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Smoke Rises Over Beirut Skyline as Middle East Conflict Escalates; Pentagon Gives First Public Briefing on War Against Iran; Iran Forms Leadership Council After Khamenei's Killing; War Spirals in Middle East as Explosions Heard Across Region; Saudi Aramco Shuts Ras Tanura Refinery After Debris Starts Fire; Gulf Energy Production and Data Center Infrastructure at Risk. Aired 9-10a ET
Aired March 02, 2026 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:00]
(COMMERCIAL BREAK)
BECKY ANDERSON, CNN HOST, CONNECT THE WORLD: And you are looking at live pictures of the skyline of Beirut in Lebanon, Israel increasing its
targeting of Hezbollah inside that country. Hello and welcome to CNN's Breaking News coverage of a Middle East conflict that began three days ago
and is only escalating.
I'm Becky Anderson. We've just heard from the Pentagon in Washington, where it is 09:00 a.m. it is 06:00 p.m. here in Abu Dhabi at CNN's Middle East
programming headquarters. Top U.S. Defense Officials giving their first on camera update since the U.S. launched its war against Iran over the
weekend.
Defense Secretary Pete Hegseth has just said that the U.S. had no choice but to take action. Have a listen.
(BEGIN VIDEO CLIP)
PETE HEGSETH, U.S. DEFENSE SECRETARY: Iran was building powerful missiles and drones to create a conventional shield for their nuclear black male
ambitions. Let me say that again, a conventional shield for their nuclear black male ambitions. Our bases, our people, our allies, all in their cross
hairs.
Iran had a conventional gun to our head as they tried to lie their way to a nuclear bomb.
(END VIDEO CLIP)
ANDERSON: Well, the U.S. military says a fourth service member has died after suffering injuries during Iran's first round of retaliatory attacks.
U.S. Central Command also investigating what it is calling an apparently friendly fire incident. The U.S. says three of its fighter jets were
accidentally shot down by Kuwaiti Air Defenses.
And this is image that we've had into CNN about that officials adding that all six crew members did manage to eject. We are told they are in a stable
condition. And there is more ominous smoke on the skyline in this region of the Gulf as the conflict rapidly escalates.
This video, geo located by CNN, shows smoke rising from the area around the U.S. Embassy in Kuwait earlier today. Meantime, Tehran ramping up its
rhetoric and its attack. See Iranian Deputy Foreign Minister declaring the country quote, will not negotiate with the United States.
(BEGIN VIDEO CLIP)
MAJID TAKHT-RAVANCHI, IRANIAN DEPUTY FOREIGN MINISTER: Our policy towards our neighbors is quite clear. We want best of relations with our neighbors.
At the same time, before the aggression, we informed our neighbors that if the America or Israel engages in animosity against Iran, definitely we will
be in self-defense mode.
And we will target the American assets, the American military bases in the region, wherever they are located, because they are legitimate targets, in
accordance with Article 51 of the U.N. Charter. Therefore, whatever we are doing is to act in self-defense against American targets and American
assets in the region.
(END VIDEO CLIP)
ANDERSON: Well, we are across the world on the breaking news developments and what they mean. Paula Hancocks is in Dubai. Miri Eisin is a senior
fellow at the International Institute for Counter-terrorism at Reichman University in Israel, and a retired member of the IDF. She is in Tel Aviv.
First, let's get you to CNN's Fred Pleitgen, who is in Berlin. And Fred, I want to hear more from that Pentagon event that we've just been listening
to and has just wrapped up. That was Pete Hegseth, of course, with the Joint Chiefs of Staff Chairman and Dan Caine. Let's just have a little --
listen to a little more.
(BEGIN VIDEO CLIP)
GENERAL DAN CAINE, U.S. CHAIRMAN OF THE JOINT CHIEFS OF STAFF: This is not a single overnight operation. The military objectives that SENCOM and the
Joint Force have been tasked with will take some time to achieve. And in some cases, will be difficult and gritty work.
We expect to take additional losses, and as always, we will work to minimize U.S. losses.
(END VIDEO CLIP)
ANDERSON: What were your key take outs from that press conference? Of course, this is really the first time we've heard from the Trump
Administration in a sort of open setting, taking questions since this conflict began.
[09:05:00]
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yeah, Becky, on the one hand, I think first of all, the fact that they were talking about
this, this military confrontation going on for an extended period of time, that the United States is willing to stay in this for quite a while.
One of the big takeaways that I had was Pete Hegseth, the Secretary of War, as it's now called, saying that the United States will end this on its own
terms, on America First terms, and that it is in it for that. On the other hand, of course, they outlined some of the key ways that this operation got
started, the intelligence that started some of the cyber activities.
