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Connect the World

How The Ongoing U.S.-Iran War Is Impacting The Gulf Region; Dramatic Video Shows Young Girl Rescued From Nepal; Israeli Settlers Seize Palestinian Home With Owner Inside; One Dead, 15 Believed Missing In Grand Canyon Flash Flood; Jury In Third Day Of Deliberations In High-Profile Murder Case; The Scramble To Regulate A.I. Aired 10-11a ET

Aired August 31, 2026 - 10:00:00   ET

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

(COMMERCIAL BREAK)

[10:00:32]

ANNOUNCER: Live from CNN Abu Dhabi, this is CONNECT THE WORLD with Becky Anderson.

BECKY ANDERSON, CNN INTERNATIONAL ANCHOR: Welcome to the second hour of the show from our Middle East programming headquarters, I'm Becky Anderson. We

are in Abu Dhabi where the time just after 6:00 in the evening.

The U.S. and Iran have traded attacks in the first escalation of more than a month. We'll discuss the UAE's response after it reported a drone in its

territorial waters. And CNN is on the scene of the other key shipping choke point in this conflict, the Bab al-Mandab Strait, we'll take you there.

And we'll also take you to the epicenter of the rescue operations underway in Nepal to save workers trapped in hydropower tunnels.

Well, we begin with the U.S. and Iran trading fire for the first time in a month. This video of what Iran says are retaliatory attacks after the U.S.

says it hit two missile launchers on an Iranian island. Tehran says it fired missiles at U.S. targets in Jordan, and it says it launched drones

towards a U.S. base here in the UAE.

While U.S. Central Command says the Iranian rocket launchers hit on Larak Island were getting ready to deploy mines into the Strait of Hormuz.

CENTCOM describes the attack as, "Limited precise action."

Well, U.S. President Donald Trump has responded to Iran's attacks a short time ago, telling Fox News, and I quote him here, "We are going to hit

them, Iran, hard. There will be a response."

Well, this latest escalation comes as the war enters its seventh month. The stalemate, somewhat frustrating America's allies in the Gulf, who again

face the prospects of renewed Iranian attacks and prolonged economic uncertainty.

Anwar Gargash, the diplomatic adviser to the UAE president, writing on X this morning, the state of neither war nor peace cannot be a sustainable

solution, just as the policy of targeting the Arab Gulf states and Jordan has proven to be a failure. What is needed, he writes today, are realistic

and sustainable political solutions that address the political and economic dimensions of the crisis, beginning with overcoming the escalation and

returning navigation in the Strait of Hormuz to its normal state.

Well, Dina Esfandiary is the Middle East lead for Bloomberg Economics, good friend of this show. I asked her why, in her recent foreign policy article,

she agrees with the contention Anwar Gargash posted that the no war, no peace stalemate just isn't sustainable for the region.

(BEGIN VIDEO CLIP)

DINA ESFANDIARY, MIDDLE EAST LEAD, BLOOMBERG ECONOMICS: It just makes life very difficult for the region. The entire model on which the Gulf Arab

states have based themselves on economically and politically requires stability. It requires, you know, booming economies, trade, investments. It

requires travel, tourism. All of these things are being affected by the Iran war.

And unless this war is resolved, the longer it drags out, the more the Gulf experiences this inability to really return to normal, which is a real

long-term problem.

ANDERSON: And on the region, you've written that while each country has long had their differences, that the war is, "Deepening all these rifts and

creating new ones." Countries like Qatar and Kuwait face very different vulnerabilities to, for example, the UAE, where I am. Could this conflict

ultimately create a much deeper imbalance between the Gulf states, who are at least perceptually sort of all speaking from the same sort of song sheet

at this point?

ESFANDIARY: Absolutely. Again, I think the longer it draws out -- draws out, the longer -- the more this risk becomes significant. The reason for

that is each country in the region is experiencing it differently, which is something that we outline in our piece. You have countries that have access

to the outside world, outside of the Strait of Hormuz, like the UAE, like Saudi Arabia, they are able to somewhat weather the storm. Those who are

locked in are obviously feeling the pinch and feeling the pain much more. Add to that differences that exist within the Gulf Arab states.

[10:05:28]

To be fair, that have always existed. None of this is new. They are different countries with different objectives. But those differences are

going to be exacerbated as each country tries to find a way out, tries to manage this crisis, at times going against the foreign policies of other

countries. So, that's how these differences may get exacerbated over the long run.

ANDERSON: And you argue that this conflict is beginning to sort of divide the Gulf from the United States, which of course isn't, certainly has been

its main security guarantor. As we speak, Xi Jinping, Putin, and Modi meeting for the SCO summit, and the Iranian president also there in a

separate meeting. Turkey, Saudi Arabia, Pakistan holding their first defense pact committee meeting.

