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The Situation Room

White House Holds Press Briefing; Republican Lawmaker Urges DOJ to Prosecute Jack Smith; Trump Speaks Out on Saudi Civilian Nuclear Deal. Aired 11-11:30a ET

Aired July 23, 2026 - 11:00   ET

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

[11:00:03]

WOLF BLITZER, CNN HOST: The second major development, Iranian-backed Houthi militants in Yemen say they have struck two Saudi oil tankers in the Red Sea. Satellite imagery appears to show one ship on fire.

This significant expansion of the conflict has added to global fears over oil supply and is pushing prices to a two-month high right now. This month, Brent crude oil passed $100 a barrel.

And in the last half-hour or so, the U.S. House voted to restrict President Trump's Iran war powers. It's the latest rebuke from Capitol Hill over the conflict.

We have team coverage this morning. CNN's Kevin Liptak is over at the White House just ahead of the briefing. Our Katie Bo Lillis is here in THE SITUATION ROOM with brand-new reporting on the latest bombing campaign in Iran.

Let's go to Kevin first.

Update our viewers what we should expect at this White House briefing.

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: You know, I think Iran is likely to dominate just, given all of the questions that exist now about what exactly President Trump's endgame in this conflict is.

And as he seems to open up a new front against the Houthis. They have enacted this blockade of Saudi shipping. You have seen how the Houthi rebels, which are the Iran-backed group in Yemen, have been attacking oil tankers in the Red Sea, and the president just this morning vowing -- quote -- "major military punishment" if that continues.

And so you see how this war is expanding, even at a moment when it's not at all clear that the president's night-by-night bombing campaign in Iran is working in extracting some of the concessions that he wants to get out of that country.

Now, I think that there will also be some very serious questions about this new stipulation that the president has applied on this Saudi civilian nuclear deal, the president saying today that, in order for that agreement to go into effect, that Saudi Arabia would have to signal a willingness to normalize relations with Israel. That's a condition that was nowhere to be found yesterday when the

deal was signed by the energy secretary, Chris Wright, and his counterpart, and there are reasons to believe that this will pose a major roadblock. The very powerful Saudi crown prince, Mohammed bin Salman, for whom this nuclear deal was a major triumph, has stated very plainly that he will not normalize relations with Israel unless there is a viable pathway to statehood for the Palestinians.

That's something that the Israeli prime minister, Benjamin Netanyahu, says is not at the table at the moment. He said that that could be an untenable risk for Israeli security. And so how all of that gets resolved is unclear, and it's something that I think Karoline Leavitt will be pressed on during her appearance there in the Briefing Room.

When it comes to the Saudi nuclear deal, there was another stipulation as well that I think was important that the president laid out this morning, which is that, in his words, there will be no enrichment of material. He's talking about nuclear enrichment of uranium.

We -- the deal has not been made public, but our understanding from officials yesterday was that this would put in place this multiyear study period to see if it was in fact economically viable for Saudi Arabia to enrich uranium. That had led to concerns, particularly in Israel, that Saudi Arabia could eventually try and build a nuclear weapon, which, in their mind, led to fears that it could create a regional arms race -- Wolf.

BLITZER: All right, Kevin Liptak at the White House.

And we will have live coverage coming up of the White House press conference. Stand by for that.

Right now, I want to bring in CNN's senior reporter Katie Bo.

Katie Bo, you have some new reporting, I take it, on how the U.S. intelligence community views these most recent strikes in Iran?

KATIE BO LILLIS, CNN SENIOR REPORTER: Yes, Wolf, look, the Trump administration really has a Gordian knot on its hands in Iran right now with not a lot of great options.

We learned a couple of really interesting things in reporting this story. One was that both the CIA and the Defense Intelligence Agency both assess broadly that the kind of bombing campaign that the Trump administration has been carrying out for the last nearly two weeks in Iran is unlikely to shift the Iranian negotiating position, particularly as it relates to reopening the strait, its -- Iran's interpretation of who's got control of the strait here.