One of things was interesting was the one-way drones that the United States had been using, but then also the use of some of America's most powerful
assets, like those B2 bombers that the United States said that they did use to try and take out some of that missile infrastructure from the Iranians.
And of course, some of it very much, deep inside mountain sides and the very mountainous terrain of Iran. Also, one thing that I think shed a lot
of light on how this operation started was that, I think it was Pete Hegseth, the Secretary of War, saying that all this happened because of a
one-time event that was led by the Israelis.
Of course, we know that these the military operations started within a tank among others, on the compound of Iran Supreme Leader Ayatollah Ali
Khamenei. It seemed as though the United States was referring to that and saying that that was an Israeli operation, but using American intelligence,
that obviously seems to indicate that, indeed, possibly United States intelligence assets were following and tracking the movements of Iran's
Supreme Leader.
One of the interesting things that we're picking up from Iran today, Becky, was indeed Ali Larijani, whom you quoted before the head of Iran's Supreme
National Security Council, who said that the Iranians right now will not negotiate with the United States. He came out later on social media and
said that Iran, as he put it, is prepared for a long war, unlike the United States, he says.
So, it seems as though, as of right now, the Iranians remain in it, the Iranians are going to fire back. And certainly, at this point in time, it
seems as though diplomacy is very much on the rocks. I was also scanning Iranian social media and some of the official outlets, and there was one
Iranian military commander who was quoted saying that the Iranians had fired thousands of missiles already at Israel and of course, also other
targets in the greater Middle Eastern region.
But these were older missiles, and that the Iranians had not yet even tapped their newer arsenal. So clearly, some very bullish language there
coming out of Tehran this morning, Becky.
ANDERSON: Let me just bring in the U.S. National Security Analyst Alex Plitsas, who has just joined us, and it's good to have you. We're talking
about what we took out of the Pentagon press conference that was just heard Alex, even as we see new videos of the latest strikes on Tehran.
It sounds like this will end no time soon as far as the Pentagon is concerned. What did you make of what you just heard?
ALEX PLITSAS, CNN U.S. NATIONAL SECURITY ANALYST: I mean, actually, I thought the briefing was fairly appropriate in the sense that it stuck to
military objectives, what the U.S. was trying to achieve from the Pentagon. The outcome afterwards, whether its regime change or how this is eventually
settled.
So, whether that's through a negotiated settlement of some sort with the remnants of the Iranian government, or whether that's through an actor on
the ground that's largely a political process that the military will set the conditions for if, in fact, that's going to happen.
So, I think the military picture is probably clear for the next few days or so, and that's if you're moving through fixed infrastructure targets,
having moved on from intelligence driven ones like leaders, some of the ability to retaliate like missiles and drones. And then at some point, the
president said in his eight-minute video that he released at the onset of the conflict that the Iranian people should hunker down.
It's their once in a lifetime opportunity to take over the government, and we'll let you know when it's safe. So seemingly, at some point he'll come
back and say, OK, we're done with that part now come take over, and that's if they don't find somebody to negotiate with in the interim.
And then what do you do try to provide tactical air support to protestors on the ground without combat controllers or folks there, becomes
increasingly difficult over time. So, it really becomes unclear at that point. So, the Pentagon appeared to be sticking to military objectives, and
what it is that they seek to do and stay out of the fray.
And, you know, just speaking the military footprint, there are no ground forces deployed in the region. So, there was, you know, several questions
about whether or not the U.S. would deploy. They're simply not there at the moment. Doesn't mean they can't be mobilized, but that doesn't look like
there's any immediate plans to put U.S. boots on the ground.
ANDERSON: Perspective from Alex on what we heard from the Pentagon. Let me bring in Miri Eisin at this point, you are familiar, very familiar, with
IDF operations and what the defense forces would be trying to achieve here. What do you make of what we just heard from the Pentagon?
And does what you heard from the U.S. reflect the same end goal, the same strategy that the Israeli government has?
[09:10:00]
Will they be happy with what they just heard?
MIRI EISIN, ISRAEL DEFENSE FORCES (RET.): Becky, from Israel, we have been hearing the IDF spokesperson from the beginning. We've also been hearing
the prime minister time after time, and the Minister of Defense sale cuts. I just say that because from here, they're stating more clearly.
First of all, the IDF put on the table what the targets were both in the initial attack, killing in that first initial attack, over 40 high ranking
IRC, if it's also the Iranian Revolutionary Guard, different ones from the regime. And of course, Khamenei himself. And I heard also now that
Khamenei's wife, has also died from that attack that Israel did at the beginning.
So, one is against different symbols of the regime, hand in hand to be able to do this, and that's always going to be there. You have to have air
superiority. So, you're constantly going after any kind of air defense that the Iranians could use. The Iranians, of course, claimed the fact that they
down those U.S. planes.
