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Trump-Xi Summit Postponed by Iran War Now Set for Mid-May; Wall Street Analysts Raise Odds of a Recession; Asia Suffers From Middle East Oil Supply Disruptions; White House Says Iran Talks Proceeding, Iran Foreign Minister Denies Negotiations; Powerful Storm to Hit Middle East With More Heavy Rain, Winds; Moscow Launched Over 1,000 Drones in 36-hour Period This Week; Ousted Venezuelan Leader to Appear in U.S. Federal Court; First Female Archbishop of Canterbury Officially Installed; Wildlife Photographer of the Year People's Choice Award Goes to Josef Stefan's Flying Rodent. Aired 2-3a ET

Aired March 26, 2026 - 02:00   ET

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

(COMMERCIAL BREAK)

[02:00:38]

ROSEMARY CHURCH, CNN ANCHOR: Hello and welcome to our viewers joining us from all around the world. I'm Rosemary Church.

First this hour the war with Iran and the U.S. efforts to end it through diplomacy. It's now been nearly one month since the U.S. and Israel launched strikes, and the U.S. Central Command says it's still targeting Iran's military infrastructure and capabilities. At the same time, the White House says talks with Iran are proceeding, and they are productive.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They are negotiating, by the way, and they want to make a deal so badly, but they're afraid to say it, because they figured they'll be killed by their own people. They're also afraid they'll be killed by us.

(END VIDEO CLIP)

CHURCH: But Iran's foreign minister denies any negotiations, saying there's only been an exchange of messages.

(BEGIN VIDEO CLIP)

ABBAS ARAGHCHI, IRANIAN MINISTER OF FOREIGN AFFAIRS (through translator): They talk about negotiations. They talk about other things. This is precisely an admission of defeat. Weren't they calling for unconditional surrender? Then why are they now speaking about negotiations as the right course?

(END VIDEO CLIP)

CHURCH: We are now learning Iran is building up defenses on Kharg Island to protect against a potential U.S. ground attack. The tiny island handles nearly all of Iran's oil exports.

Meantime, two sources tell CNN that Trump administration officials are working to arrange a meeting in Pakistan this weekend to discuss an off ramp to the war. The current plan has Vice President J.D. Vance traveling to that country, but officials caution the timing, location and who may attend are still fluid.

CNN's Paula Hancocks joins us now from Abu Dhabi. So, Paula, what more are you learning about these diplomatic efforts to end the war?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Rosemary, there is optimism, but at this point, it is very much on the side of the Trump administration. We are not hearing that from either Israel or Iran up until now. We did hear from the White House Press Secretary Karoline Leavitt saying that there has been no dead end in these discussions, saying that talks are continuing.

Also pointing out that the timeline that we have been trying to pin down since day one is still four to six weeks. This is what one of the answers was from the Trump administration early on in the war, we're now in week four. So, saying that at this point, things are on track.

Now, you mentioned the potential meeting in Pakistan. This is what the White House is working towards potential talks with Iran in Pakistan. J.D. Vance, the vice president, is expected to be leading those discussions. We did hear from sources familiar with the matter that Iran did not want to talk with Steve Witkoff or Jared Kushner, the two in charge of the talks 27 days ago, when negotiations fell because there was a lack of trust between those interlocutors.

So, this potentially could be in Turkey as well. We're hearing from sources if they believe that the security situation in Pakistan is not what they want it to be.

So, everything very much in the air at the moment. What we're hearing from Israel though, the Israeli Prime Minister Benjamin Netanyahu insisting that the war is continuing and that he is continuing to order his military to dismantle Hezbollah. We spoke to an advisor to Netanyahu. Let's listen to what he said.

(BEGIN VIDEO CLIP)

OPHIR FALK, FOREIGN POLICY ADVISER FOR ISRAELI PRIME MINISTER BENJAMIN NETANYAHU: Well, Iran always lies. We've learned that they always lie. But more importantly, our objective is to remove the existential threat posed by this Ayatollah regime. The best way of doing that is to remove the regime. Another way of doing that is to decimate their capabilities, decimate their military capabilities until they get to the stone age.

