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Iranian Attack on UAE Throws Gulf into Fresh Uncertainty; Tensions in Strait of Hormuz Put U.S.-Iran Ceasefire at Risk; UAE Partially Closes Airspace After Iran's Missile Attack; Iran's FM Warns U.S. & UAE Against Being Drawn Into "Quagmire"; ICRC Warns It Can't Meet Surge of Humanitarian Needs if War Resumes. Aired 9-9:45a ET

Aired May 05, 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, this is the Strait of Hormuz where Iran has now announced it is expanding the area of control in

response to President Trump's Project Freedom. It is 05:00 p.m. in Abu Dhabi in the UAE. I'm Becky Anderson from our Middle East programming

headquarters.

This is "Connect the World". Coming up this hour, tensions rising in the Middle East, as the UAE once again face missile attacks on a key port. And

Iran accused the U.S. of violating what is a fragile ceasefire. Meanwhile, in the North Atlantic, the WHO says human to human transmission suspected

on board the hantavirus cruise ship.

The stock market in New York opens about 30 minutes from now. And as things stand, a relatively positive outlook for stocks ahead of the open back

there to Wall Street at 09:30 local time for you. Well, the latest Pentagon briefing on the U.S. war with Iran has just wrapped.

The U.S. Defense Secretary says the ceasefire with Iran is not over, as he outlined what he calls a successful but temporary, distinct and separate

U.S. operation to guide vessels through the Strait of Hormuz. Here's more from Pete Hegseth.

(BEGIN VIDEO CLIP)

PETE HEGSETH, U.S. DEFENSE SECRETARY: As a direct gift from the United States to the world, we have established a powerful red, white and blue

dome over the strait. American destroyers are on station, supported by hundreds of fighter jets, helicopters, drones and surveillance aircraft,

providing 24/7 overwatch for peaceful commercial vessels, except Iran's, of course, which is why our iron clad blockade remains in full effect as well.

In fact, six ships tried to run the blockade out of Iranian ports as Project Freedom commenced, and they were all turned around. This is more

than strategy. It's also humanitarian. By breaking Iran's illegal stranglehold, we're protecting the lives and livelihoods of sailors from

dozens of countries, securing global energy roots and preventing shortages that hit the world's poorest people the hardest.

(END VIDEO CLIP)

ANDERSON: Well, Hegseth speaking, a day after a day of conflicting claims, increased tensions and new attacks by Iran in this region. Iran launching a

barrage of attacks on the UAE on Monday, hitting an oil facility in Fujairah, which is on the coast of the Oman sea as Tehran now claims

expanded control of these waters, including large swathes of the UAE's coastline.

We've got Zachary Cohen in Washington. Paula Hancocks is here with me in the studio. Zachary, let's start with you. What do you make of Hegseth's

assertion that the U.S.-Iran ceasefire is not over?

ZACHARY COHEN, CNN NATIONAL SECURITY REPORTER: Yeah, we heard both Hegseth and Chairman of the Joint Chiefs, Dan Caine, both make very clear that,

from the U.S. perspective, essentially the ceasefire remains in place until President Donald Trump says it doesn't anymore. And that is really

differentiating the situation and the decision making on a ceasefire, and what the threshold is for breaking that.

That is a political decision in the view of the United States and as one that rests with the president himself. And it does speak to what I think

the reporting has shown to date, is that President Donald Trump would really prefer to find a political, negotiated off ramp to the current

conflict, one that he, along with Israel, started and has led us to the situation we face now, where the Strait of Hormuz is still effectively

closed.

And the other piece of this too is that Donald Trump, by essentially maintaining that the ceasefire is still in place. Pete Hegseth arguing that

that means the U.S. does not need to, or the administration does not need to go to Congress to get approval, they are running up.

Many lawmakers say on that 60-day deadline, requiring, by law that the White House get approval from Congress to continue any sort of military

action. And so, with the ceasefire in place, Hegseth and the White House arguing that they know that they don't do that at this time, but if combat

operations were to resume, they would address that question later.

[09:05:00]

I think the other piece of this too, Becky, is this really captures for the indecision or the impasse that we're currently at? As Nic mentioned

earlier, Hegseth really articulating and acknowledging a split within the Iranian regime and the Iranian decision-making process.