That is not true. The Iranian Deputy Foreign Minister that was put in a sink on before, says lots of things that I don't believe. They say that
they're not willing to negotiate. When Larijani says 6000 years of history, and they have a long time that I believe. And the Israeli Defense Forces
are attacking right now, the different types of sites that could help, if possible, the Iranian people, if they can do any kind of change of
government.
They've been attacking the Israeli planes, the Basij, the different police headquarters, police stations, some of the prisons where the people who had
been arrested by the regime over the last two months have been held. Those are already in the targeting but it's mainly against missiles, missile
launchers, air defense, and against the regime targets.
ANDERSON: I want to bring in Paula, at this point, who is in Dubai. It's been remarkable living here, as we do in the Gulf in the UAE, to have
witnessed Iran as it fires hundreds of missiles at the Gulf region, nearly 700 between the drones and the ballistic missiles that have been fired at
UAE alone in the past, more than 48 hours.
And countries around this region of the Gulf are absolutely outraged, describing these strikes as completely disproportionate to the U.S.,
attacks on Iran. After all, Iran had threatened to hit U.S. bases, should the U.S. get involved. But these strikes, Paula, have been way outside even
that remit, as it were, non-military facilities have been struck all over this region.
I want to take a look at the fire that broke out at Ras Tanura in Saudi Arabia today. The Saudi say they intercepted two drones. I need to stress
that the deputy foreign minister just denied that Iran was responsible for this event. But what are we learning at this point about what's being
struck around this region and the response?
PAULA HANCOCKS, CNN CORRESPONDENT: So, Becky, you mentioned the oil refinery in Saudi Arabia, that oil refinery produces about half a million
barrels of oil a day. So that is a key refinery within the whole of Saudi's oil infrastructure. As you say, two drones were intercepted on top of that
refinery, we have seen the damage that is obviously causing oil prices to rise significantly.
Then you also have in Qatar, the LNG distribution is being disrupted as well. Qatar energy saying that they had in Ras Laffan an Iranian attack on
that facility. They've had to shut production down. Qatar accounts for about 20 percent of the LNG exports around the world.
So, it's a major producer, so that's having an impact as well. That is just the energy sector there. But when it comes to what else we have seen, we
have seen attacks on shipping. We have seen attacks that have affected hotels here in Dubai. We have been seeing what the Iranians claim is
attacks on U.S. military targets, really spreading far beyond that.
I mean, here in Dubai, for example, this is, you know, it's an international travel hub. It's an international global commerce hub. It's
like a ghost city, at this point, everybody being told to shelter in place. And this is being replicated across the Gulf. These aren't countries that
are prepared or anticipating this kind of military attack.
[09:15:00]
The UAE, for example, has seen the vast majority of these drone and missile attacks. The figures we have from the Ministry of Defense, and this is from
Sunday, we have been seeing more missiles and drones being intercepted. So, we know the numbers higher. But 165 ballistic missiles, two cruise
missiles, 541 drones fired into the UAE alone.
More than 90 percent of those, though more than 92 percent have been intercepted by officials here, by the Ministry of Defense, by the military.
We know that they have very strong air defense capabilities, but it is a shock to this region. Leaders are particularly angry that they themselves
have found their countries being under attack as well.
Given the fact many of these countries said to the U.S., you cannot use our bases, you cannot use our airspace, we don't believe you should attack
Iran. They believe that would have distanced themselves somewhat from what is happening right now, but that is not the way Tehran sees it.
ANDERSON: OK.
HANCOCKS: We saw a unified statement from the GCC that the Gulf nations denouncing what Iran is doing, Becky.
ANDERSON: Mary, let me bring you back in. Mary Eisen in Tel Aviv. We heard Sunday from the Israeli Prime Minister, and I just want to viewers to have
a listen to this.
(BEGIN VIDEO CLIP)
BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: We are in a campaign in which we are bringing the full force of the IDF as never before to ensure our
existence and our future. But we are also bringing into this campaign the assistance of the United States, my friend U.S. President Donald Trump, and
U.S. military.
And this combination of forces enables us to do what I have long hoped to do for 40 years, to strike the terror regime decisively. That is what I
promised, and that is what we will do.
(END VIDEO CLIP)
ANDERSON: Ali Larijani, Iran's Security Chief has echoed or suggested that this isn't an America First policy that this is an Israel First policy.
That is the volley that he is posted today on X this is the Israeli government's ideal scenario is what he's saying, is it?
EISIN: This is -- there is no ideal scenario. And war Becky, and the fact that we're quoting Ali Larijani not exactly, to me the most reliable voice.
He's the Islamic regime. You're going to bring him on. I would add in, put a few sinks of Khamenei before we killed him, where he would call us the
cancer of the world that needs to be eliminated.