(END VIDEO CLIP)

HANCOCKS: So, Iran is throwing doubt on these talks whether or not they're even taking place. The Foreign Minister Abbas Araghchi saying that there has been a, "Exchange of messages." Also pointing out that Trump's change in tone from unconditional surrender to negotiations, he says, signals an acknowledgement of failure in this war. We're also hearing from an Iranian military source that they may open up a second front when it comes to this war, the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Oman and the Indian Ocean, another crucial choke point for trade if there are efforts to try and take the Strait of Hormuz by force.

[02:05:22]

Now we have been hearing a lot about this island, Kharg Island, a small island which handles about 90 percent of Iran's crude exports, and there have been suggestions that the U.S. military may try and take the island by force. They certainly have two Marine Expeditionary units on route to the area, that is what those units would be very useful for.

We've heard, though, from sources, that Iran has been building up defenses on this island, that they have been laying traps, laying anti-personnel, anti-armor, land mines, particularly along the shoreline where any U.S. military would potentially land, and also trying to build up its air defense systems of this small island.

Now, just maybe a week or two ago, the U.S. president had said that the U.S. had taken out all the military defenses on the island, but left the oil infrastructure intact.

And so, this really goes to show that whereas some are suggesting this would be a strategic plan for the United States that would not be too difficult to engineer, it would actually be a very tricky military option. It would require U.S. boots on the ground, potentially U.S. casualties.

So, an Iran military source pointing out that they are building up the defenses to try and prevent that kind of takeover of that island, Rosemary.

CHURCH: Paula Hancocks in Abu Dhabi, many thanks.

I want to bring in Bobby Ghosh, who is a columnist and geopolitics analyst. Appreciate you being with us.

BOBBY GHOSH, COLUMNIST AND GEOPOLITICS ANALYST: Anytime, Rosemary.

CHURCH: So, the United States is set to deploy more troops to the Middle East, even as the White House says talks with Iran are continuing, but adds that President Trump doesn't bluff and is prepared to unleash hell. What does that indicate to you about whether progress is being made with Iran in these talks, given Tehran is bracing for a potential American ground invasion on Kharg Island?

GHOSH: I think what's happening is that both sides Rosemary are preparing for all eventualities. The U.S. is still counting. The President Trump is still counting on the Iranians to fold and accept the terms that the Trump administration has set. But as a precaution and as a means of adding more pressure on Tehran is sending more troops into the region. The Iranians, for their part, are counting on Trump to fold, and are holding out despite this pressure.

So, I think both sides are being very cagey. Nobody is ruling anything out at the moment, everybody is keeping all the options open.

CHURCH: And Bobby, what more are you learning about President Trump's 15 point ceasefire plan that Iran has apparently rejected, and how much do you know about the potential talks in Pakistan between the U.S. and Iran, even as Iran claims, there are no negotiations.

GHOSH: Well, the Iranians were expected to turn down the 15 points. The 15 points, as we have come to learn about them are maximalist positions. These are not the kinds of demands that the Iranians are expected to accept. I think what the Trump administration is counting on is that the Iranians will accept. Some of them will push back on the others. This is how negotiations have begun -- are begun traditionally in these situations, each side taking and staking out maximalist positions and then finding their way to the middle.

Now, what you need in this situation is an honest broker. You need a mediator in these negotiations, and Pakistan has put itself forward for that role, but it really doesn't have the credentials. I don't think either side would accept Pakistan as an honest broker. Iran has had difficult relations with Pakistan. I think the Iranians see Pakistan as being basically in the American camp.

I think they'll be happy for Pakistan to play the messenger, and that's not unimportant in this stage of affairs, but when it comes to actual negotiations, you're going to need a mediator who has long standing and good relations with the principles on both sides and with the ability in the -- in the room, in the middle of negotiations, to take one side or the other to one side and say, listen, you have to accept these terms. They may not be the perfect solution, but they're good enough for the moment.

[02:10:06]

Pakistan really does not have that kind of depth of relationships, either in Tehran or, frankly, in Washington, D.C. The Turks may have that, the Omanis have it, but of course, at the moment, the Omanis are very upset with the Iranians for having bomb targets in and around musket.

So, the only logical interlocutor that I can think of in the region right now is Turkey. I don't see Pakistan as being able to play that role.

CHURCH: And Bobby even experts within the Trump administration are warning the president against seizing Kharg Island, and add that doing that won't resolve problems related to the closure of the Strait of Hormuz.

So, who is Trump likely listening to? Given he has wanted to take Kharg Island since 1988 or is this more about leverage?

