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Early Start with Rahel Solomon

Trump: U.S. Will Hit Iran Hard Over Next Two To Three Weeks; Oil Prices Spike After Trump Vows To Continue War; Four Astronauts Begin 10-Day Mission Around The Moon. Aired 5:30-6a ET

Aired April 02, 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]

H.A. HELLYER, SENIOR ASSOCIATE FELLOW, ROYAL UNITED SERVICES INSTITUTE: Much more aggressive and deeply antithetic to all of its neighbors, leaving the region in a much worse condition than it was before this war started.

DANNY FREEMAN, CNN ANCHOR: Well, and let's talk about what the president hopes is, I guess, the end of this because I'd like your perspective from outside of the United States right now -- from the Middle East.

Does it seem plausible to you that Iran would make some sort of deal in the coming weeks and seriously end this war? I mean, especially with the context that President Trump said we should expect an escalation of attacks over the next coming weeks as well.

HELLYER: Well, let's be clear here. There are three actors at play. There's Washington, there's Tel Aviv -- the Israelis, and there's Tehran -- the Iranians.

Washington could decide tomorrow to leave, and Washington could, and I suppose would enforce this over Tel Aviv. I don't think the Israelis would be able to say no to Washington. But that doesn't mean that Iran would simply say oh, OK -- then, you know, we're done now. I don't think that would be the case at all because on the contrary, the longer this goes on the more of a price that the international community has to pay vis-a-vis energy prices, and that's specifically about the Strait of Hormuz.

If the Iranians do accept the end of hostilities without some sort of political benefit on their end, then they put themselves in the position of simply waiting for the next round, which is not what they want, of course. They've already negotiated twice with the Americans and twice in the midst of negotiations had a war begin last year and this year.

On the other hand, I'm not really sure what sort of guarantees they could get that would be satisfactory to them because it doesn't seem as though they trust -- and they have good reason not to trust that the United States wouldn't simply attack in the midst of negotiations again.

So we're really in a very difficult position here where I think everyone in the region is agreed that the Iranian regime is deeply destabilizing to the region, but they also see that Gulf security was not centered at all in Washington's calculations in starting this war. And on the contrary, they started this war in cooperation with the other main destabilizing actor in the region, the Israelis. So I don't think that really settles anybody's concerns at all.

FREEMAN: And one last question for you. Listen, the U.K. and other European allies -- they seem clearer and clearer every single day that they have no intention of getting involved in this war. And as you noted, they're feeling, of course, the pressure of the energy prices as well.

Does this weaken the United States' position in this war, or does it truly not matter, as the president suggested last night?

HELLYER: I think that Europe, the wider Arab world, the Middle East region, and frankly, much of the world has seen the United States not simply over the last few days or the last few weeks but going much further back than that as a more unpredictable power. Frankly, a more unreliable security partner or security guarantor or underwriter.

And statements from the president, but also the Secretary of State, when it comes to NATO, in particular I think really just reinforces that. NATO is the defensive alliance. It's not something that can be called upon to participate in a war of choice on Iran. Again, a very odious regime but I don't think that necessarily means that, you know, waging war against it in this fashion was something that was going to stabilize the regime -- stabilize the region further.

So I think that this is the intensification of a trend, and I think that it will have impacts on the United States' reputation going forward. But this isn't something that started today. It started during Biden. You could argue it started under Trump before. You could even argue further back than that. But particularly after Gaza and the United States supporting Israel in its war on Gaza, I think really hit at American credibility in the region. And the last month is certainly not going to encourage I think regional leaders and reginal populations view of America being a reliable security partner and guarantor.

FREEMAN: H.A. Hellyer, thank you so much as always for your perspective on a consequential news morning. I really do appreciate it.

HELLYER: Thank you so much.

[05:35:00]

FREEMAN: And to that affect we're watching global markets and oil prices following President Donald Trump's speech on the war with Iran. We'll tell you how they're reacting to that address just ahead.

(COMMERCIAL)

FREEMAN: Welcome back to EARLY START. This is your business breakout. And let's take a look now at where the U.S. stock futures stand ahead of the opening bell on Wall Street. A lot of red there, especially after that speech from President Trump last night.

[05:40:00]

So let's check in on some of today's business headlines in addition to that.

First up, new data shows U.S. retail spending rose more than expected in February. The Commerce Department says retail sales rose six-tenths of a percent in February compared to the month prior, and that's after three months of decreased spending. Retail sales climb across nearly every category except at grocery stores and furniture retailers, which saw consumer spending decrease about one percent.

And this now. Elon Musk's rocket and satellite company SpaceX has reported filed confidential plans for an initial public offering. Published reports say the filing will lead to a sale of shares by June of July. SpaceX merged with Musk's artificial intelligence company xAI back in February and the stock sale could create one of the most valuable companies on the planet.

And police are blaming a system failure after a number of robotaxis stalled in the middle of the street in central China. Reuters says it happened in the city of Wuhan Tuesday night. And police say there were no injuries, but local media reported that some passengers were trapped in the vehicles for almost two hours. A wild story there.

