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U.S., Iran Trade Strikes After Weeks of Relative Calm; Financial Stability Board Warns That A.I. Could Threaten Global Financial Stability; Jordan Says Eight Iranian Missiles Destroyed While Entering Airspace; Awaiting Verdict in Lindsay Clancy Murder Trial; FBI & DHS Working Together to Track Drone Spies. Aired 2-2:30p ET

Aired August 31, 2026 - 14:00   ET

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

[14:00:00]

MARSHALL COHEN, CNN SENIOR REPORTER: -- war with the prediction companies, saying that they are terrible and they are predatory. But, yes, the first time ever that they have banned someone for life, George Santos.

BORIS SANCHEZ, CNN CO-ANCHOR OF "CNN NEWS CENTRAL": I think we've got to launch an investigation into how Marshall Cohen got CNN to pay for him to go to Vegas.

BRIANNA KEILAR, CNN CO-ANCHOR OF "CNN NEWS CENTRAL": I was going to say the exact same thing.

SANCHEZ: Yeah. I'm in Vegas to interview regulators.

COHEN: Right.

SANCHEZ: The real pirate and marauder right here, Marshall Cohen.

COHEN: Oh my gosh.

(LAUGH)

KEILAR: Exactly. I was going to say the exact same thing.

SANCHEZ: Thanks for joining us.

KEILAR: Marshall, you let us know how you did that.

COHEN: Come with me next time.

(LAUGH)

KEILAR: Asking for a friend here. All right.

(LAUGH)

KEILAR: A new hour of "CNN News Central" starts right now.

KEILAR: It's military escalation. U.S. and Iran trading strikes after weeks of relative calm. The latest setback in a war that President Trump said would be short, but it's now past the six-month mark.

And a new A.I. alarm. A watchdog warns that artificial intelligence could destabilize the global financial system even as President Trump says communities that fight data centers will end up, quote, "backwards and poor."

SANCHEZ: And an extraordinary story. The hunt for suspected Chinese drones spying on U.S. military bases. How officials forced down the drone. And what they found inside a rented Mercedes R.V.

We're following these major developing stories and many more, all coming in right here to "CNN News Central."

KEILAR: A new U.S.-Iranian salvo in the Middle East is threatening to reignite fighting after more than a month of relative stability.

Iranian state media releasing video of what it says is ballistic missile launches targeting U.S. military installations in Jordan. Jordanian officials say their air defenses took out eight missiles that entered their territory. And the UAE says it responded to an Iranian drone over its territorial waters today in what they're calling a dangerous escalation.

SANCHEZ: Now, these strikes come just hours after U.S. Central Command announced the destruction of Iranian rocket launchers on Larak Island. New questions are emerging about how long the U.S. mission is going to last.

And in the meantime, there's an exclusive report from The Washington Post saying that several senior military officials warned Defense Secretary, Pete Hegseth, that prolonged large-scale operations could leave the U.S. susceptible to other potential threats.

Let's get some perspective now with CNN Military Analyst, retired Air Force Colonel, Cedric Leighton joins us now. Colonel, what do these strikes say to you about Iran's capabilities six months into this war?

COL. CEDRIC LEIGHTON (RET.), CNN MILITARY ANALYST: Well, Boris, they definitely have capabilities. And when you talk about decimating a force like the Iranian force, what you're really looking at is they have certain pockets where they will still keep certain weapons available.

Their missile capability is something that still exists, as we saw with the missiles that were lobbed against the bases in Jordan. But you also have the mine-laying capability. So now they're trying something, you know, fairly unique which is to use rockets to launch mines into the Gulf and especially into the Strait of Hormuz.

So that is something where they're being a bit innovative in how they approach some of these things, and you cannot discount those kinds of innovative efforts in addition to, of course, the proxy forces and some of the other things that they have. So the Iranians are still in the fight, whether we like it or not.