GHOSH: Well, Trump has always and he has been unambiguous about this. Trump listens to himself. He does not really pay that much attention to the experts around him, the few experts that he has had around him, he tends to follow his own instinct, political instinct as well as geopolitical instinct, no matter where they happen to lead him.

As you point out, he has been consistent in wanting to use his phrase take the oil from the Iranians, and he has suggested that that is what America should do from long before he was in politics.

It's a little difficult to know whether he's bluffing, and despite what the White House says, he has been known to bluff in when it comes to geopolitical brinkmanship. He did that with most recently with the controversy over Greenland, in his relations with Europeans, he bluffed, and he hoped that the Europeans would come to terms when they did not do so he backed away.

Now, the Iranians will have learned from that, and they will be counting on him to back away again. But when you're dealing with somebody like Trump, who is highly unpredictable, it is never safe to come to any kind of permanent conclusions about his intentions and motivation.

CHURCH: Bobby Ghosh, thank you so much for joining us and sharing your analysis.

GHOSH: A pleasure, Rosemary.

CHURCH: Fears of a fuel shortage are rattling countries across the globe as the vital Strait of Hormuz remains effectively closed. Video out of India shows people waiting in long lines at gas stations to fill up. Some say they weren't able to find gas at several pumps. India has been hit hard by the growing energy crisis since it relies heavily on imports that travel through the Strait of Hormuz.

And CNN's Eleni Giokos joins us now live from Dubai. Good to see you, Eleni, so what more are you learning about fuel shortages across the world, as well as supply chain concerns?

ELENI GIOKOS, CNN CORRESPONDENT: Yes. I mean, look, with absolutely no doubt, we have seen the biggest supply disruption in the history of oil markets. That is the message from the International Energy Agency, and you're seeing a plethora of policy responses throughout Asia and frankly, the rest of the world, as you're seeing these increases in fuel prices, but also the reality that things are starting to dry up.

The longer we see the Strait of Hormuz closed, the longer we see disruptions throughout this region, the longer the supply shock will last. I want to take you through some of the policy reaction that we've seen Japan releasing 30 days worth of oil from its state owned reserves. This is in addition to what we saw, the release from the private sector. We've also seen South Korean presidents announcing new emergency responses today, urging citizens to actively participate in what they say, small everyday actions by using public transport, staying at home, working from home and so forth. Some countries have also put in stay at home policies.

For example, in the Philippines, they've declared a national emergency. You saw protest action there as well, in terms of the oil price rises and fuel price hikes. And then you've shown those dramatic images from India as well where gas stations are running out of fuel and partly because of hoarding and panic buying, but also because of the reality of fuel shortages.

You also see images coming through from the likes of Thailand. There's panic buying there as well. Some of the fishermen have already been impacted Rosemary, and this is the reality that we're seeing on the ground, because Asia relies on the Strait of Hormuz for 90 percent of its fuel supply. And you're seeing that choke point really just creating so much havoc.

I want to check on the Brent crude price right now, which is up, once again, on the back of this to and fro in terms of where do we go from here, are the discussions happening, is there a diplomatic off ramp? And even if there is, you're not going to see, you know, the taps turn back on immediately. Brent crude sitting up at $104 a barrel at this point, that's up around two percent.

[02:15:06]

But the prognosis is that if there isn't enough good news coming through from these people. Potential talks that are occurring, then we could see much higher oil prices.

In the meantime, you also heard from the BlackRock CEO, the largest fund manager in the world, Larry Fink, saying that if oil prices go $250 a barrel, then we're talking about a global recession.

So, very serious scenario that we're looking at here. The question is, is it going to escalate further? Are they going to be able to create some kind of resolution in terms of opening up the Strait of Hormuz that is currently under Iranian control?

CHURCH: Eleni Giokos bringing us the latest there from Dubai. Very sobering indeed. Appreciate it.

Well, moving now to Gaza, where Israel launched a new strike that was caught on a CNN camera Wednesday.

One Palestinian was reportedly killed and seven others injured in the strike on a crowded displacement camp that happened a day after a key U.N. official laid out a plan for disarming Hamas, a sticking point in the cease fire agreement. He told the Security Council the most dangerous weapons will be addressed first, including rockets, heavy munitions and assault rifles. He said the decommissioning of weapons will happen alongside Israel's gradual withdrawal from Gaza.

Still to come, a big win for critics of big tech, how a landmark verdict could shape the future of social media. We'll take a look.

