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Quest Means Business
Trump: NATO Making A Very Foolish Mistake On Iran War; Trump Dismisses Resignation By Intel Official: Weak; UKMTO: Tankers Struck Near Emirati Oil Port Of Fujairah; Iran Repeatedly Targets UAE Energy Infrastructure; Europe Braces For Potential Price Shock; Mayor Of London Sits Down For A Conversation With CNN; Cuba Struggles To Recover From Massive Blackout. Aired 4-5p ET
Aired March 17, 2026 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:15]
RICHARD QUEST, CNN INTERNATIONAL HOST, "QUEST MEANS BUSINESS": Closing bell ringing on Wall Street. Saint Patrick's Day. So Guinness and Diageo ringing
the closing bell.
A lot of green on the screen. Green there and green here. I think the market was determined to keep the green thing going even though as you can
see, its given back most of the gains of the day.
Madam, please. And one, and a two and one, two, three, four. Trading is over. The market has held on to its gains, those are the markets and these
are the stories we are following today.
A senior U.S. Intelligence Officer resigns saying there was no imminent threat from Iran.
On this program tonight, the head of the IMO, the International Maritime Organization. We are going to discuss the fallout from disruptions to the
shipping, and London's Mayor Sadiq Khan, will talk about London's resilience post-Brexit. The relationship with New York's new mayor, we've
got the lot from Sadiq Khan because tonight we are live in London. On Tuesday, it is March 17th.
I am Richard Quest, I mean business.
Good evening. We start today at The White House where Donald Trump lashed out at the counterterrorism official who resigned earlier in the day over
the Iran War. He said he was a nice guy, but weak and probably best gone.
He was Joe Kent. He stepped down as the Director of National Counterterrorism Center. In his resignation letter, he posted online the
retired combat veteran wrote: "Iran posted no imminent threat to our nation, and it is clear that we started this war due to pressure from
Israel and its powerful American lobby."
Mr. Trump also slammed NATO allies for not helping in the Iran War, that's a refrain we've heard before. He insists the U.S. does not lead the allies.
Here is what he said.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: I didn't do a full court press because I think if I did, they probably would be, but we
don't -- we don't need help.
NATO is making a very foolish mistake and I've long said that, you know I wonder whether or not NATO would ever be there for us. So, this is a --
this was a great test because we don't need them, but they should have been there.
(END VIDEO CLIP)
QUEST: Alayna Treene is with me from The White House.
What a lot we've got to get through. Let's start if we may, with the national terrorism expert who is gone. It is difficult -- reading his
resignation letter, I mean, this guy was on board. He is part of the furniture in a sense. He is in the tent and yet, he decides to leave.
And I can't decide is it because of his military aspects? Is it because of the Israeli aspects? What is The White House saying?
ALAYNA TREENE, CNN WHITE HOUSE REPORTER: Yes, well, I think one of the biggest issues for The White House in trying to message on this, is I'd
remind you that Joe Kent was a Trump appointee.
He was brought in and hired by President Donald Trump himself. He is someone who has been very conservative, very much a part, as you said, of
the tent, the MAGA tent and so that's what I think has made some of this fierce criticism we saw in that resignation letter.
I mean at one point, Kent wrote, I quote: "I cannot in good conscience support the ongoing war with Iran." That is a big and bold statement for
him to make, in of course, to resign.
So look, in my conversations with people at The White House, they are seeking to frame Joe Kent as someone who was one, has been sidelined a long
time ago. They said months ago that the President and The White House had actually stopped allowing him into some of the Intelligence briefings,
specifically on Iran, and also that he was already on his way out.
And they say that because they argued essentially, that he might have been leaking. And they also, according to a conversation I had with a senior
Trump administration official, tried to argue that they had told the Director of National Intelligence, Tulsi Gabbard, who is at the top of that
agency, of course, Kent worked underneath her to fire him, and so that's how they are trying to frame this.
But of course, it comes at a time when many people, Richard, are sharing the concerns that Kent aired in that letter.
QUEST: Now, let's just move to this next bit about NATO. I read Lindsey Graham's tweet in which he basically piled on to NATO allies, reinforcing
what President Trump has said. But I mean, they seem determined to try and blame NATO when this has got nothing to do with NATO.
Is this just an easy whipping boy for the administration?
TREENE: I think it is more so, Richard, that the President was actually hoping these allies would heed his calls to aid in the reopening of the
Strait, and they are rebuffing him, something that, of course, is not something this President ever likes to hear.
And so, there is a lot of frustration. I mean, if you just listened to what the President was saying today, he was speaking publicly, you could see he
was visibly frustrated and he is very much angry that a lot of these allies of the United States, places like Germany, the U.K., the list goes on, are
not willing right now to send warships at a dangerous time to the Strait of Hormuz.
And you're right, this does have nothing to do with NATO. I'd remind you that NATO is a defensive alliance. They are supposed to rally behind other
NATO members when there is an attack, but this is, of course, you know, the U.S. and Israel were the ones who actually launched attacks on Iran and
also, I just remind you, and we've heard this now from a lot of different European leaders who are kind of facing the President's wrath right now,
they were not initially consulted before these strikes began and before the U.S. engaged in this military conflict in the Middle East, and so that's
partly what they are arguing here.
