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What We Know with Max Foster
Pakistan On Peace Talks: "This Is A Make-Or-Break Moment"; Trump Threatens Renewed Assault On Iran If Talks Fail; Vance: U.S. Will Extend Hand If Iran Negotiates In Good Faith; Lebanon: Death Toll From Wednesday Strikes Tops 350; Artemis II Astronauts Prepare For Risky Reentry; Surge In Gas Prices Pushes U.S. Inflation Higher. Aired 3-4p ET
Aired April 10, 2026 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[15:00:28]
ISA SOARES, CNN HOST: The moment of truth for peace talks on Iran.
I'm Isa Soares, in for Max Foster. This is WHAT WE KNOW.
Pakistan's prime minister calls it a make-or-break moment to achieve a permanent ceasefire. Negotiators from the U.S. and Iran are expected to
meet in Islamabad hours from now amid, as you can imagine, tight security. There are still deep divisions over the way forward, with a key Iranian
official saying talks can't even begin until two conditions are met. That's the release of Iran's blocked assets and a ceasefire in Lebanon.
U.S. President Donald Trump is turning up the pressure in the meantime, warning that warships are ready to strike Iran again if the talks fail. He
also wrote on social media this, as you can see, Iran has no cards and, quote, "The only reason they're alive today is to negotiate."
Mr. Trump's vice president, meantime, is leading the U.S. delegation. J.D. Vance sounded cautiously optimistic before leaving for Islamabad.
(BEGIN VIDEO CLIP)
J.D. VANCE, VICE PRESIDENT OF THE UNITED STATES: If the Iranians are willing to negotiate in good faith, we're certainly willing to extend the
open hand. If they're going to try to play us, then they're going to find that the negotiating team is not that receptive. So we're going to try to
have a positive negotiation. The president has gave us some pretty clear guidelines, and we're going to see.
(END VIDEO CLIP)
SOARES: We'll be live in Islamabad with our Nic Robertson just a moment.
Meanwhile, amid the fragile ceasefire, talks are ongoing in Lebanon. Hezbollah launched fresh attacks on Israeli soldiers and an Israeli border
down on Friday. This follows a major wave of strikes from Israel this week, which Lebanon says killed more than 350 people.
UNICEF is warning Israel strikes against Hezbollah in Lebanon are taking a devastating and inhumane toll on civilians and in particular, children.
Our Nada Bashir visited a Beirut hospital and spoke with some of those affected.
(BEGIN VIDEOTAPE)
NADA BASHIR, CNN INTERNATIONAL CORRESPONDENT (voice-over): The pained cries of one of Lebanon's youngest casualties. She was injured after an Israeli
airstrike hit a college in Beirut, where she and her family had been sheltering. We're not identifying them as they've requested privacy.
BASHIR: This little girl is one of the hundreds of wounded patients that were brought into hospitals across Beirut following Wednesday's devastating
attack on the city, but her mother considers her one of the lucky ones. She was able to survive the attack, but there were more than 300 who were
killed.
UNIDENTIFIED FEMALE (through translator): When I heard the first strike, I ran out screaming, my daughter, my daughter. I couldn't see anything. Just
black everywhere, I could hear her voice. She was calling for me, "Mama, mama."
I was digging through the debris with my hands. I could just see her face, her head. I pulled her out with my hands and carried her. I was in shock.
BASHIR (voice-over): At just three years old, her daughter has now lived through two wars between Israel and Lebanon. Israel claims it is targeting
Hezbollah forces, but across the country, civilians are paying a heavy price.
UNIDENTIFIED FEMALE (through translator): What have our children done to deserve this? What have they done? Why should my daughter have to cover her
ears for fear of the sound when she goes to sleep?
BASHIR (voice-over): Doctors and nurses here at the Makassed Hospital say they were inundated with casualties. Civilians, they tell us, poured into
the hospital, many of them in a critical condition.
SABEEN ABOU AWDEH, EMERGENCY ROOM MANAGER, MAKASSED GENERAL HOSPITAL: There were like very, very bad injuries. And of course, our own psychological
needs were not met as well. We had no time to see if our parents are okay. We didn't know where the blasts were. It was all over Lebanon.
There's no place safe anymore. Like the last war, there were no targets. Now we don't know where -- where there's going to be a bombing.
BASHIR (voice-over): Nurse Sabeen Abou Awdeh has reason to be fearful. The military has accused Hezbollah forces of using ambulances for cover,
warning that they too could be targeted.
And now an expanded evacuation warning in southern Beirut has placed the nearby Rafik Hariri University Hospital in the line of fire. Doctors here
say they have received dozens of bodies, many of them still waiting to be identified by their inconsolable families.
Mohammed Nasreddine (ph) tells me his friend Abbas was killed in a strike which hit a local grocery store. He was just 19.
