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Israel Launching New Strikes In Iran And Lebanon; Markets Digest Turmoil Amid U.S. And Israeli War With Iran; GOP Lawmaker Admits Affair With Staffer, Vows To Stay In Race. Aired 5:30-6a ET

Aired March 05, 2026 - 05:30   ET

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

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[05:32:43]

BECKY ANDERSON, CNN ANCHOR: Hello, I'm Becky Anderson from our Middle Eastern Gulf programming headquarters here in Abu Dhabi in the UAE. It's Thursday, March the fifth. It is 2:30 p.m. or just after here in Abu Dhabi and just after two in the afternoon in Tehran as the war in Iran enters its sixth day.

Israel launching a new wave of strikes across the capital there. The Israeli military says the attacks are targeting the Iranian regime's military infrastructure. Iran also firing off a barrage of missiles towards Israel overnight in Lebanon. The IDF says overnight strikes hit several command centers in Beirut belonging to Iran-backed Hezbollah. Israel has hit other parts of the country over the last few days after the militant group fired projectiles from Lebanon into Israel.

And in just the last hour Qatar's defense ministry says it was "subjected to a missile attack with air defense systems intercepting those strikes over the skies of Doha."

Well, Iran's Islamic Revolutionary Guard Corps says the Strait of Hormuz is only closed to ships from the U.S., Israel, Europe, and other Western allies. The IRGC warning just a short time ago that if any vessels from these countries are observed "they will be certainly hit."

The strait is one of the world's most important shipping lanes linking the Persian Gulf with the Gulf of Oman and the Arabian Sea. However, the war has brought traffic to a virtual halt. That disruption sent oil prices surging and threatening to upend the global economy. About a fifth of the world's oil production does pass through that strait in normal times.

Let's get you to Noureldeen Al-Hammoury, who is the chief market strategist at Equiti Group here in Abu Dhabi. It's good to have you.

South Korean Lawmakers just put a number --

NOURELDEEN AL-HAMMOURY, CHIEF MARKET STRATEGIST, EQUITI GROUP: (INAUDIBLE). ANDERSON: -- on the impact to their imports. For example, at least seven oil tankers carrying crucial supplies unable to pass through the strait. As we look at Asian markets, which are actually bouncing back after a number of particularly punishing sessions, can you just explain how vulnerable these economies are in particular?

[05:35:05]

AL-HAMMOURY: I mean, of course, but not just about the like -- as you said at the beginning, it's one-fifth of the entire planet's oil. Roughly about 20 million barrels normally flows through this 21-mile- wide chokepoint. That's also the same as shutting down all the U.S. oil production, plus Saudi Arabia, plus Iraq combined. As we saw, it already is above $80 and the possibility of $100 is basically on the table.

But at the same time it's not just about -- it's not black and white. It all depends basically on multiple scenarios. How long this war is going last. At least for now, we are in week one and most likely we're going to stay between the -- you know, the $10.00 to $15.00 gap. We saw the gas prices also is up and mostly likely we're going to -- we're going to keep on -- keep on going if this continues.

Now if we pass that $100, let's say, for one month, we'll be talking about $100 to $120 and we'll be talking about recession risks again sharply rising in import-heavy Asia. That is the most -- that is the most -- the most one.

ANDERSON: Yeah.

AL-HAMMOURY: And don't forget also food prices will be -- will be on the table.

ANDERSON: Let's concentrate on these energy supplies. I think the food prices story is also a key one and we'll talk about that, but these energy supplies absolutely key here.

And you just mentioned Qatar. We know they are facing a new barrage of missile strikes literally as we speak in the past hour. Their interceptions have taken out a number of missile strikes. They'd already halted their LNG production, which accounts for roughly 20 percent of global LNG exports.

How long will it take before that impact -- the impact is felt in global energy markets?

AL-HAMMOURY: I will tell you, if we want to see something like the 1970-style energy shock, we will have to basically -- we're talking about at least two to three months. That's what we call the tail risk, which means if that happened you are talking about $140 and $200 oil is basically possible and global GDP will be hit between one to two percent.