So, if Gulf states are increasingly questioning whether Washington can keep them safe, what are they doing to ensure their safety and security, sort of

long term? And I wonder how you believe how far could this shift in the relationship go?

ESFANDIARY: Well, in the immediate term, not far at all. In the immediate term, the only thing it's going to do is continue to feed Gulf Arab

frustrations that have existed over the course of many years now with regards to the United States and its perceived unreliability to the Gulf

Arab states from a security standpoint, so that's been worsened.

I think it was a particular slap in the face that not only did the U.S. not heed their warnings about a conflict in the region, but actually completely

disregarded them in favor of Israel's objectives. I think that was another blow to the Gulf Arab states.

So, those frustrations have increased. So, what it's done is it's ingrained an already existing trend amongst the Gulf Arab states to become

increasingly self-sufficient and to seek new partnerships and new relationships.

Now, the U.S. is still the only game in town from a security standpoint, so it's not going to change that. But it does mean that gradually this

relationship is going to become harder to manage for the United States, and the Gulf Arab states are going to continue to build relationships, seek

alternative ways to secure themselves in this defense pact between Saudi and Pakistan is a real example of that, and just make things that much more

uncomfortable for Washington over time.

ANDERSON: Meantime, Iran, and I've spoken to a lot of people who've been involved in the sort of mediation with Iran over the past couple of months,

talking about how mindful Tehran is of its ties, relationships with China, with Russia, and with the wider BRICS and Global South.

With Trump due to meet Xi next month, and with Xi, of course, meeting Pezeshkian, the Iranian president, before that at the SCO, I just wonder

what you believe the messaging might be from Beijing, and whether you believe Washington is using any leverage it might have with Beijing at

present to push China to pressure Tehran into some sort of diplomatic deal at this point?

ESFANDIARY: I mean, I think it's inevitable that Washington is going to try to talk about Iran to China. Is going to try to push China to bring its

weight to bear upon Tehran as one of its last remaining partners, or you know, maybe even a friend in a world where Iran doesn't have that many

friends left.

But that doesn't mean China is going to do it. And not only that, it doesn't mean that if China does do it, it's going to actually have an

effect. We have to remember that Tehran finds itself in a -- in a difficult position right now, this is a war for its survival, for the survival of the

Islamic Republic. It's going to need something in return for compromise.

And we've seen over the course the last few weeks that the more the U.S. tries to squeeze Iran, the more Iran doubles down, the more it hardens its

stance, and the less it's willing to compromise in negotiations.

[10:10:02]

I mean, today the Iranians are now making statements about how there needs to be further preconditions to returning to negotiations with the United

States.

So, pressure alone does not work on Tehran, and I don't -- And I think China is aware of that, and so it's not going to use it gratuitously.

(END VIDEOTAPE)

ANDERSON: Well, CNN's Nic Robertson reporting exclusively today from the Bab al-Mandab Strait, which is of course around Yemen. It's where the Red

Sea meets the Gulf of Aden, that other key shipping choke point that is sort of front and center during this war. And Nic, back with us this hour.

You're there at a significant moment, Nic. Just explain why. What's pressing?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: It is significant because the waterway behind me, as you say, is another potential choke

point for Iran through its most powerful proxy in this region, the Houthis, who are in Yemen, to try to squeeze more political pressure on President

Trump by doing what they've done in the Strait of Hormuz and on the Bab al- Mandab Strait. You can see behind me there by getting more pressure on the international oil trade that passes through here.

There used to be a couple of years ago about 10 percent of the global oil came down the Red Sea, through the Bab al-Mandab Strait here, and then out

into the Gulf of Aden. A lot of it was going to Asia. Now it's down to about half of that, and Saudi Arabia has been trying to avoid all these

restrictions Iran has is putting on the Strait of Hormuz, and it's diverted its oil exports from its east coast, Strait of Hormuz, to its west coast,

Yanbu on the Red Sea, north of here, and then -- and then those tankers come down the Red Sea here and an d off to Asia.

Now, the Houthis a month -- a month ago threatened to target those tankers, have been targeting them, and have upped their attacks on the Yemeni

government forces who control this part of the Red Sea coast, and this is the narrowest part. We went out a little earlier into the -- into the Bab

al-Mandab Strait, onto an island, Perim Island, as it's known, Mayun to the local population here.

