Return to Transcripts main page

CNN News Central

Oil Prices Rise to Highest Level Since July as Hopes of Iran Deal Fade; No Reply Yet from Oman After Trump's Threats to Strike; Disney Sues Trump's FCC Over Alleged Retaliatory Campaign Against ABC; 14 People Charges in Alleged Cocaine Ring Tied to Penn State Frats. Aired 2:30-3p ET

Aired August 18, 2026 - 14:30   ET

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

[14:30:00]

BORIS SANCHEZ, CNN HOST: Oil prices are on the rise today after President Trump announced that no new talks are taking place with Iran and that none are scheduled. They're currently hovering around or above $90 a barrel, the highest level since July as hopes of a deal with Iran are fading. Making the situation more problematic, the United States emergency oil reserves are now at their lowest level in more than 40 years, all of this adding up to higher fuel costs across the board with gas, diesel, and jet fuel up substantially compared to this time last year.

Let's discuss with Rory Johnston. He's an oil analyst and the founder of Commodity Content. Rory, thanks so much for being with us.

As the deadline for the MOU expired yesterday without resolution, how is the oil market viewing the likelihood of an end to this conflict anytime soon?

RORY JOHNSTON, OIL ANALYST: Thanks for having me. I think at this stage the oil market is assuming that this is more or less the steady state over the coming months.

[14:35:00]

I think while both sides are clearly unwilling or uninterested in re- escalating to all-out war, they're also very clearly uninterested in making the concessions that are required from either side in order to see this conclude.

So you noted we're back above $90 a barrel for Brent, the global benchmark for crude today, and for fuels like diesel and gasoline, much, much higher than that because of this parallel crisis we have in refining capacity. So diesel right now with crude at about $90 a barrel, diesel is nearly $200 a barrel equivalent. And gasoline is between $140 and $150, and that's what consumers are actually going to feel at the pump, is that much harsher pain of refined products on top of the issue in crude.

SANCHEZ: Yes, several factors have softened the blow of the shock to global oil supply, including China reducing oil imports, other countries also relying on their stockpiles. How long do you think that is going to last?

JOHNSTON: So stockpiles, for instance, you mentioned the U.S. Strategic Petroleum Reserve below 300 million barrels for the first time since it was basically filled up in the 70s and 80s. I do think that that can likely continue to be drawn down for another couple of months, but we will need to see a renewed announcement, a new release from the White House soon, and I think given, as we noted, it doesn't look like this is going to wrap anytime soon, we're going to run out of the rest of the confirmed or announced SPR release that's already in the books, and we're going to need to go for a second one. Beyond that, China, I think, is the major question here, reduced crude imports by more than 5 million barrels a day relative to pre-war levels, between 40 percent and 45 percent reduction. That's still kind of a black box.

They began importing a little bit more after the post-MOU bump in exiting oil, leaving the Strait of Hormuz, but after that dried up, so too did China's imports. So I think there's this cat and mouse question of, can we get more oil out of Hormuz before China returns to the market? Because if we can't, that's going to tighten things enormously all in one go.

SANCHEZ: President Trump threatened again yesterday to attack Oman, apparently for negotiating with Iran to get shipping moving through the Strait of Hormuz. How are you seeing Oman's role in these negotiations, especially in light of these threats?

JOHNSTON: Oman's caught in an interesting position. Obviously, it is territorially on the other side of the Strait of Hormuz. Any essentially regional deal that Iran is going to put forward is going to be under the auspices of some kind of collaboration and cooperation with Oman.

Because again, Iran claims that its control, its kind of right to control Hormuz, is driven by the fact that it's literally physically beside Hormuz. The same thing applies to Oman. So Iran is trying to arrange some kind of deal, some kind of potential polling arrangement, and Trump himself has been on again, off again, about whether or not this is going to work for him.