But as for The White House's side and for the President himself, I can tell you, he is very frustrated and angry with them not wanting to do this --
Richard.
QUEST: I am grateful. Thank you.
Now, the Israeli military is promising to pursue, find and neutralize anyone who poses a threat to Israel including Iran's new Supreme Leader. On
Tuesday, Israel said it killed Iran's security chief, Ali Larijani, and the commander of Iran's paramilitary force overnight. There is no confirmation
of that.
Jeremy Diamond is in Tel Aviv.
Before we get to that, I just want to stay at The White House if I may, Jeremy.
This accusation that somehow Israel has dragged the U.S. into this from the former advisor from -- what will they make of what Joe Kent says that this
is all about Israel. Israel has pushed and dragged the United States into a war it was best left kept away from.
JEREMY DIAMOND, CNN CORRESPONDENT: Well look, there is no question that the Israeli Prime Minister advocated for this war, advocated for President
Trump to join Israel in carrying out strikes on the Iranian regime. He has made no secret about that. He visited The White House shortly before.
We also know of course, that U.S. officials have talked about the potential that Iran could strike Israel first and that the United States, therefore
chose to join in this campaign. That was one of the reasons that was cited among many by President Trump.
But at the same time, it is also very clear that President Trump ultimately made this decision on his own. His hand was in no way forced by Israel to
go into this war and he has his own coterie of advisors who could have advised him against it, should he have chosen to do so.
I think, it is also important to talk about some of the other accusations that Joe Kent makes about Israel in his letter. He basically references
Israel as being responsible for getting the U.S. into the Iraq War in 2003. There is really no evidence to support that whatsoever.
At the time, in fact, the Israeli Prime Minister Ariel Sharon, was rumored to have and this has now been reported out, that he actually advised George
W. Bush privately against this, that he was far more focused on the threat from Iran than on Saddam Hussein and Iraq. So, there is a lot in this
letter that doesn't kind of hold up -- you know, stand up to the smell test as it relates to Israel.
That being said, Joe Kent is clearly talking more broadly about the concerns that this war was not in the U.S. national interest and that's
kind of the claim that he is making there.
QUEST: Israel continues to take out, kill various top members. I mean, I saw an organizational chart of Iran's top leadership and how many have now
been removed. If I was the rest of them, I'd be worried.
DIAMOND: Yes, absolutely. And in fact tonight, the Israeli military made very clear that Mojtaba Khamenei, the new Supreme Leader of Iran, is now on
that kill list, that he is a target for assassination in the future should the Israelis get the opportunity to go after him.
We've seen Israel, you know, in that very first wave of strikes that killed the former Supreme Leader Ayatollah Ali Khamenei, that killed 48 other
senior Iranian officials. Now, it is Ali Larijani a man who for a time, was effectively the de facto leader of Iran, who held so much influence in
Iran.
But I think the broader question, Richard is what does this leave in Iran? Who is still in power? And it seems and many Iran analysts have said this,
is that it has left the most hard line elements in Iran in power, not only the new Supreme Leader, who is also very close to Iran's Revolutionary
Guard Corps, and that those more hardline military elements of the Iranian regime are now emboldened and empowered to act in the future, and that
someone like Ali Larijani, who despite his role in the brutal crackdown of the protests earlier this year and many other things that he has done, was
viewed internally in Iran as someone relatively pragmatic, someone who perhaps would be an interlocutor in any kind of potential ceasefire talks
in the future -- Richard.
[26:10:35]
QUEST: Jeremy, I am grateful, as always, late in the evening for you. Thank you.
President Trump, besides attacking all his NATO allies says he is disappointed in the British Prime Minister, Sir Keir Starmer, and his lack
of support. He took this jab at Sir Keir, while taking questions in the Oval Office.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: See that man right there? You know who that is?
REPORTER: Churchill.
REPORTER: Sir Winston Churchill.
TRUMP: The late great Winston Churchill, and, you know unfortunately, Keir is not Winston Churchill.
(END VIDEO CLIP)
QUEST: I am not sure what the man sitting next to him would have made of that. That's the taoiseach, the Irish Prime Minister. But anyway London's
mayor, Sir Sadiq Khan, told me he stands by Sir Keir Starmer, who talked about the war and its consequences.
(BEGIN VIDEO CLIP)
MAYOR SADIQ KHAN, LONDON: This particular war that President Trump has got involved in has an impact across the globe, not least London. It impacts
people filling up their cars. It impacts the cost of living.
Huge challenges to our economy with what is happening in the Strait of Hormuz and elsewhere. But yes, of course, you know, people from that part
of the Middle East are scared, some are coming back to London, some Emiratis are coming to London because obviously they are a bit concerned if
they are in the UAE or Bahrain or Kuwait and London is very safe.
QUEST: Do you currently support the Prime Minister in his on the fence to a certain extent in whether to join in?