UNIDENTIFIED MALE (through translator): We pulled him out from beneath the rubble. We only found him today. He was under the rubble since Wednesday.
[15:05:02]
Now, he's a martyr. What can we do?
BASHIR (voice-over): Nada Bashir, CNN, in Beirut.
(END VIDEOTAPE)
SOARES: We're going to leave Beirut, Lebanon, for just a moment and turn our attention to Israel, because new polls are showing, most Israelis do
not believe the U.S. and Israel won the war against Iran. The series of polls taken by three sources also found that more than half of Israel
opposes the U.S.-led ceasefire and wants to continue the war against Iran.
The results may represent a challenge for Prime Minister Benjamin Netanyahu this election year, of course, as he has repeatedly tried to portray
victory over Iran.
Meanwhile, British Prime Minister Keir Starmer has spoken with U.S. President Trump about the ceasefire. Speaking at Qatar, Mr. Starmer said he
told Mr. Trump that nations in the Gulf must be involved if the truce is going to hold and a plan will be needed for the Strait of Hormuz.
(BEGIN VIDEO CLIP)
KEIR STARMER, BRITISH PRIME MINISTER: We spent most of the time on the call talking about the practical plan that's going to be needed to get
navigation through the strait and the role that the U.K. is playing for a couple of weeks now, we've been pulling together a coalition of countries,
now over 30 countries, working on a political and diplomatic plan, but also looking at military capabilities and actually the logistics of actually
moving vessels through the strait.
(END VIDEO CLIP)
SOARES: Keir Starmer there. So, let's pull all these strands together for you.
Our Nic Robertson is following developments for us from Islamabad.
So, Nic, you know, as we've just outlined there right from the beginning of the show in the last six minutes, it does seem that both sides are indeed a
galaxy apart. What are the chances that anything, something will come out of this? Lay it out for us.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yeah. You know, a galaxy apart, mistrust deeper than it's ever been. Yet here they are, both
sides on their way into Islamabad for talks. That's a positive.
The perspective from here is that U.S. Vice President J.D. Vance can play and has been playing a very constructive diplomatic role, and certainly
talking to sources in the Gulf, the Iranians didn't want to deal with Steve Witkoff, Jared Kushner again because of a breakdown in trust, because
they've been talking to them before the war, then the war. So the sort of diplomatic level has gone up a diplomatic level, if you will. You have the
speaker of the Iranian parliament coming. You have the Iranian foreign minister coming. These seem to be the top diplomats that the White House is
putting their faith and trust in conversations with at the moment.
So, I think there's a starting point here, right? They're on their way. They're going to be in the same building. They might not be in the same
room. So, the opportunity is there. Now, Iran's demanding that Lebanon be included as part of the ceasefire. Israel stop its strikes against Iranian
proxy Hezbollah inside Lebanon, that Iran wants to get some of its frozen assets released.
So, there are ways that confidence can be built. But let's say you can get to a scenario and this is a massive diplomatic lift. It's not just what
happens here on Saturday, but it's the -- it's the trips like Keir Starmer, it's the trips like the French president, Emmanuel Macron. It's all the
diplomatic flurry of phone calls that have been ringing around the Gulf and Europe over the past couple of days, to -- if there is a ceasefire, how do
you manage getting all that, all those tankers out of the Strait of Hormuz and how do you secure it going forward?
Let's say Iran gets some of the things that it wants like this, these frozen assets that it does comply and open the Straits of Hormuz. Then
maintaining that. So, there are pieces of a complex diplomatic and, logistical jigsaw puzzle that are being sort of prepared, talked about,
ahead of, ahead of whatever comes out of the talks in Islamabad. If Islamabad is a success, if the talks can deliver on a number of the points
that Iran wants, then -- then you can begin to see how the tensions can go down.
But at the moment, the lack of trust, the differences are huge. But again, it's -- it is something of a win to be having both sides coming in at a top
level for talks. That's a plus.
SOARES: Indeed, a plus -- you know, pat on the back really to the Pakistani side. And I know that Pakistan's prime minister said that this is a make or
break moment, Nic.
This is, of course, as both sides put pressure, continued pressure on social media. We heard President Trump saying that Iranians have no cards.
And then he said in the same sentence, other than a short-term extortion of the world by using international waterways. And it does seem that the
Strait of Hormuz is one of the key areas, is the most contentious right now.
[15:10:05]
ROBERTSON: Yeah. And absolutely. Iran has figured out, you know, in previous years, everyone put their ships backwards and forwards through the
Straits of Hormuz, Iran would occasionally use it as a pressure point. It's done that, you know, multiple fold this time to the point that its
realized. It can -- it can, you know, charge a fee, millions of dollars for tankers to get in and out of the Strait of Hormuz. It's monetized. The
Strait of Hormuz. There's -- there's a perception in the Gulf region.