Here you have the IRGC, who the U.S. says is really the primary target of the ongoing blockade and of the defensive, as they call it, military

posture in and around the Strait of Hormuz, whereas the more moderate political wing of the Iranian government is really the area where the

administration is hoping they can find some traction in some sort of negotiated resolution.

And I want to point out too, though, that despite Hegseth really trying to assert that it is the U.S., not Iran, that controls the Strait of Hormuz,

claiming that they have created this umbrella as a gift to the world. I think he called it that to provide protection for commercial vessels that

does not really line up with the reality that we're seeing.

There's no the free flow of traffic has not resumed in the Strait of Hormuz as of now, Admiral Brad Cooper, who leads U.S. Central Commands, telling

reporters yesterday that this pathway Hegseth is talking about is only a one-way path. At this moment, it's only allowing some vessels to exit the

strait.

So, there is no way -- there is no two-way traffic in the Strait of Hormuz. Now, shippers clearly do not have a high enough level of confidence to

resume transiting the strait at this point, and really, as we've been talking about for weeks now, that is the key piece of this.

The shipping industry has to feel confident that the Strait of Hormuz is safe enough to transit until then the strait remains effectively closed. So

how the U.S. and Iran are ultimately going to get to that point remains a question we've heard from shipping industry executives who have said that

the only way to get there is not through military force, but through some sort of a resolution where Iran agrees not to threaten their vessels, and

we're clearly not at that stage yet.

ANDERSON: Yeah, good to have you. Zachary, thank you. I want to bring in Paula at this point. Paula it's been business as usual here in the UAE for

some weeks now, kids are back at school. There was a real sense of sort of normalcy. Monday, May the fourth yesterday will be remembered then for a

barrage of attacks on the United Arab Emirates.

Schools are canceled. Kids are back online. What's been the response?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Becky, it was April 9th, the last time that that residents of the UAE heard the emergency alert, heard the

interceptions of missiles and drones in the sky, so that there had been a sense of normality that had returned here.

It was a sadly familiar sound, though, when we did hear those emergency alerts, I was driving, I saw many people running to take shelter. Everybody

here knows exactly what to do. So very quickly, we returned to where we were back on April 9th, because what we had seen was Iran carrying out 19

drone and missile attacks that the UAE Ministry of Defense had engaged.

12 ballistic, 3 crews, 4 drone and there was damage. We know that in the Fujairah oil industry complex, there was, as authorities called it, a major

fire that was caused by a drone. Three Indian nationals were injured, which India got involved and criticized Iran, saying that is unacceptable.

And we seem to be back where we were, certainly at this point. So, for many residents of the UAE, it is not a welcome development --

ANDERSON: What are the authorities said here?

HANCOCKS: We have been hearing from the foreign ministry. They are understandably furious about what has happened. They say that Iran has to

halt these attacks immediately. They say from the foreign ministry as well that they reserve the full and legitimate right to respond, should they

feel that they want to.

And we have been hearing that, really, from a number of different countries in the Gulf, solidarity with the UAE, and of course, Oman was targeted as

well. Let's not forget, we've been hearing it around the world as well. This almost a sense of shock that we are back to this position once again.

We heard from Iran, the foreign ministry spokesperson just trying to defend what they had done, saying this was an act of self-defense, saying that it

is because the U.S. was using military bases, was using military assets, that is why they felt the need to do this.

But certainly, we're back to the position where there is pretty much international condemnation against Iran for targeting --

ANDERSON: And that condemnation, statements of support very, very quick to be sent to the UAE in the wake of that barrage of attacks. Thank you for

that. I want to go to Tel Aviv now and bring in Danny Citrinowicz.

[09:10:00]

He's a Senior Research Fellow at the Institute for National Security Studies in Israel. And he is Former Head of the Iran Program in the

Research and Analysis Division of for the Israeli Defense Intelligence. You will have listened to the Pentagon briefing last hour. What were your key

takeaways from that?