He has at various times seemed OK with the deal, even threatened some kind of toll of his own. But I think Oman is going to play a role because Oman is essentially the guardian of the southern route through Hormuz that both the United States military, the Navy, and the International Marine Organization, maritime Organization, is encouraging ships to go through. That's essentially the other route other than Iran.

So I think anything that Trump is going to do in order to, you know, post Hormuz crisis is going to involve Oman. And I think suggesting and threatening to bomb them doesn't seem especially constructive on that relationship.

SANCHEZ: Rory Johnston, appreciate the perspective. Thanks for being with us.

JOHNSTON: Thank you.

SANCHEZ: Erica.

ERICA HILL, CNN HOST: Disney is now fighting back against what it calls a retaliatory campaign being waged by the Trump administration. The company filing a lawsuit in federal court today against the FCC, alleging the agency is violating Disney's First Amendment rights. Now, this comes after the chairman of the FCC, Brendan Carr, ordered a rare early review of ABC's broadcast licenses, which Disney says poses an existential threat to its operations.

CNN chief media analyst, Brian Stelter, joining me now. So, Brian, talk to me more about this lawsuit and what Disney is alleging in it.

BRIAN STELTER, CNN CHIEF MEDIA ANALYST: Yes, the lawsuit really makes the case that the Trump FCC has been weaponized to punish critics of President Trump and to discourage even basic, fair, independent journalism. It lays out many examples of how the FCC has been targeting Disney ever since Trump returned to power at the beginning of 2025. And all this comes as Trump himself has assailed ABC's journalists, has called for ABC's licenses to be revoked.

But those are words. What's more important here are the actions that Trump's FCC has taken in recent months, opening an investigation into ABC's talk show, The View, and, more importantly, or maybe most importantly of all, probing ABC's eight-station licenses in cities like New York and Los Angeles. Normally, license renewal processes are kind of boring.

It happens every eight years. It's pretty standard.

[14:40:00]

But in this case, the FCC has challenged ABC, ordered them to try to renew the licenses several years early, and many outside observers believe this is all a prelude to what will be a battle in the courts to try to strip those licenses from Disney, which has not happened in decades. So here's what part of the lawsuit says from Disney filed today in Washington. It says, "The pressure being exerted by the administration's mounting campaign of retaliation against ABC has been deeply felt throughout the company." Meaning throughout Disney, one of the biggest mini-companies on the planet, a company known for Star Wars and Mickey Mouse and Disneyland.

The company goes on to argue that this is a deal, this is a lawsuit, this is a problem that affects the entire media industry. Quote, "ABC is the visible target and suffers the most immediate harm, but the message is addressed to every broadcaster in the country, and the ultimate cost is borne by the press as a whole." So essentially, Disney is saying it is going to court, fighting for its First Amendment rights, trying to protect everybody else, because if the FCC prevails against ABC, other networks will be next.

HILL: Has the FCC responded?

STELTER: Yes, and the FCC is pointing to an investigation that it opened last year into Disney's diversity practices. It feels to me like you have two sides talking past each other.

It's one of those situations where you have FCC Chairman Brendan Carr, a Trump appointee, saying this is all about diversity practices. He suspects, or he says he suspects, that Disney is breaking anti- discrimination laws with its DEI practices. That is seen by many outside observers as just a pretext, as an excuse to target Disney more broadly.

But that's what Carr claims is going on. So in a new statement from the FCC, here's what the agency says. Quote, "The FCC has been examining claims that Disney engaged in illegal DEI discrimination for over a year. Disney is obviously very concerned about the FCC's proceeding, as evidenced by their ongoing campaign of disinformation, as well as their decision to ask a court to stop the FCC from further pursuing matters."

So I've talked to a lot of people involved in this matter. I've heard from First Amendment groups. I've heard from libertarian groups.

I've read through tens of thousands of comments from citizens who have written into the FCC. I don't think many people are buying that this is actually about DEI. This appears to be a real systemic effort by the FCC to pressure Disney to affect ABC's programming.