And also there is another thing which might -- if it's correct to call it -- the hidden bomb. Almost nobody is talking about yet, which is basically -- it's not just oil. Almost one-third of the world-traded nitrogen fertilizers also sails through the Strait of Hormuz. You're talking about that's Qatar, Saudi Arabia, UAE, and Iran exports. So a longer shutdown, we're talking about fertilizer prices soaring and spring planting costs also would explode. That's for India, that's for Brazil, and even the U.S. farmers too.

We're talking about higher food prices worldwide by the summer. And this would turn from an energy crisis into a food and energy double hit.

So I think we don't want this war to continue over two months. That would be the maximum, I would say.

ANDERSON: Noureldeen Al-Hammoury, good to have you one this morning. Your perspective incredibly important to us as we continue to cover the war on Iran and its --

AL-HAMMOURY: Thank you for having me.

ANDERSON: -- regional and global impact. Thank you.

The U.S. has identified its first military fatalities in the war with Iran. We'll have more about six fallen U.S. soldiers and reaction from their families. That is after this.

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[05:43:40]

ERICA HILL, CNN ANCHOR: Across Europe countries are still trying to figure out their role in the growing conflict in the Middle East.

Spain, which has refused to get involved in the war, is working to get its citizens out of the region. The defense ministry says a military plane leaving Oman brought 171 Spaniards back home.

Meantime, French President Emmanuel Macron is calling for Israel and Lebanon to de-escalate tensions, saying the retaliatory strikes are putting the entire region in danger.

In the U.K., British Prime Minister Keir Starmer is hitting back at criticism from President Trump, noting the country is now allowing the U.S. access to U.K. bases after initially refusing.

CNN's Salma Abdelaziz is following all of these developments for us from London. And this is in some ways a bit of a delicate dance, Salma.

SALMA ABDELAZIZ, CNN CORRESPONDENT: Absolutely. You see these European leaders trying to walk a tightrope between their domestic interests at home, of course, and trying not to alienate the White House. You can just think of all the things on their table right now, of course, Erica, from evacuating citizens abroad to protecting the assets that they have abroad, to their defensive positions on the ground, to, of course, continuing their concerns around European security, especially when there is a war on European soil. That, of course, being Ukraine. Many European leaders, of course, hoping that this Iran conflict

doesn't distract the White House from that predicament and at the same time trying to put their foot down and trying to argue that there is no clear basis for this conflict and no clear plan for this conflict as we've heard from Emmanuel Macron of France.

[05:45:07]

And we've also heard that from Prime Minister Keir Starmer as he defended his decision-making in the House of Commons yesterday. Take a listen.

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KEIR STARMER, BRITISH PRIME MINISTER: We're taking action to reduce the threat with planes in the sky in the region intercepting incoming strikes, deploying more capability to Cypress, and allowing U.S. planes to use U.K. bases to take out Iran's capability to strike. What I was not prepared to do on Saturday was for the U.K. to join a war unless I was satisfied there was a lawful basis and a viable thought- through plan.

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ABDELAZIZ: Now as you heard there -- that argument, of course, that there's not thought-through plan. But President Trump has not been OK or accepting of any sort of middle ground here, of course.

When the Spanish prime minister essentially went in a national address and said no war, President Trump threatened to cut off all trade Spain. With Prime Minister Keir Starmer he made these very damaging remarks, saying we're not dealing with any Winston Churchill here, the most insulting remark you could actually make towards a British leader.

And then while these different European countries are, of course, trying to balance their relationship with D.C., they're trying to evacuate their own citizens as well.

Just to give you an update on that, Britain was supposed to have its first flight out of the Middle East from Oman yesterday. That did not take off. Those logistics are still in place. France is trying to evacuate 400,000 French nationals, potentially, from the region. Commercial flights have been added across the region as well to try to pull out Europeans.

