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Trump Says Ceasefire with Iran Is on "Massive Life Support"; Labour Lawmakers Urge Keir Starmer to Step Aside; Hantavirus Passengers Under Monitoring At U.S. Medical Sites; Hegseth, Caine Testify Before Congress; Deep Anxiety amid Trump's Economy; Russian Ship Sinks in Mysterious Circumstances. Aired 10-11a ET

Aired May 12, 2026 - 10:00   ET

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


[10:00:00]

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UNIDENTIFIED MALE (voice-over): Live from CNN Abu Dhabi, this is CONNECT THE WORLD with Becky Anderson.

BECKY ANDERSON, CNN HOST (voice-over): Well, welcome to Middle East programming headquarters here in Abu Dhabi. I'm Becky Anderson. Time here

just after 6:00 in the evening.

Now president Trump says the ceasefire with Iran is on life support ahead of his trip to China.

Meanwhile, U.K.'s Keir Starmer says he will not resign amid pressure to step down.

And global health leaders work to calm concerns around the spread of the hantavirus.

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ANDERSON: Well, just hours from now, U.S. President Donald Trump will be kicking off his trip to China with trade at the top of his agenda. But with

the war with Iran looming large, Mr. Trump leaves Washington just after declaring a fragile ceasefire with Tehran is on life support.

Some aides reveal he is mulling a return to major combat. Negotiations over the Strait of Hormuz remain at a standstill and the world's largest oil

exporter, Saudi Aramco, warns that time is running out for the oil market to return to normal any time this year. We'll get the very latest from

CNN's Jeremy Diamond. He is live in Tel Aviv.

And sources tell CNN president Trump now giving serious thought to resuming major combat operations in the region.

What's the view from the Israeli government, Jeremy?

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, there's no question that the Israeli military is prepared to return to combat operations

against Iran should president Trump give the green light.

But the Israeli prime minister has made clear throughout this ceasefire agreement that, ultimately, president Trump is the leader of this campaign

and he is going to set the tempo and decide when and whether the U.S. and Israel go back to war against Iran.

And for now, you know, that doesn't seem to be imminently the case, despite the rhetoric from president Trump. We know that he is embarking now on this

trip to China, which seems to lower the odds of an all-out military campaign, resuming, at least for the next couple of days, while he is in

China.

But make no mistake, the Israeli prime minister has made clear this week that he does not believe that this war is over. He doesn't believe that all

of the objectives that the United States and Israel set out to accomplish have been achieved yet.

And he is making sure that at the forefront of the discussion of those objectives is still this notion of removing not only Iran's capacity to

enrich but also the hundreds of kilos of enriched uranium enriched up to 60 percent, not very far from weapons grade, that Iran still retains inside of

Iran.

And so basically what he's trying to do is to make clear that, even as president Trump considers his options here, whether to allow more time for

diplomacy to prolong that process or to return to war, Netanyahu is trying to make sure that the objectives ultimately remain the same.

And that there isn't a compromise on the part of the United States. We know that the Israeli prime minister last night convened a security consultation

at his office in Jerusalem to discuss all of these developments.

Also on the agenda this week is the resumption of negotiations between Israel and the state of Lebanon.

A third round of ambassadorial level meetings set to take place Thursday in Washington to discuss, you know, trying to get to a place where they can

actually negotiate the disarming of Hezbollah and a normalizing of relations between these two countries.

But as we've seen as recently as today, the Israeli military continuing to carry out airstrikes in southern Lebanon. They have -- those strikes have

killed more than 500 people since this ceasefire began more than three weeks ago.

Hezbollah has also killed 18 Israeli soldiers in attacks in southern Lebanon, where Israeli troops are positioned, as well as against northern

Israel. Becky.

ANDERSON: Sources in this region, Jeremy, telling me that this window, as long as a ceasefire lasts, certainly gives this region of the Gulf, which

has been, you know, attacked over, what, the last eight weeks or so, gives this region time to replenish military hardware to a degree. And we've

seen, you know.

[10:05:00]

The reports that Marco Rubio has signed off on new military hardware to this region should these attacks start again, how well prepared is Israel

should the military part of this war begin again -- escalation. effectively -- how prepared would Israel be for that?

DIAMOND: Well, you can be sure that the Israeli military has also been doing much of that replenishing activity to ensure that all of their

stockpiles of offensive as well as defensive weapons for Israel's air defenses here in Israel are being replenished.

There have been some concerns toward the end of that kind of month-long bombing campaign that Israel was running low on some of its various missile

interceptors.

But right now, Israeli military and defense officials are expressing confidence in Israel's military readiness here.

But it's also important to note that this time has also allowed Iran to not only replenish but to also reorganize, particularly following a kind of

chaotic series of first weeks during which a number of senior Iranian military and political officials were killed.

And so I think it's safe to say that all sides, as typically happens out of a ceasefire, all sides will be better prepared, better equipped and better

armed for the next round of this conflict should this ceasefire ultimately fall apart.

