middle East programming headquarters, I'm Becky Anderson. You're watching "Connect the World". Well, the stock market in New York opens

about 30 minutes from now. Futures indicating investors are very much focused on any news, indicating where this all goes next.

Breaking news for you as we reach what is a critical moment in the push to end the war with Iran. U.S. President Donald Trump says he expects to

continue bombing Iran if the U.S. cannot reach a deal to extend the ceasefire by Wednesday evening deadline.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: Well, I expect to be bombing because I think that's a better attitude to go in with. But

we're ready to go. I mean, the military is raring to go.

(END VIDEO CLIP)

ANDERSON: U.S. President Donald Trump speaking to CNBC, the vice president due to leave for Pakistan soon, where extreme uncertainty awaits.

Preliminary talks have been happening for days, but Iran still has no clear indication if its negotiating team will sit down with the Americans.

Let's get you to Washington and to Kevin Liptak. What do we know at this point?

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Yeah, we still expect JD Vance, the Vice President, to depart sometime relatively soon, from

Washington to head from Islamabad. Our understanding is that he has not left just yet, but that interview that the president is still doing right

now on CNBC quite revealing in terms of his approach and attitude to these negotiations.

He's feeling very bullish in terms of a deal, but at the same time making clear that he doesn't plan to extend that ceasefire, which he says will

expire tomorrow evening. And essentially says he has his finger on the trigger in terms of resuming this conflict if a deal cannot be reached.

Listen to a little bit more of how he characterized the state of these talks.

(BEGIN VIDEO CLIP)

TRUMP: What I think is that we're going to end up with a great deal. I think it's got -- I think they have no choice. It is regime change, no

matter what you want to call it, which is not something I said I was going to do, but I've done it indirectly, maybe, but I've done it, and I think

we're in a very strong negotiating position to do what other presidents should have done during a 47-year period.

(END VIDEO CLIP)

LIPTAK: Now the president, in this interview, said that he would be not rushed into a deal, essentially suggesting that he's not looking for

something quick and dirty. He wants something that he can come out and proclaim as a good deal for the United States. I think all of that sort of

belies the president's political positioning here.

You know, he recognizes that this war is unpopular in the United States. It's a war that he said would have been finished by now. And when you talk

to officials here at the White House, they make clear that the president recognizes that this war is politically damaging for him.

And there, despite what he's saying here, not a lot of attitudes for resuming it. And so, as the vice president prepares to depart here. For

Pakistan, of course, the question is, what exactly this deal that the president thinks he can secure looks like? What is the concession on

nuclear enrichment?

What happens to the nuclear stockpile of highly enriched uranium? All of these questions that were sticking points during the first round of talks

led to no deal being produced there and remain sticking points now. Of course, President Trump very confident that he was able to come up with

something that doesn't resemble the Obama era deal that he withdrew from, that he continues to decry.

But I think, very interestingly, the president really putting a lot of stakes into his own negotiating prowess, saying, you know, somewhat

preposterously, that he would have won the Vietnam War very quickly if he was president. So altogether, a portrait of a president quite confident in

his ability to bring this war to an end, quite confident in his ability to secure a deal that's good for the United States.

But also, one who continues to threaten a resumption of this war if these talks don't produce a deal.

[09:05:00]

ANDERSON: Kevin, good to have you from there. Thank you. I think the point at this stage is that we can only read the tea leaves and wait and see what

will happen next in Islamabad, among a string of President Trump's threats to Iran to strike an agreement, or else, he said this on Monday, quote,

hopefully they'll make a fair deal and they'll build their country back up.

Our International Diplomatic Editor Nic Robertson spoke to my colleague Sara Sidner earlier about the signals from the U.S. President and whether

or not it appears Tehran will come back to the table.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: President Trump's language, his demeanor, has really been counterproductive all those sorts

of Confidence Building Measures. Last week, Lebanon ceasefire, the Iranian sailor from the Strait of Hormuz, kind of fell by the wayside.