The other thing that we learned is that the key mediator in between the United States and Iran, Qatar, threatened to walk away from the negotiating table within the last month after Iran struck a Qatari LNG tanker in the Strait of Hormuz.

Qatar very nearly washed -- threatened to wash its hands of the entire sort of mediation, its role as a mediator here, speaking really to just the fragility of the sort of diplomatic process here, the brittleness of any engagement that is still sort of going on behind the scenes to try to bring a negotiated settlement to end the conflict here.

So, it really leaves President Trump with some pretty bad options here, right? Like, he could escalate militarily, which comes with a lot of political risks for a president who promised no new wars, this is going to be over very quickly, right, to try to bring the Iranians to the negotiating table.

[11:05:13]

Or he could accept that this sort of series of basically strikes, counterstrike, strikes, counterstrikes is going to go on indefinitely, and we will see who blinks first. That smells a lot like a forever war -- Wolf.

BLITZER: Yes, sounds like it. We will see what happens.

Katie Bo Lillis, excellent reporting. Thank you...

LILLIS: Thank you.

BLITZER: ... very, very much.

And there are growing concerns, understandably so, inside Israel right now over the new agreement for the United States' companies to build and operate nuclear power plants in Saudi Arabia. But, this morning, the prime minister, Benjamin Netanyahu, his office is applauding the requirement for the Saudis to normalize diplomatic ties, relations with Israel.

CNN's Jerusalem bureau chief Oren Liebermann is here in THE SITUATION ROOM. He's in Washington right now.

What are you hearing from the Israeli prime minister's office specifically about this Saudi deal?

OREN LIEBERMANN, CNN JERUSALEM BUREAU CHIEF: Wolf, what's noteworthy about the statement from Prime Minister Benjamin Netanyahu's office is it only came after the initial reports of the deal.

Now, other Israeli politicians had openly criticized the agreement between the U.S. and Saudi when it comes to a nuclear arrangement, saying it's a strategic threat to Israel and one on which the prime minister's office and Israel as a country was sidelined in the decision-making process, even though Israeli sources have told us that they were aware that the U.S. and Saudi were reaching this deal.

Now that President Donald Trump has put in this requirement that Saudi first join the Abraham Accords and normalize relations with Israel, we see a statement from Netanyahu effectively applauding that requirement.

His office said only hours after Trump put out that requirement: "As President Trump has said, Saudi Arabia's joining of the Abraham Accords would be an historic leap forward for peace in the Middle East."

No doubt it would be. But, as Kevin pointed out, Saudi has made very clear they're not normalizing relations with Israel until there's a viable path forward to a Palestinian state. And Netanyahu has outright rejected that. This appears to be Trump trying to find some way to move the Abraham Accords forward to expand regional normalization and try to short-circuit or blatantly cut out the Saudi requirement for a viable Palestinian state.

BLITZER: We will see what happens.

The Israeli elections are coming up in October, and Netanyahu is running for reelection. But how viable is the possibility that he could be defeated?

LIEBERMANN: He's trailing in polling, in repeated polling. He's actually trailing by quite a lot. He needs, in Israel's Parliament, 61 seats. He's between 49 and 52. That is a long way short in Israeli politics.

And, certainly, this normalization deal, if it happens between Israel and Saudi, would be very clearly viewed as a political gift from Trump to Netanyahu. The question is, after three years of war, are too many minds made up?

BLITZER: A hundred and twenty members of the Israeli Knesset, the Parliament, you need 61, majority, to be elected prime minister. We will see if he gets close to that or someone else emerges.

Is there someone else who possibly could emerge, someone more open to what's called a two-state solution, Israel living alongside a new Palestinian state?

LIEBERMANN: One of the key things to realize when we look at the election, which is exactly one week before the midterms, is that's just not a big issue in Israeli politics.

There's only one Israeli party that has said, we support a two-state solution. That's the left-wing Democrats Party. For most of Israel's political spectrum, it's simply not a major issue, especially after October 7. It is something on which many Israelis have turned away from, the possibility of it.