ANDERSON: Yes. Jeremy, I want to just turn to Gaza before I let you go. A chilling new report, shared first with CNN, finds sexual violence was a

calculated strategy used by Hamas both during and after the October 7th terror attacks on Israel.

Several other groups have previously concluded that rape and sexual abuse were part of the attack, which Hamas has denied. This report, though, goes

a step further. Explain.

DIAMOND: Yes, that's right. This is the latest report that we have seen on Hamas' use of sexual violence as a weapon of war, both during the October

7th, 2023, attacks and also against the hostages that it took into Gaza and held in captivity, some of them for over two years.

This report comes out of the civil commission on October 7th crimes by Hamas against women and children, a non-governmental group here in Israel

that took it upon itself to investigate these claims.

And to try and push back against the waves of denials that we have seen from people around the world who have denied that the sexual violence has

taken place. And it is being framed as the most comprehensive report yet on Hamas' use of sexual violence on October 7th.

And following it, it builds on the testimony and includes the testimony of a number of former hostages, some of whom have spoken out publicly about

the use of sexual violence against them during their captivity and sexual abuse, including female and male hostages who were held in Gaza.

It also includes the testimony of some individuals who have not chosen to come out publicly. One of the new details in this report is an allegation

of sexual abuse against minors who were being held hostage in Gaza, who said that they were sexually abused and forced by their captors to perform

sexual acts on each other.

The report also details three separate incidents of rape at the site of the Nova music festival, where we know that many people were killed and wounded

and some abducted from that Nova music festival along the Gaza border on October 7th.

This report follows basically two years of painstaking investigation by human rights experts at this organization.

And it builds, as I said, on the body of evidence that we have already seen in the form of, for example, the United Nations special representative,

Pramila Patten, who had found previously that there was, quote, "clear and convincing information" that sexual abuse had taken place and was used by

Hamas as part of its October 7th attacks.

Hamas, for its part, has repeatedly denied that it used sexual violence as a weapon of war -- Becky.

It's good to have you, Jeremy. Thank you very much indeed.

In the U.K. it is already shaping up to be quite the political week. Prime minister Keir Starmer defying calls to step down from within his own Labour

Party.

Mr. Starmer told a cabinet meeting on Downing Street today that he will, quote, "get on with governing" despite the party's poor showing in local

elections last week. Now ministers seem divided over whether to try to replace him.

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Some emerged from Number 10 to back him earlier today but three junior ministers have quit so far today, demanding new leadership. CNN's Clare

Sebastian is live on Downing Street for us this hour.

What's the sense of the mood there today?

CLARE SEBASTIAN, CNN CORRESPONDENT: Becky, it's a little chaotic because we've only got two things happening at the same time. We've got this

ongoing rebellion, this sense of discontent within the Labour Party that has led to some 80 or so MPs coming out and saying they need the prime

minister to go.

And now, three, as you say, junior ministers. And when you start to see ministers resigning their government posts, it really does raise questions

about the prime minister's authority.

But equally, we also have this now quite choreographed fight back from the prime minister. We had a statement from him during the cabinet meeting, his

comments to the cabinet which happened earlier today. I'm going to read you a part of that.

He said, "The Labour Party has a process for challenging a leader and that has not been triggered." That's true.

He also said, "The country expects us to get on with governing. That is what I'm doing and what we must do as a cabinet."

And after the cabinet meeting, we did see a select group of ministers come out and speak to the press and say that they stand behind the prime

minister, one of them posting as well on X.

"This is not a game," he said.

And others calling, including the defense secretary, for stability in this unstable time for the world. So we have all of these things going on. The

fight back is there. The ministers have resigned this afternoon.

And I think all of that doesn't really take away from the questions that still face Keir Starmer with this rebellion mounting and now, just 24 hours

left or less than 24 hours until this big set piece in the British political calendar, the king's speech and the state opening of Parliament,

where we'll see all of this pomp and circumstance.

The king reading out a speech, setting out the government's legislative priorities, with all of this going on in the background, as you said, it's

shaping up to be an extraordinary week in British politics.

ANDERSON: Remind us; even if Keir Starmer, in the end, were forced to resign, that doesn't mean, of course, that the government in the U.K.

collapses. Just remind our viewers of the process there in the U.K.

SEBASTIAN: Right. So there's a couple of ways in which this could lead to Starmer stepping down.

Number one, if he decides that his authority is gone and he has to move aside and that would trigger a leadership race within the Labour Party.

The other mechanism, which is specific to the Labour Party, is that 20 percent of MPs have to back a single candidate to replace him. That amounts

at this point to 81 MPs. We don't have that at the moment.

But if that were to happen, then that would in itself trigger a leadership race. So none of those two avenues have been charted at this point. So he

is still in office. But obviously we're watching very closely what happens at the minister level and with the cabinet to see if he can hold on to the

confidence of his senior members of Parliament, Becky.