(COMMERCIAL BREAK)

[02:21:07]

CHURCH: Welcome back, everyone. We turn now to the bombshell ruling in California against two social media giants. A jury Wednesday found YouTube and Meta knew their platforms were dangerous and failed to warn users of the risks. This case involves a 20-year-old who claims the companies intentionally got her addicted and harmed her mental health.

The jury recommended Meta and YouTube pay a total of $6 million in damages. Both companies are planning to appeal. An attorney for the Social Media Victims Law Center says social media platforms don't see users as customers, rather products to profit from.

(BEGIN VIDEO CLIP)

MATTHEW BERGMAN, FOUNDING ATTORNEY, SOCIAL MEDIA VICTIMS LAW CENTER: They deliberately targeted teens knowing that their brains aren't fully developed, knowing that they're so craving as teens are of adulation from their peers and profited from it.

You know, when these kids are on social media. They are not the customer. They're the product. They're selling their eyes. They're selling their attention, and the more time that they can keep kids online, the more advertising they sell and the more money they make.

(END VIDEO CLIP)

CHURCH: Snap and TikTok were also sued, but settled before trial.

Well, critics of big tech companies have hailed the verdict, and they hope it could put more pressure on Congress to pass legislation to require tech platforms to provide safeguards for children. CNN's Brian Stelter has more.

(BEGIN VIDEOTAPE)

BRIAN STELTER, CNN CHIEF MEDIA ANALYST: Hi, there. Yes. For critics, the big technology companies, Wednesday's verdict was literally years in the making. They had campaigned, lobbied, sued for this outcome.

Parent advocates child safety experts, lawmakers, they all said this finding of liability against Meta and Google was a long overdue form of accountability. Some likened it to social media's big tobacco moment, although the cigarette comparisons probably only go so far.

People did not start new careers and learn new skills and improve their lives with cigarettes, the way so many millions have with social media.

The positives, the benefits of these tools and technologies, are pretty obvious to most, but so are the downsides, and it's the dangers that are becoming more and more apparent. The dangers are what were highlighted by this trial in L.A.

Ultimately, this is very much about health, the same way that warnings against smoking were about health. And this jury verdict also highlights the lack of government action up until now.

On Wednesday, Alvaro Bedoya who was a commissioner on the Federal Trade Commission back in the Biden years, he wrote that, "A jury of regular people has managed to do what Congress and even state legislatures have not, hold Meta and Google accountable for addicting young people to their products."

Groups of names like parents for safe online spaces also cheered the ruling, and it was an emotional moment for parents who have publicly attributed their children's untimely deaths to social media.

Now, experts say this ruling might put more pressure on Congress to pass the Kids Online Safety Act. That's a bill that would require tech companies to put multiple guardrails safeguards in place for young people. That bill has been introduced and reintroduced for several years, but has not made it through Congress.

This verdict might also, more broadly, raise more awareness about phone free school campaigns and about the laws that have been passed in countries like Australia to ban social media for kids and young teens.

At the same time, though, on Wednesday, others warned about the possible unintended consequences of Meta and Google being found negligent. The Wall Street Journal editorial board, for example, it called this a win, not for families, but for trial lawyers who will now go and line up more clients for more lawsuits against tech companies.

Here's the Journal headline, "The Social Media shakedown begins." There are also worries about changes to the open internet that could compromise and restrict online speech and privacy.

This is clearly a moment of reckoning about whether the apps almost everyone uses are keeping us addicted. If you scratch beneath the surface, many people will admit to unpleasant, unhealthy relationships with smartphones and social media.

[02:25:09]

Many people just accept it as the way it has to be. But this jury's finding might be a statement that, hey, it doesn't have to be this way. Maybe there are other ways, maybe less addictive ways to engage with these apps.

And ultimately, this verdict, it's about showing there are ways to hold tech companies accountable.

Brian Stelter, CNN.

(END VIDEOTAPE)

CHURCH: The verdict could also set a precedent for hundreds of similar cases. For years, parents, advocates and lawmakers have been warning about the harm social media has caused their children. Julianna Arnold was one of those advocates. She lost her daughter Coco weeks before her 17th birthday, after she was sold fentanyl on Instagram. Here's her reaction to the verdict.

(BEGIN VIDEO CLIP)

JULIANNA ARNOLD, ONLINE SAFETY ADVOCATE: It's a very important, obviously, milestone in our fight for online safety for kids.