It wasn't the path, the sort of normal diplomatic path of buildup, rebuild trust, Confidence Building Measures, sequencing kind of fell by the

wayside. But I think that idea that both sides want to get a deal here. I think that rings true in Iran. So, what else do you do when you're trying

to understand what the Iranians really mean?

They're clearly speaking to their public they're clearly angry, but it also seems they want to deal. So, what did we just hear from President Trump

there? This seems to fit with something that we're hearing from the Iranians. President Trump said in that quote, we just heard, I, they we,

you know, we hope they'll be able to build back up their country.

What is one of the lines we've heard overnight from the Iranians, under international law, we will be recompense for the damage to our energy

infrastructure and other infrastructure in the country. So, the Iranians are signaling to their people here that if they get into the talks, and

there'll be some kind of financial recompense.

I don't think you're going to find either side, or at least certainly President Trump. I don't think we'll be trumpeting how much money and

support he might give to Iran and where this, where all these terms might be buried in any kind of memorandum of understanding, or whatever it is.

But that language coming from the Iranians, which appears to fit into a degree with what President Trump is now saying, I think, shows us that we

really are on the glide path for the Iranian delegation to arrive. It's not locked in much -- before then, but the assumption here right now is it's

going to happen.

(END VIDEOTAPE)

ANDERSON: Nic Robertson there, reporting from Islamabad just a couple of hours ago, where we are also monitoring another fragile ceasefire. A second

round of direct talks between Israel and Lebanon are expected to be held on Thursday in Washington, D.C.

CNN's Oren Liebermann, following that for us, this is a second round of what are effectively direct talks. What do we know about what is likely to

be discussed at this point, and is that ceasefire between, ostensibly, Israel and Hezbollah, Hezbollah being Lebanon base, and therefore sort of

between Israel and Lebanon, to all intents and purposes. Is that ceasefire holding?

OREN LIEBERMANN, CNN JERUSALEM BUREAU CHIEF: That ceasefire between Israel and Lebanon, that is to say, between Israel and Iranian proxy Hezbollah is

still largely holding. It has clearly been tested, and it takes place in a difficult diplomatic situation.

Israel controls a large part of Southern Lebanon, up to 10 kilometers from the border, and Israel hasn't given any indication that it's willing to

withdraw from that territory as the White House tries to move forward these direct talks. Israel has warned repeatedly that that area it controls, the

territory it occupies, is a closed military zone.

And everyone or anyone they view as a threat will be attacked and potentially killed. And yet the ceasefire agreement largely holds, and it

has created a situation where Israel and Lebanon can hold these direct talks. The next ones are expected on Thursday at the ambassador level.

Ambassadors from Israel and Lebanon will meet in the United States. So, this isn't the meeting President Donald Trump was looking for between Prime

Minister Benjamin Netanyahu and Lebanese President Joseph Aoun. But it's certainly possible that, certainly with White House pressure, we get to

that point.

We don't expect a large agreement coming out of Thursday's meeting. Part of the goal here is just to keep talks moving forward, and perhaps to find a

framework for broader negotiations and create a scenario in which in which Netanyahu can meet Aoun in Washington. That would be a landmark meeting.

President Aoun said on social media on Monday that he is pursuing these negotiations so that Lebanon can act within its own sovereignty. He has

criticized and taken some steps against Hezbollah. It has not been enough for Israel, and it was Netanyahu who today made clear that he still views

the military effort as something that Israel has very much left on the table. Listen to this.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: This immediate threat we have removed, and we will continue to fight with all our strength against terror

states and of course, also against terrorists who deliberately target innocent civilians.

(END VIDEO CLIP)

[09:10:00]

LIEBERMANN: Israel is very much ready in case the negotiations with Lebron falls apart, and it's watching closely what happens between the U.S. and

Iran in case those negotiations fall apart. Becky, I think it's clear from where we sit, Israel is ready to resume the war. Should that happen?

ANDERSON: Yes. Fascinating, isn't it? It's good to have you Oren, thank you. Want to bring in Firas Maksad now. He's the Managing Director for the

Middle East & North Africa Program at Eurasia Group joining us from Washington. Donald Trump saying moments ago that the U.S. is ready to go

militarily, and we wait for JD Vance to board a plane take off to Islamabad.