ANDERSON: Yes. And an election, a general election not scheduled, at least until 2029 at this point. Good to have you, Clare. Thank you.

Well, the head of the World Health Organization has confirmed the number of hantavirus cases linked to the MV Hondius has now risen to 11. They were

all passengers or crew members on that cruise ship. Speaking at a press conference in Spain, the WHO chief stressed that the overall global risk

remains low.

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DR. TEDROS ADHANOM GHEBREYESUS, WORLD HEALTH ORGANIZATION: At the moment, there is no sign that we're seeing the start of a larger outbreak. But, of

course, the situation could change. And given the long incubation period of the virus, it's possible we might see more cases in the coming weeks.

(END VIDEO CLIP)

ANDERSON: Rafael Romo, live from Emory University Hospital in Atlanta, where two people, two U.S. citizens from the ship, are in a biocontainment

unit; 18 U.S. passengers overall being monitored in the States.

To where you are, what is the latest?

RAFAEL ROMO, CNN HOST AND U.S. CORRESPONDENT: Hi, Becky. Well, Emory Health Care has confirmed that this medical institution, Emory University

Hospital, has received two passengers from the MV Hondius cruise ship following a hantavirus outbreak on board.

In a statement Monday, Emory Health Care said that one symptomatic individual is receiving care in Emory's biocontainment unit and one

asymptomatic individual, identified as a close contact, is undergoing evaluation and monitoring. Officials say that these two people traveled

together on the cruise.

Emory Health Care, together with the U.S. Centers for Disease Control and Prevention officials, say that, once the World Health Organization reported

an outbreak of the rare hantavirus.

[10:15:05]

About the MV Hondius last week, a total of 13 federally designated units across the United States went on alert and got ready to receive any

infected patients from the ship.

The Emory serious communicable diseases unit that is taking care of these two people, Becky, who were on the ship, began operating in 2002 and has

dealt with other emergencies, like the Ebola outbreak during the last decade and, more recently, of course, the COVID-19 pandemic.

Dr. Aneesh Mehta, chief of infectious diseases services here at Emory University Hospital, gave an update about the condition of the two patients

who were brought here to this medical institution. Let's take a listen.

(BEGIN VIDEO CLIP)

DR. ANEESH MEHTA, CHIEF, INFECTIOUS DISEASES SERVICES, EMORY UNIVERSITY HOSPITAL: One individual was deemed to be symptomatic on evaluation prior

to leaving the Canary Islands. And the second individual was considered an asymptomatic but close contact to this primary individual.

And both are here at Emory in our serious communicable diseases unit. One is undergoing treatment and the other one is undergoing further evaluation

and monitoring.

(END VIDEO CLIP)

ROMO: And, Becky, a little over a week since the World Health Organization reported the outbreak aboard the cruise ship, a global repatriation effort

is still underway for the passengers and crew who were aboard the ship.

As of Tuesday morning, this morning, 122 people, 87 passengers and 35 crew members, had been evacuated and most had returned to their home countries.

Five Australians and one New Zealander are in the Netherlands and set to be repatriated later this week.

According to authorities, there are still 27 people aboard the ship, Becky, 25 crew members and two medical professionals who are now sailing to

Rotterdam, the Netherlands.

There, the ship will be disinfected once it makes its scheduled arrival Sunday evening, according to Oceanwide Expeditions, its operator. Becky,

now back to you.

ANDERSON: Good to have you, sir. Thank you.

Right. Ahead on CONNECT THE WORLD, the U.S. and Chinese leaders set to hold a high stakes summit this week in Beijing. We're going to take a look at

how Donald Trump's posturing over the war with Iran could impact other major topics set for discussion. More on that is after this.

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ANDERSON: Well, we are in a state of diplomatic whiplash between the U.S. and Iran at present, with signals shifting almost by the day. Donald Trump

once again raising the possibility of renewed operations against Iran. This has been his rhetoric this past week. Quote, "I have just read the response

from Iran's so-called representatives.

[10:20:00]

"I don't like it. Totally unacceptable. And Iran has been playing games with the United States and the rest of the world for 47 years."

Just days ago, a regional source said the U.S. and Iran were nearing a deal, a memorandum to end the war, with Trump saying the Strait of Hormuz

could reopen if Iran agreed. But for months now, both sides have sent mixed signals, even as the U.S. insists Iran wants a deal.

(BEGIN VIDEO CLIP)

TRUMP: They play games. But let me just tell you, they want to make a deal. I mean, Iran is dying to make a deal. I can only tell you that we're

very close to making a deal. They'd like to make a deal very badly. Very badly. They are begging to work out a deal.

And they are negotiating, by the way, and they want to make a deal so badly but they're afraid to say it.

(END VIDEO CLIP)

ANDERSON: And yet, no deal.