But again, it is just this fine balance, as you mentioned, between protecting those interests back home because you have to remember, of course, consumer prices are going to up. There's going to be questions asked back home about any country's involvement in this conflict while also trying to maintain the relationships that many European leaders have worked so hard to build and expended so much political capital on with President Trump.

HILL: Yeah, absolutely.

Salma, I really appreciate it. Thank you.

Stay with us. We have a check of some of the other day's headlines when we return, including a bipartisan move in Congress to subpoena the U.S. Attorney General Pam Bondi.

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[05:51:40]

ANDERSON: All right, I'm Becky Anderson in Abu Dhabi, and I want to get you another look at the very latest developments in this war with Iran.

First to Doha, Qatar where very loud explosions rang out in the skies just a few hours ago as air defenses there intercepted a massive missile attack. CNN's team on the ground felt buildings rattling as loud booms rang out across the city. Our staff in Doha did not receive an emergency alert ahead of those incoming missiles.

Meanwhile, the day's other headlines. Israel carrying out punishing new strikes on Hezbollah targets in Lebanon. Evacuation orders have been extended, and people are fleeing the Israeli bombardment. Residents in Iran's capital report a new wave of explosions today. Israel says it is targeting the regime's ballistic missile capabilities. A U.S.-based rights group now reports at least 1,100 civilians have been killed in Iran since Saturday.

The Pentagon says a U.S. Navy submarine sunk an Iranian warship in international waters. At least 87 were killed according to the hospital officials in Sri Lanka. Iran's foreign minister calls that attack an atrocity.

That is the very latest. We continue to cover this breaking news from and on Iran and around this region. For the time being, it's back to you, Erica, in New York.

HILL: All right, Becky -- thanks.

Well, as for what is happening here in the United States the Democrat who won one of this week's most closely watched primaries has a message -- "We're about to take back Texas." Those are the words from State Rep. James Talarico who is now the Democratic U.S. Senate nominee in Texas. He ran against U.S. Rep. Jasmine Crockett and told her supporters he hopes to earn their trust.

At a rally on Wednesday, Talarico cast his campaign as populist challenge to establishment forces.

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JAMES TALARICO, TEXAS DEMOCRATIC NOMINEE FOR U.S. SENATE: The real fight in this country is not left versus right; it's top versus bottom. Those billionaires want us looking left and right at our neighbors instead of looking up at them. They want to keep us from seeing all that we have in common. They want to keep us from realizing that there is far more that unites us than divides us. (END VIDEO CLIP)

HILL: Embattled Republican Congressman Tony Gonzales, meantime, is vowing to stay in the race to hold on to his state. That race also in Texas. This after the congressman admitted to having an affair with a former staffer. He refused to say whether sexually explicit text messages that he allegedly sent to the staffer, however, were real. That staffer later died by suicide. Gonzales says he looks forward to a House Ethics Committee that is investigating allegations of sexual misconduct against him.

Here's what Gonzales told a conservative talk show host in an interview released on Wednesday.

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REP. TONY GONZALES (R-TX): I made a mistake and I had a lapse in judgment and there was a lack of faith, and I take full responsibility for those actions. Since then I have reconciled with my wife Angel. I've asked God to forgive me, which he has, and my faith is as strong as ever.

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[05:55:00]

HILL: The congressional race for Gallen -- Gonzales, rather, now will head to a runoff in May. That runoff against conservative activist Brandon Herrera who took the largest share of the vote in Tuesday's primary election.

The U.S. House Oversight Committee has voted to subpoena Attorney General Pam Bondi to testify about her handling of the Jeffrey Epstein files. Republican lawmaker Nancy Mace introduced that motion on Wednesday, which passed 24-19 with bipartisan support.

The committee has called upon a number of high-profile figures as part of its ongoing investigation into the late convicted sex offender. We're also learning this week U.S. Commerce Secretary Howard Lutnick has agreed to appear before the panel.

Thanks for joining us this hour here on CNN. I'm Erica Hill in New York. Stay tuned. "CNN THIS MORNING" picks up our coverage after the break.

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