Return to Transcripts main page

Erin Burnett Outfront

Axios: Trump Considering An Attack "Bigger Than Ever Before"; Zelenskyy Meets Trump Ally Laura Loomer As She Reverses Ukraine Stance; Trump Threatens To Scrap Saudi Nuke Deal Hours After It Was Signed; Guthrie Ransom Note Details. Aired 7-8p ET

Aired July 23, 2026 - 19:00   ET

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

[19:00:22]

ERIN BURNETT, CNN HOST: OUTFRONT next:

Breaking news, Trump says he's considering the biggest attack on Iran yet, calling it massive, as his threats and war without any end goals send oil prices and borrowing rates for Americans tonight surging.

Also breaking new details tonight on why Trump suddenly threatened to derail his own nuclear deal with Saudi Arabia, not even 24 hours after it was announced with pomp and circumstance. Was it all because of something he saw on Fox News?

And quote, "We have your mother, Nancy." Breaking details about what's inside the chilling ransom note sent to Savannah Guthrie when her mother was kidnapped. The contents of the entire note revealed.

Let's go OUTFRONT.

(MUSIC)

BURNETT: And good evening. I'm Erin Burnett.

And OUTFRONT tonight, the breaking news, pay up. That's what Trump is demanding of Iran as it launches new strikes tonight.

In a post Trump just put out, he said, quote, "Please let this statement serve to represent until further notice that from this point forth, any and all damages done to ships, cargo, or anything related thereto will be paid for by Iranian money that the United States has in its possession and controls. These damages may be very substantial, but nevertheless, this is the fair and equitable thing to do."

Now it's worth noting that this is the same man who said he was going to give Iran its money back as part of the MOU, right? That was the whole thing. He was giving them this money back. He actually said this.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: It's not our money. It's their money, and we froze it. At a certain point in time --

(END VIDEO CLIP)

TAPPER: It's not our money, it's their money. Those are his words.

Now, Trump's claim about where the money's going to come comes after he has just leveled another massive threat, telling "Axios", quote, "I am considering a massive attack, bigger than ever before. I am close to making a decision. We're all set for it."

Well, the rhetoric out there is causing a lot of problems, real-world problems for Americans and around the world. I mean, for the first time since May today, on the back of comments like that, oil prices are back above $100 a barrel. And relief, even if Trump ends the war soon, as he said he's going to do for almost five months, well, it's not going down anytime soon, even though he's promised it will.

(BEGIN VIDEO CLIP)

TRUMP: When this is over, oil is going to drop like a rock.

When this war is over, oil is going to drop.

When the war is over, gas will fall down at levels that you've never seen before.

The gas will go down. As soon as the war's over, it'll drop like a rock.

(END VIDEO CLIP)

BURNETT: Well, here's the thing, you got to look at what the markets are telling you right now. If you look at Brent oil futures, okay, which is you're looking out, traders trade on this a long time in the future. Okay, we're going out here to April 2032. You can see before we get back below $70 a barrel, which is where prices were before the war.

And they're obviously expecting the war to end really soon. Okay, that's why you see the drop there, but it doesn't go back to where it was for years. And it's not just the oil market sounding an alarm.

The 10-year U.S. Treasury yield, which is really what is used as the benchmark for credit card debt, student loans, mortgages, all of those interest rates are linked to that. It's up to 4.7 percent. That is the highest level since Trump was inaugurated.

So, borrowing costs are going up, gas prices are going up. It's real pain. It's tangible. And on Capitol Hill, Trump suffering a bipartisan hit today, Republicans joining Democrats to pass a resolution for the second time to check Trump's war powers.

Now, it's essentially symbolic, but the fact that they're willing to put votes on the line is a public rejection of Trump's war. And tonight, that approach, his approach here, could be pushing the U.S. into a wider war. According to the Wall Street Journal, American medics have now arrived at the key medical center in Germany, which is where U.S. troops injured in Trump's war are being treated. "Axios" is reporting a B-1 bomber was used to attack Iran for the first time since combat resumed, and the U.S. is planning to send more F-16 and F-35 fighter jets into the region.

Now, of course, the surge doesn't necessarily mean that there's going to be a major, massive attack, as Trump says. Doesn't mean it's inevitable, but when you put all that money and all that material in place, sometimes things have a life of their own, despite what Trump has continued to claim on all of this ever since the war started.

(BEGIN VIDEO CLIP)

TRUMP: Right from the beginning, we projected four to five weeks.

REPORTER: The U.S. will be gone or done with the war?

TRUMP: I think two or three weeks.

We were in there for two months. And you know what? We're going to have victory very shortly.

I thought it would take four to six weeks, and I was right.

We'll have that over with soon. It'll be over with soon.

(END VIDEO CLIP)

BURNETT: It's five months and counting.

Kristen Holmes is OUTFRONT, live outside the White House.

And, Kristen, all of this together, when you see what's happening, if you look at data point after data point, right, putting planes in place, and medics, and then Trump's rhetoric, saying possibly the big, most massive strike since the war began, what are you hearing about where his head is tonight? And frankly, how quickly he keeps changing his mind?