And I think it's probably fair to say here too, that Iran feels that it could withstand more attacks from the United States, that it could just
hunker down. It's a big country. It has strategic depth. Not everything can be hit and destroyed, at least not quickly, that Iran feels.
And I think if we looked at what Iran was targeting in terms of key oil infrastructure, the Saudi East-West pipeline, the gas oil pipeline, hugely
important, strategically important targeted that Wednesday after the ceasefire, along with other key infrastructure in the Gulf. Iran was
signaling there that it has the capability to continue the fight. And there are assessments that say it still maintains perhaps about a third of its
drone stockpile, perhaps about half of its ballistic missile stockpile.
So, from an Iranian perspective, they come into this not, as the White House describes it, as beaten, begging for a ceasefire, but coming into it
feeling that they could withstand more and could deliver more punches themselves.
SOARES: Yeah.
ROBERTSON: So, you know, how quickly their demands are met or not met, will be key to determining the longevity of the talks and the strength of any
agreements.
SOARES: Yeah. Iran going into these talks was somewhat of a strategic leverage. That is clear.
Nic, good to see you. Thank you very much indeed. Nic Robertson for us there in Islamabad, in Pakistan.
Well, we are counting down for you to welcome home those four astronauts who circled the moon. The Artemis II crew is about five hours from
splashdown in the Pacific Ocean, just off the coast of San Diego, California.
I believe these are live images. Correct me if I'm wrong, Tom. I just asked our producer. These are live images.
They will hit the Earth's atmosphere at speeds so fast, by the way, they could travel from New York to Tokyo in less than 20 minutes.
It is the most dangerous part of the mission, with the Orion spacecraft subjected to temperatures twice as hot, by the way, as the molten lava that
comes out of a volcano.
I want to give you a sort of timeline of how it all works. Just to put it into perspective, about 30 minutes before splashdown, the crew will fire
their engines a final time to make sure they're on the right course. They will then enter the earth's atmosphere about 20 minutes later, at 7:53,
roughly, p.m., that is Eastern Time.
And the friction of that causes so much heat that Artemis will lose contact with mission control for about six minutes. That's a long period of time.
Ten minutes later, the craft will have slowed a bit and can begin to deploy its parachutes to really slow it down. At 8:07 p.m. Eastern Time, five
hours from now, splashdown should happen. The navy will deploy helicopters to pick the crew up, a process that should take about one hour.
And the process of getting the astronauts back to Earth is a dangerous one. The friction from the spacecraft racing through the atmosphere will quite
literally turn Orion, as you can see there, into fireball, a specially designed heat shield attached to the bottom of the craft is supposed to
absorb that energy. But there were problems during it with Artemis I space missions. So, NASA reconfigured the heat shield for Artemis II.
What we don't know is how exactly has NASA worked to make their reentry safe.
Joining me now is Danny Olivas, a former NASA astronaut who worked on the independent review into the heat shield issues facing Artemis I.
Danny, good to have you on the show. Look, it's interesting because we're looking at live images from inside. Of course, the capsule and the
preparations are underway. It takes me back to what I heard from -- from Victor Glover just about yesterday, he was talking about reentry, how much
he's played on his mind for years.
And he explained the risk, right? He said he was riding like a fireball through the atmosphere, just explain for us what that moment would be like.
I know you flew multiple space shuttle missions, including Artemis I.
Tell us how they are preparing as we look at these live images from inside the capsule.
DANNY OLIVAS, FORMER NASA ASTRONAUT: So, the crew is going to be preparing as if they're, you know, they would normally be prepared coming back from
any mission. The -- they are battening everything down to make sure that there's not a lot of loose equipment inside the crew compartment during the
entry phase because it can be dynamic. They're also getting the systems ready. You talked about the engines that were needed to be fired in order
to be able to get the right trajectory coming in.
[15:15:01]
This is all vitally important and including the parachutes, you know, arming those parachutes so that they deploy on time as prescribed. There's
nominal procedures, which everything should happen on its own. But then there's also backup procedures in the event that something doesn't happen
on time, the crew will be spring loaded and ready to actuate whatever actions they need to in order to be able to make sure that the vehicle
comes down safely.
SOARES: Is this -- would you consider this, Danny, one of the most dangerous parts of the mission?
OLIVAS: So, for Artemis II, I definitely would say this is probably the biggest risk. Now, I will tell you though, that NASA has mitigated that
risk. On Artemis I, as you mentioned earlier --
SOARES: Yeah.
OLIVAS: -- they flew a trajectory which ultimately compromised the heat shield in a way that NASA did not expect. And they, in this trajectory,
they have modified that. They -- what they did initially with Artemis I was perform what's called a skip maneuver, which allowed them to skip off the
atmosphere the way you would skip a stone off of the -- off of a lake, and reenter a second time.