DANNY CITRINOWICZ, SENIOR RESEARCH FELLOW AT THE INSTITUTE FOR NATIONAL SECURITY STUDIES: I think the basic question that we need to ask ourselves,

what is the purpose of the U.S. in the war right now? It's really, I don't really understand what they're trying to achieve. Definitely, they're not

opening to almost trade.

You know, in order to do that, you need much more forces than the U.S. has in the region. And we're thinking about maybe attacking Iran again. But

again, the question is, what will other attacks will bring, or will change in the Iranian calculus? I don't think it will change much.

So I think we're taking everything that what happened in the sense had gone an hour ago, and what President Trump is saying, I think we tend we need to

attend back and to understand the basic purpose and question that we ask ourselves, what is the U.S. is trying to achieve right now in the conflict

against Iran, because I'm not sure that we know I'm not sure that they know what they want to do.

ANDERSON: Pete Hegseth said the strategy is laser focused. Just didn't lay out specifically what that strategy was when he spoke earlier on, you wrote

in a post earlier today that the Trump Administration has been misreading Iran and warn that without a change in strategy.

The trajectory is unlikely to improve with the sudden escalation in the Strait of Hormuz and indeed the attacks that we witness here as residents

of the UAE and those that we saw in Oman as well. Where do you see the trajectory of this conflict today?

CITRINOWICZ: Well, in the end the day, the ball is in the Washington court, and President need to decide what to do, because, as we saw just a day ago,

eventually, the administration need to understand that if he wants to open the most trades, the best way to do that will be reach an agreement with

Iranian the same regime that they want to tap on.

If you want to limit the Iranian nuclear capacity, then we need to return back to negotiation more way more or less basic of the base on the JCPOA,

the previous nuclear agreement. So, I think the basic purpose again, returning back to the first question is really what they want to achieve.

Now, if the administration wants to escalate, then the question is, what he will gain from this kind of escalation? Because, as I mentioned in my post

today, at the other day, until now, think the administration think that he's coping with some sort of Venezuela, looking for Delcy Rodriguez,

looking for some sort of a change in behavior in the Iranian perception, just using some sort of sticks in order to change the Iranian calculus.

But it's not going to work. I think that by now, after 39 days of war, I think that we understand better the Iranian perspective. And the Iranians,

they definitely want to reach an agreement, but they don't think that they have the lower hand. I think they have the upper hand.

So, the problem is, at the end of the day, the administration needs to decide, or negotiation, more or less, in the Iranian terms, or escalation

that not sure that it will change the Iran perspective, but effectively it will increase the damage to international economy.

ANDERSON: I'm trying to still understand, and perhaps we should do a slightly deeper dive on this, whether there is a division in strategy among

the current Iranian regime when it comes to diplomacy versus military escalation. What is your assessment?

CITRINOWICZ: I have to emphasize one thing regarding this important question. The problem in Iran is not the division among the leadership. The

problem is the position, because at the end of the day, the Iranian think that they have the upper hand. You know, conflicts between the more

moderates and the more extreme in Iran were since 1979 but this is not the issue.

What we have today. We have a decentralized, radical regime controlled by the IRGC, and at the other day, this is what we created by killing Ali

Khamenei and this regime actually see eye to eye in terms of what needs to decide, or what you need to interact with the U.S. Administration.

So, the problem that we have now it's not that the Iranians cannot get the decision we saw the just they offer the U.S. some sort of an agreement

based, of course, on their own interest and needs. So, the problem is not that. The problem is really the position. The U.S. still do not understand

the basic fact that the Iranians do not think that they lost the war.

They think that they won the war. This is why they want to dictate the U.S. everything related to their interest. So, the returning back to important

question. The problem is not the conflict that probably they are in the regime itself.

ANDERSON: Right.

CITRINOWICZ: But maybe the fact that more or less, everybody think that they won the war. And this is what problem that we have.

[09:15:00]

ANDERSON: Danny, as far as Pete Hegseth is concerned, the ceasefire holds. This is a ceasefire between the U.S. and Iran, supported by Israel. We had

heard that from the Israeli Prime Minister. I've seen little, if no official statement by Israel on what has happened, both in the Strait of

Hormuz, or indeed on the attacks here on the UAE, on Oman in the last 24 hours, when Pete Hegseth was asked about Israel today. This was his

response.