Washington's messaging has been pretty inconsistent, it has to be said, or consistent, you know, whichever way you want to look at it for as long as

this has been going on.

In late April, secretary Rubio told FOX News Iran's proposal was better than expected.

A day later, president Trump rejected it.

Last month, sources said the president planned to give Iran a deadline for a deal.

The very next day, Trump contradicted that, saying there is, quote, "no timeframe" for the conflict.

Look, all of this uncertainty is playing out as vessels are stuck in the Strait of Hormuz. Oil prices continue to climb and Gulf nations remain on

edge over the risk of renewed conflict. Well, for more on this, I want to bring in Dina Esfandiary. She's the Middle East lead at Bloomberg

Economics.

I want to start, Dina, today with where things stand, how far apart you believe Washington and Tehran are right now when it comes to both the war

and any potential deal.

DINA ESFANDIARY, MIDDLE EAST LEAD, BLOOMBERG GEOECONOMICS: I think, unfortunately, they're still quite far apart. As you've outlined, the U.S.

president has zigzagged a bit. He says Iran wants a deal but then rejects the offers that he's been getting.

And as you've said, we've all been getting whiplash from it. But the Iranians have actually been remarkably consistent in their offers,

remarkably consistent in their red lines. They've remained the same, almost identical to the ones before the war.

And so they're remaining firm. There are certain things that they're willing to negotiate on. For example, this idea of a moratorium, how long

it would last, the moratorium on enrichment.

But beyond that, other things, they're really remaining firm on. There has to be an element of enrichment on Iranian soil. So I don't think a deal

looks likely for now, because neither side wants to compromise.

ANDERSON: Markets are reacting as they we would expect them to but perhaps not as they should or we might expect them to. Oil up, stocks down but not

significantly so on either side. Certainly not the significant reductions in the price of stocks that we might expect.

And not necessarily the significant rise in the price of oil that, you know, we might have expected, either.

President Trump said the ceasefire is now on life support. And that's why we've seen the moves perhaps that we've seen today. I wonder how long

before markets start to tune out this back-and-forth.

Or perhaps a better question is, how long before you think they genuinely will start pricing in this insecurity and instability and uncertainty about

where this goes next?

ESFANDIARY: Well, I mean, I think there's a there's an element, as you've outlined, of getting used to the situation. So, you know, this has been

going on for a while now. I think we're firmly in the stage of being in a protracted conflict. I don't see that changing.

I think that's going to continue for the foreseeable future, whether there's a deal or not. It won't be one that that deals with underlying

tensions, which means they will continue. It won't necessarily be one that permanently reopens the strait. So that's likely to continue.

Which means that the markets, people, decision makers are slowly, slowly getting used to the current situation. Having said that, the longer it goes

on, the worse this is for the global economy.

That goes without saying. So inevitably prices are going to -- the price of oil, at least, is going to continue to rise. But I also think that markets

are naturally optimistic. They want a good outcome from all of this. And so they're likely to latch on much more to Trump's optimistic statements.

[10:25:00]

Than they are to the possibility that this war won't really end.

ANDERSON: I want to get your sense on this Trump trip to China. He leaves today and we'll hear more about this trip over the next couple of days.

There's no doubt that Iran will be a central pillar of conversation but so, too, will be tech and trade, AI and tariffs.

What are you watching for very specifically on this trip?

ESFANDIARY: Well, naturally, given that I work on the Middle East, my focus will be on what they discuss when it comes to the Iran war. And this

is a really interesting time for president Trump to be going to China.

Because China right now is in an interesting position. It is the number one buyer of Iranian oil, of course, a big customer. But at the same time, it

has enough stockpiles of oil to be able to sustain the pain at the moment.

And, of course, it's sitting back and twiddling its thumbs and watching this conflict play out because it gives it additional insight onto the way

the U.S. wages a war, where things are going to go with the U.S. position in the Middle East.

So for China, it's definitely an interesting time to be receiving the president. And I think president Trump will be trying to convince this

giant that kind of finds itself in the middle of all of this to perhaps put additional pressure on Iran to get it to the negotiating table and to get

it to concede.

But I don't think China is going to want to do that.

ANDERSON: China is a growing source of foreign direct investment, particularly in infrastructure around this region. At the same time, the

U.S. has hit China with Iran related sanctions. Let's have a listen to Beijing's response.

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GUO JIAKUN, SPOKESPERSON, CHINESE FOREIGN MINISTRY (through translator): China firmly opposes illegal unilateral sanctions that have no basis in

international law and have not been authorized by the United Nations Security Council regarding the situation in Iran.

China has repeatedly made clear its solemn position. The current priority is to make every effort to prevent the resumption of hostilities, rather

than exploiting the conflict to maliciously associate and smear other countries.

(END VIDEO CLIP)

ANDERSON: I wonder whether you believe China has more to lose economically, should this war continue than the U.S. at this point?