He prayed for it and tried for it every day. Israel does not pull the world by the nose. And I'm going to be rude and say that the Islamic regime was
also well known for its Shoah Holocaust denial. They hosted every year a Holocaust denial conference in Tehran. So again, they're saying that Israel
is the one that's pulling to me, is what they want to show right now.
The world hates Israel. If Israel is doing it, it must be bad. The United States is the big Satan for Iran. Israel is the little Satan for this
Islamic regime. Not talking about the Persian people. I'm talking about this Islamic regime. I don't necessarily support my own prime minister
every single day, Becky.
But when it comes to what's happening right now, this is called preventive. There's no question that the Islamic regime wanted to annihilate us, and
that was said in Khamenei's voice all of the time.
ANDERSON: What's the objective here, Mary? Before I move on to Alex and talk strategy here, what's the objective here? I mean, regime change to a
degree has already happened with these decapitation strikes. And the U.S. has called on the Iranian people to rise up and take over its government.
Two questions, I guess. How long does Israel believe it will take for Iranians to rise up and take over their government. And who do they believe
that that government, or what do they believe that government should look like?
EISIN: So, Becky, what you're asking me is, how we in Israel, all 10 million of us know the difference of what's going to happen in Iran, 93
million strong. I don't know how the Iranian people will do so.
But both you and me saw that over the last few weeks, they came out into the streets, not saying that they're for Israel, not saying that they're
for the United States, saying that they were against the regime, the regime that what did the regime invest in, in missiles and proxies and a nuclear
capability, not in their own people.
What Israel is doing right now, in the targeting is perhaps enabling the capability to do regime change. It's to take out those police forces that
are against their own people. It's to take out that fist that the Islamic regime has used holding us all hostage.
[09:20:00]
ANDERSON: Right.
EISIN: And that's what I think that we're trying to do right now. I can but hope for them, but I do not think that Israel is the one that brings about
the regime change.
ANDERSON: OK, Alex, very briefly, I want to talk to you about the friendly fire incident that we've seen in Kuwait today. Can you put that loss in
context just that, how unusual is it to see three planes go down like that?
PLITSAS: Well, I think they were in close concentration because of where they were flying. It is definitely unusual. Those you know roll off costs
for each one of those aircraft are about 100 million U.S. dollars. So that's about a $300 million loss. Never mind the six lives, which were
thankfully not lost as the pilots and weapons officers were able to safely eject. So very unusual incident.
ANDERSON: Really thank you. Alex, Mary, thank you for being with us. Thanks to Paula and to Fred, my colleagues as well. All right, coming up, how the
war is reigniting, the conflict between Israel and Hezbollah, and what each side is saying could happen next. That is coming up.
(COMMERCIAL BREAK)
ANDERSON: Israel is threatening to ramp up its attacks on Lebanon, and as the war spreads across the region. The Israeli military launched a wave of
strikes on Beirut and Southern Lebanon today after Hezbollah fired a number of projectiles and drones towards Northern Israel.
Hezbollah called it revenge for the killing of Iran's Supreme Leader. Israel says the attack didn't do any damage. The Israeli strikes, though,
have killed at least 31 people, according to the Lebanese Ministry of Public Health. Right, I want to bring in Firas Maksad is the Managing
Director for the Middle East and North Africa at Eurasia Group.
It's remarkable. You and I last spoke on Friday. We were talking about the potential for an attack. You and I discussed the potential for an Israeli
involvement in an attack, if not Israel striking first. Here we are, what nearly 72 hours on from the beginning of this operation.
The Israeli military now says all options are on the table in regard potential ground operations in Lebanon. What do you make of what we are
seeing there?
FIRAS MAKSAD, MANAGING DIRECTOR FOR THE MIDDLE EAST & NORTH AFRICA AT EURASIA GROUP: What a historic three days it's been, since we last spoke
Becky. First, I would need to highlight that this is certainly a sign of desperation, not on behalf of Hezbollah alone, but on the behalf of the
Iranian government to throw Hezbollah into the mix here.
The Iranians understand very well how weak Hezbollah is. It's been much weakened since the last round of fighting between the group and Israel
across the board in Lebanon. It is deeply unpopular for Lebanon to join this war. It's not only sort of in the traditional opposition of Hezbollah,
but even within Hezbollah's own support base.
[09:25:00]
Nobody wants this. The reason for this is because Iran doesn't have much left to throw at Israel. They have only a limited number of longer-range
ballistic missiles, and the Israelis certainly also need to consider how many interceptors they have left. And in many ways, Israel and Iran are
engaged in a war of attrition.
So, Iran deciding to throw Hezbollah here in the mix is a desperate attempt to open a second front to further distract Israel. And I think a reflection
of the fact that Iran really needs Hezbollah at this point, despite it, knowing that Hezbollah is in a pretty bad shape militarily, and also in
terms of the support base it has in Lebanon.