But personally, you know, I was thinking about, I just feel, really, it's kind of bittersweet. You know, we're sitting in that room because the most horrible thing in our lives happened, and that's the loss of our children.

And at the same time, we got a unanimous verdict, which was phenomenal, because we're working so hard and telling our stories over and over, and this is the first time we actually feel that we are being heard and action has been taken, and it came from a jury of our peers.

So, that feels good, but I have to say, it's very angering to understand what these companies have done knowingly and purposefully to increase their profits and not care at all about our children's lives.

(END VIDEO CLIP)

CHURCH: Other countries have already taken action to implement guardrails for children online. In December, Australia became the first country to ban children under the age of 16 from using social media platforms. A YouGov survey has found most Australians believe the policy is effective, but still needs some work. 61 percent of parents have observed positive behavioral shifts in their children, but 25 percent notice their children getting less social connection, creativity or peer support online.

Meanwhile, a few hundred teens in the U.K. are trying out a social media ban. They're taking part in a six week pilot program that includes various restrictions such as parental controls, curfews and time caps.

Well, there's much more to come here on CNN, including a look at what Iranians are saying about the conflict as the war grinds on. Do stay with us.

(COMMERCIAL BREAK)

[02:32:17]

CHURCH: Welcome back, everyone. It has been almost a month since the U.S. and Israel launched the war with Iran. Ordinary Iranians say they feel frustrated, divided and unsure of what comes next.

CNN's Leila Gharagozlou has more.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE (through translator): I'm so angry. I feel like we're just a play thing. We've been toyed with. When Trump said help is on the way, we'll save you and it amounted to nothing, which was obvious for some of us, but some of us believed it and it deeply divided us. This was some crazy psychological warfare.

LEILA GHARAGOZLOU, CNN PRODUCER: Ordinary Iranians are caught in the middle of geopolitical posturing and war, facing an uncertain future. President Trump has expressed optimism that a deal to end the war with Iran is in sight.

CNN spoke to Iranians about how they feel about possible negotiations between the U.S. and Iran. Having already gone through one war last year and deadly protests that culminated this year, Iranians are feeling frustrated, betrayed and angry.

UNIDENTIFIED MALE (through translator): I am angry. I am so angry that nothing has changed and that more likely nothing will happen or change that will benefit the Iranian people. I had the same feeling last time in the 12-day war.

Why did this happen? For what? Why did they, for 12 days, bomb us, force us out of our homes, force us to flee? It created terror and horror for ourselves, our children, our animals. These things are serious. Our lives are at risk.

GHARAGOZLOU: Despite the anger, there is hope that a ceasefire or a deal could offer some relief to people whose lives have been upended by decades of economic turmoil and conflict.

UNIDENTIFIED FEMALE (through translator): Maybe if they do talk, at the very least, it can improve the economic situation. If this war continues, our lives will be halted and stopped, meaning we cannot move forward. While the situation in Iran remains unclear, we are all up in the air.

We've been in this limbo for months, nearly a year. And in the past few years, it's just gotten worse and worse.

GHARAGOZLOU: Until world leaders find an off-ramp for this war, ordinary Iranians say they will continue having to bear the brunt of this conflict and an uncertain future.

UNIDENTIFIED MALE (through translator): I am pissed off. I am hopeful. I am scared. I am all of these things all at once, and it's suffocating, quite frankly.

(END VIDEOTAPE)

CHURCH: President Donald Trump's visit to China is back on, originally set for the end of this month. The trip was rescheduled after the war with Iran started. The White House now says it will take place May 14th and 15th, and there will be a reciprocal visit in Washington, D.C. later this year.

[02:35:00]

Economists will be looking for new data as reports on U.S. jobless claims and mortgage rates are expected in the coming hours. Top concerns for most people are the skyrocketing gas prices and how to feed their families against rising inflation. Wall Street analysts are raising the likelihood of an economic downturn as a result of the war with Iran.

Goldman Sachs said Tuesday, the chances of a recession are now 30 percent. EY-Parthenon raised its odds on Monday to 40 percent. And Moody's says there is a nearly 50 percent chance of recession. It points out the odds could rise rapidly in the event of a more prolonged conflict. BlackRock CEO, Larry Fink told the BBC there is risk even if the conflict ends.