ESFANDIARY: That's a good question. I think China still plays a delicate balancing act. We have to remember that, yes, it is Iran's number one buyer

of oil. But it also has deep ties to the Gulf Arab states, who are, of course, victims of this war and being caught very much in the middle of the

current hostilities.

So it can't be seen to be too close to Iran. It can't be seen to be giving in to U.S. demands. The way the relationship works between Iran and China,

it's a very compartmentalized relationship. They don't discuss things they don't align on.

They don't expect pressure from the other side or to -- for the other side to get involved in domestic matters. So they still have a pretty delicate

balancing game to play right now.

ANDERSON: Last question to you: JPMorgan and Goldman Sachs striking what I thought was a rather optimistic tone, both saying that they see the

Strait of Hormuz reopening by June. JPMorgan's base case sets a reopening around June 1st. I'm sure you've seen the same reports.

What is your base case and what do you make of this optimism from Wall Street?

ESFANDIARY: Well, I have to say, I'm a little bit surprised by it. Our base case at Bloomberg Economics is far less optimistic. There doesn't

appear to be a lasting peace within grasp.

Even if both sides compromise somewhat, they're only likely to get a short- term deal. And, of course, Iran has learned that it has this powerful leverage in the Strait of Hormuz, which it is now likely to use at

intervals in the future, even if the Strait of Hormuz opens at some point in the near future.

So our base case really is the state of protracted conflict. The strait will be periodically closed. Tensions will remain. There may be even spikes

of escalation, shooting matches between both sides or a deal that might calm things down. But it will really be a shaky deal. So we're nowhere near

as optimistic as those two.

ANDERSON: It's always good to have you, Dina. Thank you very much indeed for joining us.

Well, the cost of the Iran war is in sharp focus today on Capitol Hill.

[10:30:04]

How America's military leaders are justifying their request for a record- breaking budget. That is up next.

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ANDERSON (voice-over): Welcome back. You're watching CONNECT THE WORLD with me, Becky Anderson. Here are your headlines this hour.

U.S. president Donald Trump heads to China in the coming hours for a high- stakes summit with president Xi Jinping as the war with Iran looms large. On Monday, Mr. Trump said the current ceasefire, now in its second month

with Iran, is on life support. Aides say he's seriously reconsidering or considering resuming combat operations.

Well, the World Health Organization says a number of Andes hantavirus cases linked to the MV Hondius cruise ship has risen to 11. In the U.S., 18

people who were on board the vessel are currently being monitored in facilities in Nebraska and in Atlanta.

British prime minister Keir Starmer says he won't step down despite calls for him to quit from within his own party. Mr. Starmer told his cabinet

that he is focused on governing, despite poor local election results last week. Three junior ministers have quit so far today, calling for Starmer to

go.

ANDERSON: Well, the U.S. military is asking for a record increase in defense spending for next year. And today, Pentagon chief Pete Hegseth and

the Chairman of the Joint Chiefs of Staff are facing questions in both houses of Congress on how that money would be spent.

Hegseth also pushed back on concerns about the strain of the Iran war on America's arsenal. Have a listen.

(BEGIN VIDEO CLIP)

PETE HEGSETH, U.S. SECRETARY OF DEFENSE: We're submitting a $1.5 trillion budget that will remake the department and ensure that every warfighter in

the future has exactly what they need.

And we're never in a fair fight. And I take issue with the characterization that munitions are depleted in a public forum. That's not true. And

ultimately, we have all the munitions needed to execute what we need to execute and we're going to ensure that we supercharge that going into the

future.

(END VIDEO CLIP)

ANDERSON: Well, CNN's Brian Todd following the hearings for us. He joins us now live.

So Brian, just get us up to speed.

What have we learned so far?

BRIAN TODD, CNN CORRESPONDENT: Well, Pete Hegseth and Chairman Dan Caine, the general, Becky, have faced some pretty tough questions about the

direction of the war and especially about the costs of the war and how they can justify those costs.

That's why these hearings are so important, because these are appropriations hearings in both the House, which has just taken place, and

in the Senate, which is starting up right about now.

Again, getting some tough questions about how they're going to justify some of these costs and where we really are in this war. Some news made on that

front just a short time ago from Jay Hurst.

[10:35:00]

He is the acting comptroller, the financial officer of the Pentagon. He gave an updated figure on just how much the war has cost so far. He said,

right now, the estimate is about $29 billion so far that it has cost the United States.

That's an increase of about $4 billion from the figure he gave about 1.5 weeks ago, when he told House and Senate committees that the figure then

was $25 billion.

But CNN has been reporting since then that those are lowball figures, according to our sources, that they don't take into account the money that

is cost for repairing bases that have been damaged or destroyed, repairing or replacing destroyed munitions, equipment and even warplanes.

That the figure, according to our sources, could be closer to $40 billion or $50 billion so far. Also, Pete Hegseth is pushing back on the idea that

munitions have been depleted. Again, CNN reporting in recent weeks that the stockpile of munitions that the United States has, has been severely

depleted since the beginning of the Iraq war.