And from there, we could literally see Eritrea, Djibouti, the African continent, that tells you it's about 12 miles away, less than 20 kilometers

at that narrowest point, which is much, much narrower than the Strait of Hormuz, which tells you right away this is a waterway that can easily, if

it has negative protagonists, potentially the Houthis here working or sort of side by side aligned with Iran, easily get cut off and choked. And what

does that mean? No oil gets out of here. That drives up the price of oil, and that's exactly what Iran is trying to do. That's their leverage has

been all along on President Trump.

So, that's the sort of big picture. You know, the war here between the Houthis, who at one time people I think thought were a ragtag force, but

now have, you know, hypersonic missiles, have been targeting Israel a thousand miles away. They have high tech ship hunting missiles. They have

anti-aircraft missiles. Again, super high-tech, high-tech drones. They've been smuggling in here. Very high-powered radar systems. They've been

smuggling. The Iranians have been smuggling here to the Houthis.

All of this, you know, has sort of made this war that was local now have geopolitical consequence because of what's happened in the Strait of

Hormuz. So suddenly, what happens here matters to all of us, because of the price of oil, and matters very much politically to President Trump heading

into the midterms, now potentially facing an even greater pressure on the oil price.

ANDERSON: Good to have you, Nic. Important stuff.

Well, the death toll rising following the devastating flooding that swept across parts of Nepal and China last week, authorities say more than 900

people have been killed and more than 3,900 are now unaccounted for. A slight drop from earlier today, but just still significantly higher than

had been reported late last week.

At this hour, urgent search and rescue operations are underway to reach hundreds of workers still trapped inside tunnels in Nepal. CNN's Anderson

Cooper is at the scene of one of those tunnels and talked to Sara Sidner earlier. Have a listen.

(BEGIN VIDEOTAPE)

ANDERSON COOPER, CNN ANCHOR: There were some 14 hydro power plants all along the river that have been wiped out, that have been swamped by the

raging waters six days ago here in Nepal, we gained access to the Upper Trishuli tunnel number three today. They estimate there may be more than 40

to 50 people trapped still in that tunnel. It is, you know, you talked about the difficult terrain.

It is incredibly difficult. The -- you know, you were talking about steep gorges, very uneven terrain, very difficult to access. Just walking on the

-- you know, we think of it as this this flood that occurred six days ago of water. It's really like liquid cement, and just walking on it, you sink

into it and it kind of sucks you in.

It's very hard to even kind of pull your feet out at times, and you pick it up. It's really like liquid cement. There's rocks in it. There's boulders.

There's all manner of debris.

[10:15:54]

I want to show you, we talked to a colonel from the Nepal Army who is just one of several forces from Nepal who are trying to rescue these workers at

this particular tunnel. But there are tunnels all along this river where there are rescue operations going on. Here's what the colonel told me

today.

UNIDENTIFIED MALE: The multi forces here from APF, Nepal Police, Nepali Army and Special Force, and even the sniper dogs here. So, you can see

here, this is a cable tunnel. So, 170 meters inside, there's a powerhouse.

So, I think there are about 45 to 50 people inside the powerhouse.

COOPER: That many?

UNIDENTIFIED MALE: Yes, because they are the working team inside the powerhouse.

COOPER: And they were here when the -- when the flood came.

UNIDENTIFIED MALE: When the flood hit this area, they were inside, right? So, we are trying now to excavate all this along the way, and you can see

the guys there they are drilling there.

COOPER: So, you're going to -- you're going to carve a trench here for any water that's inside to get back out?

UNIDENTIFIED MALE: Yes, and even a bigger trench to get those floods outside.

COOPER: Do you have any sign that they're alive?

UNIDENTIFIED MALE: You know, earlier we tried a -- we tried a vertical drilling there so that there might be some presence of oxygen so that we

can send some oxygen there. I hope. I hope they're --

COOPER: But you have -- you haven't had signs of life?

UNIDENTIFIED MALE: We have nothing yet, so we are trying our best to get in through.

COOPER: So, this was completely submerged. This tunnel was completely --

UNIDENTIFIED MALE: So you can see -- you can see this. It's about 10 to 50 meters. All the debris were just been on top of the tunnel. So, you can see

the room was there and it's all, so we have to -- it was all this massive - - it came down rolling through the downstream. So, it just buried all the

whole dam here.

COOPER: I should correct myself. That's the Upper Trishuli River. I've been up for like 24 hours. I said -- I don't know even know what I said, but

it's the Upper Trishuli.

It's remarkable though what they are doing. I mean, they have not had any signs of life from that group, but they are still trying to hold on to hope

and trying to hold on to optimism that there are air pockets in there and that if they have access to water, they could still be alive, and we hear

that from a number of army personnel. I have talked to both Nepal Army and also there's Indian Army tunnel experts who are helping as well. I talked

to some of those today as well.