(BEGIN VIDEO CLIP)

LARRY FINK, CHIEF EXECUTIVE OFFICER, BLACKROCK: If there's a cessation of war and yet, Iran remains a threat, a threat to trade, a threat to the Straits of Hormuz, then I would argue that we could have years, years of, you know, above $100, closer to $150 oil.

UNIDENTIFIED MALE: What happens to the global economy if that happens? How do we see it?

FINK: We'll have global recession.

(END VIDEO CLIP)

CHURCH: I'm joined now by Ryan Patel who is a senior fellow with the Drucker School of Management at Claremont Graduate University.

Great to have you in the studio for a change.

RYAN PATEL, SENIOR FELLOW, DRUCKER SCHOOL OF MANAGEMENT, CLAREMONT GRADUATE UNIVERSITY: It's great to join you here. Can't wait.

CHURCH: Wonderful. All right, so let's look at this, because we've been watching global markets and oil prices go up and down on the word of President Trump. And now, he's talking about these possible negotiations to end the war. But at the same time, we see Iran bracing for U.S. troops, potentially on the ground on Kharg Island, which is not going to help the oil getting through the Strait of Hormuz.

Where does this leave U.S. and global economies?

PATEL: Well, you just said it, there's a lot more uncertainty going on, so the U.S. economy isn't going to flip either side. It's going to be staying status quo as we can, which is what, to brace for the higher prices. Even though, you know, President Trump said, you know, they're in negotiation but you can't react to news like that because then we're going to be back to the side.

So I think where we are from the U.S. economy is, is this a spike of oil prices or is this going to be here long term? Big difference between the two on how people react and how the markets react as well.

CHURCH: And of course, if you turn your sights on Asia, I mean Asian nations are really suffering particularly. They're having to import all that fuel and you've got demand high, supply is dwindling. What is going to happen there in Asia?

PATEL: I think this has put a spotlight in the Asian countries because they are affected, that region is affected the most. They are getting close to 60 to 70 percent of the oil from the Middle East. And so when you think of countries like China, South Korea, India, over 50 to 60 percent of the exports of oil is coming from there and all those countries are more fossil fuel energy driven as well.

And so, it does have a cyclical effect because let me tell you, if that occurs and their economies get hit, what happens? Currency weakens. Currency weakens, what happens to supply chain? That weakens and the buying power too, who else buy their manufacturing? To the U.S., to other parts. That has a trickle-down effect.

So it's not just about that region, it's about how they produce and how can they produce things, and it does hit the supply chain which I think is probably the bigger story in here at the end of the day.

CHURCH: Right. And then at the same time, everyone is talking about the possibility of a global recession. What do you think when you look at the numbers? If this war drags on, the U.S. president is talking about four to six weeks here. He's already planned to see Xi Jinping in mid-May so maybe that gives us an indication of a timeline.

But what would this mean in terms of a global recession? Do you see that as a possibility?

PATEL: You know, when that word gets thrown out, the only thing you do is pause. And I think the reason why I pause is because do I believe that this is going to go more than four to six weeks? OK, we just threw four to six weeks as a number, but like a recession is the longer this goes, the higher the risk is. And I can tell you today, there is risk for recession because of how long we think it's going to go.

And so, to me, there is a huge risk in doing it. Do I think it's going to happen? It goes back to policy. Do I believe that all these countries coming together and trying to do the right thing for the economy, for the people, will it allow that? I hope not. I really do. But I mean, at this rate, if it isn't that prolonged and it's not a spike, this is not an oil spike or oil, you know, energy crisis. We'll see that go down that route because then inflation will then have to rise.

CHURCH: Right. And is this a moment in time where nations, particularly Asian nations, in Australia, where they have to say we're going to have to look at other options, green energy options. In Australia, I mean a lot of people have solar panels and maybe that's something that Asian nations have to consider, maybe they already are. But they need to start looking perhaps at other options here.

[02:40:00]

Is this that moment in time?

PATEL: I mean I think so. I think you kind of see it, kind of already in Asia, but not into that aspect. So like 10 years ago, solar was, you know -- now, solar is 80 to 90 percent cheaper actually from a decade ago. So those who invest in it can invest now. But here's the thing that I think that most people kind of, I don't want to say get it wrong, but don't understand. It takes years to change an economy to go towards solar.