But that's the word from the FCC. Now it's going to be in court. And this is going to move pretty quickly, Erica, because Disney is asking for a preliminary injunction and a restraining order against the government.

So there could be action here in the coming days.

HILL: All right, we'll be watching for it. We know you'll keep us posted as well. Brian, appreciate it. Thank you.

Ahead here, pledges forced to package kilos of cocaine for their fraternity. The disturbing accusations against two Penn State fraternities. That story's next.

[14:45:00]

(COMMERCIAL BREAK)

HILL: Pennsylvania's Attorney General says his office has busted a major cocaine trafficking ring. The ring leaders, according to the AG, two Penn State students who were allegedly operating out of their frat houses and using pledges to cut and package the cocaine for distribution.

CNN's Danny Freeman has more of these developments, joins us now from Philadelphia. The headline alone is something. The details here, those are something as well, Danny.

DANNY FREEMAN, CNN CORRESPONDENT: Yes, this headline and this story really has been resonating with a lot of people. You said it there, Erica. The Pennsylvania Attorney General this week announcing 14 defendants were charged by a grand jury as part of a massive cocaine trafficking operation that centers around two fraternities at Penn State and State College here in Pennsylvania.

It all takes place between 2003 and 2004. That's when this operation allegedly took place. And it also involves current and former students.

So let me tell you a little bit about the details that really are so troubling. The ring leaders, according to prosecutors, Agostino Abbatiello and Thomas Robinson basically they were identified as the main suppliers here where they would go back and forth to New York City and Philadelphia, according to prosecutors, get a bunch of cocaine, bring it back to State College to their fraternities and then they would sell and distribute the cocaine to predominantly students at Penn State University. But this was the thing that I think raised so many eyebrows about this story. Not only were allegedly brothers in these fraternities, Delta Upsilon and Sigma Chi, helping distribute this cocaine, but also pledges according to this criminal complaint, had to cut and package the cocaine as part of indoctrination into this fraternity.

Again, very troubling indeed. Penn State, they responded to these allegations saying quote, "We are horrified by these serious allegations against current and former students. Criminal activity including hazing such as this has no place at our institution and we will cooperate with law enforcement any way we can."

Erica, I want you to take a listen to how the Attorney General here in Pennsylvania characterized the seriousness of these crimes.

(BEGIN VIDEO CLIP)

DAVE SUNDAY, PENNSYLVANIA ATTORNEY GENERAL: There was nothing junior or childlike about this type of conduct. This was an upper level trafficking organization for this region in Pennsylvania. It's extremely serious.

Law enforcement takes it extremely seriously and we will continue to investigate and prosecute individuals that decide to deal drugs on college campuses.

(END VIDEO CLIP)

FREEMAN: So you hear that Erica, the Attorney General really giving a warning to other students and other colleges thinking about dealing drugs. A couple extra things here. An attorney for Abbatiello had no comment when reached by CNN.

He surrendered today, that defendant though, and he received no bail. The bail was declined for this particular defendant. And attorney information for Robinson was not immediately available.

[14:50:00]

His bail was set though at $1.5 million. Sigma Chi did not respond to a request for comment and Delta Upsilon, the international fraternity, they said that they're aware of the allegations that anyone affiliated with the allegations here have either been expelled or resigned on their own. So again, a troubling story and again, we're looking to see if there are more details that come out as this case now proceeds through court -- Erica.

HILL: Yes, absolutely and disturbing, troubling, all the things. That's for sure, Danny. Really appreciate it. Glad you're on it.

Thank you -- Boris.

SANCHEZ: Now to some of the other headlines we're watching this hour. FEMA disaster assistance now available for people in more than 50 Indiana counties. Remember historic flooding, forced evacuations across parts of the state after days of heavy rain.

Now many people returning home are dealing with the damage as well as just finding a place to live. State officials say more than 1,000 folks have been displaced by these storms.

