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Historic Nuclear Deal Reached with Iran; What Happens Next after Nuclear Deal?; Israeli Anger at Iran Nuke Deal; Aired 5:30-6a ET

Aired July 14, 2015 - 05:30   ET

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

ANNOUNCER: This is CNN breaking news.

[05:30:58] CHRISTINE ROMANS, CNN ANCHOR: Breaking news this morning. A nuclear deal with Iran has been reached. Excitement at the talks. Harsh criticism elsewhere.

Live team coverage breaking it all down begins right now.

Welcome back to EARLY START. I'm Christine Romans in New York this morning. 31 minutes past the hour. We welcome all of our viewers here in the U.S. and around the world.

The breaking news right now. Fast moving developments. Officials at the Iran nuclear talks in Vienna say they have a deal. After weeks of tough negotiations between Iran and Western powers.

Standing by live for us in Vienna, our senior international correspondent Nic Robertson with the very latest -- Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Christine, we should begin to find out in a very few minutes now some of the parameters of that deal. We know that there have been some tough issues. They've overcome those tough issues. One of them has been sanctions. One of them has been past military dimensions, what military uses has Iran put or not put its nuclear technology to.

But we heard just a few minutes ago from the Iranian Foreign minister at this plenary, the final session of all these people have been negotiating here, describing this as a win-win situation for everyone. This is what he said.

(BEGIN VIDEO CLIP)

MOHAMMAD JAVAD ZARIF, IRANIAN FOREIGN MINISTER: Let me begin by expressing my appreciation to everybody. To those who started this process and those who continued this process in order to reach a win- win solution on what in our view was an unnecessary crisis and open new horizons for dealing with serious problems that affect our international community.

I believe this is a historic moment. We are an reaching agreement that is not perfect for anybody, but it is what we could accomplish and it is an important achievement for all of us.

(END VIDEO CLIP)

ROBERTSON: So we will hear shortly not just what Iran has agreed to do, but of course, very importantly for Iran, the sanctions relief that it's been looking for. We will begin to learn the details of that, how that will be laid out. In broad terms, we understand that the negotiations have been along the lines of what was discussed in earlier rounds of negotiations in Switzerland earlier this year, meaning that there will be a reduction in the amount of enriched uranium that Iran is allowed to keep. There will be reductions in the number of centrifuges. They will make other commitments.

These are the sorts of things we'll learn the details of a little later -- Christine.

ROMANS: All right, Nic Robertson, we know that that meeting is still underway. And when they are done with their official plenary session, they will be speaking to the public and publicly announcing that deal.

Thanks, Nic. We know you've got to get back to that.

Let's try to get a read on the Iranian perspective on this deal, and for that, we turn to CNN's Frederik Pleitgen. Fred has spent a lot of time in Iran over the last several weeks. What are we hearing from Tehran this morning?

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, the Iranians certainly are very happy. And it's interesting because even the top level of Iranian government is already tweeting about this deal and what they think that this deal means for their country.

It's interesting Hassan Rouhani, the president of Iran, Christine, just came out with the following tweet saying that the deal reached Tuesday between Iran and the P5 Plus 1, which is of course the nations negotiating with Iran, shows constructive engagement works. And he also says with this unnecessary crisis resolved, new horizons emerge with the focused on shared challenges.

It is interesting because during my past travels to Iran, especially this last time, of course just last week, around this time, we were still in Iran. A lot of Iranian officials were telling us they believe that if a nuclear agreement came through, that it could also mean further cooperation with the United States on other fields as well.

Now they did say this was still in early stages. But they also said that the fact that these two nations were talking to each other for this long, the time is already something that has thawed many things that were an issue in the past.

[05:30:02] No doubt, there are going to be celebrations today in Tehran. There are going to be many in Iran that are going to dissect this deal. There might be some hard liners that will not be happy with what was reached. But by and large, people there will be happy that the sanctions against them will finally be lifted -- Christine.

ROMANS: All right. Thank you so much for that -- for that perspective, Fred.

Let's get some more perspective, expert perspective on the nuclear deal with Iran. Flynt Leverett is also in Vienna for us this morning, following these talks. He's now a professor at Penn State. A former Middle East expert at the CIA, the State Department and National Security Council.

So who got the better deal here in your view, Flynt?