KHAN: Well, I think Keir Starmer is not on the fence, he is quite clear, he has learned the lessons of Iraq. He understands why President Trump may be
doing what he is doing. We don't have any legal basis to attack Iran.
Yes, we have got a legal basis to defend ourselves and our allies, but it is the right course of action that Keir Starmer has taken. It is in
Britain's national interest, and it is for President Trump to explain why he has made decisions he has.
(END VIDEOTAPE)
QUEST: Sir Sadiq Khan and we will hear more from him later.
An Emirati oil port has slowed its operations because of a string of attacks. In a moment, the U.N.'s maritime watchdog about how these attacks
are straining global shipping.
QUEST MEANS BUSINESS live tonight from London.
(COMMERCIAL BREAK)
[16:15:10]
QUEST: An attack on the UAE's Port of Fujairah partly stopped tankers from being loaded with oil. The port lies just outside the Strait of Hormuz.
Tuesday's strike, it was the third in four days. U.K. maritime trade operations say a tanker about 20 nautical miles from the port was struck
and caught on fire. Also, 21st vessel to report an incident since the war began.
Now the International Maritime Organization, a fine body of men and women, is a U.N. agency that regulates maritime marine transport. It has called an
emergency council this week to discuss the impact.
Arsenio Dominguez is the Secretary General of the IMO.
What do you hope will come out of an emergency meeting? What do you want?
ARSENIO DOMINGUEZ, SECRETARY GENERAL, INTERNATIONAL MARITIME ORGANIZATION: So the first thing that we actually are looking forward is to bring all the
parties onto the table, highlight the negative impact that this conflict is having on international shipping as collateral damage that has been used
and at the same time, looking to how we can engage with the ship owners and ship operators to introduce measures such as risk assessments and
operational assessments in order to avoid the ships going into the region.
QUEST: A bit late. I mean, the things are already being attacked and, you know are on fire. Aren't you sort of -- aren't we a bit beyond the stage of
trying to work out what the risk is? The risk is there.
DOMINGUEZ: We are not, because we actually have to look after 20,000 seafarers that are still trapped there, as well as 2,000 ships. So, that's
what I continue to call for operations, not to go in there, bring the diplomacy, look to de-escalate and start actually the humanitarian side of
rescuing all those innocent seafarers.
QUEST: Right, is it your fear, and from what we are hearing, is some seafarers are feeling pressured to continue to stay in the region or to
stay on the ship or they're feeling that they are being put unnecessarily at risk by certain commercial operators?
DOMINGUEZ: No, we've actually been very clear with all the commercial operators. The reality is that because of the conflict in the Strait of
Hormuz, the ships and the seafarers are trapped there and they cannot really transit.
QUEST: Right, but some of the large reputable companies, of course will follow best practice, but there are many seafarers -- you talk about the
numbers involved -- from Southeast Asia, from Bangladesh, Pakistan and elsewhere on vessels that are not as well-regulated, I shall put it
diplomatically, and therefore they may be forced and coerced to staying on board.
DOMINGUEZ: Substandard shipping is something that we actually are very well aware in the International Maritime Organization and that's a job that day-
to-day, that we actually look and work with the countries in order to implement the rules, but this is not actually what is affecting this.
This is a conflict, and the fact that the ships normally, we will have 130 vessels transiting through the Strait of Hormuz. Right now, barely two
vessels sometimes will travel, but with insurance not being covering the ships right now in general, we actually don't have the transit.
QUEST: So, on this program, the CEO of Maersk said, even if you had insurance and even if you had, you know naval escorts, we still probably
wouldn't go because until we are satisfied, Maersk, that it is safe, I don't care what anybody says. I'd rather have a ship with live seafarers
and being well and safe than the insurance payment if things go wrong.
DOMINGUEZ: That's absolutely right and this is the reason why I've continued to reiterate that escorting vessels is not the solution because
it doesn't eliminate the risk a hundred percent.
A ship that is being escorted by a naval vessel can still be attacked, can still be actually affected, and we can lose seafarers. That's something
that I am not prepared to encourage the industry to do.
QUEST: But we are ending up with the Strait as being where certain countries oil might get out. Iran obviously can get its own oil out if it
wants, even though it is sanctioned, it can get it over to China. It may not be doing so, but it can, and those friendly countries that Iran decides
to allow to go through could go through. This could be very difficult and dangerous.
DOMINGUEZ: We don't work on sanctions on International Maritime Organization. Now, the reality is that countries will still have diplomatic
relationships. What I am looking forward is that we get together and look for a global solution, not something that is going to benefit just some few
ships because the reality is again, I go back to the 20,000 seafarers. That's my first priority.
QUEST: Right. But you're not going to be able to get that agreement. I mean, with great respect, you know, the U.S. and its own NATO allies can't
agree. How do you expect to get any form of global agreement?
DOMINGUEZ: I will not lose hope on multilateralism. That's why the U.N. is there, and that's why the International Maritime Organization has been
effective for nearly 80 years.
QUEST: On the safety question, you may have a very -- you have a very strong point that multilateralism is the way forward. On any commercial
aspects though, this is very difficult because the two sides do not see anything.