KRISTEN HOLMES, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Erin, as you said, it's five months and counting, and the end is not anywhere in sight. First of all, you have Secretary of State Marco Rubio saying things like Iran is begging to get the table, something we've heard from President Trump, too.

But then President Trump today saying he doesn't think Iran is ready for a deal. And going further than that, saying they need more of the same. Well, more of the same likely is referring to the fact that we've had 12 consecutive nights bombings in Iran, but are reporting today that the CIA and the DIA, the Defense Intelligence Agency, have recently assessed that this kind of bombing that the US is doing every single night is unlikely to move Iran's negotiating position.

So, what exactly is it that President Trump is trying to do? And we've heard this kind of rhetoric from him before. Now, when we talk to US officials, they have said that Trump has yet to sign off on the most aggressive military action.

So, is what he's do get Iranians back to the negotiating table? It's really unclear at this point.

But as you noted, he is making all of the moves, setting up for a potential escalation in military operation. But what does that do for this war in Iran? What does that do for the American people?

I can tell you from every conversation that I have from the with the White House, with White House officials, U.S. officials, anyone close to President Trump, they do not want to be talking about this war. They do not want to be engaging in this war. They would take a ceasefire now if they could get a ceasefire, hope for the prices to kind of level, or at least go down a little bit, and then they could move on to talking about things like the economy.

That's obviously not going to happen if President Trump escalates this. So, is he willing to escalate this and potentially even put boots on the ground? We just aren't clear right now what the strategy is, and we're getting nothing from President Trump's orbit as to what he's going to do to break this impasse between Iran and the United States. At this point, seems like it's just going to continue.

BURNETT: Yeah.

All right, Kristen, thank you very much. And of course, just so much confusion on strategy and also what the end goal even is, what they actually want.

Christoph Koettl is here with "The New York Times". Seth Jones is also here with me.

And I know both of you have so much new information. So, Seth, can I just start with you? I know you've been with and you've been speaking to senior U.S. officials. Are we about to see a massive escalation here, the bigger strikes, bigger action than since the war began?

SETH JONES, PRESIDENT, DEFENSE & SECURITY DEPARTMETN, CENTER FOR STRATEGIC & INTERNATIONAL STUDIES: Well, Erin, only one person knows the answer to that, and that is President Trump right now. I will tell you what the military has given him, his options. They've given him options. If he wants to open up the strait, this will be risky.

They've given him air options. They've given him air plus naval options, so to put in naval vessels, including potentially destroyers through the strait to bring in tankers and others. And then air plus naval plus ground options.

So, the president does have options if he wants to forcibly open up the strait. It does have risks. That's where we're at right now.

BURNETT: Which is an incredible moment.

Christoph, let me ask you did this incredible visual investigation of what has actually happened. Destruction at U.S. military bases in the region and what's happening. And with US troops dying in recent days, perhaps in part because of defenses on those bases being so severely compromised, your reporting is so central. So, you got images that Iran had put out for propaganda purposes that

you then went and verified what exactly is so damage to structures at the U.S. Air Base in Jordan, which we're looking at right here. That -- as well as damage at Tower 22, which is a U.S. military outpost on the northern Jordanian border up by Syria and damage to U.S. military attend in Erbil, Iraq, up in Iraqi Kurdistan.

So, what were you able to learn from this?

CHRISTOPH KOETTL, NEW YORK TIMES VISUAL INVESTIGATIONS JOURNALIST: What we were able to learn from this is that Iran has a lot of firepower left, so they're able to conduct precision strikes. If you look at the satellite images, you see that the targeting specific radar sites, drone shelters, airplane hangars and so on. So, they can conduct precision strikes and then inflicting very heavy damage. And, of course, the -- their most severe damage happened last week on Friday when several U.S. service members were killed.

BURNETT: Were killed in a terrible tragedy.

By the way, I will note the Secretary of State Marco Rubio did not answer the question directly when he was asked yesterday if China was providing that targeting information. Obviously, we have reported that both China and Russia were helping provide much of that information early in the war.

So, Seth, when you look at satellite images that you've been focused on. on the Iranian side of things, right? You look at the ground there, you're seeing something pretty significant in Iran.

JONES: Yeah, this is the sort of dovetails with what we've just seen of damage on the U.S. side, which is we're seeing the Iranians actively rebuilding like busy bees. They're rebuilding missile silos. They're building infrastructure sites.

And what's important, Erin, is that the Iranians have so much underground, too, that much of what they're having to do in some areas is just reopen areas where earth is just like shut off the tunnel. So, it's like re-digging, excavation.

And what appears to be the case is a lot of the U.S. strikes are just not destroying those missile launchers. They're being -- they're underground, the Shahed's underground. Missiles themselves, crews are ballistic underground. That seems to be a strategy that has been successful for the Iranians so far.