What I mean by that, policy has to come with it as well. So it's easy to say that we're going to go green or go in another direction, but it's going to take multiple years to really reap that benefit. So you have to invest now, but you can still invest now. But how much are you investing if it's into the infrastructure?

CHURCH: Right.

PATEL: So I think it's a good sign to invest now if you can, but could have done it earlier to be able to get in a better position than you are. We see other countries doing it.

CHURCH: Yeah. I mean, there are people in Australia who sell back the excess energy they get from their solar panel to the government.

PATEL: Yeah.

CHURCH: So it's in process. It's a matter of whether nations choose to do it, I guess.

PATEL: A hundred percent. And make it easy for the consumer to do it. If you're talking about the consumer from the housing market, right? What you just said, that's the best ROI (ph) you can do.

CHURCH: Yeah.

PATEL: And that necessarily wasn't there in the beginning, but it is now. And I think that will change as policy, it'll change the way the country will look at it.

CHURCH: Ryan Patel, great to have you with us.

PATEL: Thank you for having me.

CHURCH: A powerful storm is expected to barrel through the Middle East in the coming hours, adding more heavy rain, damaging high winds and possibly thunderstorms. Stormy weather has already brought heavy rain to the region this week.

CNN's Derek Van Dam has more.

DEREK VAN DAM, CNN METEOROLOGIST: The unusual stretch of unsettled weather across the Middle East continues. Look at the satellite loop, and you can see the activity moving across portions of the UAE into Saudi Arabia, even into Iran and Kuwait and Bahrain. These areas have been pelted by not only heavy rainfall but stronger storms, which are a rare occurrence, especially when you're talking about damaging winds and isolated tornadoes as well.

The rainfall has been impressive. Some locations like Abu Dhabi, for instance, have nearly approached their yearly average rainfall, and it's only been about 48 hours with this accumulation, so really impressive stuff. So what you're seeing here is a climatological breakdown, a month-by-month breakdown of how much rain Abu Dhabi typically receives.

And you can see February to March are kind of the two rainiest seasons, and then we dramatically dry things out as we head into the summer months in the northern hemisphere. When we're talking about 70- plus millimeters of rain in a two-day period, when we average 89 millimeters, that's a lot for a normally dry area. And guess what? There's more rain to come for these locations.

So we could easily exceed the yearly average rainfall totals for Abu Dhabi and other locations as well as a more robust storm system moves in from the north and west. Here's a look at the forecast precipitation, and you can see right across the Persian Gulf, here's the United Arab Emirates, and you can see some of the northerly regions could have rainfall totals in excess of 50 millimeters on top of what's already fallen. So that is a concern for localized flash flooding.

And some of these thunderstorms that move through the passage of this system could have some strong gusty winds. This being a dry environment, we'll look out for the potential of some blowing dust as well. So a very interesting weather setup to say the least, across portions of the Middle East. Back to you.

CHURCH: Well, Ukrainian drones take aim at Russian oil terminals on the Baltic Coast, and now the aftermath can be seen from another country. That story just ahead.

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CHURCH: Ukraine's president says his country is hoping to keep up with Russia's growing production of drones. Ukraine says Moscow launched more than 1,000 drones over a 36-hour period this week. At least three people were killed and dozens of others were injured across the country. But President Volodymyr Zelenskyy says Ukraine should be able to meet its drone production targets.

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VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): The bad news is that the Russians are moving toward their goal of using a thousand drones a day. The good news, if you can call it that, is that their plans haven't yet caught up with reality. But that is undoubtedly their goal. That's why we are aiming to produce over a thousand drones and interceptors a day. And as of today, we know we are capable of doing so.

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CHURCH: Meanwhile, this video shows smoke from two Russian oil terminals on the Baltic Coast, which was struck by Ukraine on Tuesday. The smoke was seen from a helicopter in Finland. Sources say the two terminals have suspended their exports.

In the coming hours, Venezuela's ousted president will appear in a New York federal court. Attorneys representing Nicolas Maduro and his wife will argue that the U.S. government is interfering with the defense. The lawyers say the Treasury Department has revoked a license that allows Venezuela to pay their legal fees and they say that violates Maduro's constitutional right to defend himself.

Prosecutors say the couple can still use their personal money to cover legal costs. Maduro has pleaded not guilty to charges related to drug trafficking, money laundering and corruption.