KEILAR: Brett McGurk wrote for CNN, quote, "In Act 4 of the war, Iran is losing its leverage in Hormuz." He says that since July, the U.S. has re-imposed the blockade on Iranian ports, sanctions on Iran's oil. It's worked to clear shipping lanes and protect commercial ships there. He says now the pressure is compounding on Iran, not on the U.S. Is that how you see it? And if that's the case, how does the U.S. take advantage of that?

LEIGHTON: Yes. So the U.S. definitely has some advantages when it comes to their blockade of the Iranian ports, which is fairly effective. CENTCOM announced that they had stopped 83 ships, I think it was, from actually entering Iranian ports. So that's a pretty significant number.

Now, having said that, the Iranians still have a major capability, and that capability, we see basically in an asymmetric sense. So I don't see it quite like Brett does. I believe that the Iranians still have a degree of leverage that could upend the things that we're talking about here, that could upend U.S. military efforts.

It could upend some of our diplomatic efforts. So they need to be watched very carefully. And when it comes to that, last hour, we had the report from Nic Robertson and the Bab al-Mandab. That is a significant part. We have to remember the Iranians not only know their geography, but they also know how to leverage that geography.

So if at first you don't succeed in the Strait of Hormuz, you might succeed in the Bab al-Mandab, and that still has an impact on things like oil prices and other aspects here.

SANCHEZ: A U.S. official told CNN that U.S. forces remain prepared to protect the free flow of commerce in the Strait. It sounds like that's a mission with indefinite length, especially if negotiations continue going nowhere. Pair that with the reporting in The Washington Post about U.S. readiness internationally as a result of a prolonged conflict, and the result is --

LEIGHTON: Yeah, Boris. So the result is that we are stretching our forces very thin.

[14:05:00]

Now, it doesn't mean that we can't do these jobs, we have to be prepared to do them. It takes me back to the 1980s when we had an escort mission in the Persian Gulf because of the Iran-Iraq war and the attacks on tankers as a result of that war.

This is in some ways similar to that, but now we're actually dealing with the Iranians instead of through Iraq or some other country, we're dealing with the Iranians directly. And that, of course, is significant when it comes to the readiness globally. We need to make sure that our defense industrial base, and should have done this a long time ago, really keeps pace with the demands of modern warfare.

And we have to be prepared if one area of warfare is not being used at a particular moment in time, we have to expect other areas to be in the ascendancy. And that would mean missiles, that could mean drones, and that's the kind of thing where I think we've actually fallen short in many respects.

KEILAR: Cedric, what do you think about the president's social media post, this one that shows Kharg Island under attack? It seems kind of obvious that it is A.I., but at the same time, he's chosen to post it.

LEIGHTON: Yeah, very interesting. I think, you know, part of it is psychological warfare. And, you know, with President Trump doing the kinds of things that he's doing in this particular case, as far as we know, Kharg Island has not been hit.

But it was also a warning to the Iranians that Kharg Island could be hit. So in that sense, the president is using a psyops campaign against the Iranians, whether he realizes that he's doing that or not is basically immaterial. It has a similar effect.

And in this particular situation, I think Kharg is, you know, the fact that Kharg could be a target is a warning, because 90 percent of Iran's oil is processed through Kharg Island. That would have a significant impact on Iran's economy.

The other thing, of course, is also that, you know, if you do that, if the U.S. is going after that particular target or potentially going after it, it would also mean that there is still a further commitment of U.S. troops in the Middle East. And so we have to be prepared for there to be more kinetic action on our side as well.

SANCHEZ: Colonel Cedric Layton, appreciate the analysis. Thanks for joining us.

LEIGHTON: Of course.

SANCHEZ: For a third day, the nation is waiting for jurors to reach a verdict in the trial of Lindsay Clancy. She's the 36-year-old mom who's facing up to life in prison for strangling her three young kids three years ago in their Massachusetts home. Now, Clancy admits to the killings, but her defense attorney argues that she's not criminally responsible.