And you know, you talked about, Fredricka, the death toll rising and the number of missing rising as well. That that's not completely unexpected.

You know, there have been a number of just incidental reports from people saying they didn't report somebody missing because they didn't want to

think this person was gone, and they were hoping they were optimistic that they might find this person. And as the days have gone by, and we're now on

day six, they file missing person reports. They list this person as missing.

So, and also as more excavation is done, there's no telling what this this sludge that has buried so many towns and so many towns along the river what

it holds, and that will be revealed in the coming days and weeks.

(END VIDEOTAPE)

ANDERSON: Well, last hour I spoke with Arnold Dix, who's a world-renowned rescue specialist. He's also a geologist. He's an engineer. He's helping

coordinate those search and rescue efforts for these hydropower workers who are still missing in Nepal. Just have a listen to part of our conversation.

(BEGIN VIDEO CLIP)

ARNOLD DIX, RESCUE SPECIALIST, GEOLOGIST AND ENGINEER: Well, just on the hydro side, we're looking at shy of a thousand people that we're missing.

Anybody who is at the surface, these are -- well, these are very confined valleys, and the hydro power stations are down the valley.

We've got something like 27 power stations damaged in some way, of which I think 12 have been totally destroyed, and the ones that I'm taking

particular control over an interest. There's not -- there's literally is nothing at the surface anymore. The scale is it's like nothing I've ever

seen before.

[10:20:22]

And so, in order to coordinate that, you have to stand back, because it's not a single disaster from a hydro tunnels point of view, we've got

multiple disasters, and we're trying to group people in different locations. It's extraordinary.

I haven't seen this sort of destruction before since I attended the World Trade Center after its collapse, and so a little bit. That's the only thing

I can think of that's been similar where, when the towers fell, if you're in the tunnels below, you're like comparatively safe. It's the same here.

If you were out there when this thing came through, chances are you were going to die, and the only real chance is in these power stations. And

there's -- it's a myriad of them in the mountains, and that's what we're working on.

(END VIDEO CLIP)

ANDERSON: More, of course, as we get it. The search and rescue goes on.

Well, to a powerful story of survival. Now, this 5-year-old girl was rescued. She'd been trapped under mud and debris after the disaster. CNN's

Will Ripley exclusively spoke with her father about those terrifying hours and the moment everything changed. Here's Will's report with CNN's Kate

Bolduan.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: And we've all seen this incredibly gripping and heart-wrenching video of this girl as she was

delicately pulled out by emergency crews. She had bruises and cuts on her face. She was covered in dust, but incredibly, she was alive. Her parents

thought that she was dead. They were asking the Nepal Armed Police Force to search for her body, and that's what they thought they would be recovering.

And so, when they -- when they saw the video and they saw that their daughter was alive, it was a shock to them. They say it's a miracle. It's

made them believe in God. It's made them believe that there's a purpose for being here greater than what they understood before the flood.

She's being treated at a hospital here in Kathmandu. I was allowed to go in to see her, to sit with her and her parents, and here is what her father

told me about the moment when he saw that video, and realized that his daughter had been rescued from the flood when they thought she was dead.

LOK BAHADUR UCHAI MAGAR, FATHER OF GIRL RESCUED AFTER NEPAL FLOODS (through translator): Her face wasn't recognizable as there were multiple wounds.

Her condition was serious, wounds and blood all over.

After seeing the video of her, I could confirm it was my daughter. She was on oxygen in Dunche Medical. She was being kept like that on the day.

RIPLEY: What is it like as a father to look at a video like that and see your daughter in that condition?

MAGAR Now in that, she's my child. That's it. That's all I have to say. I just can't speak.

RIPLEY: It was incredibly hard, particularly on her father Lok, because he was home alone with his daughter Manisha when the flood hit. He said he was

in the kitchen preparing a meal. His wife had already gone off to work, and he said in just a matter of a few seconds, the entire structure around them

was blown apart by the force of the water. He barely was able to escape with his own life.

He had no idea what happened to his daughter when he reunited later, several hours later, with his wife. Both of them collapsed. They lost

consciousness because they thought that they had lost their 6-year-old daughter, and yet they didn't want to be pulled out by rescue helicopter.

They were asking researchers to at least find her body so that they could have closure, and they actually found her body not in the wreckage of their

house, but two other buildings that had been destroyed.

So, somehow, while she was in her bedroom, she had -- she had been able to be moved in some sort of an air pocket that was safe during the flooding,

and then she was there for 60 hours alive when rescuers found her.

We also spoke with her mother. We spent time with the family, and we're going to have much more of that later today here on CNN. But I just wanted

to come up and share this incredible story with you, and there's a lot more of it to come.