Things like precision strike missiles, THAAD missile batteries, Patriot interceptor missiles have been severely depleted.

Pete Hegseth pushing back on that, saying that that has been, quote, "fullheartedly overstated" that the United States has the munitions that it

needs to resume combat operations if they need to be resumed.

Which, of course, CNN has been reporting over the past 24 hours that president Trump is hinting that he may want to resume combat operations

because he's been so frustrated with the Iranian response to the negotiations that have been going on regarding the United States and Iran,

with Pakistan mediating.

So we are at a real crossroads right now, Becky, in the war and in the prosecution of this war, given that president Trump indicates that he could

be close to resuming combat operations.

One other quick update on this front, Pete Hegseth just saying a short time ago he is going to accompany president Trump on this trip to China, where

the president is going to be leaving for China this afternoon, East Coast time. Becky.

ANDERSON: Yes, yes. Just some hours from now. Brian, good to have you. Thank you.

I want to get you up to speed on some of the other stories that are on our radar right now.

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ANDERSON (voice-over): And the U.S. Department of Energy has released 53 million barrels of oil from its Strategic Petroleum Reserve in an attempt

to stabilize oil prices. This move, part of a U.S. commitment to add 172 million barrels to the global market following the onset of the U.S.-

Israeli war with Iran.

Some U.S. Senate Republicans say they may support up to $1 billion in security upgrades for president Donald Trump's ballroom renovation project.

That money is being included in a bill put forward to fund immigration enforcement, despite the president initially promising that the ballroom

would be paid for privately.

Democrats say they plan to, quote, "aggressively challenge" that additional spending.

The U.S. Supreme Court has once again stepped into the nationwide redistricting battle in the States. The justices on Monday cleared a path

for Alabama to use a new voting map ahead of the November midterm elections.

That map would eliminate one of two majority Black congressional districts currently held by a Democrat.

ANDERSON: Most Americans say they are unhappy with president Donald Trump's economy. In fact, a new CNN poll finds a huge 77 percent, including

a majority of Republicans, say that the president's policies have pushed up the cost of living.

This comes as inflation data today shows that inflation has jumped to a three-year high, driven by surging energy prices. That means more pain at

the pump as the U.S. gears up, of course, for the summer travel season.

CNN's senior vice president and Washington bureau chief David Chalian joining us now.

It's good to have you, David. Thanks for joining us.

From groceries to gasoline and onwards, what do these numbers tell us?

DAVID CHALIAN, CNN SENIOR VP AND WASHINGTON BUREAU CHIEF: Yes, Becky, it is a very gloomy picture that Americans have about the economy and real

economic anxiety that they're experiencing.

I mean, the word they say most often to us in this poll is that they feel insecure, that there's a lack of security around their everyday economic

situation.

If you just look also, it is by far and away the top issue for Americans. Nothing else comes close; 55 percent in our poll say the economy is the

number one issue. You could see there nothing else really approaches that.

And I would note that Americans think that this is an economy that's rigged against them. Three-quarters of Americans say that the economy is rigged to

the powerful interests. Only a quarter thinks that the economy treats everyone fairly. And that real discontent with that system is fueling

actually dissatisfaction with both parties.

[10:40:04]

But it is Donald Trump and his Republicans who are in charge, obviously. And so these numbers are applying real downward political pressure this

midterm year for the Republicans.

ANDERSON: Yes. David, good to have you. Thank you.

(CROSSTALK)

CHALIAN: You, too.

ANDERSON: -- numbers useful to get. thanks.

Ahead on CONNECT THE WORLD, a Russian shadow fleet, a deadly explosion and a mystery in the Mediterranean. CNN has been doing a lot of digging and our

exclusive reporting is up next.

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ANDERSON: Well, a Russian cargo ship, believed to be carrying nuclear technology to North Korea, sinks in unexplained circumstances, sparking an

international mystery.

Well, CNN has been digging to discover more. In exclusive reporting, debuting here on CONNECT THE WORLD, CNN's Nick Paton Walsh shows us what he

and his team have found

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NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT (voice- over): A mystery in the Mediterranean; the possible torpedoing of a Russian ship to stop the Kremlin handing submarine nuclear reactors to

North Korea begins in a quiet Spanish port.

WALSH: This really is the craziest of stories about a Russian shadow fleet ship that sank off the coast here in the strangest of circumstances, whose

Russian captain confessed to investigators here that it was carrying two nuclear reactors, possibly for a submarine.

WALSH (voice-over): The incident is shrouded in silence but concerns the most serious of issues: weapons proliferation between two nuclear powers

and force being used to stop it.

The Ursa Major ship loaded up near St. Petersburg in early December 2024; on paper, bound for Vladivostok with a cargo of two huge cranes and over

100 empty containers. It made another stop, loading two large manhole covers. It set sail.