FLYNT LEVERETT, FORMER SENIOR ANALYST, CIA: You know, I think if you look at it in terms of Iran and the United States, I think that both, each, had different needs, different interests that it wanted to try and meet or advance with this deal. And, you know, it's easy to say as Dr. Zarif, the Iranian Foreign minister said, that this is a win- win solution. But I think that's actually a pretty good characterization.

The United States wanted to find a non-military way of dealing with the issue of Iran's nuclear activities and this deal provides the United States with that. Iran, of course, wanted to get out from under the sanctions that in Iran's view were unfairly imposed upon it over its nuclear activities. And with this deal, Iran has found a way to do that.

You know, for both sides, there's also an enormous strategic potential to this deal. For Iran getting out from under sanctions is going to make it easier for this increasingly influential country in the Middle East to expand its influence, boost its standing, not just in its region, but on a global basis dealing with other important powers outside of the Middle East.

For the United States, there is a similar opportunity. If the United States really is willing to use this nuclear agreement as a springboard for reformulating, improving its overall relationship with the Islamic republic, I think this could be a huge win for the United States. It's a win on the nuclear issue for both countries.

ROMANS: Right.

LEVERETT: I think it is also a win for Iran in this bigger strategic sense. I hope that American political leaders will take this deal and make it a big strategic win for the United States as well.

ROMANS: Well, the Israelis who are friends now of the United States, the Saudis, also longtime Middle East allies of the United States, clearly they're not happy with this deal. You could -- the Israelis would say this doesn't enter a new era of dialogue between Iran and the U.S. on the nuclear issue. Lifting the sanctions floods a bad actor country with money that it could use at odds to Western interests around the world.

LEVERETT: Well, that's been a, you know, well-established Israeli narrative about Iran for decades. It's no secret that they don't want to see this deal go through and assuming that it does go through, they don't want to see it serve as a springboard for any kind of broader improvement in U.S./Iranian relations. That is the Israeli perspective, but Americans need to ask themselves what's really in America's interest?

You know, America ought to be able to have its traditional partnership, Israel, Saudi Arabia and so forth, but also in its own interest to balance those partnerships with constructive engagement with this increasingly important, really indispensable player in the Middle East, the Islamic Republic of Iran. A great power like the United States ought to be able to do that.

ROMANS: Flynt Leverett, thank you so much for your perspective there in Vienna where those meetings are going on just behind you. The final meeting before a press conference announcing this deal.

Thank you for that, sir.

Now there's an Iran nuclear deal agreed to in Vienna, what happens in Washington? Well, here it is in a nutshell. Both Houses of Congress now have 60 days to review the deal and hold hearings. While that's going on, the president cannot waive sanctions against Iran on his own authority. If Congress does vote to reject the deal, if Congress rejects the deal, the president would most likely veto that measure. Two-thirds of each House could then vote to override the veto. If that override fails, then the president can seal the deal and lift those sanctions.

A nuclear deal with Iran not cause for celebration everywhere. Israel's prime minister calling it an historic mistake. We head to Jerusalem right after the break.

[05:40:00]

(COMMERCIAL BREAK)

ROMANS: All right. To bring you up to speed here, an Iranian nuclear deal has been reached. Iran and Western diplomats basically congratulating themselves. Any moment they're going to be having a press conference announcing their deal. We're waiting for that. Meantime, there's fury in at least one world capital, Jerusalem. The Iran nuclear deal realizes one of Israeli Prime Minister Benjamin Netanyahu's darkest fears. An accord he says will pave the way to a nuclear armed Iran.

Joining us with the very latest on Israel's reaction, its swift reaction, CNN's Erin McLaughlin in Jerusalem.

Good morning, Erin.

ERIN MCLAUGHLIN, CNN CORRESPONDENT: Good morning, Christine. That's right. Israeli Prime Minister Benjamin Netanyahu this morning calling this agreement, quote, "a historic mistake." He met with the Dutch Foreign minister today in Jerusalem. At the beginning of that meeting, he said the following, and I quote, "When you're ready to make a deal no matter what the cost, this is the result. From the first reports that are arriving, it is already possible to conclude that this agreement is a historic mistake for the world."