I mean, as I say, within NATO, you've got disagreements.
DOMINGUEZ: We always deal with disagreements in every single topic that we discuss, but that's why we need to bring the parties onto the table and
focus on the solutions.
[16:20:10]
QUEST: So what would you say to a seafarer who is on a ship and the owner of that ship is pushing the envelope, pushing the envelope, pushing the
envelope on safety.
DOMINGUEZ: Well, this is where we actually continue to enhance the interaction with the seafarers for them to report all of these actions.
We have mechanisms together with International Labor Organization to safeguard the well-being of the seafarers and that continues to be one of
my priorities.
QUEST: I am glad you came in, sir. Thank you for coming and talking to us.
DOMINGUEZ: My pleasure.
QUEST: Thank you very much.
Major European airlines continue to postpone the resumption of regular service to the region. BA, Lufthansa, Air France all say it is just too
dangerous now.
The chief executive of DXP, Dubai Airports is very well aware.
Paul Griffiths told Becky Anderson, operations are far from normal.
(BEGIN VIDEO CLIP)
PAUL GRIFFITHS, CHIEF EXECUTIVE, DUBAI AIRPORTS: Well firstly, the ability to detect and respond to threats as they've unfolded have been very, very
effective and efficient. We've closed airspace, we've opened it as the threat level has changed and we've been able to keep aircraft in the air
and obviously, to route through corridors that are properly designated by the GCAA across here, and obviously, holding aircraft at outstation, making
sure that they can be safely diverted if there is a threat.
We facilitated the journeys of over a million passengers over the last 17 days, and the recovery rate is significant. We are back up to about 40
percent to 45 percent of normal traffic movements.
BECKY ANDERSON, CNN INTERNATIONAL ANCHOR: Talk to me about what you've been doing very specifically to support passengers.
GRIFFITHS: Well, first of all, when schedules are disrupted and, you know, in a normal day, we would handle something like 320,000 customers through
DXP, so when that supply chain gets interrupted, it is incredibly important that we keep people informed, keep people already at the airport safe and
secure, whilst we dealt with the backlog and got people to the places they needed to be, and also provided the information to make sure that people
only came to the airport when they needed to be. That seems to have worked pretty well.
The airport has remained calm and composed, and the many different comments we are getting from our customers, I think suggests that for the most part,
we are doing a reasonably good job.
(END VIDEOTAPE)
QUEST: The way in which the disruption continues as you can see, is in all aspects. Back on the seas, maritime trade, it is forcing the Gulf states to
adapt how they import and export products.
So let's just go through what have you actually got. Well, obviously you've got Dubai and you've got the UAE and you've got there, you've got Doha and
you've got all of these places over here.
Now they can't get the stuff out that way because of the Strait of Hormuz. That much is absolutely clear. So let's just do one line that shows that is
not available at the moment. You just heard our last guest saying that only two ships a day, two ships versus 120 odd previously.
Instead, there is another way. Land borders. So what about if you start to send your products this way, whether it be via, you know truck or whatever,
from whichever country.
Countries like Kuwait are starting to receive more and more goods by land. And then of course, you have a thousand and one different ways out of it.
CNN's Nic Robertson filed a report on the Saudi-Kuwait border.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: These trucks here are the new lifeline bypassing the Strait of Hormuz. The Strait of Hormuz are
closed for oil getting out of the Gulf, closed for goods that would normally be coming in.
And right now, these convoys coming out of Saudi Arabia, going into Kuwait, they're bringing in food, they're bringing in medical supplies, they're
bringing in all the equipment that would normally get to Kuwait and other Gulf countries normally get there by ship or by air.
The Iranians have closed the Strait of Hormuz. The airspace is closed because of all the missile strikes that are going on and if you come around
here, you can get an idea of all the different products that are on their way into Kuwait.
Now, officials there aren't talking about food shortages yet, but people in Kuwait tell us look, we are a desert kingdom. We are in the desert. It is a
desert country and we need to import 90 percent of our food.
So, this lifeline here that the Saudis say is passing about 900 trucks a day, 9,000 trucks have gone through from Saudi to Kuwait, they say, since
the war began is absolutely vital and it gets more vital the longer the war goes on.
[16:25:04]
It is part of the Gulf Solidarity.
These trucks here are driving in from Saudi Arabia from about a thousand miles away, about 1,800 kilometers across the whole of the Arabian
Peninsula from Saudis' western coast, from the port city of Jeddah on the Red Sea. They can do that because the Red Sea isn't blockaded. It is not
under fire at the moment, which means there is a way to get all this equipment, all this food, all these medical supplies into countries like
Kuwait.
But right now, the Iranians have already started threatening the Red Sea with potential strikes because the USS Gerald Ford, the Aircraft Carrier
Battle Group are in the Red Sea at the moment.
So this lifeline, vital going to get more important if the war continues, but because the Red Sea now appears to be potentially under threat, even
this way of getting around the siege of the Strait of Hormuz that Iran has put in place, even this could be under threat, too.
Nic Robertson, CNN on the Saudi-Kuwait border.