(BEGIN VIDEO CLIP)

HEGSETH: -- question is based on the false premise that somehow President Trump is being pulled in by Prime Minister Netanyahu any of these actions,

and that's where you're going. Just to be clear, President Trump has led at every step of this based on his view of American interest in America first.

And we're grateful that Israelis have been very capable partners at many steps of this, and they may have some objectives at times that are slightly

different than ours, but there's only one hand on the wheel ultimately directing this, whether it's Project Freedom or previously Operation Epic

Fury, and it's President Trump.

So, we're grateful for their input, their insights, the existential nature of the threat they face from an Iranian bomb, the capabilities that they

can bring to that, but ultimately, the coordination will happen with the leadership of President Trump.

(END VIDEO CLIP)

ANDERSON: May 5th today, Tuesday, with 24 hours' worth of what felt like an escalation. But as I say, Pete Hegseth insisting that this ceasefire holds.

What is the thinking in Tel Aviv?

CITRINOWICZ: Well, in Tel Aviv, definitely, the hope is that we'll turn back to another round of escalation, mainly attacking the Iranian energy

facilities and thus transforming Iran to a failed state. I think for Israel, it's first and foremost to prevent Iran from being a strategic

threat to the State of Israel.

But we won't do anything against President Trump wishes. This is why I totally agree with what Pete Hegseth said, at the end of the day, Israel is

connected, and is actually depending on what the president will decide. Israel is hoping, and I'm sure that behind the scene, Israel is trying to

see whether we can help the administration to reach the decision to renew the war.

But again, we tend back to that. I think that this is what Israel hoping, and Israel, of course, afraid from the situation where there will be an

agreement between Iran and the U.S. that actually will block any Israel activity in the future against Iran. So, for Israel, better no deal than a

bad deal.

But if push comes to shove, we can return back to war. Israel will join hands with the U.S. to attack the energy facilities of the Iranians.

ANDERSON: It's interesting, no deal better than a bad deal. A bad deal is what it feels like this region where I am is looking at, at this point, and

that is bad news for this Gulf region. We will continue to report on what we understand to be going on behind the scenes. Always good to have you,

Danny, thank you.

Well, from a university to production plants, number of key links in Iran's nuclear supply chain have been hit by U.S. and Israeli strikes, but an

analysis of satellite images shows some of them appear to have survived. CNN's Katie Polglase takes a closer look for you.

(BEGIN VIDEOTAPE)

KATIE POLGLASE, CNN INVESTIGATIVE REPORTER (voice-over): This university in Central Tehran is considered by the U.S. and Israel one of the very first

stages in Iran's nuclear supply chain. It was struck in mid-March by the U.S.-Israeli campaign, and it's one of dozens of sites across Iran we've

been analyzing to see how much of its nuclear supply chain has been wiped out. And the answer is not as much as the U.S. and Israel would like.

POLGLASE: That university you just saw has been under U.S. sanctions since 2012 for researching and developing weapons of mass destruction. It's a

reminder of just how long the U.S. has been tracking Iran's ability to make nuclear weapons.

POLGLASE (voice-over): And we found that in these latest strikes by the U.S. and Israel, while much of the production process has been

substantially damaged, some of the most important parts of this process, the stores of highly enriched uranium may not have been touched at all.

Let's start at the beginning of the supply chain, alongside the research. The process starts at places like these, Saghand Uranium Mine, where the

raw material, uranium ore, is mined. In recent years, Saghand Mine has expanded significantly. You can see widening pits, growing piles of earth

and diggers.

We looked at recent imagery since the latest strikes, and found no evidence of damage. In fact, from between the clouds, you can still see diggers

operating at the site so far. This indicates this stage of the nuclear supply chain may remain untouched. Next, the mined uranium ore is

transported to production plants like this one in Ardakan.

Here, it's converted into yellow cake, which is a type of concentrated uranium.

[09:20:00]

We found this plant was substantially damaged in recent strikes on March 27th, an image taken the following month shows little change, suggesting

the Iranians have not rebuilt this site yet. After this, the yellow cake is taken here to sites like this one in Isfahan to be purified and converted

into uranium hexafluoride.