(END VIDEOTAPE)

ANDERSON: And you're watching CONNECT THE WORLD. Still to come, another brazen incident of settler violence in the West Bank, a Palestinian home

stormed, with the owner still inside. How Israelis or Israel's leaders are responding, that is up next.

(COMMERCIAL BREAK)

[10:27:09]

ANDERSON: Israeli security forces claim that they are trying to track down those responsible after settlers stormed a Palestinian village in the

occupied West Bank and took over a home with the owner still inside.

Now this happened on Saturday in Qusra, the latest brazen attack in the village in recent months, where settlers have repeatedly targeted

Palestinian families and tried to force them out. I've myself visited that village and spoken to those who have been on the receiving end of this

settler treatment.

Israel's president called the incident a direct and flagrant defiance of the country's laws. CNN's Jeremy Diamond covering the very latest. He is in

Tel Aviv. It's good to have you. Let's start with what more we are learning from that incident in the West Bank.

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, it was only a couple of weeks ago that we brought you the story of a home in the village of Qusra

that was besieged by Israeli settlers trying to take it over. We reached that home and found the situation that is underway.

But now, in that same village of Qusra, dozens of Israeli settlers mounted yet another attack on a Palestinian home, pelting the owner and several

other people who were inside that home with rocks, storming the house itself and attempting to seize it.

The owner of the home told us that it was this attack went on for about an hour until the Israeli military showed up. But when the military showed up,

this man and several others say that it was the Palestinians who were ultimately detained, blindfolded, and even beaten by Israeli security

forces before ultimately being released.

The Israeli military, in a statement, spoke about the dozens of Israeli rioters who they said had attacked this home, and yet neither the Israeli

military nor the Israeli police at this point have arrested any of those rioters, even though some of them are identifiable on camera while they

were inside that house.

And this wasn't the only incident of settler violence this weekend. Israeli settlers in the neighboring town of Jalud also attacked an NBC news crew

and a Palestinian woman they were interviewing beating them with sticks and rocks. The Palestinian woman was even rendered unconscious by that attack.

Now, we have heard from a number of senior Israeli officials with varying degrees of severity in terms of the statements they're putting out. The

Israeli Prime Minister Benjamin Netanyahu, who has repeatedly downplayed the phenomenon of settler violence, said in a statement this weekend that

he condemned the violence, but once again attributed it to a, "Handful of rioters who he said are violating the law."

[10:30:06]

He said that he expects Israeli authorities to arrest the rioters and bring them to justice.

The Israeli military, meanwhile, said last week that it was preparing to potentially send additional battalions of troops to the area to reinforce

the security there.

A notable statement, given that the Israeli military quietly is recognizing more and more the danger that these Israeli settlers are posing not only to

Palestinians, but to security in the area.

ANDERSON: We listen two months out from the Israeli election scheduled for the back end of October, and the far right's messaging, led by Itamar Ben-

Gvir, is only it seems becoming more extreme. What are you tracking, Jeremy?

DIAMOND: Yes, we have seen, you know, one statement after another, from a number of far-right Israeli politicians, basically trying to outdo

themselves in terms of how, you know, extreme they are sounding as it relates to Palestinians, in particular, and the security situation in

Israel.

The foremost example of that is indeed the Israeli National Security Minister Itamar Ben-Gvir, who released a video showing that was generated

by A.I. clearly.

It shows well-fed Palestinians entering an Israeli prison in what seems like a concentration-style video, and then, they exit that prison looking

emaciated. The text on the video that Ben-Gvir put out says, "We promised we delivered," basically bragging about the starvation policies and other

extreme conditions that he, as the Minister of National Security, has imposed on Palestinian prisoners in Israeli prisons.

He has previously pulled similar stunts in person, in real life, visiting Israeli prisons, touting the poor conditions in which these Palestinian

prisoners are being held, including just yesterday when he put out a video of himself meeting with Palestinian female prisoners in Israeli prisons,

who had complained about the conditions in those prisons.

Ben-Gvir, in that instance, said that they would not have good conditions because the Israeli hostages held in Gaza had not had access to shampoo and

other basic needs that these Palestinian prisoners were apparently complaining about.

But again, it's not just Ben-Gvir. We have seen the Israeli finance minister Bezalel Smotrich boasting about expanding settlements, preventing

the creation of a Palestinian State, and there are a number of other far- right Israeli politicians, all vying to cross the 3.25 percent threshold in order to be able to be seated in the Israeli parliament, and it seems that

they believe that the best path to do so is to talk about these types of hardline policies, including discussion of ethnic cleansing in Gaza and the

West Bank. Becky.