This time, they're going to be coming a more direct path where they will be entering and then will be performing essentially a loft. So, it's a
modified skip. It's very -- a much lower energy. It has lower down range, which means that you can actually move, you can't really go as far down
range as you could with Artemis I, but that's all been planned for, currently everything is going on schedule on track. The launch was great.
The return looks great right now. The vehicle is in good shape, so it should be a nominal entry.
SOARES: And, Danny, you know, I was -- I was hearing from our correspondent who was talking about the heat shield and how it's being changed and
transformed compared to that heat shield. And Artemis I, you know all about it.
How have they improved that? Can you speak to that? Because we saw some footage that showed really the -- what the Artemis I looked like,
previously.
OLIVAS: Right. So for Artemis II, NASA elected to remain with the same material, the same manufacturing technique, primarily because the system
was already built and there's a -- there was a number of other liens that prevented them from being able to easily remove the existing heat shield
and put on the modified heat shield or the new heat shield.
The new heat shield essentially doesn't allow for gas to remain trapped within -- within the bulk of the material. And that's what got -- that's
what made Artemis I an off nominal performance is that the density of the material or the permeability of the material, was not enough to allow for
gas to escape during the process of heating it up.
And so, with the modification, they've done plenty of testing in order to be able to determine that Artemis III is on track to have a new heat
shield. The heat shield is on Artemis II. The way that they've mitigated that risk because they have the same material is that they have changed the
entry profile. So that was the other factor is the heat.
SOARES: Danny, thank you so much for explaining all this for us. It makes such a difference, of course, as we watch this historic moment, which and,
of course, all the very best of luck, from NASA astronaut Danny Olivas. Thank you very much indeed.
OLIVAS: (INAUDIBLE).
SOARES: And coming up right here on the show -- you're very welcome. Confidence is at a record low. The war in Iran is causing serious economic
trouble in the United States, and consumers are far from happy, as you can expect.
(COMMERCIAL BREAK)
[15:21:43]
SOARES: Next week, CNN marks My Freedom Day shining a light on the fight against modern day slavery. And today, we're bringing you the story of one
woman who was trafficked and exploited as a teenager. But her life changed when she was finally rescued.
Now, she's helping other survivors find their path.
Our Hanako Montgomery has Kat's story for you.
(BEGIN VIDEOTAPE)
HANAKO MONTGOMERY, CNN CORRESPONDENT (voice-over): Behind the simmering pot of noodles, with her mother in law beside her, Kat's days are filled with
the joy of cooking and the pride of supporting her family.
KAT, HUMAN TRAFFICKING SURVIVOR (through translator): These are the egg tarts I made at home.
MONTGOMERY (voice-over): But for Kat, a name she chose for her privacy, her journey to this point began in circumstances no child should ever face.
When Kat was just 15, she was staying with an older friend she trusted. She tells us that friend trafficked her and recruited other girls. At the time,
Kat was desperate to find money to fix a broken motorbike and didn't realize what kind of work she was being lured into.
KAT (through translator): I thought we were going to a party or something. Then when a group of men walked in, I started to become suspicious. I was
afraid, shocked and sad.
MONTGOMERY (voice-over): For nine months, she was exploited. Eventually, Thai anti-trafficking police rescued Kat.
She later came to Freedom Home, a safe space where she could receive deeper care and develop skills to build a better future.
The CEO and co-founder of The Exodus Road, Laura Parker, says when Kat first came to freedom home, she was looking for the best way forward to
provide for herself.
LAURA PARKER, CEO AND CO-FOUNDER, THE EXODUS ROAD: Economic sustainability and the ability for a survivor to be able to provide meaningful income and
a dignified job is so critical. And that was one of the biggest things that she needed.
MONTGOMERY (voice-over): At the shelter, Kat found stability and opportunity and completed vocational training before graduating from
technical college, specializing in baking.
KAT (through translator): When I started baking, it helped me relax and let go. I don't overthink.
MONTGOMERY (voice-over): Today, she sells her own baked goods and helps run a noodle shop, earning enough to support her small family.
KAT (through translator): I'm proud of myself that I've come this far. I feel much more grown up.
MONTGOMERY (voice-over): Kat continues to lead, mentoring other survivors and encouraging them to pursue their dreams.
PARKER: They trust her because in so many ways, she has been where they currently are, and there's nothing like that sisterhood of survivorship.
The investments and the connection and the inspiration that one survivor can give to another survivor is absolutely unmatched.
KAT (through translator): I want them to have hope and push themselves to the highest possible point. I want them to fight.
MONTGOMERY (voice-over): From exploitation to empowerment, Kat story shows that a life once defined by abuse can heal towards safety.
KAT (through translator): My name is Kat. I'm 20 years old. I'm a baker, a mother, and a graduate from the Freedom Home.