ANDERSON: We have learned today that the Lebanese government has announced that it has banned Hezbollah's military and security activities as illegal.
It's calling on the Iran backed group to surrender its weapons. How big a deal is that announcement, and what do you think of the timing?
MAKSAD: Historic. Hezbollah has enjoyed a freedom of operation in Lebanon pretty much since its inception in the early 80s. And no Lebanese
government has been able to take the group head on, let alone declare its military activities illegal. So, this is very important.
It must be underscored. But obviously where the rubber meets the road is the ability to implement. And here, I think everybody is going to be
looking at the Lebanese Armed Forces, the LAF, which are much more aware and attune of their concern about force cohesion.
A significant number of their troops come from the same support base that Hezbollah taps into. I think what's going to be crucial in terms of the
ability to implement anything like this, to try and actively restrict Hezbollah's military activities is going to be the political cover that the
Lebanese army has provided from within Hezbollah's Shia community.
And here the House Speaker, Nabih Berri, who is the alternate sort of political force within the Shia community. He has a very important role to
play in or in terms of providing the Lebanese army, the Lebanese state, that legitimacy, that cover for it, to be able to implement this historic
decision.
ANDERSON: I want to take a look at the wider context here, and what we've seen since these initial strikes on Iran is a response across the region,
where I am of the Gulf. The Gulf countries who had you know were well aware that there was a threat on U.S. bases hosted around this region had said
from the outset that they wouldn't get involved.
They wouldn't allow airspace or air bases to be used, as described here and around this region, disproportionate response from Iran on military and
non-military assets, firing hundreds of ballistic missiles and drones. Nearly 700 in total at the UAE alone has been quite remarkable to witness.
I want you to hear from the Qatari spokesman who I spoke to a little earlier, stand by.
(BEGIN VIDEO CLIP)
DR. MAJED AL ANSARI, SPOKESPERSON OF QATARI MINISTRY OF FOREIGN AFFAIRS: We have always championed peace in the region. We've always championed
peaceful means in solving conflict the region, especially with Iran, where we have, in the past, mediated between Iran and western countries and the
U.S.
A number of times we were heavily supporting the Omani-led negotiations that were taking place until this escalation. But an attack like this
cannot go unanswered and cannot be left without retaliation. You know, last time we were attacked by Iran in the course of these escalations, we
decided to opt for peace, because there was a chance for peace at the time. But this cannot happen every time.
(END VIDEO CLIP)
ANDERSON: And all countries in this region have said they reserve the right to respond. They are sticking within the contours of international law,
seeking a U.N. Security Council, sort of, you know, meeting, looking at the article 51 language which talks about self-defense, looking to work as a
group.
A GCC sort of meeting has been held. A statement has been announced. But how would you describe the mood across the Gulf right now, with sources
that you are speaking to, and very specifically and importantly, what do you expect these countries to do next?
MAKSAD: Becky, the GCC is in a very difficult place, to put it mildly. And I worry that they're going to continue to be in a difficult place for some
days and weeks ahead.
[09:30:00]
In fact, I worry that the center of gravity of this conflict is going to be shifting from Israel, precisely because of what I was talking about, that
war of attrition in terms of Iran's limited, longer-range missiles that are able to successfully get at Israel on one hand, and then Israel's ability
to block in terms of interceptors on the other.
What the Iranians have a lot more of are the short-range ballistic missiles that are capable of reaching the Gulf and thousands of drones, suicide
drones, which they are able to manufacture. So, as the Iranians run out of the longer-range stuff, increasingly the center of gravity of this conflict
is going to be shifting to the GCC and oil infrastructure.
And I think that's why we're seeing that the USS Ford, that naval carrier group that was initially parked in the Eastern Mediterranean off the coast
of Israel. Right now, is about halfway through to Gulf waters, because that's where the center of gravity is going to go.
Now, Gulf officials that I speak to obviously a deep sense of frustration, given the role that they played in encouraging diplomacy with Iran rather
than conflict, only to now find themselves being in the -- American security officials I speak to, believe that there is little in terms of
offensive capabilities that the Gulf can bring to bear against Iran right now, probably the best decision.
And what we might anticipate moving forward is that some of these restrictions that the GCC had in place, commitments to Iran, that their
bases, their airspace, will not be used by the U.S. or Israel to attack it. I think some of these restrictions now are going to be lifted, and we're
going to see as the theater of war shifts the U.S. much more focused on defending the GCC.
ANDERSON: I hear from a number of key stakeholders around this region, the strikes from Iran on this region have been completely disproportionate. You
know, outside of just these sorts of U.S. military assets, and we were talking about the economy in under fire effectively here in the UAE, and
oil facilities and the rest around the region.