BURNETT: Yeah, and I'll note, Seth, from your reporting and what we understand from reporting, "The New York Times" said about the CIA, what, two-thirds of the missile capacity was in place. Those numbers, though, are now six to eight weeks old. So, who knows what has, you know, even been added back on top of that. I mean, it's obviously unclear.

Christoph, you were able to verify some of the -- with video, some of what Iran was putting out, including a video that Iran had put out showing a strike on that air base in Jordan. And so, you say, let's just, we'll show this, what looked like to you that the explosion appeared to be prefabricated housing. So, you were able to sort of match this up.

So, can you talk about that, how you were able to match up what we're actually seeing to confirm if it's real?

KOETTL: It's a very unusual footage, right? And it's actually filmed probably by a U.S. -- a soldier because it's inside the airbase. But what we are doing is we use this sort of footage as well as satellite imagery to match this up with each other, to match up buildings, to check the damage when it actually occurred. Satellite imagery allows you to go back in time to make sure like a week ago this building was still standing. And that's how we verify and that's how we can assess both the damage up close, but also on the whole base in this case.

BURNETT: Seth, how vulnerable are U.S. troops? I mean, when you think about in the early days of the war, when virtually every THAAD missile defense system that the US had in the region was taken out except for maybe one. And now here we are seeing strikes like Christoph is going through on that air base in Jordan where U.S. soldiers were killed in just the past few days.

How vulnerable are US sites? I mean, how much of that missile defense and radar and all of these things that they've been taking out, how much of it is even been repaired on the U.S. side?

JONES: Well, Erin, there does appear to be some effort to repair some of what the U.S. has done. But I will tell you, I was in Europe last week looking at an update on the war in Ukraine. What is striking, that war has been going on for four and a half years, is the Ukrainians have been targeted by missiles and drones for four and a half years.

They have their bases underground. They've got a range of both point and area defense, so counter-drone capabilities. The U.S. should have been better prepared when this war started for these kinds of missiles, cruise ballistic missiles and drones. This was entirely predictable from what we've seen for four and a half years in Ukraine and how to defend against it.

So having like structures that are hittable and not underground is a major lesson from the war in Ukraine that was not moved over to the Persian Gulf right now.

BURNETT: No, as we see that in all the images we're talking about prefab housing. Christoph, from your reporting and images.

Thank you both very much.

And next, Trump suddenly backtracking on the nuclear deal with Saudi Arabia after less than 24 hours. I mean, what caused such an about- face after the pomp and circumstance with which this incredibly massive deal, to use the word massive again, was announced?

Plus, back in business, gun dealers who failed to follow the Gun Control Act are getting their licenses back under President Trump, a special investigation this hour OUTFRONT.

And Loomer meets Zelenskyy, the top Trump ally who's been incredibly critical of Ukraine, and that's a generous way of saying it, meets with the Ukrainian president today. We're going to tell you why. Is this Zelensky's new way to get to Trump?

David Axelrod, S.E. Cupp, Astead Herndon, they are all next.

(COMMERCIAL BREAK)

[19:19:27]

BURNETT: Breaking news, Ukrainian President Volodymyr Zelenskyy telling top Trump ally Laura Loomer during a one-on-one interview in Ukraine that his relationship with Donald Trump has improved.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: You are right, the tone has changed, absolutely. We had first like changing moment in Rome, in Vatican. Yes, it was not long meeting, but I always said that it's I think historic moment because we changed their relations during 15, 20 minutes. I'm so happy because a lot of lives depends on such relations and dialogue.

[19:20:02]

LAURA LOOMER, PODCAST HOST: What happened, because it seems like the relationship --

(END VIDEO CLIP)

BURNETT: So, that clip emerging just hours after the MAGA podcaster posted a photo online revealing the interview and saying, quote, I just interviewed President Zelenskyy at Mariinsky Palace in Ukraine. No questions were off-limits, and I didn't pull any punches.

Well, the post and sit-down came just two days after Loomer had very publicly changed her stance on Ukraine, after she saw Russian attacks on a historic monastery up close. And then she said, I feel like such an expletive for minimizing the struggle of Ukrainians over the past five years. I often said, I don't care. Looking back, that wasn't very nice of me to say.

Now, there's some self-awareness there, and that's obviously an understatement on the very nice comment, given some of Loomer's comments on Ukraine. She's said many things, some of which include Ukraine is a country full of Nazi apologists, and now it's clearly a country led by a jihadi apologist. And she's also well said a variety of things about the leaders she just interviewed like this.

(BEGIN VIDEO CLIP)

LOOMER: Zelenskyy has morphed into more of a dictator than an elected leader at this point. He regularly likes to call Putin an authoritarian when he himself is no better and is, in fact, in many ways even worse.

(END VIDEO CLIP)

BURNETT: All right, everyone's here with me.

So, S.E., what -- I mean, how significant is it that Zelenskyy would agree to meet with her?

S.E. CUPP, CNN POLITICAL COMMENTATOR: The whole thing's odd and interesting. Um, it-- look, if she-- if she was-- If she's going to do propaganda, I'd rather it be Zelenskyy's version of propaganda than Putin's, okay? And she was regurgitating all the Putin propaganda before. So was Tucker Carlson. All the far right was.