We are yet to hear whether the Iranians will officially turn up. How would you assess this moment?

FIRAS MAKSAD, MANAGING DIRECTOR FOR THE MIDDLE EAST & NORTH AFRICA PROGRAM AT EURASIA GROUP: Becky, no doubt, nobody here wants to be wagering on

whether these talks go ahead or not. But if we're trying to read the tea leaves here, it appears to me that both sides are posturing.

Both sides are reaching for leverage ahead of talks, rather than instead of talks. And so, all indications are, and our contacts this morning with

various officials in the administration seems to be that Vance will board that plane for Islamabad. I am told that the Iranian Speaker of Parliament,

Ghalibaf is also currently in mesh head, only a few hours away from Islamabad, and can head there very quickly.

So, if I was to wager, I would say that these talks do, in fact, move forward. The prospects for a breakthrough, however, are a completely

different issue, despite some of the public pronouncements, primarily coming from Washington after the last round of talks, when we had that

ceasefire, the positivity perhaps an attempt to impact and to try and control the impact on markets, on oil prices.

That doesn't seem to be reflected in any kind of forward movement or progress. Quite the opposite the American imposition now of a counter

blockade on Iran, so to speak, in response to Iran's control of the straits, seems only to have complicated matters. So, I'm not expecting any

breakthrough, possibly only another two-week extension of a ceasefire.

ANDERSON: That's fascinating. I mean, Donald Trump has already said there will be no extension to the ceasefire, but he's also posted a single line

on Truth Social this morning, quote Iran has violated the ceasefire numerous times. Look, the impression that Donald Trump gives, is that he is

laying the groundwork for a return to hostilities.

You and I know that this is, and our viewers will be, probably well versed with this. This is a period of negotiation and posturing. I guess the

question is, do you believe Donald Trump really is ready to go back into a sort of a military confrontation? What benefit is that to him at this

point?

MAKSAD: There is no clear line to a win through military action for the U.S. Time and again we have explored that proposition. Yes, there are

further assets on the way to the region. By the last count, as of yesterday, they are now three carrier groups, aircraft carrier groups,

along with their accompanying destroyers.

And so, the buildup continues. And if we know anything about President Trump by now is that he very much appreciates and values having all options

open. Doesn't want to box himself in. This is kind of central to his negotiating style. That doesn't mean that he's going to pursue the military

option.

If you take him at his word of the threat of bombing power plants and infrastructure and bridges in Iran, destroying an entire civilization. Will

that have severe blow back risks against U.S. partners in the GCC, their infrastructure, their energy of plants and power plants, and so there's a

great deal of reluctance there.

So, for all those reasons, I do sense that this is more about posturing, and both sides still prefer diplomacy as a way forward, despite the lack of

prospects anytime soon. I would have to say, though, on the counter side of this. Every time that Donald Trump has deployed the military, whether it

was the 12-day war Venezuela with Maduro or in the lead up to this current conflict, he's used it.

So, we cannot discount that possibility. I just think it's his first -- court of action --

ANDERSON: Yeah. And you brought up the Gulf lens, which I think is really important here. You know, when we think about the Strait of Hormuz, there's

been little reprieve, just a ticklish ship getting through. Obviously, the longer this goes on, the more devastating for not just the global economy,

very specifically these regional economies.

[09:15:00]

I just wonder what chance there is that this very specific issue will get resolved this week, even if Vance does land in Islamabad. And what does it

what does a good deal look like for the Gulf Arab allies at this point?

MAKSAD: Couple of things here, Becky. One is that the impact of the conflict has not been uniform across the Gulf. Saudi Arabia has an East

West pipeline that is exporting some 5 to 7 million barrels of oil on a daily basis at elevated oil prices, and so the math there is roughly break

even, perhaps even making more off oil revenues than before the conflict.

The UAE also has a reroute and a pipeline around the straits that has some 1.4 million barrels at the day. There are other economies, other countries,

that are completely under water. Qatar is shut down. Kuwait is shut down. Bahrain is shut down. So, the impact is not uniform across the Gulf.