Trump has weighed in on this. He said there won't be Israeli annexation of the occupied West Bank. There won't be annexation of Gaza. And his 20-point Gaza cease-fire deal puts forward a pathway towards a Palestinian state led by a reformed Palestinian Authority.

But aside from those words on paper, the administration hasn't done anything to really push forward to get to that point.

BLITZER: I also want to ask you, Oren, while you're here in Washington about the rise in settler violence out on the West Bank.

According to an indictment filed just yesterday, one Israeli settler was charged after an attack on journalists, including, as we all know, a CNN team in the occupied West Bank earlier this month. Three other suspects remain under investigation. How serious is of a problem is this right now?

We all remember when Jeremy Diamond and our CNN crew were attacked by these settlers.

LIEBERMANN: It is a very serious and an ongoing problem.

What's noteworthy in this case is that we have seen accountability. Immediately after the attack on our team, Jeremy Diamond, Zeena Saifi, and Cyril Theophilos, we saw four arrested. We have now seen the first of those charged, identified in the indictment as Yitzhak Yissachar Holtzman, a 22-year-old.

We are waiting as the other three remain under investigation. Netanyahu has, including in the interview with our Dana Bash several weeks ago, tried to play this off as a group of juvenile delinquents. But, first, only one of those arrested, according to police, was a juvenile.

[11:10:00]

And, second, if that's really the case, then why is it so hard apparently for the Israeli government to stop what we have seen as a wave of ongoing settler violence across the West Bank?

BLITZER: All right, Oren Liebermann, good to have you back in Washington, I know just for a few days. You will be heading back to Israel pretty soon. Great to see you. Thanks very much for coming in.

LIEBERMANN: Always.

BLITZER: And still ahead: an exclusive new CNN investigation, 18 days in Minnesota, our brand-new reporting about the deaths of two Americans, Renee Good and Alex Pretti, at the hands of federal agents and the aftermath.

And what we're learning about a renewed effort right now to prosecute Jack Smith, who once prosecuted President Trump.

And we're still waiting for the White House press briefing to get under way. We will bring that to you as soon as it begins.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

[11:15:27]

BLITZER: You're looking at live pictures right now coming out of the White House Briefing Room.

The press secretary, Karoline Leavitt, is getting ready to hold a full-scale news conference at any moment now. It's happening as the war in Iran continues to escalate dramatically, and as the president is revealing new conditions on the new Saudi nuclear deal. We're going to have live coverage of that as soon as it begins. Stand by.

Also, right now, the House minority leader Hakeem Jeffries, is holding his weekly news conference. We're monitoring that as well. We will bring you any updates as they emerge.

And happening now: The chairman of the House Judiciary Committee, Jim Jordan, is asking the U.S. Justice Department to consider prosecuting Jack Smith. The Ohio Republican claims the former special counsel misled the panel about his investigation of Trump's response to his election loss back in 2020.

Let's discuss this and more with CNN senior legal analyst the former assistant U.S. attorney Elie Honig.

Elie, thanks so much for joining us.

Congressman Jordan is accusing Smith of taking steps to -- quote -- "spy on members of Congress," claiming he made -- quote -- "half- truths" -- end quote -- during his deposition about phone records that were obtained as part of the investigation to try to overturn the 2020 presidential election.

Do you think there's enough here for a criminal charge to be filed against Jack Smith?

ELIE HONIG, CNN SENIOR LEGAL ANALYST: I do not think there's enough to file a criminal charge here, Wolf, or at least to get a conviction on a criminal charge. You never know who's going to try to charge something.

And here's why. It's important to understand there are two separate batches of documents at issue here. The first batch is a set of toll records that Jack Smith obtained by subpoena of House members. And those records simply show what phone number called what phone number, on what date, and for how long they talk.

It does not have the substance of any communications. Now, in his testimony, Jack Smith was asked, in those records, did you see the substance of any text messages? And Jack Smith answered truthfully, no, because they would not have the substance of text messages.

Separately, there's a second batch of documents that Jack Smith got from the Archives that does show and include some text messages sent to or from members of Congress. But the thing is, Jack Smith was not asked about that second batch.