Now we are expecting a more elaborate statement from the prime minister later -- later today as details of this agreement come out. We are nevertheless hearing from his Cabinet, ministers and government ministers, as well including hard line coalition partners Natoli Bennett saying -- releasing the following statement, quote, this day will be remembered as a black day in the history of the free world. History books are rewritten today with the most dangerous and severe chapter."

[17:45:08] Now this very harsh rhetoric coming from Israeli government officials despite the fact that presumably they have yet to read the entire agreement really illustrates the lack of trust that has existed throughout this process. Back in April when the original framework was announced, Israeli ministers kept coming out saying -- characterizing it as a bad deal. And there are fears within the government that what is emerging from Vienna is even worse.

The Prime Minster Netanyahu characterizing the goings on in Vienna as, quote, "a parade of concessions." Israeli officials I have been speaking to say they're particularly concerned that this deal will leave Iran with, quote, "a formidable infrastructure," that will in a decade's time leave Iran in the position of being a threshold nuclear state.

Also concerned that the inspections and intelligence upon which an agreement will be based is not sufficient should Iran decide to cheat. So those are some of the things I have been hearing in the days leading up to this moment. Expect to hear much more later in the day.

ROMANS: All right. Thank you so much for that, Erin, in Jerusalem for us.

Let's get some more reaction to this Iranian nuclear deal elsewhere in the Middle East where sanctions against Iran have been viewed as an important constraint on what they see as Iranian aggression. I want to bring in CNN's Becky Anderson live in Abu Dhabi.

Becky, what is the view on releasing Iran from the grips of those sanctions and what its neighbors fear it may do with that newfound lifeblood of money?

BECKY ANDERSON, CNN INTERNATIONAL CORRESPONDENT: That's a very interesting question. We don't have an awful lot of answers for you at this point but we will. There's been very little reaction officially here in the Gulf with the news of this pending announcement of the deal with Iran. And exactly what Tehran has agreed to is what people will be waiting to see.

Now the U.S., as we know, will say that the deal will strengthen security for this region, not weaken it. But watch this space, on the face of it, this will be a very difficult deal to sell particularly here in the Gulf. A Shia Iran, ideologically at odds with this predominantly Sunni Arab region. A Tehran that is accused by their foes here as meddling in what is a roiling Middle East, rife with conflict, exerting and expanding its influence be that in Iraq, Syria, Yemen or in Lebanon.

And always remember the very legitimacy of these tribal monarchies here. Questioned by the Islamic Republic leadership. But as ever, this is more nuance than just that. While there are very real concerns about this region's security in the face of an Iran with the more sophisticated weaponry, perhaps, there are also a very real economic cost and benefit of an Iran brought in from the cold.

Let's take a look at the Saudi stock market, for example, today. You can see some of the costs perhaps there. It is lower. As the all- important oil price slips on the expectation of Iran ramping up its exports in what is already an oversupplied market. Now do remember Iran sits in some 157 billion barrels of crude and oil reserves. That's nearly 10 percent global reserves and pre-sanctions it was pumping twice what it does today.

So there's a clear risk to the Gulf oil export as Iran will be back in the market. But even the Iranian oil minister admitted recently to CNN that it could take up to four years --

ROMANS: Yes.

ANDERSON: -- to be pumping at maximum capacity. And I guess the other flip side of this is the lifting of trade and banking sanctions on a place like Dubai is very positive.

ROMANS: Yes.

ANDERSON: There's years this has been a sense of bilateral trade investment with Iran. So you can see this is more nuance than just the headlines and we await reaction.

ROMANS: Our Fred Pleitgen said that every flight into Tehran, the business class, is full of western businessmen and women anxious to do business in Tehran. And we do know there is some 30 million barrels of crude oil just sitting there in storage ready to go. So Iran is ready to get back in the game if this deal does get done.

ANDERSON: Very good point.

ROMANS: All right. Thank you so much for that, Becky, in Abu Dhabi.

Breaking news this morning. A nuclear deal with Iran has been reached. We are taking you back to Vienna for new details next.

(COMMERCIAL BREAK)

[05:51:36] ROMANS: Let's go back to Vienna and the Iran nuclear talks where they have just completed a nuclear deal. Chief international correspondent Christiane Amanpour joins us there now.

Christiane, bring us up to speed. What are diplomats telling you about this historic deal.