But to your question, and to the point, yes, this is not a good outcome for the GCC to have prolonged negotiations, perhaps with no deal in sight for

months, if not longer. This is not something that the GCC can live with, and it's certainly not a good sign that the two sides, the U.S. and Iran,

are not talking about caps on ballistic missiles and Iran's ballistic missile program, which was key, a key demand on this, on Iran before this

war started.

Nor are they talking about drones or proxies. So far as we understand, the talks are squarely focused on the nuclear enrichment file, that highly

enriched uranium that also Washington would like to see out of Iran and on reopening the straits. So, the way that these talks are shaping up so far,

the prospect of them going much longer than many would like is not a good thing for the GCC.

ANDERSON: Yeah, before I let you go, we just heard from Oren, my colleague in Israel, about how Israel is not ready to stop its war, at least in

Lebanon. I wonder what you make of just how dangerous this might be for the region wide ceasefire. And indeed, what you make of prospective talks

between Israel and Lebanon in Washington?

MAKSAD: Yeah, these talks will convene this Thursday. They are preparatory talks, and so what is expected out of the meeting between the two

ambassadors is a date and a location for the actual negotiations to begin, perhaps even a broad framework. My understanding is that while other

locations were floated at some point, the two-negotiating team, beyond just the ambassadors, will, in fact, meet in Washington, D.C.

And that's part and parcel of the administration messaging that the Lebanon track is led by the U.S. separate of anything that is taking place in

Islamabad that is with the Iranians. Now, that said, while separate, the Lebanon ceasefire and the Iran ceasefire run separate but parallel.

Certainly, the lack of progress on one will impede progress on the other, and Netanyahu's posture, Israel's posture, is very much forward leaning,

wanting to resume the conflict. He's under a lot of pressure from members of his own cabinet who don't think enough has been accomplished in Lebanon.

So, if the talks fall apart in Islamabad, I would expect that the already fragile ceasefire in Lebanon will be even in a more precarious situation.

ANDERSON: Yeah. So always a pleasure for us. Thank you. And just before I let you go, I do want to share with our viewers something you posted on X,

which the team and I thought was worth providing for our viewers. Let's put it that way. Yeah, pretty much you said about this meme, Bugs Bunny and

Daffy Duck in the place of the two main actors in this war.

Going back and forth, strait is open, strait is closed. A meme is worth 1000 words, right? Thank you, Firas, as always, for your time and your

insight. And that isn't the only example of pop culture helping us to interpret the upheaval that we are seeing in geopolitics right now.

Have you seen videos like this. Well, a producer on my CNN Abu Dhabi team, Leila Gharagozlou, reached out to the content producers behind these Lego

themed videos that are going viral. They are intensely anti American and pro Iran. But whether the producers are government mouth pieces is a more

complicated question.

You can see Leila's reporting on this show next hour and online on CNN's Digital platforms. All right.

[09:20:00]

We are learning new details about Peter Mandelson security vetting to be the UK Ambassador to Washington, despite his ties to Jeffrey Epstein. And

the British Prime Minister, is feeling the pressure. More on that after this.

(COMMERCIAL BREAK)

ANDERSON: Well, the fallout from the Jeffrey Epstein files continues in London, a former top official of Britain's Foreign Office has told

lawmakers that the prime minister's office took a dismissive approach. And I quote him there to the security vetting for Peter Mandelson's appointment

as ambassador to the United States.

Listen to Olly Robbins, who was fired from his post by the prime minister.

(BEGIN VIDEO CLIP)

OLLY ROBBINS, FORMER BRITISH FOREIGN OFFICE CHIEF: I walked into a situation in which there was already a very, very strong expectation, and

you will have seen the papers released already under the humble address that coming from number 10, that he needed to be in post and in America as

quickly as humanly possible.

The very first formal communication of this to my predecessor from number 10 private office, being that they wanted all this done at pace and

Mandelson in post before inauguration.