All right, back to the markets. We're seeing global markets sinking this morning and oil prices soaring after President Donald Trump's primetime address sparked fears that the war with Iran could intensify. Following his speech Wednesday night, the price of oil actually climbed higher. Take a look right here. This is where Brent crude stands right now. Investors had been hoping for a signal of more of an imminent end to the war.

For more on this let's go now to CNN's Eleni Giokos. She's been following these developments for us from Dubai. A tough morning in the markets.

ELENI GIOKOS, CNN CORRESPONDENT: Absolutely. And, you know, I was looking at the pricing yesterday I thought wow, you know, this is a real signal that if President Trump actually gives messaging about de- escalation and how to unwind the war and then importantly, opening up the Strait of Hormuz, we had Brent crude prices at about $100 a barrel. That was very short-lived. There was a massive reversal and now we're seeing Brent crude prices up quite significantly.

You saw Asian markets coming under pressure. And importantly, U.S. futures pointing to the downside. We know that U.S. markets are going to be closed for Good Friday tomorrow so it's a shortened week.

But again, we're looking at an escalatory scenario playing out over two to three weeks. That's what President Trump is talking about.

But now economists, Danny, are starting to weigh in and building scenarios and modeling what this will look like.

Oxford Economics, importantly, says that Brent crude is forecast to average around $113 a barrel in the second quarter of this year. They expect that the closure of the Strait of Hormuz will last until the end of April.

And yes, we're seeing a trickle of some vessels going through, but Iran has de facto control, so it's still very much unknown territory there. And then even if we see de-escalation and the war does come to an end, the prognosis is that we will not see a complete resumption in traffic through the Strait of Hormuz.

In the meantime, you have jet fuel shortages. You've got shortages of overall fuel in Asian economies. You have major policy intervention, like the likes of Australia coming in and trying to, you know, pump some kind of stimulus to support small businesses. And also, some countries capping fuel prices and also removing taxes on fuel. You have the United States' average gas price hitting over $4.00 a gallon. And again, the feedthrough hasn't really materialized.

The International Energy Agency executive director Fatih Birol says that the month of April is going to be worse than the month of March in terms of oil supply.

And then the messaging is don't drive if you don't need to. Work from home if you can. Don't take flights if you don't need to.

So we're looking at a scenario of demand destruction, Danny, that is going to be sort of a reality until we see the Strait of Hormuz opening up. It's something that is affecting everyone across the world right now.

FREEMAN: Yeah, and you've got to imagine not the reaction that the White House was hoping for after that speech last night.

Eleni Giokos in Dubai. Thank you so much for that reporting -- appreciate it.

All right, to this now. The Artemis II begins its historic journey to the moon after a successful liftoff yesterday. When we return, we'll tell you what to expect in the days ahead.

(COMMERCIAL)

[05:48:48]

FREEMAN: Welcome back. I'm Danny Freeman. Here are some stories we are watching today.

First up, President Trump is threatening to bomb Iran back to the stone age if they don't agree to a deal to end the war. He delivered a primetime address to the nation on Wednesday claiming the U.S. is "very close to completing its objectives" but without providing a clear timeline.

Plus, it appears President Trump's address on Iran did little to calm energy markets. Following his speech the price of oil actually climbed higher. At last check Brent crude, the global oil benchmark, was up more than seven percent, taking it to more than $108 per barrel.

And Republican leaders in Congress say they've come up with a plan to end the partial government shutdown. It involves a complicated process called reconciliation. If it works, Republicans can bypass the Senate filibuster and pass a bill without Democratic votes. But House Speaker Mike Johnson can only afford to lose one Republican vote for it to work.

Now to the great story of the week. Four astronauts are now headed to the far side of the moon in a historic undertaking that we haven't seen in more than 50 years. The Artemis II crew is now settling in for a 10-day mission after blasting off from Florida's Kennedy Space station -- Space Center, I should say, Wednesday evening.

[05:50:00]

CNN's Ed Lavandera looks at what lies ahead for these brave astronauts.

(BEGIN VIDEOTAPE)

NASA: Booster ignition and liftoff.

ED LAVANDERA, CNN SENIOR U.S. NATIONAL CORRESPONDENT (voiceover): After a successful launch the four astronauts on Artemis II are now on a risky journey to the far side of the moon.

NASA: Traveling more than 1,200 miles per hour.

LAVANDERA (voiceover): They're expected to travel farther into deep space than any humans have ever gone before. The crew will travel inside the Orion capsule and orbit the Earth twice before traveling about 250,000 miles from Earth, circling the moon before returning.

UNIDENTIFIED FEMALE: It will take about four days once they leave Earth's gravity to get to the moon.

LAVANDERA (voiceover): The test flight to circumnavigate the moon is part of the Artemis lunar exploration program. It's a test mission designed to prepare future Artemis missions to land on the moon by 2028.

UNIDENTIFIED FEMALE: Commander Reid Wiseman, pilot Victor Glover, and mission specialists Christina Koch and Jeremy Hansen.