BURNETT: Yeah.

CUPP: That's crazy. And I'm glad that she -- but she went there, right? Yeah, it's one thing to be keyboard warrior, keyboard warrior. It's easy to say things from the safety of the patio at Mar-a-Lago. It's much different when you go to a place.

That's why we encourage journalists to get out of the newsroom. It's why we send members of Congress on CODELs to these places. Go see it. It might change your mind and inform your opinion.

But I'm very curious, concerned about how this all came to be, right? I mean, I covered. Tulsi Gabbard going to meet with Bashar al-Assad without approval from Congress. And she came back and regurgitated his propaganda and talking points. That was very alarming.

I'm just -- I don't know how this came to be, and I'd be curious if she went as an envoy for Trump. Did she go as a podcaster? Did she go as a private citizen?

BURNETT: I mean, we don't know.

And, David, let's just be clear here. When you see her sitting with Zelensky, part of the reason your jaw is on the floor, it's not just because she had these opinions about Ukraine which were based on propaganda and a lack of any kind of experience there. but were because she has said other things.

I mean, she said, if Kamala Harris wins, the White House will smell like curry, and White House speeches will be facilitated via a call center. She said, can't even watch a Super Bowl anymore because immigrants have literally ruined everything. And there's a lot more where that came from, right?

So, the image of her sitting across from Ukrainian President Zelenskyy in that context is incredibly powerful.

DAVID AXELROD, CNN CHIEF POLITICAL ANALYST: It is, and all I can think of is, my goodness, the things one has to do to save their country. And I think he decided this is something he had to do to save his country, because, you know, she -- they call her an influencer, but the person she influences that he cares about is Donald Trump. And if this is what it takes, then this is what he's going to do.

BURNETT: I mean, Astead, is this -- I mean, what does this signal to other world leaders? I mean, if you're saying, Volodymyr Zelenskyy decided the best way to get to Donald Trump was to do what he just did.

ASTEAD HERNDON, CNN POLITICAL ANALYST: I mean, I think it signals what world leaders have already known, which is that Donald Trump cares about the folks in his proximity more than he cares about the kind of traditional channels of information, or facts, or a briefing, or all the traditional ways. leaders make decisions.

You know, Loomer, I do think it's shocking just to see her in this position. I think it speaks to the blurring of lines with journalists, influencer, like all of that kind of new media happening right now. This is someone who's anti-immigrant, anti-Muslim rhetoric has been so core to their politics. She was kicked off of social media platforms and has only been back and influence has grown in the second Trump administration.

But she's had a big fight with Tucker Carlson. I think this is partly about putting distance between her and him, and I think it kind of reflects where kind of MAGA lane has transitioned where they couldn't be against or they couldn't be against aid to Ukraine while also supporting other kind of U.S. role in intervention, particularly when we think about Israel's role in the Middle East. I think you're seeing her represent the new wave in which they're willing to defend the U.S. on both sides.

AXELROD: She's certainly a late adopter on this issue of Putin's brutality in Ukraine. There was plenty of evidence before now of the savagery that we've seen.

BURNETT: Well, it's amazing, in a sense just the lack of belief I mean for those of us who have been to Ukraine and that this that there would be a complete lack of belief in anything that was presented.

[19:25:07]

CUPP: But that's what propaganda --

BURNETT: It's good to go for yourself but propaganda was over to -- was able to overwhelm reality.

CUPP: For a lot of people, right, for a lot of MAGA and even for a lot of journalists if you look at someone like Laura Loomer -- I mean, not Laura Loomer, Lara Logan, who was once this, like, award-winning journalist. She fell down these rabbit holes, too, and started spewing Russian propaganda and crazy anti-Semitic propaganda.

It happens. That's why it's so incumbent on us, the press, to check these kinds of things.

AXELROD: For all of that, though, you look at --

CUPP: The truth. AXELROD: You look at polling, and a vast majority of Americans see

Ukraine as an ally, and an even larger majority see Russia as an adversary and Putin as a negative figure.

BURNETT: So, I want to talk about another story breaking tonight, and that is Trump's Justice Department dropping the case, right? The subpoenas trying to force "The New York Times" to give over all the information about how they got the reporting about Air Force One, the new one, the one from Qatar, having these serious security concerns, and which we found out about when Trump was coming back from Turkey.

How big of a win is this, David?

AXELROD: Well, I think it is. We should point out it happened because a judge in about 10 seconds sniffed out how shady this whole deal was. This isn't about national security. It's about the insecurity of one man, and that's Donald Trump. He was offended that this whole -- the whole-- all of -- everything surrounding this plane and its inadequacy became known, and all the security issues, and he threw a fit. and they called in the head of the FBI and they said start an investigation and these they violated all kinds of procedure in doing this and really a sacred principle which is that the First Amendment, you know, allows reporters to write and report, and this was really a form of intimidation.