(END VIDEO CLIP)

ANDERSON: CNN's Clare Sebastian has been following this story from London. I mean, just explain who Olly Robbins is, or was the job that he was doing,

and what he was saying that just how damaging could this be for Keir Starmer?

CLARE SEBASTIAN, CNN CORRESPONDENT: Yeah, Becky, Olly Robbins was, until very recently, the top civil servant in Britain's Foreign Office, Britain's

Foreign Ministry, and the civil service's job is essentially to advise the government on policy and then to deliver that policy.

So, he was the man running that government department to all intents and purposes, and he has now been fired by the prime minister over what Keir

Starmer has alleged was his deliberate failure to disclose the fact that Mandelson, as Keir Starmer alleged on Monday, had not cleared vetting.

Now, Olly Robbins has given a bit of a different version of events here, but I want to remind viewers what Starmer said in the House of Commons on

Monday before we unpick that. Take a listen.

(BEGIN VIDEO CLIP)

KEIR STARMER, BRITISH PRIME MINISTER: Let me be very clear, if I had been told that Peter Mandelson or anybody else had failed security and had not

been given clearance on security vetting, I would not have appointed them, a deliberate decision was taken to withhold that material from --

(END VIDEO CLIP)

SEBASTIAN: So, there's a lot that Olly Robbins has disputed, even within that short clip that we showed you, number one, he said that Mandelson

actually was cleared because that was the responsibility of the foreign office, and even though he clarified that the UK Security Vetting Agency

which carries out this highly confidential vetting had leaned towards they said not giving him clearance.

They understood that the foreign office might want to give him clearance and would be able to mitigate some of the risks which Olly Robbins says

that his department felt that they would be able to do.

[09:25:00]

Secondly, he said that he didn't disclose that sort of back-end element, that even though the Foreign Office had given him clearance, the UK

Security Vetting Agency has had concerns, because that was normal practice. This is a highly confidential process, and as soon as sort of elements of

it start leaking out, it automatically undermines trust in the process.

Now on the issue of Starmer saying that he would not have appointed Mandelson had he known about this. Obviously, it's hard to prove or

disprove a hypothetical, but all the comments that we got from Olly Robbins today around the climate of pressure, the fact that the cabinet office

didn't even think that this vetting was necessary, the fact that there were multiple communications from 10 Downing Street that this needed to be

pushed through as quickly as possible.

None of that inspires trust in that. And so, this is, you know, supremely uncomfortable for the prime minister, and incredibly bad timing, both at

home, when it comes to the fact that we have local elections, which are expected to be very damaging for the Labor Party anyway, just over two

weeks away, but also abroad.

And President Trump has even weighed in on this, on Truth Social, saying, I agree he was a really bad pick, but plenty of time to recover, perhaps a

veiled reference there to the fact that this takes place less than a week before the king's state visit gets her to the U.S. rather gets under way

adds another layer of awkwardness to what is already given the Iran war, a very controversial trip, Becky.

ANDERSON: Absolutely. Clare, good to have you. Thank you. Well, Britain's Royal Family is honoring late Queen Elizabeth the Second today, on what

would have been her 100th birthday. It is marking the occasion with a number of events, including plans for a new charity and a garden memorial

in Central London.

There are also plans for a digital memorial with archive material from her majesty's reign. The queen was the country's longest serving monarch who

died nearly four years ago at the age of 96. Well, I'm Becky Anderson, you're watching "Connect the World" from Middle East programming

headquarters.

We are watching for the open on Wall Street and investor reaction as a ceasefire deadline looms between the U.S. and Iran. Plus, Jordan's Economy

Minister talks to me live next about the impact of the war in Iran on his country and the region, how his country is laying tracks for growth with a

big railway project. That is up next.

(COMMERCIAL BREAK)

ANDERSON: Well, we are awaiting word from Washington that U.S. Vice President JD Vance has left for potential peace talks in Pakistan. Distrust

and uncertainty running high as time runs out on what is a two-week ceasefire with Iran, that temporary truce set to expire on Wednesday

evening, Eastern Time, according to the U.S. President.