MONTGOMERY (voice-over): Hanako Montgomery, CNN.
(END VIDEOTAPE)
SOARES: And coming up on Wednesday, April 15th, join CNN for My Freedom Day, a student driven worldwide event to raise awareness of modern day
slavery. Follow the #myfreedomday on social media and check out CNN.com/myfreedomday.
We're going to take a moment. Back after this.
(COMMERCIAL BREAK)
[15:28:34]
SOARES: Welcome back, everyone.
We have been talking to you throughout this hour about the dangerous process of getting those four Artemis astronauts back on Earth. They will
be traveling at 30 times the speed of sound in a spacecraft that will get so hot it lights up, as we've been showing you, like a fireball.
Let's get more on this. Elex Michaelson is in San Diego for us. Randi Kaye at mission control, the Johnson Space Center in Houston, Texas.
I think we have Elex. Do we have him? Elex, are you -- can you hear us?
ELEX MICHAELSON, CNN CORRESPONDENT: We can do something at 1:15 or --
SOARES: I don't think we've got him.
So whilst we try to fix his shot and see if we can connect with him, let me go to Randi Kaye, because, Randi, you and I were speaking the previous
hours and we have been looking at these fantastic images coming to us from inside the space capsule. Talk to us about how they are preparing, of
course, for this moment, because I imagine there's a lot of excitement, but there's also a lot of tension. As I was hearing from one astronaut, this is
the most dangerous part of the mission.
RANDI KAYE, CNN CORRESPONDENT: Yeah, certainly one of the most risky moments of the mission of any -- of any mission, really. But they are
preparing today by doing a -- what they call an RTC burn. So they were able to do that burn. That helps them sort of pinpoint their location, because
it's really important that they come in at the right angle and that they hit the Pacific Ocean in the right spot, so the navy can come get them.
They've also been rearranging the cabin, reconfiguring it to make sure that everything is stowed where it needs to be, and that their seats are set up
the right way for reentry.
Now, reentry starts at 7:53 p.m.
[15:30:00]
They will reenter the Earth's atmosphere. This is where it gets tricky because the heat outside the capsule will be about 5,000 degrees. There is
a heat shield that's on that. That's supposed to protect the astronauts and the capsule from this extreme heat.
But with Artemis I, when it landed in 2022, they found that there were big chunks of the heat shield that had actually come off, and there were some
cracking. So, this is the same type of heat shield that's on Artemis II. So they are taking it in at a new trajectory a new angle. So that's why
they're trying to pinpoint that with that burn. They want to make sure that it comes in right, because they think that that will help prevent any major
cracking or any major problems with the heat shield.
So there are about 13 minutes between the reentry and splashdown. And in those 13 minutes, Isa, this is where mission control here in Houston is
actually going to lose contact for about six minutes with the astronauts with that capsule. So that's -- that is a high anxiety, six minutes or so.
And then they will make contact again just before splashdown.
SOARES: Randi, do stay with us. Let me go to Elex Michaelson. I think we've got him. Yes, we've got him.
Elex, great to see you.
Look, splashdown, what? Less than five hours away or so. And quite frankly, you've got the best spot, my friend, to see astronauts arriving home. Give
us a sense of the preparations, what you've been seeing, and speak to the excitement, too.
MICHAELSON: Yeah, it's very exciting. We are at the naval base here in San Diego, and this is where the ship that's going to get the astronauts is
actually based. It's been out at sea for several days. It's been a part of that whole process of helping NASA figure out the exact spot where it's
going to land. And they know pretty much exactly where it's going to land because they're really good at rocket science.
And once that happens, there's going to be some smaller boats that move out to try to get them out of the capsule, give them some immediate medical
care, then they will be helicoptered onto the big ship, the Murtha, which is based here, they'll get more medical care, and then eventually they'll
be helicoptered back to San Diego, and then eventually flown back to Houston.
This is a thing that they've been planning here for multiple years. Remember, this Artemis mission has been in the works for years. There's
been a team working on this particular aspect of it for about a year now, and they are ready to go. They've been helping along the way and they are
very excited to witness history, which we all are about to in the next few hours.
SOARES: Absolutely. I have been glued to the NASA Instagram page for these images. We're looking -- we were just looking just a minute ago. The images
have gone now of the astronauts inside the capsule. Do we know, Elex, where you are? How many people will be turning out? And also will the families of
the astronauts be there too?
MICHAELSON: So where we are right now is on a navy base that is very, very secured and not allowed for the public. The actual touchdown is going to be
happening 50 miles off the coast. So, most people are not going to be able to see that from the coastline. I don't know if the family is actually
coming here or if they're going to be in Houston and meet them there when they eventually go there.
The astronauts themselves are mostly going to be kept away from the media much of the day today once they get on, but, but will be really interesting
is that we will have cameras on that Murtha. So we will have CNN, we'll have cameras live as soon as they come back. And we'll have an
extraordinary view of the recovery process in real time.