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Around the world, as many as 90 percent of business startups fail, often undermined by factors such as limited access to funding, mentorship, and the networks needed to grow. Across Africa, a new generation of education and innovation hubs is working to change that, building ecosystems designed to support entrepreneurs and strengthen local economies.

In Cameroon, one such hub is helping company founders turn ideas into viable businesses.

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EMMANUELLE BAROUX, GENERAL MANAGER, ENOVATION FACTORY: Enovation Factory was born from a simple observation, which is that there is no shortage of talents or ideas in Africa and in Cameroon in particular. However, there is a structural gap when it comes to support, mentorship, capacity building, access to markets and capital.

AYUK ETTA, DIRECTOR OF PROGRAMS AND STARTUPS, ENOVATION FACTORY: The biggest challenge that I see is, we do not have a thriving ecosystem. If that is fixed, I think that we'll have more innovation and more successful businesses.

BAROUX: So Enovation Factory was created to bridge that gap and to provide entrepreneurs with not just a workspace, but a real growth platform.

UNIDENTIFIED MALE: And that's what some of you are encountering right now with the ideas that you have, is that you have thought about good solutions and good ideas, but no one is willing to pay.

BAROUX: We have a very structured methodology. We expect startups to follow through a six-month program where we have scheduled weekly workshops. We have defined milestones, we have measurables, deliverables that we ask from them.

ETTA: An important thing to note here at Enovation Factory is that most of the startups that we support are tech startups. Right? It means that technology is at their core, whether they are using it to build their products and their solution or they are using it to run their operation. Technology plays a 90 percent role in whatever we do here. MANUELA NZALI, CO-FOUNDER, MADON: How are you doing?

ETTA: I'm good.

(LAUGH)

NZALI: Welcome at MADON. My name is Manuela Nzali. I'm an entrepreneur and also the Co-Founder and Chief of Operations of MADON, which is a digital marketplace that connects Africa to the world.

Enovation Factory was not only a place to validate the business, but also to check the scalability and a place to network and also exchange with other entrepreneurs to see how the things are going on. So, we are very thankful for that because in the six-month program, we really had the opportunity to validate that point and also prepare for the expansion. We are very grateful for that.

BAROUX: Everything is put in place to ensure that they're able to compete globally. For me, one big objective is that a startup in Yaounde should be able to speak the same business language as an investor anywhere in the world.

ETTA: Enovation plays a pivotal role in the ecosystem that we want to build in Cameroon and across Central Africa, right, and which is to connect talent to solutions. And if we're able to do that at scale, then it's going to change so many things for our country and also for the young people in Cameroon.

BAROUX: For us, our main ambition is impact. It's always been impact. So what we want to do and our mission here at Enovation Factory is to turn high-potential entrepreneurs into scalable and sustainable businesses. This is the core of our mission.

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CHURCH: And next on "CNN Newsroom," a collection of stunning images of the world around us. We will show you the finalists and the winner of the Wildlife Photographer of the Year People's Choice Award.

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CHURCH: An historic first in the Church of England's nearly 500-year history. Sarah Mullally is the first female Archbishop of Canterbury in the Church of England. She was officially installed on Wednesday in a ceremony mixing tradition with global symbolism.

The heir to the British throne, Prince William, and his wife Catherine, the Princess of Wales, were some of the 2,000 guests who attended the ceremony. Archbishop Mullally is the spiritual leader of 85 million Anglicans around the world.

Well, a stunning image of a young Iberian lynx playing with its unfortunate prey has won the 2026 Wildlife Photographer of the Year People's Choice Award. The photographer who captured this winning shot spent three days camouflaged in central Spain. The annual competition organized by London's Natural History Museum began with more than 60,000 entries. The list was then narrowed to 24 for this award chosen by voters.

Among the runners-up, this heartwarming image of a polar bear and her cubs resting in the summer warmth of the Hudson Bay Coast in Canada. It depicts an increasingly rare sight of survival amid shrinking sea ice.

Next, this striking contrast between a group of bright flamingos and power lines in Namibia. And here, a shot of a sika deer in Japan shows the head of a rival male lodged onto its antler, resulting from a gruesome fight. And in Canada, two young bear cubs were caught wrestling in the headlights of a quiet road in Jasper National Park. The Natural History Museum will have these photos on display until July 12.

Gorgeous. Thanks so much for joining us this hour. I'm Rosemary Church. I will be back with more "CNN Newsroom" after a short break. Do stay with us.

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