And it's this one, this stage of the supply chain, that has caused the biggest headache for the U.S. and Israel. Back last June, French outlet Le

Monde found this truck visible in imagery taken just days before the strikes. These blue containers are likely carrying uranium into the

tunnels, experts told CNN.

Days later, these facilities were substantially damaged in Israeli attacks. You can see several buildings wiped out. Then in early 2026, Iran covered

over several entrances to these underground tunnels with earth preventing people from accessing them. Further measures were taken this April, when

these road blocks were put up in front of the entrances to the tunnels, it could suggest there still remains something valuable down there.

They were not, however, hit in the latest U.S.-Israeli strikes, even experts we spoke to are unsure why. David Albright is a world leading

expert on nuclear weapons.

POLGLASE: How much of a risk in the future is that stores in Isfahan Mountain?

DAVID ALBRIGHT, FOUNDER OF INSTITUTE FOR SCIENCE AND INTERNATIONAL SECURITY: I think it's a big risk. That's quite a bit of money in the bank.

I mean, the amount of enriched uranium they've produced was equivalent to a full year of production of their entire enrichment complex, and is believed

to be mostly and almost all of it at Esfahan.

POLGLASE (voice-over): In fact, the U.S. believes this too, and their demand to remove this uranium has been a key issue in the stalling peace

negotiations. And finding out exactly how much is down there is central to determining whether Iran remains a nuclear threat. Katie Polglase, CNN,

London.

(END VIDEOTAPE)

ANDERSON: Well up next, International Committee of the Red Cross, President Mirjana Spoljaric tells me about the growing humanitarian toll of the

region's conflict, including in Gaza and in Lebanon.

(COMMERCIAL BREAK)

ANDERSON: The President of the ICRC has returned from a visit to Tehran, sounding the alarm about the toll of the conflict on Iranians. She told me

that Iranian officials she spoke to believe the war could escalate again. I also asked her for an update on her discussions with the United States last

month.

She criticized President Trump's threat to target civilian infrastructure, and she urged for the rules of war to be respected.

(BEGIN VIDEOTAPE)

MIRJANA SPOLJARIC EGGER, ICRC PRESIDENT: Look, I've been public about rhetoric potentially reaching the level of war crimes, depending on what it

contains, and that is the case in many conflict situations at the moment, the rhetoric is dehumanizing, and that in itself, poses a problem for us.

[09:25:00]

The way international humanitarian law is treated today is too permissive and is too deliberate for us to say it's adequate. We see too many

situations where too many civilians come under pressure. This has to be reversed. You can design military strategies around protecting civilian

infrastructure and civilians to begin with, and these strategies have to be adapted accordingly.

That's part of our conversations. I'm not saying that, I'm always pleased with the outcome, but it's equally important that these conversations

continue and are not suspended.

ANDERSON: You've said that, quote, the humanitarian costs of a region at war is not one the world can absorb, but it does feel as though the world

is being forced to absorb it at this point. So, what are your key areas of concern across this region as this drags on.

EGGER: Because of the intensity and the number of conflicts today and the manner in which these conflicts are being conducted, people start feeling a

sense of, you know, numbness. They feel they don't have agency, and they tend to turn away, turning the casualties into mere statistics.

It is very important in this situation that really is beginning to affect the global economy and safety and security across the globe, to put

humanity back at the center. This is about human beings, and the human life is a human life. A child in Iran deserves equal protection as a child

anywhere else in the world, leaders have to listen to the people.

The people don't want war. They want their children back at school. They want to go to work, they want to earn their money, they don't want to live

of humanitarian assistance, and they don't want to live in shelters. This is what we have to remind ourselves, and de-escalation is the best way to

achieve normalcy.

ANDERSON: To that point, let's look very specifically at Lebanon, where one of your paramedics was recently killed in an Israeli strike. What is your

message to Israel and Hezbollah as attacks continue on both sides and this ceasefire increasingly looks like one in name only?

EGGER: The situation for over a million people is deplorable at the moment. They are on the flight. Many of them have been displaced several times in a

matter of weeks. They're not losing only their houses, their villages. They are beginning to lose their land because they don't know whether they will

ever be able to return.