BURNETT: It's felt that way instead also I guess in the context of the other things right the FCC chair saying you can do this the easy way or the hard way when we're threatening Disney, right? We have so many examples of that of companies settling massive lawsuits out of fear of Trump.

HERNDON: Yeah, and that's --

BURNET: This bucks the trend.

HERNDON: This bucks the trend, and I think it speaks to specifically what that judge kind of called out initially in this hearing. But Donald Trump's war on the press has been escalating over the last several months, whether it's been task forces about leakers or charges for subpoenas for journalists to reveal sources. And I think it speaks to the insecurity, as David is talking about, which is growing in this White House.

He is growing more insular, I think, as is Approval ratings fall and the like, and that is causing the Trump we know, which is in moments of crisis, to lash out. And so, I think you're seeing that on this front and this treatment with the press. And I think you're seeing it actually across the agenda broadly. Congress is a thorn in this side. Courts are a thorn in this side. And that is not a thing to be worked out, but obstacles to be overcome.

BURNETT: So let me ask you about something else that happened today, public spat, S.E., between the White House and Majority Leader John Thune.

CUPP: Uh-huh. BURNETT: So you'd be thinking I'm going to talk about a Democrat. No, I'm talking about John Thune, who's one of the calm --

CUPP: Of all people.

BURNETT: I mean, if John Thune has ever yelled at anybody in his life, I'd like to know about it.

CUPP: He hasn't. He probably hasn't.

BURNETT: Maybe one of his children will raise their hands, but other than that.

So, Press Secretary Karoline Levitt was asked this question today. Here's how it started.

(BEGIN VIDEO CLIP)

REPORTER: The president seemed yesterday frustrated with leader food when we're speaking in Georgia. Is his patience running out with Leader Thune?

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: The president spoke about this directly yesterday. His patience is running out. He wants to see as much of the SAVE America passed as possible by the August recess.

(END VIDEO CLIP)

BURNETT: OK, so this is this whole fight over the SAVE America Act, as they call it, which has a lot of changes to voter ID in it that even Republicans have said goes too far and is discriminatory, Murkowski and others.

So, Thune responds to Levitt.

(BEGIN VIDEO CLIP)

SEN. JOHN THUNE (R-SD), MAJORITY LEADER: Maybe she or somebody else ought to get on the phone and get the votes, right? It's 50 around here. And -- so instead of, you know, pointing the finger at Republicans, they might think about going after the people who are stopping it on the floor, which is the Democrats. And if there are Republicans that they think are gettable, get on the phone.

(END VIDEO CLIP)

HERNDON: That's John Thune yelling.

BURNETT: Yeah, it's John Thune yelling.

CUPP: Yeah, I've known him a long time. You know, there's -- there's Minnesota nice, there's Wisconsin nice, there's South Dakota nice, too, and he is like one of the nicest, calmest, mild-mannered guy.

This was a lot for him. I think this shows how frustrated he is with getting the blame for something the president should start whipping, right? If he has Republican holdouts a lot for him, get on the phone and start talking to these holdouts and telling them, here's what it is or let's make a deal, or what you need to see.

[19:30:07]

He's got to do some work here and I think Thune saying pick up the phone --

AXELROD: Yes.

CUPP: -- is saying like I've done what I can do here.

AXELROD: Well, when he makes those calls, he probably should add to a few of them, and sorry for ending your career.

CUPP: Right.

BURNETT: But, Astead, what he does is say we have a big you know signing ceremony for housing bill and I'm not going to go to it and we're done and I'm not going to do this bipartisan thing until you sign my bill.

HERNDON: Yeah, yeah. I mean, it's all stick, no carrot, right? Donald Trump's relationship with Congress has been full intimidation. And it's not caused legislation to happen. But I don't even know if his interest here is legislation.

Donald Trump is pushing a narrative about false election claims. And even the folks around him, I was hearing. Trump's former personal attorney, Ty Cobb, say he believes that this is a pretense to declaring a national emergency ahead of the midterms. We should not forego that possibility. We're dealing with the man of January 6th, man who's said every election that he's lost is false.

And so, we should see these claims in that context. Now it's coming up against a Republican problem in the Senate that's one of votes. I actually don't even know if Donald Trump's sole goal is to get the SAVE America Act passed into law. He wants that to be the cloud that hangs over the midterm elections. And merely that this fight with them is an effort in that.

CUPP: Yeah, if he gets it passed and then Republicans lose big in the midterms, he can't -- what can he say? I passed the election integrity bill. I don't think he actually --

AXELROD: Thune --

BURNETT: Well, when they win, things are good, and when they lose, things are rigged, which is kind of amazing. If things are so rigged, why does Trump keep winning? But that's a separate question, I guess.

OUTFRONT next, quote, "The deal is off". That's from the White House after Trump touted his major nuclear deal with Saudi Arabia. Is it because of what he saw on Fox News?

Plus, for the first time, we're learning what was actually written in the chilling Nancy Guthrie ransom note.

