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Early Start with Rahel Solomon

Trump Sends "Strong Warning" To Iran Over Deadly Protests; Global Oil Prices Dip After U.S. In Venezuela; Venezuela's Maduro Set For First Court Appearance Today. Aired 5:30-6a ET

Aired January 05, 2026 - 05:30   ET

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

[05:30:00]

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Now separately, of course, we are hearing from Israel that they are supportive of the U.S. becoming involved in Iran.

We did see just a week ago the Israel prime minister in Washington and he was trying to coerce the U.S. president into confirming that there would be further military action against Iran if they were to push forward with their missile production or with their nuclear programming. In fact, there was a tweet from the leader of the opposition, Yair Lapid, in Israel. He said, "The regime in Iran should pay close attention to what is happening Venezuela" -- Rahel.

RAHEL SOLOMON, CNN ANCHOR: All right. Paula Hancocks reporting for us there in Abu Dhabi. Paula, thank you.

And still ahead for us, President Trump wants the U.S. to rebuild Venezuela's oil industry. Still ahead, we'll take a look at the impact that the U.S. operation is having on global oil prices.

We'll be right back.

(COMMERCIAL)

SOLOMON: Welcome back to EARLY START. This is your business breakout.

[05:35:00]

And one of the big questions for Venezuela's future under U.S. control is what will happen to the country's oil industry. President Trump said that the U.S. could potentially put troops in Venezuela for the purposes of securing oil.

In a press conference on Saturday he made clear that U.S. companies would be involved in Venezuela's oil industry. Take a listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP, (R) PRESIDENT OF THE UNITED STATES: We're going to have our very large United States oil companies -- the biggest anywhere in the world -- go in, spend billions of dollars, fix the badly broken infrastructure -- the oil infrastructure -- and start making money for the country. (END VIDEO CLIP)

SOLOMON: Oil prices dipped in the first trading session after the U.S. operation, although you can see WTI crude oil, the U.S. benchmark, is now slightly higher. Brent Crude -- let's call it slightly lower. You'll remember in the last hour they were lower by, I want to say, about one percent or so.

Now, while Venezuela does have the largest oil reserve in the world, it's actually not a major exporter of oil. The country's daily output represents less than one percent of the global supply.

Meanwhile, U.S. markets will open soon for the first time since the U.S. operation. And looking at futures, futures are slightly higher. Nasdaq futures are up about six-tenths of a percent, let's call it, at this early hour. We'll see how the day shakes out.

I want to bring in now Cornelia Meyers. She's the CEO of Meyer Resources and the chairman, and chief economist at LBV Asset Management. She joins us live this morning from Bern, Switzerland. Great to have you this morning, Cornelia.

Let me just start with setting some of the stats here. So Venezuela is sitting on 303 billion barrels worth of crude oil. Large reserves, small production. Trump wants U.S. companies to go in and fix the infrastructure. It sounds simple but how complex of a task is that? How big of a task is that?

CORNELIA MEYER, CEO, MEYER RESOURCES, CHAIRMAN AND CHIEF ECONOMIST, LBV ASSET MANAGEMENT: Well, thank you very much for having me, Rahel, and Happy New Year.

It's a huge task and you have to see that Venezuela produced more than three million barrels a day, you know, before Hugo Chavez came into power. And now it produces less than 100 -- than a million barrels a day which is, as you correctly said, less than one percent. So over 25 years the production really deteriorated and the infrastructure is old.

And upstream oil production, especially in the basin that we are in, in Venezuela, is not a light switch. It is -- it is something that you can't switch on and off. It is major -- sort of, it's major industrial heavy lifting. So yes, it's not that easy.

And also, what will U.S. -- other than Chevron, what will -- who are already operating in Venezuela -- what will U.S. oil corporations need in terms of security in order to go in?