And so the answer he gave that he did not see the substance of text messages in that first batch was technically true. Maybe it was incomplete, maybe it was a half-truth, as Jim Jordan says, but a half- truth is not perjury. You're not going to get a conviction based on that.

BLITZER: What legal effect, Elie, does a criminal referral, a criminal referral, actually have?

HONIG: The short answer is none legally. People make criminal referrals to DOJ all the time. DOJ receives criminal referrals all the time. DOJ does not need a criminal referral in order to open up a case. A criminal referral does not require DOJ to open up a case.

However, I think we have to take notice this is coming from the House Republicans. It's coming from Congress. And so DOJ is naturally going to take a referral from Congress more seriously than it might from just an ordinary civilian.

And DOJ has already acknowledged receipt of the referral. They have already shown publicly that they're interested in investigating Jack Smith. So I think this would just fuel any ongoing investigation they have.

BLITZER: Earlier this morning, as you know, President Trump posted on social media about Chairman Jordan's move, asking -- and I'm quoting now -- "Justice at last???"

If the Department of Justice proceeds with a criminal prosecution, Elie, can Smith's lawyers claim a vindictive prosecution based on what the president actually wrote today?

HONIG: That's exactly what Jack Smith's lawyers would claim if there comes a day where he gets indicted. And we have seen similar arguments made in the prosecutions of Letitia James, of Jim Comey. In fact, the prosecution of Kilmar Abrego Garcia was dismissed by a judge on this basis of vindictive prosecution.

And what Jack Smith's lawyers would argue in this hypothetical is, this is a prosecution because the president has personal animus, personal dislike for Jack Smith. And if you want more proof of that, they would say, just look at this morning's TRUTH Social posting.

BLITZER: Elie Honig, thanks very much, as always, for the expertise.

HONIG: Thanks, Wolf.

BLITZER: I want to go live right now to Hakeem Jeffries, the Democratic House leader. He's speaking about the midterm elections.

(JOINED IN PROGRESS)

REP. HAKEEM JEFFRIES (D-NY): ... spending agreement in September.

We're not down with the my-way-or-the-highway Republican approach. That has gotten them nowhere. And I don't know why they continue to go back to that playbook. Even John Thune has said, with respect to the Republican continuing resolution related to the upcoming fiscal year, that that spending bill is dead on arrival in the Senate.

[11:20:12]

Chuck Schumer didn't say that exclusively. John Thune did. So Mike Johnson and House Republicans, they're not even on the same page with members of their own party. The my-way-or-the-highway Republican approach will continue to crash and burn. It will fail. And so our view is, the appropriators should sit down, led by Rosa

DeLauro on our side, and enter into a bipartisan conversation about reaching an agreement that is actually designed to meet the needs of the American people.

And if that can't be done in advance of September 30, then we should enter into a bipartisan continuing resolution that gives the appropriators the space to actually enact a spending bill at some point prior to the end of this calendar year that lifts up the health, the safety, and the economic well-being of the American people.

QUESTION: ... messaging for the August district work period? Can you share what was told to members in that (OFF-MIKE)

JEFFRIES: Well, I'm thankful for all of the work that's been done by the Democratic Policy and Communications Committee.

On Sunday, we will be launching an effort connected to our commitment to fight for an affordable America and have 100 days of action, beginning this Sunday, July 26, making clear to the American people that we're focused on lowering the cost of groceries and gas and housing.

We're committed to a country that provides affordable health care for every American. And we also are committed as Democrats to hold the crooks accountable who've been robbing the American people blind. And that includes a whole lot of folks in this town and folks across the country.

BLITZER: All right, we're going to continue to monitor the Hakeem Jeffries news conference up on Capitol Hill. We're also still waiting for the start of the White House news briefing to get under way. That will begin shortly, we are now told, as this war with Iran is clearly escalating.

There will be a lot of questions on the war and other sensitive issues. We will be right back.

(COMMERCIAL BREAK)

BLITZER: Karoline Leavitt, the White House press secretary, has just started this press conference. Let's listen in.