(COMMERCIAL BREAK)

[19:36:04]

BURNETT: Tonight, growing questions about why Trump is suddenly threatening to pull the plug on his major nuclear deal with Saudi Arabia, only not even 24 hours after it was announced. The timing is really odd. You spend all this time negotiating, you have this huge announcement, and then all of a sudden, a day later, it's out?

It's worth pointing out that this comes after Fox News questioned why a deal was even signed without an agreement for the Saudis to normalize diplomatic relations with Israel.

(BEGIN VIDEO CLIP)

BRIAN KILMEADE, FOX NEWS HOST: So this was a bit of a surprise. During the Biden years, they said, we'll think about it. But before we do that, we need you to sign on to the Abraham Accords.

KAYLEIGH MCENANY, FOX NEWS HOST: When I was leaving the first Trump administration, I was told we were pretty close to a normalization of relations between Israel and Saudi Arabia.

LUCAS TOMLINSON, FOX NEWS HOST: We heard him tell Bret Baier.

MCENANY: Exactly. Could we see that in the future in response to this?

(END VIDEO CLIP)

BURNETT: Well, just moments after those comments came Trump's post, the deal is totally subject to Saudi Arabia joining the Abraham Accords.

Well, just to state the obvious with the situation in the Middle East right now, not only is that something the Saudis long resisted, it's just -- it's just not a thing right now.

OUTFRONT now, Democratic Congressman James Walkinshaw, member of the Homeland Security and Oversight Committees.

And, Congressman, I appreciate your time.

So, look, there were a lot of criticisms about this deal. Marco Rubio, when he was asked, said he read about it in the press. He didn't even want to touch it, right, when you talk about another country in the Middle East being allowed to enrich uranium. There were a lot of very serious issues with it.

Why do you think Trump, though, suddenly is pivoting, backing off, putting this new condition on the Saudis, not even 24 hours after he announced the deal?

REP. JAMES WALKINSHAW (D-VA): You know, it's hard to say other than the typical chaos and incompetence of the Trump foreign policy. I do think it's important context, though, to remind ourselves of Donald Trump's financial entanglements with Saudi Arabia, his holding company has received millions of dollars in direct payments. He's trying to build a Trump hotel and golf course in Saudi Arabia. And his son-in- law and envoy, Jared Kushner, is a wholly-owned subsidiary of the Saudi royal family, has received billions and billions of dollars for his investment fund.

So, it's hard to know when Donald Trump is acting in his own personal financial interests or when he's acting in the interests of the American people.

BURNETT: You know, you just mentioned a lot on the financial side. I want to lay some new reporting out here from "Forbes'" Dan Alexander, who is obviously a regular on this show. So, he is reporting, Congressman, that Trump was building out more Saudi business connections as nuclear talks were being held.

Specifically, one of the deals I believe you just mentioned, the deal for a Trump-branded hotel, golf, and residential project inside a massive $63 billion development in Saudi Arabia. And guess what? The firm planning that development, chaired by the crown prince of Saudi Arabia, right, who's in charge of the nuclear deal on the Saudi side.

Dan also reports that during the nuclear talks, a Trump representative created new companies that, quote, "gave the president an 80 percent stake in a hotel management agreement. His family members took the remaining 20 percent."

Now, you mentioned the $2 billion that Jared Kushner has in money from Saudi Arabia, but, I mean, this is during the nuclear deal, a deal where the president gets 80 percent of the money and is and the rest of his family gets 20 percent.

I mean, it's stunning. Congressman, the White House says to "Forbes" there are no conflicts of interest. What do you say?

WALKINSHAW: Yeah, clearly, we have a president of the United States in Donald Trump who is bought and paid for by MBS and the Saudi royal family. As the American people struggle to make ends meet, Donald Trump is raking it in and it appears at least initially giving them in return a very sweet nuclear deal, quite frankly, a much better deal than was on the table in the Biden administration, with much weaker inspections, at least initially, without a commitment to join the Abraham Accords.

[19:40:05]

The Saudis must have been feeling like they were getting what they paid for.

BURNETT: So, I want to ask you about one other thing while I have you, Congressman, because you're on the Oversight Committee, and I know today was an important day. You questioned Jes Staley in the Epstein investigation.

He's the former Barclays and JPMorgan Chase executive. He had ties with Jeffrey Epstein.

We've reported that a woman told the FBI, Staley sexually abused her inside Epstein's New York home after Epstein had directed her to massage Staley. And the FBI report says, quote, "This ended in rough sex". She told Staley she did not want this.

Staley admitted all this happened, but said it was consensual, right? So, he denied the context around this.

Did you learn anything from his testimony today?

WALKINSHAW: I found him to be evasive and frankly very difficult to believe. We know from the files that he and Epstein were close friends in addition to their banking relationship. Staley himself described their friendship as profound. Today, he told us that they weren't friends at all.

We know that there are very serious, incredible allegations against him in the files. He was banned from participating in the banking sector in the United Kingdom because financial regulators there found him to be untruthful or less than truthful about his relationship with Epstein. He covered for Epstein repeatedly when red flags were raised internally at JPMorgan Chase about Epstein's large cash withdrawals that we know Epstein was using to pay the victims, now survivors.