SOLOMON: Yeah. And I mean, to that point, what will they need? I mean, what types of guarantees do you expect U.S. companies to ask for -- to need in order to move in and restart investments which, according to our guest in the last hour, will take years and will take billions of dollars. What do they need to move forward?

MEYER: Well, they will need some guarantees. And let us not forget there have been two tranches essentially of nationalizations -- one in the '70s and then one when Hugo Chavez came in, in the early 2000s -- of nationalizations. And, you know, a lot of oil companies lost a lot of money in that process. So they will need -- they will need -- they will need guarantees.

They also will need to see what's happening on the security situation on the ground. We have seen in Iraq, and we have seen in Libya that when the security situation deteriorated it wasn't the Western companies that moved in. So we have to see. We don't know yet what the long and short of the security situation will be in the -- in the -- in Venezuela going forward but that is certainly also a consideration.

By might I add this is bigger than oil. This is about the new U.S. national security strategy. And the U.S. is not happy about Chinese involvement in mining, about some Iranian involvement, and Russian military advice given in Venezuela with the new, sort of, Monroe Doctrine which makes Latin America the influence sphere of America. This goes wider than just oil.

SOLOMON: So to that point, I mean, if this is bigger than oil, how does this operation and what happens next impact dynamics -- U.S. dynamics with countries like Russia, Iran, China -- all friendly with Venezuela?

MEYER: Yeah, it does -- it does impact and I think the biggest -- the highest impact is on China because China has really a stronghold over the mining sector in Venezuela. And that impacts silver. Silver is a very important industrial natural resource -- mineral.

[05:40:10]

It also impacts rare earths, which are mined in countries like Venezuela or the Western Balkans and the shipped to China for refining. China has 91 percent of the refining capacity for rare minerals.

So this will -- China will -- you know, will take a step back and look at this, as will Russia, as will -- as will Iran.

SOLOMON: Yeah, as we start to see some of those comments come in.

Cornelia Meyer, we'll leave it here this morning but appreciate your time this morning. Thank you.

MEYER: Thank you very much, indeed.

SOLOMON: All right. And still ahead for us, President Trump says that the U.S. case against ousted Venezuela President Nicolas Maduro is "infallible," but legal experts -- well, they're not so sure. We'll discuss straight ahead.

(COMMERCIAL)

[05:45:15]

SOLOMON: Welcome back. I'm Rahel Solomon, and here are some of the stories we are watching for you today. President Trump claims that the U.S. is in charge of Venezuela after the capturing of Nicolas Maduro this weekend. Trump noted that the country's new acting president, Delcy Rodriguez, is cooperating but he has not ruled out further military action inside of Venezuela should that change.

Sources tell CNN that a select group of U.S. lawmakers will get a confidential briefing on Venezuela. That briefing expected to happen tonight. It comes amid criticism of the White House for capturing President Nicolas Maduro and carrying out an operation in Venezuela without congressional approval.

The ousted Venezuelan president set to make his first court appearance in the coming hours. Nicolas Maduro expected to appear before a federal judge in New York at noon Eastern. He faces drug, weapons, and narcoterrorism conspiracy charges. President Trump says that he believes the case against Maduro is "infallible."

Gene Rossi joining us now. He is a former federal prosecutor and the former assistant U.S. attorney in the Eastern District of Virginia. He joins us live this morning from Alexandria, Virginia. Gene, it's been a while. Good to see you. Welcome back.

Maduro's first court appearance --

GENE ROSSI, FORMER FEDERAL PROSECUTOR, FORMER ASSISTANT U.S. ATTORNEY IN THE EASTERN DISTRICT OF VIRGINIA: Good enough (PH).

SOLOMON: -- set for later today -- good to have you -- set for later today at 12:00 p.m. Eastern.

What happens, Gene, in this first appearance? Lay it out for us.

ROSSI: Well, today is what they call a Rule 5. It's a rule under federal criminal procedure five. It's an initial appearance. It is not an arraignment. An arraignment is where you plead guilty or not guilty.