ANDERSON: Good to have you. Jeremy, thank you very much indeed.

And you are watching CONNECT THE WORLD with me, Becky Anderson.

Coming up, one dead and more missing. A devastating flash flood hits the Grand Canyon. CNN on the scene, where very difficult terrain has

complicated the search efforts. More on that after this.

[10:35:55]

ANDERSON: Welcome back. I'm Becky Anderson in Abu Dhabi. You are watching CONNECT THE WORLD.

It is 25 to 7:00 here. These are headlines: U.S. and Iran have traded airstrikes for the first time in a month.

Iran says it launched strikes at U.S. targets, Jordan, and the UAE. That was after a U.S. attack. The U.S. says it hit two Iranian rocket launchers

on Larak Island that were getting ready to deploy mines into the Strait of Hormuz.

More than 900 people are now dead after devastating floods swept across parts of Nepal and China last week, and with thousands still missing.

Rescuers now racing against time, searching through the flood-ravaged areas for anyone who may have survived.

And the U.S., one person has died after a flash flood tore through the Grand Canyon on Saturday. Dozens of people were evacuated, and crews now

searching for around 15 hikers who are still missing. The area currently under a flood watch as the stormy forecast could spell more trouble ahead.

Well, CNN's Ed Lavandera on the scene at the Grand Canyon. He spoke to me last hour about the devastation that he is seeing.

(BEGIN VIDEO CLIP)

ED LAVANDERA, CNN SENIOR NATIONAL CORRESPONDENT: This is some of the more rugged terrain you'll find anywhere in the United States, especially down

there at the depths of the Grand Canyon, where there are -- there are places where you just simply are no level of phone communication or

anything like that. So, those kinds of issues can really obviously complicate things here as the search and rescue efforts are now underway,

now, that the sun has come up over the -- over the Grand Canyon.

But this is really the worst of it happened throughout one creek canyon that led into the main Colorado River area. This was an area that was very

-- is very popular with hikers, either day hikers or people who are going down there to camp at the -- at the lowest levels of the Grand Canyon.

It is through those places where the witnesses described after over the last couple of days, after several rounds of very intense rainfall, a wall

of dark debris with trees and lumber and boulders, just this dark mass moving downriver.

People describing how they were able to evacuate, get to higher ground, and the bridges that they were walking over, over these rivers simply just

being wiped away moments after they were crossing. So, some very intense moments.

Officials here have confirmed the death of one man, a 46-year-old man. We don't know any other details beyond that, and they do say that there is at

least 15 people still -- that they are unaccounted for, that they do not know where they are at.

And as you heard there from the interview, that could mean that, perhaps, they are just somewhere and without communication and don't have any access

because bridges have been knocked out, or it could mean the worst. So, those rescue efforts will continue today.

The people who have -- many people who have been evacuated were taken out of the area by helicopter. So, that kind of speaks to the really difficult

situations, and a lot of these people are going to be in here as these search and rescue operations continue here in the Grand Canyon today.

Becky?

(END VIDEO CLIP)

ANDERSON: Well, the fate of a woman charged with murder for strangling her young children is in the hands of a Massachusetts jury. They've just sat

down for a third day of deliberations. CNN's Brynn Gingras back with us this hour,

Gin, as we await -- Brynn, a verdict in this Lindsay Clancy trial, are we getting any sense of their thinking? You and I spoke last hour. You said

not really at that point. They have been deliberating now for a further hour this Monday, what's the sense?

BRYNN GINGRAS, CNN NATIONAL CORRESPONDENT: Yes, I mean it's really a fool's man's errand to go into the deliberation room and try to get an idea of

which way they are leaning.

Certainly, look, both closing arguments that happened on Thursday. They were emotional, they were intense.

[10:40:00]

You know, I think, honestly, over the weekend, Becky, I had so many conversations about this trial with so many different friends because, as

you can imagine, it's honestly garnered global interest, and some people think that the prosecution did better, and the defense did -- others think

the defense did better. So, they have a lot to consider.

And it's not even just to put this into like sort of the bigger scale of it all. It's not even just the fact that there were dozens of witnesses. I

mean, 10 experts between the two sides, hundreds of pieces of evidence.

But it's the fact that they have to go through five different possible outcomes in this case. Now, remember, these jurors don't really know what

each of those outcomes could mean as far as a punishment goes for Lindsay Clancy. Right? They do know if she is found not guilty because of lack of

criminal responsibility, that she could end up in a mental institution for a period of time that is written in the jury instructions. Of course, if

they choose murder in the first degree, typically you would know that, that would mean that you should be -- you know, in prison without the chance for

parole.