So, I think Jes Staley is a perfect example of why Todd Blanche and the Department of Justice need to reopen the Epstein investigation and follow all of the allegations. Interview those who haven't been interviewed. go back at Jess Staley and find the truth, because I think there's a lot more there.

BURNETT: And there certainly is a lot more there overall, as Representative Garcia has said, only half of the Epstein files have even been released. And that's not even talking about redactions and things that have been taken out of what is released.

So, Congressman, I appreciate your time and thank you very much.

Next, the breaking news. We now know what was in the Nancy Guthrie ransom note. A new report out tonight saying that the note begins with the words, "Hello, Savannah. We have your mother".

Plus, gun dealers who lost their licenses to sell guns are back in business, thanks to President Trump. An investigation OUTFRONT tonight.

(COMMERCIAL BREAK)

[19:46:44]

BURNETT: Breaking news in the Nancy Guthrie case. We're now learning exactly what was in that first ransom note sent after her kidnapping. According to journalist Briana Whitney, who read it aloud on the podcast "Crime Junkie", the chilling note begins like this, "Hello, Savannah. We have your mother, Nancy. She is safe but scared. She will be held for ransom, and once payment is received, she will be released unharmed. We will be holding her for a maximum of seven days. Once payment is received at the Bitcoin address below, she will be released within 12 hours of deposit to a safe drop-off location back in Tucson. If the payment is not received by the last deadline on Monday the 9th at 5:00 p.m., she will be killed.

Your mother is aware of this and her life is in your hands. It's in the best interest of everyone to have this completed as soon as possible. You will not be able to contact me from here on out, there will be no negotiation, do not play games, Law enforcement will not be able to help you."

The note also reportedly included two details to prove they were Nancy Duffry's kidnapper, writing she had a white smartwatch on the floor by her bed and that there was a busted floodlight in the backyard.

Now, CNN has recently reported on the second note received a few days later, which said that the 84-year-old died shortly after the kidnapping.

Whitney, the journalist, also revealed that second note said her death was heart related, saying we did not fully grasp the seriousness of her physical conditions.

Now, no one's been arrested in the Guthrie case.

Greg Ehrie is OUTFRONT now. He's former FBI special agent. He has extensive experience with kidnapping cases.

And Greg, you know, I just want to ask you what stands out to you in this letter. I'm sure many things. It's interesting that at one point the word "we" is used and in another it's using, you know, singular, I.

GREG EHRIE, FORMER FBI SPECIAL AGENT IN CHARGE: Absolutely. And thank you for having me on, Erin. But what you're seeing and getting a glimpse at is what law enforcement has been dealing with. They've been aware of these notes.

And for two very short notes, there's a lot in them. You mentioned some of that. They're at the very least indicative that somebody has some insider knowledge. Somebody was either involved in this or some very specific details that either put them on the scene or they know somebody who is on that scene.

BURNETT: So, you know the second note again that there there's that confusion. We and I refers to we in terms of not fully grasping the seriousness of her physical conditions, and the note writers continue in that note to say they're truly sorry. What do you see in that?

EHRIE: Exactly. You're seeing -- you're seeing that change in tenor from the first note, very aggressive and to the second note, little conciliatory, but also again, the specific details referring to they know that Mrs. Guthrie had a heart condition. They know that she was suffering from something which is accurate and more when buried in nature and the way they're approaching this, it's a lot of investigative leads to look into. BURNETT: Do you think that they're any closer to finding who did this and that they will find who did this?

EHRIE: Well, you know, I know the FBI and I know our local and state law enforcement and this is a top priority on them and we're not seeing everything they're seeing. They're letting these glimpses out these notes in the hope that potentially the language in the note potentially a detail occurs to somebody and they know one of the people who either wrote this or something rings a bell and they can report on that.

[19:50:04]

But I think every step forward, the more time that goes on, the more difficult the investigation happens. But by enlisting the public and trying to get some of this information out, I'm very hopeful that they're trying to come to a conclusion here.

BURNETT: All right. Greg, thank you very much. I appreciate it. It's always good to see you.

And next, the Pentagon suddenly altering the death toll from Trump's war in Iran. as the wife of one of those killed, shares new photos and details about Staff Sergeant Michael Swinton.

(COMMERCIAL BREAK)

BURNETT: Tonight, hundreds of gun shops lost licenses under a Biden- era rule when they violated federal regulations. Those were existing federal regulations. When violated, they lost the license. Under Trump, though, they're back in business.

And the new CNN investigation finds gun dealers with serious past violations, including not even running background checks. Now, two of those dealers with at least 25 guns bought at their shops turning up at crime scenes in a single year.

Josh Campbell OUTFRONT with this special investigation.

(BEGIN VIDEOTAPE)

JOSH CAMPBELL, CNN SECURITY CORRESPONDENT (voice-over): Donald Trump campaigned on loosening regulations the gun industry viewed as overzealous.