Today he literally is escorted into court -- I assume his wife will be with him -- and they will be read the charges or summarize the charges to him. He's not required to say anything. And they will ask if he has an attorney or can afford one. So today is just to inform him of the charges, ask if he has an attorney, and then they'll address the issue of bond. He will not be bonded and neither will his wife.

It's a very unremarkable, in a relative sense, hearing so there's not going to be any fireworks or anything explosive happening. It will be quick -- probably about 15 or 20 minutes at the most.

SOLOMON: Unremarkable hearing, remarkable case. Do you see it as infallible, as the president has called it? Is it a slam-dunk for the prosecution?

ROSSI: (Laughing). Rahel, I had a lot of cases that I thought were slam-dunks and they ended up being acquittals or hung juries, so you're asking the wrong person. There's no such thing on either side that's a slam-dunk; I don't care if it's a criminal case or a civil case. When you go before a jury crazy things can happen.

Is it what I appear -- what I glean from the indictment, does it appear based on the allegations -- and he's presumed innocent -- does it appear to be a relatively strong case? I would say yes.

I'll just give you one good example. In one of the overt acts in the indictment, which is about 23 pages, there are recorded calls among a cooperator -- a confidential source -- and Maduro and his wife. Now, these recorded calls are from 2015 or 2016, so they're a little bit stale. But when you have recorded calls and when you have tapes and things like that, that's powerful evidence.

And in addition to that I think gleaning from the indictment, Rahel, there are one or two, or three cooperators -- people who have decided to work with the government and provide information.

So in addition to all of that -- the calls, the cooperators, the live testimony -- you're going to have a lot of documents, you know, that corroborate what the cooperators and the recorded calls say. If you put that all in a bowl called evidence, that is a relatively stronger case than normal.

SOLOMON: Yeah, and lay it out for us, Gene. I mean, you were the deputy chief of the narcotics unit for part of your time with the Eastern District of Virginia. Lay out for us what the prosecution would have to prove. I mean, really insightful to have you walk us through some of the evidence that was outlined in the indictment. But lay out the case and what they would need to prove here.

ROSSI: Well, when I was, you know, deputy chief of the narcotics unit we had organized crime cases. This is one of them.

And what you have to prove -- two of the counts involved conspiracy. So a conspiracy involves at least two people if not more. And you'd have to show that Mr. Maduro and at least one other person -- and it can be his wife -- conspired to import cocaine -- hundreds of tons of cocaine into the United States. And also, they conspired to gather firearms -- dangerous weapons -- to protect and further their conspiracy.

[05:50:10]

So the conspiracy counts -- there are two of them -- they would be relatively easier to prove than the other counts.

But what you're probably going to see, Rahel, is a trial that lasts about three to four weeks. I just looked up the Honduran president was prosecuted in the Southern District. It was a three-week trial. I'll add another week. This trial could be a month.

You'll have about five or six prosecutors. Of course, President Maduro and his wife will have attorneys, either court appointed or retained. And you're going to have a lot of evidence. It could be, you know, probably 50-60 witnesses. So it's going to be a long slog and it's going to be methodical. It's going to be brick-by-brick. But you're in the Southern District of New York and they are very experienced with complex cases.

SOLOMON: Yeah.

ROSSI: And President Maduro and his wife are facing formidable foes when it comes to the prosecutors. They're very experienced. They're brilliant. They're brilliant.

SOLOMON: And I imagine for all of those reasons you laid out it's part of the reason why you say a trial won't even take place likely until 2027 because it will be brick-by-brick. You imagine how much documentation in terms of the discovery process will be produced.

Gene, before I let you go, for the defense --

ROSSI: Yeah.

SOLOMON: -- whenever that team is assembled -- what type of argument would you expect to hear from them?