KEILAR: The defense says Clancy was suffering from postpartum psychosis and that she heard a voice that directed her to kill her kids. After taking their lives, Clancy attempted suicide and is now partially paralyzed. The jury who will decide Clancy's fate is made up of nine men and three women. And as we're waiting on the verdict, we're going to discuss this case with trial attorney and former prosecutor, Imran Ansari.

Imran, thanks for being with us. Jurors have now had the entire weekend to mull this over after deliberating for about half a Thursday and all of Friday. What does that mean when they show back up today and they have more time to discuss? They've sort of had a little bit of time to have a think on it. What does that do to them?

IMRAN ANSARI, TRIAL ATTORNEY & FORMER PROSECUTOR: Sure. So those jurors are instructed though that they're not to deliberate outside of that jury deliberation room. So when they leave court and they go home for the weekend, they're not to continue with the deliberation process, of course, but they are human beings. And they can't just divorce themselves from all the evidence and what the task at hand is.

So I am sure that even though they get some time with their family, their loved ones, and to get to step away from the case and the deliberations is still going on through their mind. So when they came into court this morning, I would imagine they would come in somewhat refreshed, but maybe not so much as they've had time to mull things over.

And now we're going on Hour 15 of deliberations. We know they are thinking through the case. There has not been a note sent out from that deliberation room today for any more evidence. So we know they're deliberating. It's a complex case, and I expect it's going to take more time.

SANCHEZ: How do you read, Imran, the amount of time that it takes as these deliberations stretch on? Is that typically favorable for one side or the other?

ANSARI: There's a lot of theories about reading the tea leaves on how long a jury takes while they're deliberating. But often trial attorneys, such as myself and those in the courtroom, are surprised by the jury's verdict. They may take time. You may think that they're going one side or the other, but you never really know.

But more time passes, you know that they are deliberating, but it also may indicate that they're deadlocked, right? You need a unanimous verdict from this jury. And if more time keeps going on and there's no unanimous verdict, this may end up being a mistrial if they can't come to a unanimous verdict. But the more time means that they're thinking.

[14:10:00]

And the fact that we haven't received a note today is indicating that they're not looking necessarily yet for any particular evidence, but they may be deadlocked in that room.

KEILAR: How do juries think about what are really a menu of choices here? Right. When it comes to conviction options, there's first degree murder, their second degree murder. There's manslaughter. There's also the option to find her criminally -- not criminally responsible. That's a lot to wade through.

ANSARI: Absolutely. But the big question here is whether Lindsay Clancy had the requisite mental state that she appreciated her actions. Of course, the defense is saying, no, it was this postpartum psychosis. She didn't know what she was doing. She had command hallucinations. And that's going to lead that jury to that not criminally responsible by reason of mental disease or defect.

However, the prosecution, they're trying to say, no, she knew it. She planned it. She actually sent her husband out so she could commit these crimes. And that's what is going to lead them to the murder charges. And if they get there, that's when they're going to have to decide between the first degree, the second degree or something else.

But I think what we're seeing here from the jury taking its time, that they are really mulling over that defense theory of not being criminally responsible. You've seen this case go forward for almost a month. Lots of evidence, expert witness testimony and what I believe to be a pretty powerful closing argument by that defense.

And that's why I think we see the time being taken here when you're dealing with a real tragedy and three lives lost at the hands of their mother. But the jury is taking their time. And I think it's going to be a tough case for them to ultimately decide.

SANCHEZ: We've seen just based on public sentiment, a wide range of opinions on this. I imagine that there are a lot of strong feelings behind closed doors in the jury room as well. So how likely do you think a mistrial might be? And also, what happens if there is a mistrial?

ANSARI: Sure. So, Boris, I think if there's any case that would lend itself to a mistrial, it would be this one. And, of course, a mistrial doesn't mean that Lindsay Clancy now gets a free pass. It means that the case would have to be tried again or the prosecution offer some sort of deal.

But if it is a mistrial that the jury cannot reach a unanimous verdict, the prosecution, they're going to have to really have to grapple with that -- with that decision. Do they try Lindsay Clancy again or do they work out a deal with the defense where she is civilly committed? She's right now in Tewksbury Hospital.