TRUMP: Your Second Amendment will always be safe with me as your president.

CAMPBELL (voice-over): And he followed through. In addition to repealing Biden's zero-tolerance policy on gun seller violations, Trump also scrapped a program tracking dealers who had repeatedly sold guns that were later found at crime scenes.

The Trump administration has also invited gun shop dealers who lost their licenses under Biden to reapply. ATF confirmed that it has granted new licenses to at least 23 of them, but wouldn't share the names of those shops.

A CNN investigation independently found that nearly a dozen gun shops that had their licenses yanked under Biden are now back in business.

The owner of one of those gun shops agreed to speak with us.

WILL BOSWELL, OWNER, THE TACTICAL EDGE: We were not giving out guns to people that didn't -- or, like, that should not have them, or purposely, like, not running background checks just to get a sale done.

[19:55:09]

We've never done anything like that. We will never do anything like that. But the way that the ATF portrayed that and spoke to us, it made us feel like criminals.

CAMPBELL (voice-over): When the Tactical Edge lost its license in 2023, the ATF cited repeated violations over several inspections, including failing to run background checks, which the tactical edge denies and not properly completing ATF forms during gun sales.

BOSWELL: It's not up to us to say approved or denied. It's up to our government agency that looks into that person that has all the information that we don't have access to.

CAMPBELL: You maintain that even those form errors wouldn't lead to the transfer of a firearm to someone who maybe shouldn't have it.

BOSWELL: On the form specifically, I truly do not see a path that that would happen. If I do my checks and balances here and I know that this firearm is going to a person that is legally able to own a firearm, once it walks down that door, I don't have control over it.

CAMPBELL (voice-over): Marianna Mitchem is an ATF veteran who serves as an advisor to the gun control group Everytown. She reviewed the Tactical Edge's revocation records.

MARIANNA MITCHEM, FORMER ATF OFFICIAL: By the time they got to the third inspection and the same violations were happening, at that point, ATF has to choose to protect the public when there is a willful violator of the Gun Control Act.

CAMPBELL (voice-over): The ATF told CNN it takes seriously the need to have proper oversight over dealers. We're trying to make sure we deploy our resources with a focus on those who are actually engaged in business.

Still, Mitchem worries the ATF isn't empowered to go after violators in the same way under Trump.

MITCHEM: It's devastating to see ATF pivot away from that. If you stop the trafficker and you stop the gun store from supplying those traffickers, you stop the downstream violence.

TREVON BOSLEY, VIOLENCE PREVENTION ADVOCATE: This is the memorial wall which we have been building up for years.

CAMPBELL (voice-over): These are the faces of those lost to gun violence on full display here in Chicago's South Side.

BOSLEY: As the years gone, we had to add more and more families and expand it even further. There's so many lives on this board that are no longer here. My brother is actually here. He's right up there, Terrell Bosley.

CAMPBELL (voice-over): Trevon Bosley is a violence prevention advocate working to keep illegal guns off the streets of his hometown.

CAMPBELL: There were previously gun dealers around this country that had their licenses basically taken away because they were unlawfully selling guns. Now a lot of those places are getting these licenses back.

BOSLEY: Yeah, it's insane that, you know, we worked hard to get to the point where some of these bad actors were being held accountable. But now, as these gun dealers are receiving their licenses back, as violence prevention funding is being slashed across the country, we have even more guns now flooding back into the hands of, you know, those who don't need to have them.

CAMPBELL (voice-over): Josh Campbell, CNN.

(END VIDEOTAPE)

BURNETT: And we have more breaking news right now. The Defense Department suddenly lowering the Pentagon's official U.S. death toll from the war in Iran from 18 to 14. It's unclear why they are not counting four dead troops in the formal Iran War death toll, because no matter how the administration reports the loss and injured, which it has done only after incredible pressure, the loss of these troops is painfully real and profound for those they love.

Staff Sergeant Michael Swinton is one of four service members who died this past weekend. He was 30 years old. He was killed during what the U.S. military said was a controlled explosion to destroy an attack drone last weekend.

His wife, Mia, is sharing these photos with OUTFRONT tonight of their life together. They met while stationed at Fort Hood in Texas. Sergeant Swinton was a devoted father, she said, a dad to a six-year- old boy and a four-year-old girl. Here he is with that little girl, one of the last photos he would ever take with her.

Mia says her husband was always smiling. cracking jokes. And today, she wanted to share this memory with all of you. She said, he was our daughter's favorite person. If he was in the room, then I was chopped liver to her. He was so goofy and knew what to say to make anyone smile.

He definitely had a stern side when it came to work, though. He knew his job was so well, no one could tell him anything. Despite work, he would come home and be a big old teddy bear to our daughter. Mia also chose to share what would be her last message with her

husband, "I love you so much." And just to think about that, that loss for Mia, Sergeant Swinton's children, and to everyone who loved him and got to hear all those jokes and those smiles, we are deeply sorry for your loss.

Thank you so much for joining us.

It's time now for "AC360".