[09:30:00]

Well, we are waiting for the opening bell on Wall Street. UiPath, ringing that trading day in. And investors very keenly, keeping their eyes squarely

on that Islamabad state line, and whether or not these talks will actually happen today. We're 51 days into this conflict. It is impacting the entire

region, and Jordan is no exception.

Let's focus on that country just for the moment. The IMF projects that Jordan's growth will slow to 2.7 percent in 2026 down only about three

tenths of a point from prewar estimates. But that if, quote, disruptions are relatively short lived, and those are the IMF words.

Well, that leaves Jordan grappling with how to recover in the short term and looking ahead to how to build resilience in the long term, enter a $2.3

billion partnership with the UAE. This comes in the form of the upper port railway project, reflecting stronger economic ties between both countries.

Muhannad Shehadeh, is the Jordanian Economy Minister. He joins me now from Amman. It's good to have you. So, thank you. I'm eager to discuss this

major project. I do, though, first want to get your perspective through Jordan's lens on whether the U.S. and Iran can make progress in Islamabad,

given Donald Trump has just said, and I quote him here, he expects to be bombing Iran again if they do not.

MUHANNAD SHEHADEH, JORDANIAN MINISTER OF STATE, ECONOMIC AFFAIRS: Becky, thank you so much. Look, and I would like to focus on the economic side of

this. There is two folds to the answer. Number one, you know if the war continues and there is a stress testing, and if the war ends and peace

breaks, you know, this is great news.

For Jordan and other countries, the effect of the war has taken into different forms and shapes. As far as Jordan is concerned, you know, we are

going through economic stabilization. We're going through economic recovery simultaneously. That's why it has been a great week for Jordan by the way.

We've conducted a partnership with our good friends Emirates on a venture of 2.3 billion last week, 50-50 partnership. This will bring Jordan from a

phase of planning into a phase of execution. This project is really important for us for two reasons. Reason number one, it is a partnership

with a major companies Phosphate and Potash.

On a long-term basis, this will reduce their pricing. It will give them a competitive edge. It will give them a greater market share. The underlying

asset of this project for us in Jordan is to create a national railway network and a broader regional corridor. This connecting Aqaba to

Mediterranean through Tartous taking an extension also with the IMEC from the east side.

ANDERSON: Right.

SHEHADEH: So, this will position Jordan to become the nod of distribution to goods in the Middle East. Jordan will bring GCC, Levant, and even part

of Africa into one -- and that's why we're excited about this project. Moreover, sorry -- moreover, we've signed today another deal of the

greatest deal in Jordan, or the biggest deal in Jordan, which is a water conveyor.

26 donors. It's a $6 billion including that the finance. This will increase our drinking water by 40 percent, 300 million cubic meters. This is

extremely transformative for Jordan. So, we're looking at opportunities, rather than just focusing on what the effect of this war is going to be.

So, it has been a great --

ANDERSON: Understood.

SHEHADEH: Sure.

ANDERSON: Yeah. And I can see your enthusiasm, and rightly so, looking beyond where we are at today, I do want you to pause, and I'm going to come

back to the deal. Going to come back to the issue of water, because that's incredibly important. Give you an opportunity to speak further on that

deal.

[09:35:00]

Jordan has faced nearly 300 Iranian attacks. Less than the rest of the Gulf, but of course, still a major concern for the country, for an oil

importer like Jordan. Can you just give us a sense of how impactful this conflict has been on the cost of living, for example? And how are you

mitigating the risk of inflation that you know clearly could be impactful on citizens, given the massive refugee problem that you host?

How are you bracing for the eventuality which we have to consider of no deal and no extension to this ceasefire?

SHEHADEH: Look, let's take a sip back and look forward. This is not the first external shock that Jordan sees. By the way, we see an external shock

every two years and four months for the past 20 years, we had refugee influenza, we had COVID. We had the -- war. We had the Gaza war.

We had the Iraqi war. So, Jordan, economically has learned a lot, and it became extremely resilient, agile and adaptive. To be honest, the energy

shock is the greatest of all. We have adopted a strategy which is, technically, I call it the opposite inverted curve, the effect of the gas,

the oil and the gas has been absorbed by the fiscal.