All right, look, it's always good to have you, Firas. I've said it before, and I'll say again, your analysis and insights so important to us. What is
such a critical time? It is Monday, March the second just after half past 6 here in the evening. Thank you, Firas. And it's just after half past 9 on
the first day of trading since this conflict began in New York.
We have got the DOW JONES INDUSTRIAL average a couple of minutes into the trading day, down about 1 percent I mean, that's not as bad as it might
have done given the futures markets earlier on. So, all three of these markets, in fact, now I can see the NASDAQ and the S&P also down by a
similar amount.
Oil prices have surged. Keep an eye on these U.S. assets and markets around the world. You're watching, "Connect the World". There's a lot more news
ahead. Stay with us.
(COMMERCIAL BREAK)
[09:35:00]
ANDERSON: Well Saudi Arabia's state oil giant Aramco, has temporarily shut its Ras Tanura refinery, which is a major hub for Saudi crude exports. Now
this is a significant story. Officials say the shutdown was a precaution after two drones were intercepted and debris sparked a fire.
No injuries were reported there. And just a few hours ago, Qatar's state- run energy company, Qatar energy, says it has stopped its production of liquefied natural gas following an Iranian attack on its facility in Ras
Laffan. Attention firmly remains on the Strait of Hormuz, the vital shipping lane that runs through the waters of both Iran and Oman.
You see it here. About 1/5 of the world's oil passes through that very narrow straight you can see marked up there. The Strait of Hormuz obviously
critical for global shipping. And it is not just energy infrastructure that is under pressure. AWS, the cloud computing arm of Amazon, says its UAE
data center remains disrupted after one was struck by objects that caused sparks and a fire with connectivity restoration expected to take several
hours.
Well, look joining me now is Chief Global Market Strategist Equity Group, Noureldeen Al-Hammoury. He's here in Abu Dhabi. Also with us, CNN's Global
Economic Analyst, Rana Foroohar. To both of you, thank you. A very, very busy day and a worrying one in this region where we are.
Noureldeen, let's start with what we've just touched on Saudi and Qatar. There we've also seen a commercial vessel has been struck by two
projectiles while docked at the port of Bahrain, forcing the crew to evacuate in Kuwait, a major oil refinery hit by falling shrapnel.
It does increasingly seem like Iran is deliberately targeting nonmilitary installations, oil and gas supply routes in the Gulf, we've seen Iran
denying hitting Saudi oil infrastructure. Be that as it may, just how impactful is this for the region and its economy?
NOURELDEEN AL-HAMMOURY, CHIEF GLOBAL MARKET STRATEGIST AT EQUITI GROUP: I mean, definitely. Well, first of all, thank you for having me again on the
show. This is not just a symbolic course. Just not symbolic Aramco infrastructure is not just part of the global production.
It's the infrastructure of the global spare capacity buffer. They hold, of course, the majority of OPEC, OPEC and OPEC + spare capacity. If refining
capacity is disrupted, it affects, of course, it not just oil. You're talking about product markets, diesel, jet fuel and others.
Even if crude production remains stable, I think also the market remembers what happened in 2019 in -- when oil spike nearly 20 percent on intraday,
but at the same time, we know that the Saudi Arabia and the region have enough resources to recover and this is what happened also in 2019.
The issue isn't whether production collapses. The issue here is whether spare capacity credibility gets questioned. And I don't think so this is
going to happen anytime soon.
ANDERSON: Rana, let me bring you in. It isn't clear how long this goes on. How prepared do you understand shipping companies and for example, insurers
are for repeated drone attacks or disruptions like we are seeing in the Gulf at this point?
RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Yeah, Becky, it's a great question. I think, not as prepared as they would like to be. Shipping
companies in particular, I think are vulnerable. I mean, the drone strikes are very interesting, because they are yet another reminder.
Ukraine being the first, really the first time that we saw drone warfare, modern drone warfare, but we're seeing this now with Iran firing these
cheap missiles that can take out, you know, a lot of very expensive infrastructure very quickly. You know, battleships can be taken down now by
an $800 drone on a missile that changes the entire nature of warfare.
[09:40:00]
It also changes the economic calculations. Insurers, I think, are really going to be hunkering down. I mean, they're going to hunker down for a lot
of reasons. And, you know, I would just make a point too, that the AWS impact on data centers, I think, brings up an issue that goes even beyond
the oil business and energy and security in the region, which is that the idea that the Gulf was going to be able to successfully move away from
fossil fuels and into areas like energy infrastructure, communications.
I think that's a big question now. I mean, this is still a very risky area with a lot of challenges, as we're saying.