(END VIDEOTAPE)
QUEST: Iran is taking consistent aim at the UAE's energy infrastructure. The latest target was a major natural gas field. We will look at that
aspect in a moment.
QUEST MEANS BUSINESS.
(COMMERCIAL BREAK)
QUEST: Hello, I am Richard Quest. Together, we will have a lot more QUEST MEANS BUSINESS. Oil prices are higher after an attack on an oil field in
the UAE and you'll hear more of our discussion with the London mayor, Sadiq Khan, who talks about his relationship with his New York City counterpart,
Zohran Mamdani.
Before all of that, this is CNN, and here the news comes first.
A stunning rebuke today of the war with Iran from one of President Trump's top Intelligence officials. He is Joe Kent. He was the Director of the
National Counterterrorism Center, and he has now abruptly resigned, saying the war is a terrible mistake.
Mr. Kent says Iran posed no danger to the U.S. when the war began, and blamed Israel for pressuring the U.S. into starting the conflict.
Israel says it has struck another significant blow to Iran's hierarchy when it killed Iran's top security official. The IDF says Ali Larijani was, in
their words, eliminated in air strike. He had been a key voice of the regime since the death of the former Supreme Leader, Ali Khamenei.
Iran has confirmed the death of another leader, the head of its paramilitary force, and now Iran is vowing revenge.
The Afghan Taliban government is blaming a Pakistani airstrike with the death of more than 400 people at a drug rehabilitation center. The Taliban
say 265 people were wounded. Pakistan says the airstrike was only targeted at military installations and terrorist attack sites. The attack comes
hours after China urged both sides to return to negotiations.
[16:31:05]
Abu Dhabi suspended operations at one of the world's largest gas fields after it was struck by a drone. Authorities are still assessing the damage.
The field produces 1.25 billion standard cubic feet of gas, which I'm not sure is how much but it sounds a lot. Iran has been targeting energy
infrastructure, striking the most important oil hubs.
Karen Young is with me, senior fellow at the Middle East Institute and senior research scholar at Columbia University's Center on Global Energy
Policy, with me from Phoenix.
Look, it's not surprising. I mean, these are juicy, rich targets if you are Iran and you're trying to affect the West and you're trying to hurt the
countries involved. And I guess it's really just a question of who has more anti-missile and drone protection or anti-missile or drones and missiles to
fire.
KAREN YOUNG, SENIOR RESEARCH SCHOLAR, COLUMBIA UNIVERSITY CENTER ON GLOBAL ENERGY POLICY: Well, it's also a question of deciding to attack energy
infrastructure, which largely to this point in the conflict, has not been done by either the Israelis and the Americans or Iran. So this attack on
the Shah field in the UAE is a major escalation. And certainly the way it gets worse is if we see an attack on Kharg Island, which President Trump
has threatened even more so, you know, targeting the energy infrastructure there, the ability for Iran to load its crude and export it and get it
through the Strait of Hormuz.
So we are on an escalation ladder now, and that does make it extremely dangerous, particularly for the two states which have viable pipelines to
avoid the strait, and that's Saudi Arabia and the UAE.
QUEST: There would be -- it would be extraordinary if the -- if the Iranians started attacking the Saudi pipelines. Is that likely?
YOUNG: I don't think so yet but as I said we are on an escalation ladder. And that is really I think for Aramco and the Saudi government the worst
case scenario because right now they're doing a very good job using the east west pipeline. They are kind of pushing it to full capacity and
getting the ports at Yanbu to load more fuel onto tankers. All of this has happened so, so quickly. And really was untested in terms of what that
pipeline could carry. It's always been used, but it's never been, you know, kind of having to do so much duty.
QUEST: Right. Now the other aspect, of course, is those of us who remember Gulf War One will well -- and Kuwait, will remember the oil fields being
set alight at the end and the environmental damage, Red Adair having to go and put them out. Now we are massive away from that. But to hear you speak,
I can draw a line from where we are to that sort of position if existentially it becomes necessary for Iran to do that.
YOUNG: I think Iran only makes that calculation if it is attacked and severely, you know, impedes its own exports first. So let's hope that's not
where things go. But, you know, there is -- there's clearly a different sort of pain tolerance from the combatants. Israel would be, I think, very
comfortable to see Iran in its energy capacity in disarray, much less for the governance of the country to be in disarray.
QUEST: Right.
YOUNG: That's not something the Gulf States are comfortable with and I don't think it's something that the Trump administration really wants. They
want to see Iran as an energy producer. They just want it to be a friendly one.
QUEST: So at the moment, Iran is getting some oil out. Not much. It's getting some of its own oil out.
[16:35:04]
The sanctions aspects are slightly irrelevant because it's going towards China. What do you believe is the potential for Iran to increase its own
energy production and delivery at the cost of others?
YOUNG: Well, right now Iran is the only country in the Gulf getting its oil out. And so, you know, the U.S. could make decisions to interdict tankers
the way they did off the coast of Venezuela. We have not done that yet. I mean, in terms of dramatically increasing production and export, that's
pretty difficult because no one is going to invest in Iran right now. That could happen in the future but it's not going to happen right now.