And of course, if there is a unanimous verdict of not criminally responsible by reason of mental disease or defect, she doesn't go free. She most likely is going to be in that psych facility for some time. And then again, if there is a mistrial and the jury can't reach that unanimous verdict, the prosecution is going to have to step back and say, are we going to do this again? Are we going to put her through this trial again? Are we going to use taxpayer dollars again for this trial? Or are we going to work out a deal with the defense?

KEILAR: Imran Ansari, thank you so much as we are waiting here as the jury continues to deliberate in the Lindsay Clancy trial.

Still to come, any moment, in Tupac Shakur's trial, murder trial I should say, the fate of Duane Davis will be in the hands of the jury. Hear the latest from the courtroom, plus a mysterious drone, a rented R.V., and a hunt for answers. CNN details the stunning scene playing out in the deserts of New Mexico.

SANCHEZ: Plus, six weeks after the deadly cyclospora outbreak, is it finally safe to eat lettuce? We'll discuss next on "CNN News Central."

(COMMERCIAL BREAK)

[14:18:20]

SANCHEZ: Some new CNN reporting reveals that the government is hunting for suspected Chinese drones believed to be spying on American military bases right here on American soil. KEILAR: Officials spotted multiple drones back in 2024 and 2025, but couldn't figure out who was operating the drones or why until they decided to set a trap. And here to tell us more about it is CNN Senior Reporter, Katie Bo Lillis.

Katie, how did this operation go down?

KATIE BO LILLIS, CNN SENIOR REPORTER: Yeah, so at (ph) fall of 2024, there is this very sensitive missile testing range in the deserts of New Mexico, not far from the Mexican border. And army officials look up one day and they see this quadcopter drone that's flying in such a way that they think, oh, this is conducting surveillance. It's on an espionage mission.

CBP, U.S. Department of Homeland Security assets, basically use helicopters, drones of their own, chase this drone 35 miles down south to Mexican airspace. They've got to stop. They can't follow it any further, so they don't know who's operating this thing.

Fast forward to spring of 2025, a similar quadcopter drone, we don't know if it was the same one, appears to be flying around, also appears to be conducting surveillance over the base again. This time, you have officials from about a billion different government agencies who all descend on this very sensitive army missile testing range, right?

You've got the army, you've got the FBI, you've got the Department of Homeland Security, you have the intelligence community, you even have the office in the Pentagon that analyzes UFOs, all there watching this drone fly in and out for about five days, trying to figure out who's operating it and why.

They ultimately use electronic warfare tools to force this drone to land in a parking lot at White Sands. Meantime, they have become aware of these three Chinese nationals in a rented Mercedes R.V. who are just kind of hanging out outside of the gates of White Sands.

[14:20:00]

They ultimately determine that these guys are the operators of the drone. Two of them had flown into an airport in New York, rented this R.V., driven across the country to Las Vegas, as you do, picked up a third person in Las Vegas, driven down to outside the gates of White Sands, and are operating this drone.

The FBI would ultimately tell Department of Homeland Security and military officials that they believed those people were linked to Chinese intelligence.

SANCHEZ: So how is the U.S. handling these small drone incursions more broadly?

BO LILLIS: Yeah. So the big problem for American officials both at military bases and a government facilities all over the country is that, with the proliferation of cheap, easy-to-use, easy-to-acquire, right, small quadcopter style drones, it's become very difficult for the U.S. government to basically police its airspace, keep drones out of places they're not supposed to be, and to kind of separate the signal from the noise, right?

How do you tell the difference in between kind of the lost hobbyist who just thought it would be cool to like look at a U.S. military base and something potentially more nefarious like a potential espionage operation. This is even more complicated when you talk about Chinese intelligence because, even though U.S. officials say China is constantly trying to spy on us, right, we do know that China routinely uses basically regular people, civilian cutouts that they've either pressured or incentivized to conduct what one official described to us as nuisance surveillance, right, of this kind on the U.S.