Also, Philadelphia police are searching for a man in a creepy doll mask who's apparently been terrorizing people downtown. Watch this. A video showing the suspect chasing a woman, jogging near City Hall early last Wednesday.

Police say that he asked her, quote, are you ready to die? Fortunately, she was able to get away. Take a look at your screen right now.

Police believe this suspect, somewhere between 16 and 20 years old. If you've seen anything, they ask that you contact authorities in Philadelphia.

And sources say that Jeanie Buss does not want to sell her family stake in the LA Lakers. Last week, former Disney CEO Bob Iger and venture capitalist Josh Kushner agreed to buy a majority stake in the Lakers for $12.5 billion. If the Buss family were to sell its stake to Iger and Kushner, Jeanie Buss would no longer be the team's controlling owner. A person familiar with the matter told CNN that Jeanie Buss doesn't want to sell the family stake for value reasons and to keep her position as governor.

Still to come, the barcode getting a glow up. A look at the smarter codes coming to grocery aisles that could flag recalled foods, trace outbreaks faster, and help keep dangerous products off your plate. Stay with CNN. We'll be right back.

[14:55:00]

(COMMERCIAL BREAK)

HILL: Could a barcode stop future foodborne outbreaks like the cyclospora that plagued much of the country this summer? The barcode, you know, the strip of lines on the products that you buy. That basic barcode turns out to get a little upgrade.

The first one in more than 50 years. And so ideally, we're told this next generation of 2D barcodes will not only help to track expired food but could also tell us exactly which farm the food came from. CNN Business Senior Reporter David Goldman joins me now. OK, so the

upgrade is coming. How soon will we see it, for example, at our local stores?

DAVID GOLDMAN, CNN BUSINESS SENIOR REPORTER: Yes, you can see it now, actually, on most Procter & Gamble products and you can see it on Topo Chico Seltzer. That's about it, though. You can actually get to test it out now if you want on those products.

Next year, you'll start to see it on a lot more and there's some pretty significant upgrades that are coming. It's not just the lines are becoming dots in a matrix, but you can actually start to get a lot more out of your barcode. You can use it like a QR code and, you know, take it home and scan it and you can get product information.

You can find out if it's been subject of a recall too and you might even not be able to get it home in the first place. It is possible that a store could lock you out of purchasing it in the first place. You can't even get it at the register.

It'll just not ring up. So there's a lot that these things can do. Thing is, and you can see what the difference is now, you know, the thing is, is will it actually be fully implemented?

Because there's a lot of work that these companies need to do to actually make it so that recalls aren't going to, you know, happen the way that they happen now where there's a tremendous amount of guessing game.

HILL: Yes, absolutely. But in terms of those recalls, right? So if this works as intended, I mean, you talk about you go to the store, you scan the item and it says, ah, recall, we can't sell this to you.

I mean, how does it also help if somebody gets sick? Are they then going to say, OK, go to your trash, find the plastic box that your lettuce came in, bring it back to us and we're going to scan it and then we'll figure out where it came from?

GOLDMAN: Right. So there's a lot that needs to happen between then and now. And the situation that you're talking about is indicative of the fact that this isn't going to solve the problem, but it could be a solution or part of a solution.

So one of the things that they would need to do is, you know, those kind of dot matrix-like codes that get printed on the bottom of a soda can, the top of a cereal box, your milk kind of below the expiration date? Well, those are bin and lot numbers. Now imagine that instead of printing the label the same with the same barcode, that the barcode, the 2D barcode, actually has that information on it.

Now you can say, is the lettuce that you brought home part of a recall or is it perfectly safe to use? It saves you money. It certainly saves the industry money.

It costs about $100 million or more a year per big box retailer just for these recalls. So there is certainly incentive for them to get it right. And if they start to get this right, then it could mean a much safer product for you at home with all the caveats that you mentioned, Erica.

HILL: All right. We'll be watching for it, David. Thank you.

A new hour of CNN NEWS CENTRAL starts now.

END