QUEST: How close are we to the oil -- I know this is this question is how long is a piece of string and what's the weather going to be like in three
months' time. I get that. But, you know, we need to give guidance to everybody. How close are we, do you think, to oil prices escalating out
beyond -- way beyond what we've seen into the 120, 150, 175?
YOUNG: I do think that's possible. But it's all about duration of conflict, the escalation of conflict to energy infrastructure. As we mentioned, you
know, the worst case scenario of hitting that east west pipeline, the pipeline to Fujairah and the UAE, that's what would start sending prices
higher. We've had a little bit of a mismatch in terms of oil pricing versus oil futures pricing. And there's a lot of speculation about why that's
happening.
The actual price increases in oil products, refined products have been sharper. So you're paying, you know, proportionally a lot more right now
for diesel or for jet fuel than you are in terms of the proportion of price of Brent. There's also a lot of variation in, you know, in the kind of
grade of fuel and where it's traded. Those pricings is something very, very messy as well.
QUEST: Which of course is to be expected when you've got such volatile markets in such dislocations.
I'm grateful. Thank you. Putting that into perspective.
YOUNG: Thank you.
QUEST: President Trump is telling European allies the cost of living will soon plummet. He was hosting the Irish taoiseach for St. Patrick's Day. He
said the war with Iran will have long-term benefits.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, I think the people in Ireland are very happy that I'm getting rid of -- I have a lot of friends
from Ireland. They're very happy that I'm getting rid of a nuclear power, a nuclear terrorist, and as soon as that war is over, which will be soon,
your prices are going to drop like a rock. You watch.
(END VIDEO CLIP)
QUEST: In the meantime, Europe is bracing for the oil shock. And that could be inflationary. The ECB will consider it when it meets this week. The RBA
of course in Australia did last week. Most economists expect the ECB will hold rates at 2 percent but that could be in jeopardy. The Dutch economy
grew nearly 2 percent last year despite tariffs and other uncertainties.
Sjoerd Sjoerdsma is the Dutch minister of foreign trade and development. The minister is with me now.
The difficulty is the capriciousness of the administration in Washington makes it almost impossible to go forward with policies, because you just
don't know where you're going to be hit over the head.
SJOERD SJOERDSMA, DUTCH MINISTER OF FOREIGN TRADE AND DEVELOPMENT COOPERATION: Indeed. It's important to reestablish a situation in which
there is at least some sort of sense of stability and predictability. This is also our first worry, I think, when it comes to the current situation in
Iran. I think our first concerns are, of course, with our countrymen who we had to evacuate and repatriate, and the direct economic effects. But
indeed, the say the second order economic effects might even be bigger. So we look at this situation with a lot of worry, and we hope that we'll be
able, through diplomatic means, to come to some sort of de-escalation.
QUEST: Donald Trump wants NATO and European allies to join in. There's just about unanimity, if you're going to have that, from Europe, that they do
not want to at this stage. Can you see that moving or breaking? Can you see Europe deciding to join in?
SJOERDSMA: Well, I'm not going to predict anything I think in the near future because the dynamic seems to be changing every day. But indeed,
European leaders, European ministers of foreign affairs, talking through this request, this issue yesterday. I think we're conclusive and consensual
in the sense that for now they do not see a European role in the Strait of Hormuz but of course that's also why I'm here today in New York, to have
discussions with U.N. officials but also with the U.N. secretary general to see if not -- if it's not possible to open up the Strait of Hormuz
completely, then at least partially for humanitarian goods and fertilizer.
[16:40:10]
QUEST: We've talked about fertilizer on this program quite a lot. So we certainly understand the significance of it, both as a product in its own
right and as a petroleum based necessity. So is anybody listening to the necessities? I mean, I think back to the difficulties of getting fertilizer
products out from Ukraine. Eventually a Black Sea route was able to be constructed. But it took a long time. I don't see in this case people
seeming to be willing.
SJOERDSMA: I'm an optimist. An optimist by duty, of course. But the importance of fertilizer, I think, cannot be overstated. Of course the lack
of fertilizer on the world market means that, for instance, in Europe, prices go up, but we'll still have access to fertilizer. Whereas when it
comes to the global south, it might mean that there will not be fertilizer at all with disastrous consequences, I think, for food production.
So I'm not sure if we have the luxury to be pessimistic I think we have to employ every means possible, including, of course, through the good offices
of the U.N., the good offices of the secretary general of the U.N. to see if at least the safe passage and the free passage of humanitarian goods and
fertilizer might be possible. Indeed, you point out the recent success or the relatively recent success of the Black Sea initiative also supervised
by the U.N., that might provide a blueprint for future action.
But of course, everything depends on the willingness of the main actors in this conflict to facilitate such a move. And this is also why we're here.
And of course, what the main role of the U.N. is to see if they can carve out a role for themselves in this very dangerous and dynamic conflict.
QUEST: Minister, I'm grateful you've taken time from your visit to New York to talk to us tonight on QUEST MEANS BUSINESS. Thank you.