SOARES: It will be amazing. Randi, did you want to chime in? Do you know if the families will be there?
KAYE: Yeah, actually -- so the families, at least some of them will be here at mission control watching the capsule come in and inside mission control,
they'll be in. I guess there's like an observation deck behind where everybody is working. We were actually able to go in there earlier this
week so we could see the capcom desk, which is the main desk that's in touch with the astronauts.
So, they'll be up there, they can see, they can follow along where the Orion capsule, as it crosses the different continents, they can see the
distance to splashdown. It's really remarkable to be inside mission control and see how it all works. So they'll be inside there.
SOARES: And we're hearing from NASA just in the last, what, 30 seconds or so that you couldn't ask for better weather. That is wonderful news.
Randi Kaye, Elex Michaelson, thank you very much to you both.
And we'll have, of course, special coverage due to expect as a crew of the Artemis II mission returns to earth following their historic trip around
the moon. Join us at 7:00 p.m. Eastern, 4:00 p.m. Pacific Time. That is 7:00 a.m. if you're watching on Saturday in Hong Kong.
Well, it is the final moment of trade on Wall Street and stocks are being down slightly, as you can see there, after 286 points or so. The Dow Jones
ending their on in the red as investors wait anxiously to see if the United States and Iran can reach a deal this weekend.
This is our Business Breakout.
Shipping data shows just one oil tanker has passed through the Strait of Hormuz today.
[15:35:02]
A Botswana-flagged tanker sanctioned by the United States traveled through the strait earlier today. Other ships may have passed through undetected.
Donald Trump has urged Iran to allow ships to pass through the strait as part of a ceasefire agreement announced on Tuesday, but only a few ships
have since transited the strait.
Treasury Secretary Scott Bessent and Fed Reserve Chair Jerome Powell met with bank CEOs to discuss the risks posed by Anthropics' new artificial
intelligence model, a source tells CNN. The meeting happened on Tuesday and it happened in Washington. The new A.I. model, called Mythos, has not yet
been released to the public over fears it could be abused by spies and cyber criminals, Anthropic tells us.
Consumer sentiment in the U.S. has plunged to record lows. Americans are souring on the economy as the war in Iran pushes up prices of everyday
essentials. The University of Michigan's latest survey shows sentiment has declined more than 10 percent. That is lower than anything seen post-World
War II.
We'll have more now on the cost of living pressures in the United States. The pace of inflation tripled last month, climbing by almost 1 percent,
driven by the U.S.-Israeli war with Iran. Inflation now reaching 3.3 percent, as you can see there in March, and that is the highest level seen
in almost two years.
While the war has seen gas prices surge more than 20 percent alone -- that is a record increase.
Our Matt Egan has more for you.
(BEGIN VIDEOTAPE)
MATT EGAN, CNN SENIOR REPORTER: This was a hot inflation report and you can really see the fingerprints from this war all over this report, especially
of course when it comes to gasoline prices. So consumer prices, they were up by almost 1 percent, 0.9 percent between February and March. That's
triple the inflation rate from the month before. This is the highest monthly rate in almost four years.
The annual inflation rate, 3.3 percent, that's a touch lower than expected. However, this is the highest annual inflation rate in nearly two years. In
fact, when you look at the trend for annual inflation, you can see how it's going almost straight up again because of the war 3.3 percent. I mean, this
is the highest annual inflation rate of either of President Trump's two terms in the White House.
And as far as why this happened -- well, look, gasoline prices skyrocketing, 21 percent between February and March. That's the most since
the BLS started tracking back in the 1960s.
But it's not just gasoline, airfare also going up by 3 percent. That reflects strong demand. And perhaps the early evidence of skyrocketing jet
fuel linked, again to the war. Other things that got more expensive include tomatoes, tomatoes skyrocketing 15 percent.
The news wasn't all bad, though. Thankfully, egg prices continue to come down dramatically from that peak a few years ago and grocery prices
overall, they actually went down a little bit.
Although I got to say, you got to wonder if that's going to last given the surge in diesel costs. That's going to impact transportation. Same diesel
that farmers use for their machinery. Also, the fertilizer shortages and supply disruptions caused by the war, all of that could end up increasing
the price of groceries.
And the fact that this inflation is really swallowing up the wage gains that Americans have seen, right? This red line here shows where inflation
is annual inflation, and the blue line is wages. And, you know, a few years ago, you had this terrible situation where prices were going up so much
more than paychecks.
Then that situation reversed and people were really making more money than their prices were going up. But unfortunately, you can see now these lines
are diverging again. And that does mean that the cost of living is really swallowing up a lot of these pay hikes.
Back to you.
(END VIDEOTAPE)
SOARES: Thanks very much. Matt Egan there.