It's a very tragic situation. This escalation has to stop as well. We cannot lose the focus on Lebanon, on Gaza, on what is happening in the West

Bank either we cannot lose focus on what is happening in Israel. We have to find a way to stop these wars, because the results, the consequences of it,

will haunt us for a long time, because it will, already today, take generations for this to heal.

ANDERSON: You were in Gaza in February, and you said, what you saw there, quote exceeds all legal, ethical, moral and humanitarian norms. Can you

just help us understand what is happening inside Gaza right now? And what precedent you believe has been set by the scale of destruction there?

EGGER: The scale of destruction, to begin with, is indescribable. You think you know what to expect when you come to Gaza, but then yet, when you get

in, you are shattered by the level of rubble and the conditions in which people live. There's more food in Gaza today, but many of the essential

goods that need to come in fall under dual use prohibition.

So, it takes a long time for us even to bring in medical equipment that we need to run our field hospital. And just as a principle, I mean, a field

hospital is supposed to be temporary, but two years later, we are still there, and it's still the only fully operating hospital in in the area.

We have to start thinking about recovering and rebuilding Gaza. And this is not happening and will not happen as long as 60 percent of the goods or

more are banned from entry, because we need to bring in machines to remove the rubble. We need to bring in the forensic equipment to identify the many

1000 people that remain unidentified.

And we need to be able to rebuild the water distribution, the sanitation systems. All of this is necessary, and as long as it's not happening,

people will live in inhumane conditions and continue to live in such conditions.

(END VIDEOTAPE)

[09:30:00]

ANDERSON: The ICRC President speaking to me earlier. Well, we are on Wall Street for you and waiting on the opening bell. Chesapeake ringing that

today, and we will head there again after this short break, see our markets are settling in at the start of trade on this Tuesday.

(COMMERCIAL BREAK)

ANDERSON: Welcome back. I'm Becky Anderson in Abu Dhabi. You are watching "Connect the World". And our top story for you, the U.S. and Iran

exchanging fire amid a shaky ceasefire. The Pentagon says the U.S. plan to guide ships through the Strait of Hormuz has been a success.

It's called Project Freedom. But the situation in this region has escalated in the past 24 hours. U.S. plan, dubbed Project Freedom, met with Iranian

attacks on Monday. Among the targets hit was the major UAE energy port of Fujairah. Three people there were injured. For its part, the U.S. destroyed

a number of Iranian boats.

Well, the continued gridlock in the Strait of Hormuz is taking a toll on oil prices. Brent crude hit a 2026 high on Monday, before pulling back

somewhat. All of this having an impact on the global economy, of course, and people, individually, worldwide. My next guest says the impact goes far

beyond fuel prices.

Diane Swonk, Chief Economist for KPMG, she joins me now live from Chicago, in Illinois. And Diane, I want to start by just reading a post on X, that

you made yesterday after returning to the U.S. from meetings abroad, you said my quote here, still processing and recovering from the exhaustion of

the changes we are enduring.

They are global in scope, and so much more than an oil shock alone. What is happening echoes the disruptions of the pandemic, but without the buffers

we had back then. When you say this is more than an oil shock, what do you mean by that? How far do you believe this crisis could go?

DIANE SWONK, CHIEF ECONOMIST FOR KPMG: Well, what we're seeing is it ripple through supply chain. Supply chains are being rerouted. We already know the

ships that have been trapped both in the strait and unable to reverse the waters around it. But also, it is stopping business across many emerging

markets as well as developed economies.

We've seen jet fuel, diesel fuel and bunker fuel that for ships, all sky rocket moving up the cost of shipping and fertilizer, which can affect

global food supplies.

ANDERSON: Yeah.

[09:35:00]

SWONK: This is at the same time we're having -- in much of the U.S.

ANDERSON: I was interested to know that you mentioned buffers that were in place during the pandemic, and you say that we don't have those now. What

governments, what do you mean by those buffers? And what do you believe governments should be doing during this crisis?

SWONK: Well, what we had coming out of the pandemic was an enormous amount of both fiscal and monetary stimulus. The problem is that did contribute to

the inflation that we saw coming emerging out of the pandemic. We're getting more inflation now, and there's more in the pipeline.