And it is very, very difficult for federal officials to be able to link kind of any one incursion into a restricted airspace with a direct order from the state intelligence services in China. Hey, go, you know, record this thing for us and bring us back the intelligence. So absent that, really hard for them to get charges for anything other than say sending a drone into restricted -- flying an aircraft in restricted airspace. It's also really hard for them to know how big is the problem.

KEILAR: Very interesting, three guys in an R.V.

SANCHEZ: One of them was a lady.

KEILAR: Oh, one was lady?

BO LILLIS: Oh, that, yes, there was actually another person. There was another Chinese national that I didn't even get into, the lady who flew into who -- sorry, who arrived on a cruise ship, rents a car, drives to the National Park at White Sands and ultimately, was determined to believe to be connected to the three people in the R.V. So there was lots and lots of folks running around that they were -- that they were watching at the time.

(LAUGH)

KEILAR: And at White Sands too, just something about that fascinating. Katie Bo, thank you so much.

Just ahead, a dire new warning on the risks posed by advanced A.I. models, the concerns raised by the head of the world's financial stability watchdog. And we're keeping a close eye on the courthouse in Plymouth, Massachusetts where any minute jurors could reach a verdict in the triple-murder trial of Lindsay Clancy.

(COMMERCIAL BREAK)

[14:27:27]

SANCHEZ: A new warning today about artificial intelligence, this time from the head of the world's financial stability watchdog. He's warning of a serious threat that advanced A.I. models could pose to the global financial system. The alert comes after a series of A.I. models escaped testing environments and hacked into other companies systems. Let's go now to CNN A.I. Correspondent, Hadas Gold for details. Hadas, what can you tell us about this new warning?

HADAS GOLD, CNN A.I. CORRESPONDENT: Yeah. So Boris, the Global Financial Stability Board was established by the G20 in 2009 in response to the global financial crisis and its chair, Andrew Bailey, who's also the Head of the Bank of England. He's writing this warning as the G20 finance ministers meeting is going underway in North Carolina right now, and actually OpenAI CEO and NVIDIA CEOs are all expected to speak at this meeting.

And he's warning that these new A.I. models, especially these agents that can take on complex tasks and make decisions completely on their own, that they're a growing threat to the global financial system. And as you noted, these agents recently, for example, that have broken out of their test environment, and they hacked into completely other systems completely on their own, not directed by the humans to do so.

Those are a growing threat because, you know, either those get into the wrong hands, the bad guys, and they are trying -- they're using these agents to really amplify their abilities for cyber security and hacking into the financial system. Or, you know, a test goes wrong, and there's another agent then hacks into the financial system somehow. And it's just a matter of time, essentially, experts say, where something like this will go wrong.

And Bailey is saying that the world is not ready. Here's part of what he wrote in his letter. He said recent developments have also highlighted to me that many jurisdictions do not have the protocols in place to manage the development, release and deployment of advanced frontier A.I. models, heightening risk for the financial sector and beyond.

Bailey is now joining a chorus of voices that are warning about A.I. and the fact that we're just not ready. Bill Gates recently writing that very long essay, talking to our colleague Anderson Cooper, just about how the world is not prepared for A.I.

And, you know, the calls are coming from in the house as well. Almost every A.I. leader, from Sam Altman to Elon Musk, have all warned about this, that the world is just not ready for the power of this new technology.

SANCHEZ: And Hadas, you've done extensive reporting on the messy scramble to try to regulate A.I. development. What did you learn?

GOLD: Yeah, so I've been speaking to more than a dozen sources in the industry and Washington and beyond. And the industry itself, as we're just hearing now, is waving red flags, essentially begging for the tools to help regulate or even just set standards for this new technology. But Washington is beset with turf wars, you know, and the typical slow pace of legislation. But they're begging for anything to be done.

I spoke to Meta's former Head of A.I. Cybersecurity. He was in that position until just earlier --