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, using precisely that language. A senior Iranian official who's been at the heart of these negotiations told me, quote, "This is a historic day. This is a good day for peace." That is what he said, talking about, in his words, the long term and comprehensive solution to Iran's nuclear program.

So what's actually happening on the ground right now is that all of principals have left the building that's behind me where they spent so many months, particularly these fraught last days hammering out this final deal. They're now at U.N. building and they're going to be at the special center to give a press conference. They're having their final meeting.

In the meantime, we know President Obama is going to address the U.S. nation and we also know President Rouhani will address the Iranian nation. That's according to a Rouhani tweet. So we're waiting. We have all sorts of information. We've been given all sorts of information on the background, but we're waiting for the final papers to be published, the final statements to be made public and then to see the whole parameter of this big deal -- Christine.

ROMANS: And then the sales job begins in both countries. The sales job in both countries begins after that, in the U.S. and in Iran.

AMANPOUR: Well, that's exactly right. I mean, you know, as hard as it can be to imagine, particularly under these incredibly difficult pressures from outside the negotiating room, there is going to be, in the words of one senior diplomat, an even harder job now that the deal is signed because that hard job will be selling it. Selling it to people who resisted in their own countries, selling it to obviously the main opponents, which is the Israeli government.

And obviously, I'm told by a separate source, that absolutely nothing in terms of implementation will happen for the next 90 days while for sure the U.S. Congress has 60 days in which to review this. So nothing is going to happen in terms of implementing this.

ROMANS: OK.

AMANPOUR: Although we understand that very shortly in a few days there will be a new U.N. Security Council resolution enshrining this new reality going forward.

ROMANS: All right. Christiane Amanpour for us in Vienna. We know that they are still meeting behind you. We'll have a press conference very, very soon.

This nuclear deal with Iran driving down the price of oil. Roiling the oil markets this morning. We're breaking it down for you next.

(COMMERCIAL BREAK)

[05:57:28] ROMANS: Breaking news this morning. An Iran nuclear deal and oil prices diving on that news. U.S. crude is down 2 percent. $51 a barrel right now. After inching up at the beginning of the year, oil prices have now been tumbling for a month as this deal neared.

Iran has the fourth biggest oil reserves in the world. That oil has been blocked from world markets by sanctions. This deal changes will change that and let Iran increase its oil exports. It may take months, maybe even years for Iran to fully ramp up production. Eventually a deal could add one million barrels of Iranian crude oil per day to global markets.

There is already a huge surplus of oil. Two billion barrels a day above demand. Adding more oil to the market will push prices lower. Oil expert Tom Closa tells us oil could soon drop back into the $40 range. Gas prices could return to $2 a gallon.

We are learning these new details of the nuclear deal with Iran. Fast-moving developments. "NEW DAY" picks it up here.

ANNOUNCER: This is CNN breaking news.

CHRIS CUOMO, CNN ANCHOR: To our viewers in the U.S. and around the world, welcome to your NEW DAY. We have big news. There is a deal in Vienna. After 18 days of marathon talks and four deadline extensions, Iran and six world powers have made history. Iran's nuclear activities will be limited in exchange for relief from sanctions. Negotiators right now behind closed doors in the final plenary session.

ALISYN CAMEROTA, CNN ANCHOR: Now Israeli Prime Minister Benjamin Netanyahu quickly condemning this deal as, quote, "a historic mistake."

The agreement expected to face intense scrutiny in this country. The president will address the nation at 7:00 a.m. Eastern. CNN will bring you that one hour from now.

We have this historic moment covered from every angle the way only CNN can. So let's begin with senior international correspondent Nic Robertson, he is live in Vienna.

Tell us how this came together, Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, Alisyn. Well, we've just heard or just read a tweet, rather, from the EU Foreign Policy chief. She says they have agreement. That's the first official line that we have on that. We heard a little earlier the Iranian Foreign Minister Mohammad Javad Zarif saying that this is a win-win situation for everyone. He thanked all those parties involved.

The talks were going on in the early hours here this morning. There have been many stumbling blocks along the way. One of those has been getting Iran to answer questions about its possible past military use of its nuclear technology to build a weapon. We heard from the head of the International Atomic Energy Agency earlier today, that the international watch dog that will be involved in verifying the deal with Iran. He said that it signed an agreement with Iranians to begin to answer those questions.