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[11:25:01]

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: ... all of you, members of the media.

The president looks forward to finishing what he started before a despicable assassination attempt derailed the original event back in April, as we all know. And I encourage everyone watching tomorrow night to tune in for what promises to be a very entertaining and memorable evening. Looking ahead to next week, on Monday, President Trump will travel to

Michigan to deliver remarks on the economy. On Tuesday afternoon, the president will deliver a tribute honoring the life and legacy of his dear friend Senator Lindsey Graham at the National Cathedral.

And next Friday, the president will host the 13th Cabinet meeting of this term -- of this term at Camp David, which will be a lot of fun and something different for the Cabinet to experience together.

Turning now to the economy, a little more than a year after President Trump signed the Working Families Tax Cuts into law, this historic legislation continues to deliver on its promise, unleashing a genuine boom for American workers, families, and small businesses.

The numbers speak for themselves. This was the biggest tax refund season in American history, with the average refund exceeding $3,400, an 11 percent increase over the last year. American families and workers claimed $82 billion in direct tax relief, and 97 percent of filers received a tax cut.

More than 29 million workers claim no tax on overtime. More than 35 million seniors claimed no tax on Social Security, and nearly eight million workers claimed no tax on tips. Thanks to the other pro-growth provisions in the Working Families Tax Cuts, like making the 20 percent small business tax deduction permanent and delivering 100 percent expensing for new factories, equipment, and research, the Trump administration is setting up American manufacturers and workers to thrive like never before.

Just this week, the National Association of Manufacturers, which is the largest manufacturing association in the country, released a detailed report showing exactly how these tax cuts are driving investment, job creation, innovation, and long-term growth in all 50 states.

In fact, I'd like to take a moment to highlight just a few of the real American businesses that this law is helping. Pivot Manufacturing in Arizona made the largest equipment purchase in company history after the Trump tax cuts gave them the long-term certainty to invest with confidence.

Winton Machine Company in Georgia is on pace for the best year in its history. Ketchie Inc. in North Carolina was able to purchase new machinery and expand its work force by 25 percent. And Jergens in Ohio expanded its brand-new facility to increase production. And they're also paying their workers even more thanks to the no tax on overtime provision.

These are not just great statistics. These are American businesses with the confidence to grow, hire, and invest right here at home, rather than offshoring their jobs. And a business opening or expanding in this country means more opportunity and higher wages for American workers.

It means a chance for the American dream for young families, and it means restoring the belief that we can make and build things right here at home. This is what President Trump promised, and it's exactly what he is delivering with the help of Republicans in Congress.

Democrats throw around the word affordability a lot, but when they had the chance to vote for the largest middle-class tax cuts in history, they refused. If Democrats got their way, it would have meant the largest tax increase in history, $4 trillion; 90 percent of Americans would have seen their taxes go up, and it would have been a complete disaster for our economy.

That's the Democrat solution to -- quote -- "affordability." It is raising your taxes. So I hope the press will cover more of the massive success stories resulting from the Working Families Tax Cuts and point out that every single Democrat on Capitol Hill voted against every single commonsense provision that put more money back into the pockets of the American people.

Finally, on the energy front, after this briefing, President Trump will participate in a historic Ratepayer Protection Pledge event at the EPA headquarters down the street. The president will expand the Ratepayer Protection Pledge to governors, state legislatures, developers, and power providers to ensure that everyone involved in building and powering data centers pays their own way, instead of passing those costs on to hardworking families.

The president will be joined by Energy Secretary Chris Wright, EPA Administrator Lee Zeldin, and several governors who have already signed on to this pledge. And it has already proven to be remarkably successful. Nearly 200 additional stakeholders have signed on since it was first announced, including utilities, data center developers, public power authorities, co-ops, and state governors.

As a result, the pledge now covers 80 percent of all the power delivered to American homes and businesses. President Trump's bold leadership is turning data centers from a source of concern into engines of growth and opportunity for communities across this country, all while cementing America's dominance over China in the global A.I. race.