And still to come, a stunning announcement from the U.S. first lady and a new political problem for the White House. What's behind Melania Trump's
effort to set the record straight on Jeffrey Epstein? That's next.
(COMMERCIAL BREAK)
[15:42:13]
SOARES: Well, one person who's apparently plotting a possible return to the White House, Kamala Harris. The former vice president who lost to President
Trump in the 2024 election, was asked that the National Action Network convention in New York whether she would consider running again in 2028.
And she seemed open to the idea. Have a listen.
(BEGIN VIDEO CLIP)
KAMALA HARRIS, FORMER U.S. VICE PRESIDENT: Listen, I might, I might. I'm thinking about it. I'm thinking about it.
Look, the American people have a right to expect that anyone who wants to run for office and be a leader, that it can't be about themselves and what
they want for themselves. It's got to be about the American people and that's how I think of it.
And -- and I am thinking about it in the context of then, you know, is who and where and how, can the best job be done for the American people.
(END VIDEO CLIP)
SOARES: And Harris is due to appear at several Democratic Party events in southern states this month, sparking speculation that she may indeed be
planning a comeback. Watch this space.
While Thursday's bombshell statement from us First Lady Melania Trump raises two age old questions, what did the president know and when did he
know it?
Sources tell CNN that some White House officials were stunned by the timing of Mrs. Trump's remarks, when she denied any links to Jeffrey Epstein. One
official said there was even disagreement among those close to Melania Trump as to whether or not she would go ahead.
A person familiar with the matter told CNN that Mr. Trump was aware that his wife planned to make this statement. Mr. Trump himself later told MS
NOW they didn't know anything about it. What we do know is that Mrs. Trump's calls for a congressional hearing on Epstein means the story will
continue to dominate headlines for weeks to come.
(BEGIN VIDEO CLIP)
MELANIA TRUMP, FIRST LADY OF THE UNITED STATES: I call on Congress to provide the women who have been victimized by Epstein with the public
hearing, specifically centered around the survivors. Give these victims their opportunity to testify under oath in front of Congress with the power
of sworn testimony.
(END VIDEO CLIP)
SOARES: What we want to know this hour is, has the U.S. first lady ever delivered such a bombshell speech?
Joining me now is the presidential historian Tim Naftali.
Tim, great to see you once again. Look, we knew roughly at this time yesterday that the first lady was due to speak. We just didn't know the
topic that she would engage in. And, well, quite frankly, she took everyone by surprise. And it seems even maybe the West Wing, too.
On a historical context, though, how -- how contentious. I mean this -- this topic is highly contentious, as we know, but how rare and
unprecedented is it to see a first lady make such a public statement?
TIM NAFTALI, CNN PRESIDENTIAL HISTORIAN: Well, first ladies have shared blockbuster information about themselves. Betty Ford revealed the fact that
she had cancer, as did Nancy Reagan. We've had first lady defend themselves and a president and a scandal, we saw -- as we saw with Hillary Clinton and
the Whitewater scandal of the 1990s.
What makes First Lady Melania Trump's statement so unusual is the timing. When it -- when there's a matter of a presidential scandal and the Epstein
files are a scandal for President Trump, not necessarily for the first lady, but certainly for the president. You either want to get ahead of the
story, which is not something you generally see from a White House. They'd rather a scandal go away or you respond to a blockbuster or bombshell that
you just cant ignore.
The timing of the first lady's statement is strange. The Epstein files have been a problem for the Trump administration since the very beginning of the
second term. So we're now well over a year since this problem emerged. And as for the first lady, there have been allegations, but never really any
evidence, mainly it's speculation and certainly there's never been, as she said herself, she's never been accused of any crime.
So the timing, two days after the president threatened Iran with the destruction of its civilization is bizarre. I'm not suggesting any
connection. I'm just saying the timing is really strange.
SOARES: It is bizarre indeed, especially as we know that this administration is trying to get away from this, something that the
president has called a Democrat hoax. In that speech, though, Tim, she did mention her husband only once. I think she said Epstein did not introduce
me to Donald Trump. And she is, of course, under no obligation to defend him.
But she -- would she have to seek and this is the approval, a presidents authority or green light making a public statement like this. It does seem
from I was hearing from our White House correspondent that the West Wing was kind of surprised.
NAFTALI: You know, the relationship -- I'm talking about the professional relationship, not the personal one.
SOARES: Yeah.
NAFTALI: But the professional relationship between the first lady and the president is opaque. After all, the president of the United States
dismantled her office, the East Wing of the White House was - had been since Eleanor Roosevelt's time, the office of the president -- of the first
lady. And it has gone.
So effectively, Melania Trump doesn't even have an office in the White House. She probably has one, but we don't really know where it is.
So, the -- her role as first lady in the second term has been opaque. She has appeared with her husband, but its unclear the extent to which she is
participating as a whisperer, for example, in shaping his policies this time around.