A shadow fleet ship used by Russia in Syria, the Portuguese navy followed it from above. You can see the blue covers here until just before it ran

into trouble in Spanish waters.

WALSH: It was way further out to sea when the Ursa Major on the 22nd of December, 2024, suddenly slowed and Spanish rescuers noticed this and they

radioed to ask if anything was wrong. The ship insisted it was fine and could deal with the situation.

But about 24 hours later, it made a sharp deviation and issued an urgent call for help. The boat was listing, this video shows, filmed from a nearby

tanker but probably not going to sink too fast.

The captain of the ship would later tell investigators he'd seen a 20-by-20 inch hole in the hull, the damaged metal facing inwards. He said it had

been followed by three explosions on the starboard side of the boat, killing two of his crew.

[10:45:00]

So the Russian military arrive in force and they tell everyone to stay two nautical miles away from their ship, the Ursa Major.

But the Spanish know they need to conduct rescue operations, so they send this ship to pick up 14 Russian survivors who were brought back here. And

that includes the Russian captain, who, it seems, starts to help investigators piece together some of what's happened.

But it's hours later that day that the mood changes over the Ursa Major ship. And the Russian military fire flares over it. And then a series of

explosions follow, which Spanish seismic sensors picked up. And they send the ship to the seabed floor.

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WALSH (voice-over): Moscow demanded their crew back but the Russian captain told Spanish investigators something remarkable, that the ship was

carrying components for two nuclear reactors, likely for a submarine, he said, adding he could not be sure if the reactors had fuel in them.

There's no evidence of contamination. He also told investigators he thought he would be diverted not to Vladivostok but to North Korea's port of Rason.

Russia was in North Korea's debt at that time after they sent 10,000 troops to help fight Ukraine two months earlier.

And in December 2025, North Korea would claim to have built this, their first nuclear-powered submarine.

WALSH: Everything may have been on the bottom of the sea but the Russians weren't done yet. And according to a source familiar with the

investigation, about a week after the incident, a Russian research vessel called the Yantar, linked in the past to all sorts of allegations against

Moscow, sat over the wreckage for about five days.

And four more explosions followed, possibly the Russians destroying what was left of the wreckage.

WALSH (voice-over): In the months after, the U.S. may have shown interest in the site, twice sending a rare WC-135R Constant Phoenix, usually

secretly sniffing out traces of nuclear activity in Russia's Arctic or over Iran over the path of the Ursa Major, weaving low at 5,000 feet.

One had flown a similar route 13 months earlier, perhaps suggesting it's routine. The aircraft's U.S. base declined to provide any details. Spanish

lawmakers have urgently sought answers but got few.

UNIDENTIFIED MALE: (Speaking foreign language).

WALSH (voice-over): So why did the ship sink?

The Spanish investigation said the first impact was likely from a projectile called a supercavitating torpedo that fires air in front of

itself to reach very high speed. Others suggested something simpler.

(BEGIN VIDEO CLIP)

MIKE PLUNKETT, SENIOR NAVAL PLATFORMS ANALYST, JANES: Sounds like a limpet mine. It sounds like a shaped charge explosive that was placed against the

hull by somebody or something.

(END VIDEO CLIP)

WALSH (voice-over): The Russian owners immediately called the sinking "a targeted terrorist attack."

They, the Russian, Spanish and British militaries, did not reply to a request for comment and the Pentagon declined to.

There are few Western militaries operating there, capable of noticing, tracking and stopping a cargo like this. All sides, it seems, happy for

this secret to stay on the sea floor.

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ANDERSON: Well, CNN's Nick Paton Walsh joining me now live.

Nick, this is -- this is fascinating. Great reporting.

A question to you, who could have made the hole in that ship?

Does this look like a high-stakes intervention by Western military?

WALSH: It is incredibly hard to understand how we could be in this situation with the ship's owners, the ship's captain, in different

occasions, suggesting this hole began the plight of the ship without some kind of intervention by a Western state here.

It's improbable to think Russia would damage their own ship. They turned up quickly afterwards to ensure it seems its went to the seabed floor.

And then you have to ask, well, who potentially could have done this?

And it's a very small list of nation states capable of observing this cargo, realizing what it was, tracking it and then intervening in such a

way, frankly, where the results are not public, where it is exceptionally, discreetly done.

The ship sank, certainly. But this has not been something that's had great public scrutiny. I would speculate that, amongst those listed, would be the

United States, the United Kingdom, Spain, possibly.

But the Spanish government's reaction to all of this has been a bit haphazard, frankly. They seem to be just exceptionally keen for the issue

to go away. And indeed, Spanish opposition lawmakers -- you saw one there - - have asked, where is the black box of the Ursa Major, the voyage data recorder, which would have so much information within it?

And in fact, Juan Antonio Rojas Manrique, who you heard from just there in our report, is wondering whether the Spanish government have it, whether

the Russian government have it.