After the break, more of my conversation with London's mayor. Now, I was delighted to tell him this. So this is my freedom pass. It allows me free
travel on the busses and tubes in London. It's one of the mayor's initiatives or one of the local government initiatives. We talked about it
in a moment.
(COMMERCIAL BREAK)
[16:45:02]
QUEST: Sadiq Khan, the mayor of London, says he has a personal relationship with his New York City counterpart, the new mayor, Zohran Mamdani, despite
apparently supporting rival football clubs. Sadiq Khan also explained why major companies are setting up their European headquarters in London, and
he's going for even more.
(BEGIN VIDEOTAPE)
KHAN: Brexit has been bad for London and the U.K., but not as bad as it was feared it would be. London's underlying strengths have meant, actually,
we've suffered the least when you compare other parts of the U.K. and when it comes to, you know, the Bloombergs, the JPMorgan Chases, the Visas,
they're choosing London as the European headquarters.
QUEST: Why?
KHAN: Because, you know, all the underlying strengths are still there in terms of the diversity of London. We aren't just the political capital. We
aren't just the financial capital. We're the cultural capital and the tech capital. We've got a pipeline of talent coming through, but also we're
looking to the future. So we've got growth sectors, A.I., quantum computing, robotics, cultural services, lifestyle. Like great businesses,
we're moving forward.
QUEST: You wrote to Dario Amodei, the CEO of Anthropic, basically saying since you're clearly not welcome by the Department of Defense, War, slash,
that I believe London can provide a stable, proportionate pro-innovation environment in which this kind of A.I. can flourish. A suitably
opportunistic of you, of course, to try and reel him in. Has he replied?
KHAN: Well, we're talking to a number of companies in America. Before I get to, you know, Anthropic, the great news about the last few years is the
amount of great companies coming to London or expanding, whether it's Google, whether it's Apple, most recently JPMorgan Chase, OpenAI have got a
massive new research HQ in London.
And the point I made to Dario was actually you're being punished and intimidated because of having ethical standards on this really important
issue of A.I. I read with interest "The Adolescence of Technology," the great article written by Dario. And the point I make is, look, if you're
not welcome in America, if you're having problems in America, we are an A.I. powerhouse in London. A pipeline of talent, an agglomeration of
sectors. Come to London.
QUEST: Right. But has he replied?
KHAN: I'm not going to talk about conversations we have with people on air, but as soon as we have some good news, you'll be the first I'd speak to.
QUEST: One of the things I was asking people, I knew I was interviewing you, so I was asking people on the plane what they thought about as I flew
over. Everybody loves it here, but sort of worried about petty crime. Phones being snatched. The epidemic of phones being snatched, which seems
to be happening here more than other places. Have you got a handle on that yet?
KHAN: I understand the concern, by the way. But we carry with us these pieces of, you know, have personal photographs, our contacts and so forth.
Good news, we brought phone theft down by a huge amount. We're also speaking to the likes of Apple, Samsung and Google. Why can't they help us
design out the crime? Why can't they have a kill switch so a stolen phone is useless? Or deny access to the Cloud to make a stolen phone absolutely
useless?
We saw with car crime, with car stereos designed out, car crime, you have very few now. Vehicles carrying cash to banks being stolen because that's
been designed out. And similarly, we're saying to the Apples, the Samsungs, the Googles, work with us. We're taking great action on enforcement. Help
us with prevention as well.
QUEST: The U.K. shot itself in the foot on two girls, I would say. One is removing tax free shopping, and the second is APD, which disproportionately
makes London's airports expensive. Even, and I'm not sure the money actually does go where it's supposed to go.
KHAN: I agree with the impact tax free shopping has had in terms of many of our, you know, luxury brands suffering, but also actually London suffers
because if you're somebody who wants to come here for seven days, you're now coming for four or five days because you go to Milan and Paris and buy
goods at 20 percent cheaper than you can in London. So we're lobbying the government.
As Rishi Sunak, the former prime minister, when he was chancellor who made this decision, I think short sighted, because the treasury thought they
could get more moneys in by doing so. I think it's a mistake. In relation to aviation, I'm quite clear. I want aviation to be better, not necessarily
bigger. I want, you know, flights that are more economical, that are fuel efficient. I want to invest in new technology and innovation.
What I don't want is the consequences that flow from, for example, you know, tax policies that incentivize additional flights unnecessary or
incentivize building bigger airports that cause huge problems.
QUEST: Third runway?
KHAN: I'm against a third runway.
QUEST: I'm in favor.
KHAN: I want Heathrow to be better, not bigger. I think the problems with the third runway at Heathrow are a number. Noise pollution, air pollution,
environmental problems. And also I think London can't compete with Dubai. It just can't, or Istanbul, for a variety of reasons. The conurbation where
Heathrow is based but we've got great airports in and around London. Gatwick, Heathrow, City, Luton, Stansted, to name just five.
[16:50:06]
QUEST: It's not -- it's an interesting that New York and London both have mayors of different faiths to the predominant faith. And I do, you know
something? In asking this question, I'm not even sure what the question is. But -- except to say it is an interesting change and one that speaks
volumes to the future.