To a point whereby we will continue absorb it until the dust settles and the trajectory of the decrease will not be reflected immediately. So, we'll

do two curves until we reach a breaking point. So, number one, control of inflation was observed, you know, the government of taking the first shock

and the second shock of this until we see what happens next.

Let's keep in mind, yeah, this war is tactical. You cannot be strategic, and in order for you to manage, we've learned from our 13 shocks that

sometimes tactical approach works. Second, I need to allude to central bank. Our reserves are the highest. It's 28 billion. Our banking sector has

an 18 percent capital adequacy ratio.

So, the Central Bank of Jordan conducted and quantitative easing that it is superb. They dropped 2 percent of the mandatory reserve on deposit that

pumped into the market around 500 million. There is a mechanism on the CDs they have adjusted it that pumped in another 400 million into the market.

ANDERSON: Right.

SHEHADEH: We put in 80 million into food supply and commodity trading to ensure that prices are adjusted gradually rather than 1, 1, 1, 1, shot.

ANDERSON: Right.

SHEHADEH: Eventually, this war will impact everyone's inflation. And we understand when we know that. But the trick is, and this is what we're

doing a gradual effect to inflation, because the spikes are massive, and if we want to let the spikes hit citizens or hit the economy, the impact will

be painful, and shutting down economy, like other countries, will be more painful.

So, the scenario of graduality is the best methodology, and it's working month after month. First month the head was 150 million manageable.

ANDERSON: Right.

SHEHADEH: And we --

ANDERSON: Let me just stop you there.

SHEHADEH: Sure.

ANDERSON: Can I just, I mean, because I spoke about exactly this to the IMF's Middle East and Central Asia Department Head, just before this show,

we talked about the swinging impact that this conflict is having around the region. Have a listen to his diagnosis of what this region you know, the

Gulf and wider Middle East, where you are, what it needs to do next. Stand by.

(BEGIN VIDEO CLIP)

JIHAD AZOUR, DIRECTOR OF MIDDLE EAST AND CENTRAL ASIA DEPARTMENT IMF: this war has revealed certain number of spots that need to be fixed, including

in terms of how to diversify connections and also how to reduce reliance on one source of infrastructure.

We need to have a trade route that are open unequivocally free. Those are important issues for investors to get more stability and more confidence.

(END VIDEO CLIP)

[09:40:00]

ANDERSON: And briefly minister, how does the Aqaba project fit into this sort of broader vision to build a more resilient new Middle East after this

conflict? And how important is Jordan's relationship with the GCC to that reshaping of the region's architecture?

SHEHADEH: Absolutely, by the way, we just concluded an IMF review at another good news for Jordan, and also, we just reviewed, we concluded

another rating, and the results were spectacular. Let's go back to the Aqaba. One thing we've learned out of this war is one entry point or one

exit point is a risk.

So technically, this is where Aqaba works perfectly fine. Aqaba today is on the Red Sea. If we take the route all the way up into Tartous, you'll be

connecting the Red Sea with the Mediterranean.

ANDERSON: Right.

SHEHADEH: It's another entry point. Also talking to our friends in Saudi Arabia, if they could come in through the IMEC into from the east side into

Jordan, then you'll be connecting the GCC and Iraq into Red Sea and the Mediterranean. Also, there is great opportunities now, we should think of

in the Middle East is pipelines for oil.

ANDERSON: Right.

SHEHADEH: I think we should revive the idea of Basra Red Sea, or Basra Agaba pipeline to help the Iraqis also --

ANDERSON: Minister.

SHEHADEH: -- new entry points or exit points.

ANDERSON: I'm going to have to stop you here, because I'm going to have to take a break. We can continue this conversation. I think it's really

important as we consider what the long tail beyond this conflict may be and what navigating a new Middle East might look like.

This is fascinating. Thank you for the time being, and that is it for this hour of "Connect the World". "World Sport" is after this break. I'm back

with more in 15 minutes.

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[09:45:00]

(WORLD SPORT)

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