ROSSI: Well, I'm just gleaning from the indictment. I don't have any personal knowledge. As a defense attorney your first argument is there is no conspiracy either for the guns or the importation of cocaine, number one.

And number two, one argument that has been presented in cases I've been involved in is you're charging the wrong conspiracy. He may -- he and the wife may have conspired with people but it's not the conspiracy that they are charging in the indictment. I'm just -- I'm just throwing that out there as a possible defense. I'm not saying that it's something that they would -- they would latch onto.

But the key thing is you've got to show there's no conspiracy to do what's alleged in the indictment. That's the first order of business in any case involving conspiracy.

SOLOMON: Um-hum.

Gene Rossi, always appreciate your insights. We'll be watching for months and years to come, it sounds like. Appreciate the time today, sir. Thank you.

ROSSI: Thank you.

SOLOMON: And Venezuelans living in other countries are reacting to the U.S. military operation. Still ahead, why some say that they're celebrating the move and others are concerned by what it means for the future of Venezuela.

We'll be right back after this short break.

(COMMERCIAL)

[05:57:15] SOLOMON: Across the U.S. many Venezuelans we are hearing from say that they're happy to see Nicolas Maduro removed from power, but not everyone likes the way the Trump administration chose to do it.

CNN's Rafael Romo reports.

(BEGIN VIDEOTAPE)

RAFAEL ROMO, CNN CORRESPONDENT: According to the U.N. Refugee Agency, nearly 7.7 million Venezuelans have left their country since 2014. The agency calls this migration the largest exodus in Latin America's recent history and one of the largest displacement crises in the world.

These Venezuelans have migrated to multiple countries in Latin America, including neighboring Colombia, Chile, and Brazil, but many others have come to the United States and have made cities like Miami, Los Angeles, and New York their home.

And this was the scene in Miami on Saturday where many Venezuelans gathered to celebrate the news that Nicolas Maduro had been captured by U.S. forces in an overnight raid.

In downtown Chicago, people marched to protest the operation to bring Maduro to the United States to face charges of narcoterrorism and to say, "No to war" and "Hands off Venezuela."

In Los Angeles, the Venezuelan American owner of a cafe said she would have preferred the regime change through democratic means but still welcomed the news.

AMARA BARROETA, OWNER, AMARA CAFE: This is a moment that we have been waiting for, for many, many years. And this is not something that Venezuelans really wanted. I mean, I don't think we wanted to be rescued by it. We've fought for many years for our freedom and we're glad that, you know, there is -- there's help, right?

ROMO: Rafael Pineyro, a city council member in the Doral, Florida and a Venezuelan American born in Caracas, told CNN that Maduro's capture was necessary.

RAFAEL PINEYRO, CITY COUNCIL MEMBER, DORAL, FLORIDA: This is not an intervention in Venezuela. This is not a war against Venezuela. We have to take it as we're dealing with criminals. We're dealing with narcoterrorists -- that they have to face charges here in the U.S.

ROMO: But other Venezuelans expressed doubts and concerns, saying that getting rid of Nicolas Maduro is a blow to the regime but not necessarily the end of Chavismo, the kind of left-wing populism that has defined the Venezuelan economy for decades.

JESUS AGUAIS, VENEZUELAN AMERICAN IN NEW YORK: It's important to understand that the Venezuelan regime has five heads. And Maduro and the wife is one or two of those, and the four remaining in Venezuela is the minister of defense, the vice president, and other actors like Diosdado Cabello. ROMO: This Venezuelan American also said that he's concerned about what President Donald Trump really means when he says the United States is going to run Venezuela and take control of its oil. He's also concerned, he said, about the loyalty of Venezuela's new acting president to the Maduro system.

Rafael Romo, CNN, Atlanta.

(END VIDEOTAPE)

[06:00:05]

SOLOMON: All right. And thank you for joining us here on EARLY START. I'm Rahel Solomon live in New York. I'll see you tomorrow. "CNN THIS MORNING" starts right now.