But these are things that they're not supposed to consider in their deliberations. But I'm sure it's on their minds.

But again, there is five different outcomes: murder in the first degree, murder in the second degree, manslaughter, which was added by the judge,

and then, not guilty because of lack of criminal responsibility, and then, just not guilty altogether.

So, there is just a lot to consider, and it does seem like they are doing a very deliberate job of trying to consider everything.

ANDERSON: More as we get it, of course. It is 10:40 a.m. in New York. Brynn, thank you.

GINGRAS: Thanks.

ANDERSON: Well, Venezuela's ousted president Nicolas Maduro has released new photos from the New York jail where he is been held since January.

Maduro shared them on X, with a message to his family and supporters, saying he is "standing firm".

Well, the images are from June the 25th, a day after earthquakes in Venezuela killed more than 6,000 people. Maduro, of course, is facing

narco-terrorism, drug trafficking, and weapons charges. He will go on trial next June.

This comes as Washington and Caracas are hailing a new landmark oil deal, giving the U.S. a 55 percent stake in a new joint venture with a private

Venezuelan operator.

Now, the White House says the 100-year oil field lease would create the world's second-largest oil company with access to more than 65 billion

barrels of Venezuelan reserves. The deal expected to bring nearly $100 billion in private investment to Venezuela.

Well, up next on CONNECT THE WORLD, warnings about A.I. keep coming, and so, do calls to regulate this ultra-powerful technology.

So, what is the holdup? Well, a search for answers after this.

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[10:45:09]

ANDERSON: We have spent the past few months covering A.I. agents escaping their labs at both OpenAI, Anthropic, and indeed, Meta, and hacking real-

world systems. Incidents that have raised massive concerns, and understandably so, across the A.I. industry and beyond, and underscore the

importance of regulation.

But nobody seems able to agree on exactly how A.I. should be overseen. Washington is wary of setting rules because of the A.I. race with China.

This comes as tech leaders like Microsoft founder Bill Gates, for example, are sounding the alarm, warning that artificial intelligence needs

significant limits, or the harm will outweigh any good.

Well, CNN's A.I. correspondent Hadas Gold, joining me now from New York.

You have been speaking to leaders across industries. What more have you learned about what is this very messy world of A.I. regulation, or not, as

the case may be?

HADAS GOLD, CNN AI CORRESPONDENT: Yes, I spoke to more than a dozen sources, people within the industry, people in Washington, and people in

the policy world, and what I -- what I understood really is that the industry itself is waving red flags, essentially, begging for tools to help

regulate and put some sort of guardrails over the technology that they have created.

But Washington is beset with turf wars and, of course, the lagging nature of legislation.

But there are so many calls for anything, really anything to be done. And what really struck me is this quote by Joshua Sachs. He is formerly Meta's

senior technical expert on A.I. cybersecurity, and he told me this moment feels like early COVID.

He said, "There is an emergency vibe that's appropriate here." And he said that he thinks the frontier model should be treated like dangerous

materials, and that there needs to be government testing standards. Because as it stands today, there is no standards when it comes to testing of A.I.

models. Like we have seen these A.I. models escape and hack other systems. There is not even industry agreed upon standards.

When you test a virus, when you are working with nuclear materials, there are rules and regulations in place that are meant to keep everybody safe.

And here you have the industry themselves that are essentially begging for it.

But over in Washington, there is a turf war. I was told by sources there that sort of everybody wants to have a hand in regulating A.I. The Treasury

Department, the Commerce Department, the Department of Energy, the Pentagon, they all are having a hand on it. And the industry themselves,

the people I've spoken to there, they say they want to have some sort of point organization, point group that they can point to and talk to at all

times that will be sort of their main liaison.

There is an organization called the Center for A.I. Standards. It's a small organization within the Commerce Department. They have been -- they have

been in existence since 2023. They already have agreements for testing with all of the major American A.I. labs, to test their models beforehand. But

they are critically underfunded. When you compare them to the British equivalent, the British agency for A.I., that has like three times the

funding, three times the staff.

But the industry wants that group to be the point person. They have the technical expertise. They have all these PhDs that know how to do the

testing. They have these relationships already with these groups, but there is this turf war. There is been -- sources told me that there has been

talks about moving CAISI from Commerce Department to elsewhere. There is some in the White House want the NSA to be the ones in control of testing.

But the main thing here is that there is an emergency vibe. Something needs to be done sooner rather than later. Congress is working on a few bills,

but we all know how slow Congress takes. I was told maybe eight months, maybe a year until we see some sort of legislation.