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And after a local newspaper report in a publication called "La Verdad" in southern Spain first broke some of the details of the investigation,

lawmakers asked questions.

And eventually just released, at the beginning of the war with Iran, a statement emerged from Spanish government which confirmed the Russian

captain's statements about components of two nuclear reactors being on board.

But said, too, that the Spanish government didn't think it had the technical resources or want to endure the risk to go down 2.5 kilometers to

where the Ursa Major wreckage is likely destroyed after the visit of that Russian ship, to see what was there.

That is an enduring question, really.

If you are concerned, potentially, in the statement that they released, that there might be radiation there, then why not send someone down to be

more sure?

Or are you sure there is radiation and you don't want to risk personnel?

Another question, too, around all of this is, why would Russia, if indeed this was an entirely benign cargo like the manifest of the ship initially

said, of 129 containers, two cranes and two huge manhole covers, not send that via rail, which is well connected between St. Petersburg and

Vladivostok?

Why this huge, risky, complex voyage?

So much not stacking up here, ultimately. But it's still the enormously acute Russian reaction to their ship being in peril, the sinking of it and

the secondary damage to the wreckage, the investigation alleges, that make this an exceptionally remarkable moment that really supports the suggestion

that there was a very illicit cargo on board. Becky.

ANDERSON: Good to have you, Nick. Thank you very much indeed.

Nick Paton Walsh reporting for you.

And I will be back with more news after this short break. You're watching CONNECT THE WORLD.

WALSH: Thanks.

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ANDERSON: Well, as Americans face surging gas prices, the U.S. Transportation Secretary is taking a road trip. Sean Duffy is releasing a

short YouTube reality series, where he travels the country with his wife and kids. Now the show is drawing criticism for its timing. My colleague,

Tom Foreman, with more.

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UNIDENTIFIED MALE: What a beautiful family.

TOM FOREMAN, CNN CORRESPONDENT (voice-over): Another reality show, another road trip, but it's a familiar path for this family.

TRUMP: Taking a little trip?

UNIDENTIFIED FEMALE: Yes.

TRUMP: A little trip all over.

FOREMAN (voice-over): Transportation Secretary Sean Duffy and his wife Rachel Campos-Duffy of FOX News met on MTV's "Road Rules: All Stars" and

they and their nine children are channeling that past in this five-part YouTube series.

SEAN DUFFY, U.S. TRANSPORTATION SECRETARY: We're encouraging everyone to go take a road trip to celebrate America's 250th birthday. Welcome to Montana.

FOREMAN (voice-over): But the rollout of their made for TV trip through at least 17 states is hitting rough roads with serious safety questions about

air travel and several incidents.

Including a Frontier plane striking and killing a pedestrian over the weekend, a Hantavirus outbreak on a cruise ship and gasoline prices way up

amid the U.S. fight with Iran.

Former Transportation Secretary Pete Buttigieg posted, "This is brutally out of touch. Regular families afford road trips anymore because Trump and

his war put gas prices through the roof."

DUFFY: Someone has to pay for this operation. I got to go to work.

FOREMAN (voice-over): Duffy says no taxpayer dollars were involved. Neither he nor his family were paid.

[10:55:00]

and sponsors picked up the production tab. But looking at some of those corporate backers, government watchdogs warn that the secretary is enjoying

a road trip that appears to have been funded by the very industries his agency oversees.

RACHEL CAMPOS-DUFFY, SEAN DUFFY'S WIFE: I wore my boots that John Rich gave me.

DUFFY: They're very sexy.

FOREMAN (voice-over): The Duffys are pushing back, posting that the radical miserable left just hates the show because it's too wholesome, it's too

patriotic, it's too joyful.

UNIDENTIFIED FEMALE: I think Mud's kind of mad.

UNIDENTIFIED FEMALE: I'm not.

UNIDENTIFIED MALE: No, you're mad.

DUFFY: We're not going to fight on this trip. Put your seatbelts on.

FOREMAN (voice-over): Still, critics say the power couple is on thin ice. Although the project was reportedly shot mainly on weekends and holidays,

it took seven months.

DUFFY: There's a crisis, and Pete Buttigieg decides to ignore it.

FOREMAN (voice-over): And back when Buttigieg led transportation, both the Duffys attacked him for doing anything other than his government work. Even

for taking paternity leave when his twins were born.

CAMPOS-DUFFY: What the hell was he doing? And we were in the middle of this flight --

DUFFY: But it's (INAUDIBLE) time, right? He's not doing his job.

CAMPOS-DUFFY: Exactly.

FOREMAN (on camera): So some who heard the Duffys' complaints back then say what they're hearing now sounds an awful lot like hypocrisy, no matter

where you go on the map -- Tom Foreman, CNN, Washington.

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ANDERSON: Well, that's it for CONNECT THE WORLD. Stay with CNN. "ONE WORLD" is up next.

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