And that is what I'm concerned about, is that much of the inflation that we're five years into it here in the United States, it's proven sticky in

the service sector. And Europe have seen some of the same problems now as governments try to sort of suspend some of their taxes on energy prices to

lower or mitigate the price of energy, that helps temporarily, but it can only do a temporary bridge.

It does not, it dampens the rise in energy prices, but does not stop it, and doesn't stop the spillover effects into everything else. One of the

things I'm watching very closely, and something very similar to the pandemic, of course, is helium. Helium goes into chip production, and AI

boom has been sort of single handedly supporting investment growth and crowding out other investment growth in the global economy, most notably in

the U.S.

That is much harder to do when you just don't have this critical component of making computer chips. And we all saw what happened when there were

scarcities of computer chips, because they go into virtually every good that we have out there, from appliances to vehicles.

So, this really is very broad based. It's not just an energy crisis, and that's very important to understand.

ANDERSON: And you also specifically spoke to jet fuel. Let's talk about airlines. Listen to the Chevron CEO speaking to Bloomberg.

(BEGIN VIDEO CLIP)

MIKE WIRTH, CEO OF CHEVRON: We're starting to see risk of supply outages in some of these economies. In Europe, you're seeing flights canceled and

schedules re optimized because jet fuel is getting very, very tight. So, I think the U.S. is going to see the price pressures. It's a global market.

(END VIDEO CLIP)

ANDERSON: Said jet fuel is getting tight, not just expensive, you know. And I look to Europe, and I listen to friends, and I see flights now being

canceled. Are we looking at a situation where airlines are going to have to work around availability, not just the high costs at this point?

SWONK: Absolutely. And I think that's very important, is we're not just talking about price increases, we're talking about absolute scarcities, and

we're also talking about this from a different place than we were. And I said we didn't have buffers. Of course, we have higher interest rates than

we did back emerging from the pandemic.

But that has already pushed both the Federal Reserve and the European Central Bank into a position, a much more hawkish position, where the next

move they make is likely to be up in rates rather than down in interest rates, because they're more worried about that lingering effect of

inflation.

What we know is inflation, much like stock market returns, they compound, but they drive a wedge on inequality. There is no greater tax on any

economy, more regressive tax than inflation, and you cannot get to any kind of full employment without first derailing inflation and scarcities make

that incredibly difficult to do when you're talking about an inability to get at some kind of thing fuels altogether.

ANDERSON: Diane, it's always a pleasure. Thank you very much indeed for joining us. The impact being felt far and wide. Thank you. Well, the

Premier League title race has taken another turn. It is now a massive 24 hours for current leaders Arsenal as they also chase the Champions League

crown. More on that is after this.

(COMMERCIAL BREAK)

[09:40:00]

ANDERSON: There is new effort to make artificial intelligence safer, as tech companies battle for dominance in the AI race. Watch Dog Group Common

Sense Media is launching the youth AI Safety Institute, an independent research and testing lab to study potential risks that AI tools could pose

to children and to teens.

Now the goal is to provide information to parents and families while setting safety benchmarks for the new technology. Well, how things can

change in a day? That is how you imagine Arsenal and the club's fans are feeling right now, the Gunners, or Gooners, as they're known in London,

currently top of the EPL table, will have been given a boost by second place Manchester City, who dropped points in the Premier League on Monday.

All it is getting tight at the top. Amanda Davies joins us now. Just a couple of games to go, but before those league weekends, of course, there's

Champions League for Arsenal still, of course, isn't it?

AMANDA DAVIES, CNN WORLD SPORT: Yeah, I mean, Becky, we're not used to Manchester City dropping points at this point in the season everybody was

talking about, you know, were Arsenal going to keep their wobble going? But after their victory against Fulham on Saturday, city needed that late, late

goal to gain a point against Everton on Monday now.

And now, the pendulum has very much swung. People saying this now is Arsenal's Premier League title to lose. And of course, by this time

tomorrow, they could have put their place in the Champions League final as well. So, we're looking ahead to their semifinal second leg against a lefty

in just a couple of minutes. I hope people will join me then.

ANDERSON: Good. That's "World Sport" after this short break. We'll be back in 15 minutes.

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