ANDERSON: Well, while we're on that, Noureldeen, let me bring up that very specifically, AWS services in the UAE, currently disrupted. Currently the
UAE operates 35 data centers, 18 in Dubai, 18 or 16 in Abu Dhabi, one in Fujairah. Other major companies with data centers here include Microsoft,
Azure, Oracle, Alibaba, banking apps have been down.
OK. I want to just stop for a moment. I just want to bring up the Prime Minister of Israel, Benjamin Netanyahu, is speaking in English. Let me just
listen.
(BEGIN VIDEO CLIP)
NETANYAHU -- target Europe. They did. And if this regime, this terrorist regime of the kind we've never seen in the world. If they get nuclear
weapons and the means to deliver them, ballistic missiles, intercontinental ballistic missiles, they will threaten all of humanity.
So, we set out to protect ourselves, but in so doing, we protect many others. And I want to say special thanks to our great friend and a great
leader of the world, Donald Trump, for joining us in this crucial effort to save the world. Thank you.
UNIDENTIFIED MALE: Each day, sir, this war is expanding. How do you -- You spoke with the Indian Prime Minister -- Can you say about --
(END VIDEO CLIP)
ANDERSON: All right. Well, that was Benjamin Netanyahu speaking a little earlier to us. I can't tell you where, unfortunately, and that's one of my
producers can tell me, in my ear you've just heard from the prime minister there clearly on the conflict as it stands at present.
Rana, let me just bring you in. We were talking about oil and gas. We were talking about the impact on Saudi the impact on Qatar energy. I just wonder
what you think that means for the global energy market. And whether these incidents could actually push companies to diversify away from the Middle
East.
FOROOHAR: Yeah.
ANDERSON: I mean, what are the operational risks? What steps to -- protect yourselves at this point?
FOROOHAR: Yeah, there's a huge impact, Becky, at both the macro and the micro level. Let me just start at the macro level. I wrote a column about a
month ago predicting the oil prices were going to go to about 100 I think that's going to turn out to be right. I think they could go higher.
I think the markets have been under playing geopolitical risk and economic choke points like the Straits of Hormuz. We don't even know yet where the
situation the Middle East is going to land. Donald Trump says things will be done in four to five weeks. I doubt it. There are a lot of countries
that are going to be impacted beyond the U.S. and the Middle East.
You're going to see big energy importers, like India, for example. I think being hit very hard by a rise in energy prices. Europe is also going to
take a big hit. Energy was already constrained. As Europe tries to diversify away from Russian sources, you're now going to see higher prices
there.
U.S. supply, the extra U.S. supply that that's being pumped by, you know this administration really pushing petrol. It has yet to come online. So, I
think we're looking at higher prices for a lot, much longer period of time. I think countries, excuse me, companies, are going to be really thinking
twice.
And this is the first big test that we've had about geopolitical security and risk in this region since the Gulf has built all these data centers and
really tried to, you know, again, diversify way in these energy intensive sectors that require very minute and precise levels of electricity and
energy.
And I just think it's a risky business. I think also you're going to see maybe China coming into the mix here. China gets about 20 percent of its
oil from Iran. You know, big, big questions about how that country is going to get involved in this region, and it could make the situation much bigger
than it is now.
ANDERSON: Yeah. Well, we've got the oil prices on the screen as you speak, they are higher by some 7 or 8 percent today.
[09:45:00]
Let's bring you the stock prices. Actually, I have to say the U.S. markets have been open for about 14 minutes now. And the markets actually not as
bad as some had anticipated. They would be off by around about 0.5 to 0.8 percent. We saw them in the in the futures markets significantly lower than
that, actually earlier on.
So, these markets not doing as badly as some had expected them to be. Good to have you both. Noureldeen, apologies for cutting you slightly short as
we went to the Prime Minister of Israel, Benjamin Netanyahu at Beit Shemesh is where he was speaking. My producer told me, so there you go.
All right, to both of you. Thank you. Well, our commander in chief is steady at the wheel that message from America's Secretary of Defense at the
Pentagon briefing last hour, but we hear from the U.S. President himself today on what is this widening conflict with Iran? A live report from the
White House, is just ahead.
(COMMERCIAL BREAK)
ANDERSON: Well, the Trump Administration is expected to update key lawmakers today on what is this rapidly unfolding situation in Iran and
around this region. Later today, that's according to a source he says, the full U.S. House and Senate are set to get a full briefing on Tuesday.
Meanwhile, we are waiting to see if President Donald Trump will speak on camera about the war. He returned to the White House on Sunday night from
his Mar-a-Lago club, that is where he ordered the strikes, but did not answer a single question from reporters about Iran.
Let's get the latest from Senior White House Reporter Kevin Liptak. President Trump has spoken to a series of reporters off camera and taken to
social media with some updates, including a potential timeline on U.S. involvement in this conflict. What's he been saying?
KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Well, the president seems to suggest that this may go on for four to five weeks. That seems to be the
biggest takeaway of these multiple phone calls that he's taken to lay out some of what his objective is in this conflict.
You know, we haven't seen the president, as you mentioned, answered questions in front of cameras, which is quite a rarity for, you know, the
most valuable of presidents, he has said virtually nothing to the media, except in those sorts of two prerecorded videos that the White House put
out over the weekend.
Now we will see the president in a little bit over an hour. He's doing a Medal of Honor ceremony here at the White House. It seems exceedingly
unlikely that he'll use that event to start taking questions. Of course, this briefing that we just got at the Pentagon was really the
administration's first opportunity to shed some more light on what exactly it is that the president is trying to accomplish.
[09:50:00]
But even in that briefing, you heard some contradictory viewpoints from what the president himself has saying when it comes to the timeline, the
Defense Secretary Pete Hegseth, really kind of brushing off a question quite defensive about how long this might last, saying that they will never
lay out in front of the press pool how long it may take, even though President Trump himself has laid out a timeline.
You also heard Pete Hegseth say that this was not a regime change war, even though the regime seems to have changed. That's also slightly different
from what President Trump has been saying. You know, in his initial response to the strike, saying that the Iranian people should rise up and
overthrow their leadership.
So, I still think even as the administration on this Monday morning starts to come out and lay out some of what they're trying to accomplish here, a
lot of the message remains very muddled. I do think it was notable, and it does speak to the president's political conundrum here.
He spent a lot of time trying to insist that this was not going to become the next Iraq, that this was not an endless war that it was we set the
terms of this war from start to finish. Of course, President Trump had run for president saying that he would not be in the business of starting wars
and trying to change regimes.
So clearly, I think, an indication that political messaging is now coming to the forefront, Becky.
ANDERSON: Copy that. Thank you, Kevin. Kevin is at the White House. We will be right back after this.
(COMMERCIAL BREAK)
ANDERSON: I'm Becky Anderson from our Middle East programming headquarters here in Abu Dhabi, covering the very latest on what is day three of this
escalating conflict after the strike Saturday by the U.S. and Israel on Iran. Earlier today, I spoke with Majed Al Ansari.
He is the Spokesperson for Qatar's Foreign Ministry and Advisor to the Prime Minister. This is a country that has repelled attacks from more than
100 Iranian missiles and scores of drones in the last few days. I asked Al Ansari about how Qatar is defending itself and whether the government there
is in contact with officials in Tehran. Have a listen.
(BEGIN VIDEOTAPE)
ANSARI: When it comes to our economic facilities, the offshore facilities that we have and the onshore facilities. I can assure you that military has
taken all possible precautions in making sure that all these places are defended and that the people working over there are safe.
We've mandated a work from home for everybody working in Qatar at the moment. And we're asking everybody to shelter in place for the time being,
and with down our airspace in anticipation of any such attacks.
ANDERSON: OK.
ANSARI: But we are confident in our abilities. You know, with Iran, we've been working with them very closely on a lot of things, but we also had our
disputes with them. You know, for 14 years, we were at odds when it comes to the support of Bashar regime in Syria.
We know the fact that that constituted to the region, and therefore right now, we are defending our country against these attacks, but we will always
opt for peace when there is a chance to have it.
ANDERSON: So, the advisor to the president here, Anwar Gargash, has called on Iran to come to its senses. I mean, is Qatar's leadership in touch with
Tehran? And if so, who do you have open lines with it? I mean, it's not clear who is leading the country at present. Iran's Top Security Chief,
Larijani has just said he will not negotiate with the United States.
[09:55:00]
He said Trump's wishful thinking has dragged the whole nation into an unnecessary war with quote, false hopes and misleading negotiations. I
mean, where does that leave Qatar and the region? And again, I put it to you, are you speaking to tech Iran, and if so, to whom at this point?
ANSARI: As of this moment, we are not engaging with government. We are busy, as you might imagine, defending our country and making sure that the
people in Qatar are safe, and we will always have chance communication open, but at this moment, we are not contacting the Iranians.
What we believe in right now, is that, however this drags on, at the end, solution will be made at the dialog table, solution will be made to
negotiations, and that has to be done at one time or another when this escalation is over. But right now, our focus is on keeping our people safe,
keeping our region safe, coordinating with our partners in the region and beyond to make sure that all of these attacks do minimal damage to our
people, to our economy, and that we are able to withstand these attacks.
And to this point, I think the military has shown that that we are more than capable in defending ourselves.
(END VIDEOTAPE)
ANDERSON: Position of Qatar, a little earlier on today, "Connect the World" continues with me Becky Anderson from our Middle East programming
headquarters. After this short break, stay with us.
(COMMERCIAL BREAK)
END