But a lot of experts in the industry worry that, that will all just come too late, and we've already seen the effects of some of these, you know,

A.I. agents going rogue. And there is a fear that something even worse could happen next. Becky.

ANDERSON: Yes. Yes, so fascinating, isn't it?

You have done a lot more on this. It's a really -- it's an extensive sort of deep dive, and to learn more about this race to regulate what is this

super powerful technology, Find Hadas's work. It's a deep dive into the reaction after those advanced A.I. models we've been talking about went

rogue. You can find that incisive report on all of CNN's digital platforms.

Well, the U.S. casino industry has backed a major lawsuit against prediction platforms like Kalshi. They argue the platforms behave like

gambling firms, but bypass the state regulations and taxes that would otherwise apply to the industry, and it comes as these platforms cash in on

a meteoric rise in popularity, with users betting on everything from sports to politics and even the weather.

We have done a lot on this, and I'm glad to have CNN's Marshall Cohen, back with us for another live report from Washington.

[10:50:02]

I'm fascinated by these casinos pushing back. I think I can guess what's motivating them. And from Washington, I'm fascinated by these casinos

pushing back. I think I can guess what's motivating them. I mean, I'm assuming that Kalshi, Polymarket and these prediction markets are taking a

chunk of their action, right.

Why have these prediction markets been allowed to bypass these regulations that otherwise apply to gambling firms?

MARSHALL COHEN, CNN REPORTER: It's an excellent question, Becky, and here is the answer: It's because they are structured as financial markets, like

the stock market, or oil futures, or derivative swaps, as opposed to a casino where you are betting against the house. So, it's based off of how

they're structured, but that's being litigated in court.

Whether that's just a massive loophole or an actual serious legal difference, most experts think it's going to go all the way to the Supreme

Court.

But this fight between the two sides, with the casinos and sportsbooks on one side and the prediction markets on the other, it is an all-out war.

That's how multiple sources described it to me because of the differences in how they are litigated. That means there could be billions of dollars on

the line in terms of state taxes that don't apply, or regulations that are not being enforced on the federal level as opposed to the state level.

Both sides have geared up with millions of dollars going to lobbyists on Capitol Hill and top-tier attorneys fighting in court, dozens of cases

across the country. The casino industry was at the very front of this fight, which was very successful with a major ruling last week from a

federal appeals court from a case that came out of Nevada, that ruled that states can regulate these prediction companies like gambling.

It's not going to be the final word, Becky. It's going to go to the Supreme Court, but a major ruling at that point.

I was actually in Las Vegas a few weeks ago, talking with these casino executives, state regulators. They think they have the momentum. I want to

read for you a quote from Derek Stevens. He is the owner of the Circa Casino and Resort. They also have online sports books, and he did not pull

his punches.

Look at this: "A couple nerds came up with this idea to avoid paying taxes. Just because they are shrewd doesn't mean they should be exempt from the

law." He said, these are thieves, they are pirates, they are marauders. Those were his words.

We reached out to Kalshi, of course. That's the most popular prediction site in the United States. They do billions of dollars in trading volume

every week. I interviewed their top attorney, Rick Heaslip, and here is what he had to say.

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RICK HEASLIP, GENERAL COUNSEL, KALSHI (via telephone): They have been turning to litigation. They have been turning to threats rather than

innovate., they are just trying to go to the courts.

There are enough sports to go around. It is not our position that they need to follow our regulatory structure. They can continue to have their sports

books, and we can continue to have sports prediction markets.

(END VIDEO CLIP)

COHEN: The fight continues. And one last note, CNN has a partnership with Kalshi. We use their data to cover major events, but they don't influence

our coverage, and we don't trade on prediction markets. Becky.

ANDERSON: You are absolutely right. Good to have you. I think it's fascinating. Thank you, Marshall.

COHEN: It really is. Thanks.

ANDERSON: You are watching CONNECT THE WORLD. There is a lot more news ahead. Stay with us.

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[10:55:01]

ANDERSON: Well, for tonight's "PARTING SHOTS", local UAE talents come together to celebrate the country's culture through harmony.

Abu Dhabi's third art gathering, also called the Jalsa, in the -- or a Jalsa in the Emirati dialect. The latest sequel, entitled "The Seas"

celebrated the UAE's maritime culture with an open mic theme. This art gathering is one of four events that have so far hosted more than 1,500

people and more than 40 young talents under one roof.

They are celebrating aspects of UAE culture through music and art, while showcasing, they say, the country's diversity.

We'll leave you with that. That is it for CONNECT THE WORLD this Monday. From the team working with me here in the UAE, it is a very good evening.

"ONE WORLD" is up next. So, please do stay with CNN.

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