And so, for that reason, it one can speculate, only speculate the extent to which her team and the presidents team coordinate a statement. I just find
it hard to believe that she would have given a public statement like this without the president having been given a warning. I just can't imagine it.
SOARES: Tim, really appreciate you coming on. Thank you very much. Good to see you. Tim Naftali there.
And still to come, Rory's in the lead. Will take you live to Augusta, where golfer Rory McIlroy is stretching his lead at the Masters.
(COMMERCIAL BREAK)
[15:51:24]
SOARES: Welcome back.
Rory McIlroy is the man to catch at Augusta National Golf Club midway through the second round of the Masters. The reigning champion started the
day with a share of the lead but has pushed ahead. He scored three straight birdies early on and through seven holes, sits at seven under.
Andy Scholes is at Augusta National Golf Club for more.
And, Andy, what a way to start right.
ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Yeah, Isa. You know I was out there when Rory teed off early on today. No question. He certainly has the
biggest gallery following him because, you know, the patrons here, they want to see more history. Last year, Rory made history, becoming the sixth
golfer ever to complete the career grand slam. This year, he's trying to become just the fourth golfer ever to win back to back Masters titles.
He would join Jack Nicklaus, Nick Faldo and Tiger Woods is the only people to ever accomplish that feat. He came out hot today. As you mentioned, he
birdied two, three and four. He got to eight under and at that moment, we were like, oh, oh, is Rory going to run away with this thing?
He did give a shot back to get a seven under, but he still has the solo lead. But this is a much different Rory McIlroy this time around. You know,
all week he talked about how a huge weight has been lifted off his shoulders after finally being able to get that green jacket last year. And
he said after his first round yesterday, he's just more at ease, more out there on the course.
(BEGIN VIDEO CLIP)
RORY MCILROY, T-TIME MAJOR CHAMPION: I couldn't -- couldn't have got a lot more out of my round and I feel like I leaned heavily on -- on my
experience out there to do that. Winning a Masters makes it easier to win your second one, but I think its easier for me to make those swings and not
worry about where it goes, when I know that I can go to the champions locker room and put my green jacket on and have a Coke Zero at the end of
the day.
(END VIDEO CLIP)
SCHOLES: Yeah, everything's easier when you can go back to the champions locker room, put on the green jacket and drink a Coke Zero, right?
But, Rory, we'll see how he ends up faring today. Now he could end up in a pairing tomorrow in the third round with Justin Rose. And that would be
pretty cool because it was Rose who Rory beat in the playoff last year in order to win his first Masters. Rose having another solid day, he shot a
three under to get to five under for the tournament. Right now, he is in second place.
Still a lot of golf left to play, but, Isa, it is hot out here today. It's almost up to 80 degrees. There hasn't been a drop of rain this entire week,
so the greens are going fast. So that's why guys who have great experience out on this course, like a Rory McIlroy, like Justin Rose, like Patrick
Reed, who's also having another solid day, those guys know what to do out there on the course when it's these conditions.
We'll see. It is only going to get hotter for round three and for this weekend.
SOARES: And even with this heat, I think the fans are turning up. And I know you've spoken to many of them and they're really making the most of
it, right?
SCHOLES: Yeah. Well, so, you know, one of the things about coming to this tournament, Isa, is it's an experience in the golf shop as well. The
Masters really is almost the only sporting event you go to where all of the fans who are called patrons here are wearing the gear of the actual event
they're at, or going to the golf shop to buy even more gear.
You know, it's a -- it's an experience going in there. You almost get lost. Like, I need a -- I need a shirt, I need a dog collar. I need some socks.
You can lose yourself in there. And I was walking around speaking to a lot of the patrons this week just to see how much money did they spend in that
shop
[15:55:00]
SOARES: Do we have -- we have -- we don't.
SCHOLES: I guess we're not going to -- not going to watch it.
SOARES: We're not going to watch it. But I was going to say, how much are they spending?
SCHOLES: I would say the average person walking out of there spends about $1,000.
SOARES: On merch?
SCHOLES: On merch. And I've talked to people who have gone to spent as much as $3,000 to $4000. So, you know, it's easy to find people who have spent a
thousand good on them.
SOARES: Clearly love it. Andy Scholes, sorry, didn't have that clip, but you really painted it for us. Appreciate it. Keep cool, my friend.
SCHOLES: All right.
SOARES: And finally tonight, a popular grocery chain is expanding into the pub business. German discount store Lidl is building its first ever pub in
the suburbs of Belfast in Northern Ireland. The pub will be next to an existing Lidl store and have a liquor store, too. Lidl has been tied up in
legal challenges to the pub's construction, but it's now expected to open this summer.
And I'm Isa Soares. This is WHAT YOU KNOW.
END
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