LAVANDERA (voiceover): The diverse crew on the Orion spacecraft includes the first woman and the first Black person to set off on a lunar mission.

NASA's mission commander, 50-year-old Reid Wiseman, is a Navy test pilot and a single father of two girls. His wife died of cancer in 2020.

REID WISEMAN, MISSION COMMANDER, ARTEMIS II: The moon, to me -- it's the thing that connects me together with all the other humans in my life.

LAVANDERA (voiceover): Victor Glover, also a naval test pilot, is the first Black person to venture into deep space. He's the father of four kids.

Engineer Christina Koch is the first woman to make the voyage to the moon.

CHRISTINA KOCH, MISSION SPECIALIST, ARTEMIS II: I'm drawn to exploring. I'm drawn to challenges.

LAVANDERA (voiceover): She hold the record for the longest spaceflight by a female astronaut at 328 days onboard the International Space Station.

And Jeremy Hansen, a fighter pilot, is the first Canadian and non-NASA astronaut to head on a lunar mission. It's his first spaceflight.

The crew spent the morning prepping for their mission. The NASA tradition, a lighthearted moment playing cards with their chief.

The 10-day, roughly 685,000-mile journey around the moon and back carries dangerous risks. The Orion spacecraft, roughly the size of a cargo van, will face extreme temperatures, high levels of radiation, and incredible feats of physics. When the four astronauts fly by the far side of the moon, they will lose all communication with Earth for about 30 to 45 minutes. They will see the Earth rise over the moon like the image first captured by Apollo astronauts and that Christina Koch had in her room as a child.

JEREMY HANSEN, MISSION SPECIALIST, ARTEMIS II: We spent a lot of time figuring out what are we going to do if we're having trouble with the spacecraft? What are the bare basics to give us a fighting chance? Obviously, I've had that conversation with my wife and my children.

LAVANDERA: Why is this so important?

LAVANDERA (voiceover): I spoke with all four members of this crew three years ago when they were first assigned to the mission. It was clear then they fully understood the magnitude of this moment.

VICTOR GLOVER, PILOT, ARTEMIS II: And one aspect of human space exploration is that it unites. It lifts people up. It pushes you to do things that seem impossible.

LAVANDERA: Now that the Artemis II crew is in outer space the focus shift here to Houston and mission control at Johnson Space Center, which will continue maintaining communications with this crew. And this is all the first step toward eventually building a base on the moon that will then transport crews in the future to explore Mars. That is the ultimate goal here.

Ed Lavandera, CNN, Houston, Texas.

(END VIDEOTAPE)

FREEMAN: Wishing all those astronauts a very good journey.

We'll be right back.

(COMMERCIAL)

[05:57:55]

FREEMAN: The New York judge in Luigi Mangione's state murder case has pushed his trial date to September just hours after a U.S. district judge adjusted the schedule in the federal case to avoid a conflict. Well, now the state trial is set to start on September 8 around the same time potential jurors are scheduled to fill out questionnaires in the federal trial.

A reminder, Mangione is facing stalking charges in a federal case and second degree murder charges in the state case for the December 2024 killing of UnitedHealthcare CEO Brian Thompson. He has pleaded not guilty to all of the charges.

And there's a new option in the rapidly growing market of weight loss treatments. The U.S. Food and Drug Administration has approved a second GLP-1 medication in pill form.

CNN's Meg Tirrell has details.

(BEGIN VIDEOTAPE)

MEG TIRRELL CNN MEDICAL CORRESPONDENT: A second new pill for weight loss is coming to the market. The FDA has approved a drug called Foundayo. It's made by Eli Lilly. It's given as a daily pill and it works similarly to drugs like Ozempic, Wegovy, and Zepbound by mimicking a hormone known as GLP-1.

This one follows another pill that was approved in December and hit the market earlier this year called the Wegovy pill sold by Novo Nordisk. And Eli Lilly says that its drug represents an advance compared with that pill because Foundayo doesn't need to be taken at any particular time of day or with any restrictions on food and water. Whereas the Wegovy pill must be taken right when you wake up in the morning on an empty stomach.

Nonetheless, that drug has had an incredibly successful first few months on the market being taken by hundreds of thousands of patients according to estimates from some Wall Street firms. So it's expected that Lilly's pill will also be taken by some huge number of people potentially. Already, millions of patients are taking these GLP-1 medicines for weight loss and also for diabetes.

(END VIDEOTAPE)

FREEMAN: And finally this morning, a state trooper assigned to protect New Hampshire's governor is being hailed as a hero after pulling actor and comedian Eugene Mirman from a fiery vehicle. Mirman is more recently known as a voice actor on the animated series "BOB'S BURGERS." He plays Gene Belcher.

[06:00:05]

Now, New Hampshire State Police say his car crashed into a toll plaza and then caught fire. The governor had her security detail arrive soon after. That's when Mirman was pulled from his car and officials say he suffered serious injuries. The crash, at this point, is still under investigation.

All right, thank you so much for joining us here on EARLY START. I'm Danny Freeman in New York. "CNN THIS MORNING" starts right now.