KHAN: I think, I think it speaks wonders of New Yorkers and I would say Londoners, that they've chosen ethnic minorities, religious minorities, and
both of us had campaigns where there was negativity and anti-Muslim hatred. But both New Yorkers and Londoners came through that.
QUEST: An undercurrent. It's an undercurrent, isn't it?
KHAN: Yes.
QUEST: It's that sort of --
KHAN: Yes.
QUEST: No one ever wants to say it to your face.
KHAN: But that's the joy of New York, the second greatest city in the world.
QUEST: How did you get on with Mamdani?
KHAN: We message and --
QUEST: Oh, you do?
KHAN: I think he's --
QUEST: Oh, come on.
KHAN: I think he's --
QUEST: Tell us the message.
KHAN: I think it's a breath of fresh air. Listen, I'm the mayor of London. We have seven Premier League clubs. I support Liverpool.
QUEST: Well done.
KHAN: Zohran supports Arsenal, which, I mean, I mean, he's young, he's charismatic, he's good looking. I hate him.
QUEST: And finally, thank you for my 60 plus card. My --
KHAN: It's called a freedom pass, which means that anybody above the age of 60 who's a Londoner gets to travel for free on public transport. We call it
a freedom pass because it gives people like Richard freedom, and it gives them dignity. And it means using public transport rather than driving
around in gas guzzling cars.
QUEST: I'm never sure, you know, when I first used it, whether I should have been, oh, I'm 60 plus, but you know something, to hell with it. I'm
proud to use it.
Mr. Mayor, thank you so much.
KHAN: Good to see you, Richard.
(END VIDEOTAPE)
QUEST: And for those viewers who want to know why I'm entitled to a freedom pass, there'll be somebody out there who will say, why has he got one of
those? After all isn't he -- I have a place in London. Simple as that. We'll be back in a moment.
(COMMERCIAL BREAK)
QUEST: The U.S. Secretary of State Marco Rubio says Cuba's economy does not work. The island nation needs new people in charge. It comes as Cuba is
struggling as it continues to deal with and somehow live with this nationwide blackout as a result of the blockade from the United States.
CNN's correspondent there is Patrick Oppmann reporting from Havana.
(BEGIN VIDEOTAPE)
PATRICK OPPMANN, CNN CORRESPONDENT (voice-over): A countrywide blackout. Cuba's entire electrical grid collapsing, plunging millions into darkness.
Officials say there were no immediate faults detected at the time the grid collapsed. As the investigation and repair work continues.
[16:55:04]
The outage comes after weeks of mounting pressure with the United States, cutting off oil supplies to the island. Cuba depends heavily on that fuel
to generate electricity. And without it, the system is buckling. The crisis is taking a hit on daily life.
UNIDENTIFIED MALE (through translator): When it comes to cooking, you have to cook earlier because once night falls, well, you can imagine. The water,
you can't use the pump to get water up to the roof. There are so many things. It generally affects everything. Almost 100 percent of life.
UNIDENTIFIED MALE (through translator): There is no electricity, no food, no oil, no fuel. And private businesses have high prices because everything
is going up now since they have to move their goods by truck and transport. All of this is really very bad.
OPPMANN (voice-over): Frustration is spilling into the streets with protests over food shortages and constant outages. Adding to the crisis,
controversial comments from Donald Trump.
TRUMP: You know, all my life I've been hearing about the United States and Cuba. When will the United States do it? I do believe I'll be the honor of
-- having the honor of taking Cuba. That's a big honor.
OPPMANN (voice-over): Cuban officials firing back, blaming Washington for deepening the crisis through economic sanctions and what they call an oil
blockade. President Miguel Diaz-Canel says the country has not received oil shipments in months, calling the impact, quote, "tremendous."
Diaz-Canel also saying the government will not tolerate acts of, quote, "vandalism." Referring to a violent protest where demonstrators on Saturday
attempted to burn down the Communist Party headquarters in a small town. At least five people were arrested, the government said. Despite small pockets
of power coming back online, much of Cuba remains in the dark. Caught between a collapsing energy system and rising tensions with the United
States.
Patrick Oppmann, CNN, Havana.
(END VIDEOTAPE)
QUEST: "Profitable Moment" after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's "Profitable Moment," we were very grateful and privileged to have tonight Sadiq Khan on the program, the London mayor, who's been
mayor coming up for 10 years in May.
I do wonder sometimes who would want to be mayor of one of the world's great cities with all the problems that they have. Transport, health,
housing. Always on the back foot, always needing to spend more. But London, of course, is gaining to a certain extent because of the Emiratis and a lot
of people from the Gulf who are moving back during the course of the current war. Longer term, of course, the city has enormous challenges
ahead, but it has great vibrancy.
And I think that's what the mayor was keen to talk about tonight. We look forward to hearing it from the mayor of London, Paris, Rome, New York,
they're all welcome in QUEST MEANS BUSINESS, because that is QUEST MEANS BUSINESS for tonight. I'm Richard Quest in London. Whatever you're up to in
the hours ahead, I hope it's profitable. Tomorrow we are in Brussels.
END
