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Early Start with Rahel Solomon

Iran Threatens To Mine Persian Gulf If Islands Are Attacked; U.S. Senate Moves To Fund Most Of Department of Homeland Security; Judge Rejects Plea To Toss Maduro Case Over Legal Fees Dispute. Aired 5:30-6a ET

Aired March 27, 2026 - 05:30   ET

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

[05:30:00]

H.A. HELLYER, SENIOR ASSOCIATE FELLOW, RUSI: And it's not a new claim. It's quite an old claim. It dates back from the date of independence of the United Arab Emirates. So the UAE, the Arab League, the -- you know, the regionally and internationally Iranian sovereignty of these islands is denied or at the very least disputed.

The Russians and the Chinese also suggest that it should be put to arbitration. They also don't recognize Iran's claim without mediation or without arbitration in this regard.

So it sends I think another thing into the mix where the Strait of Hormuz could be opened up in this plan, huh, if certain things are seized. These include the islands. It includes Kharg Island as well. But it -- I think it shows you that there's really quite a huge intention on the part of the administration and increasingly among Gulf Arab allies to do whatever they think is necessary to actually --

BECKY ANDERSON, CNN ANCHOR: Yeah.

HELLYER: -- reopen the Strait of Hormuz.

ANDERSON: So --

HELLYER: The question is whether it can open up this way.

ANDERSON: You've written "That UAE claim of sovereignty is not fringe. It is widely backed across the Arab world and beyond."

If external powers are looking for ways to reshape security in the Strait of Hormuz, and we certainly can see that happening. We've just heard from Marco Rubio. He's just arrived at G7 saying, you know, this is an international issue, it's not a U.S. issue.

We are seeing momentum building for a multinational maritime task force. I just wonder how likely it is that these islands become a focal point given what you've described as relatively sort of limited diplomatic cost due to the ambiguity around sovereignty.

HELLYER: So to make it clear, the ambiguity is pretty weighed in favor of the Emirati side. Now I have to repeat, I'm not advocating anything here, but the issue of the islands has been a very long-running one. These islands were seized by Iran in 1971 when the UAE was -- became independent and ended being part of the British trucial states.

So yes, indeed, it's not fringe. It's not recent. It's something that really quite long-running that these islands actually belong to Fujairah, which is one of the Emirates of the UAE.

The question then becomes about what happens to the Strait of Hormuz in the -- in the medium to long term, and I think here we have a real sticking point. The Iranian regime recognizes quite accurately that this is really a clench point -- a point where they can apply pressure and they can bring the force of international public opinion to bear because of the resulting impact on gas prices, on energy, and so on. That's not something that I think the rest of the Gulf and, indeed, the international community is going to be willing to tolerate for the medium to long term -- not at all.

ANDERSON: Yeah.

HELLYER: So the question then becomes what's going to happen there and also potentially in the Bab al-Mandab. Now, at least in the Bab al- Mandab it's really protecting against piracy whereas when it comes to the Strait of Hormuz the Iranians are making it clear that as part of any "ceasefire" arrangement they want their control over the strait to be formalized. And I don't think anybody is going to be going for that, especially after having seen --

ANDERSON: Yeah.

HELLYER: -- the last month.

ANDERSON: So let's concentrate on these three islands. In theory, transfer of the islands to the UAE could allow for greater Western military presence, you'd have to assume, should the U.S. establish a military base there and long-term control over sort of Hormuz's shipping lanes.

How realistic is that as a scenario?

HELLYER: To be honest with you Becky, I think so many things are realistic and unrealistic given this administration. And what I mean by that is that at some point it seemed that it was very clear that this was all going to wrap up very quickly as far as the administration's messaging was going. Now it seems that it's going to be much longer. We were talking about regime change, then the administration stopped talking about regime change.

I think that all things are on the table, and I don't mean all things are on the table because they're necessarily effective or because it's been necessarily well thought through. On the contrary. I think that a lot of this is very haphazard, very ad hoc.

[05:35:00]

So could it be on the table still? I know it was on the table at least until very recently that they were entertaining the notion of taking these three islands -- Abu Musa, and the Greater and Lesser Tunbs. Whether or not that will still be the case tomorrow is frankly up to anybody to guess because, indeed, things are changing tremendously on a day-to-day basis.

ANDERSON: H.A., always good to have you. Thank you for your insight. It's certainly an area that we should be concentrating on as we consider the kind of wider picture here and what might be achieved in the short, medium and sort of long term. Thank you.

Still ahead, the war with Iran driving up global gas and oil prices prompting countries to take action to cope with shortages. A look at the war's impact on the global economy is after this.

(COMMERCIAL)

[05:40:30]

RAHEL SOLOMON, CNN ANCHOR: Welcome back. The time now is just about 5:40 and this is your business breakout.

Let's take a look and see where U.S. futures stand ahead of the opening bell on Wall Street -- and it's red, but fractionally lower.

Let's take a look and see some of the other business headlines this morning.

The U.S. Treasury has announced that President Trump's signature will soon appear on dollar bills. The move is a first for a sitting president. Treasury Secretary Scott Bessent said that the decision is in honor of this year's 250th anniversary of the U.S. Bessent said, "There is no more powerful way to recognize the historic achievements of our great country and President Donald J. Trump."

A federal judge in California has indefinitely blocked the Pentagon's efforts to punish the AI developer Anthropic by labeling the firm a supply chain risk. Now if they had succeeded, any company working with the U.S. military would have to show that it doesn't use any Anthropic products. It came after Anthropic mandated certain limits on the use of its AI model and its warfare situations, and for mass surveillance.

And Netflix has increased its prices for all its subscription plans in the U.S. The move comes as the streaming giant is adding new services such as podcasts and live sports. The streamer's ad-supported tier will now cost $8.99 a month. That is an increase of $1.00. The next tier will cost almost $20.00 a month.

And as we've all witnessed, the war with Iran is driving up gas and oil prices worldwide. Asian averages right now are mixed after the U.S. on Thursday experienced its largest market drop since the start of the war with Iran. Global investors sifting through contradictory messages from the U.S. and Iran with no de-escalation in sight.

Let's bring in CNN's Eleni Giokos standing by for us in Dubai. Eleni, as we just said, Asian markets look mixed. Futures right now are mixed. I mean, investors seem like they're trying to find some direction here. What are you watching?

ELENI GIOKOS, CNN CORRESPONDENT: Yeah, exactly. And I think there's a lack of direction because there's just so much mixed messaging, you know. And if you look at the facts -- if you look at what's really going on and you look at the numbers of the supply disruption and, importantly, what's happening in the Strait of Hormuz, it gives you a real indication of where we stand right now. This maritime chokepoint, you know, choking off 20 million barrels of oil per day that is supposed to go into the international market.

Kpler data, which offers a lot of trading data that we see, and we've been relying on, frankly, since the start of the war, released some really interesting information just a short while ago. And we know that vessels have been -- only been able to pass through the Strait of Hormuz if they negotiate directly with the Iranians.

And what's interesting is that COSCO, which is a Chinese-linked shipping company that's state-owned, they tried -- two vessels tried to pass through the Strait of Hormuz. They were apparently stuck in the strait before the war started and then attempted to exit.

I want to show you these two images that Kpler shared with us. They tried to exit and basically going past Larak Island, and then they do this abrupt U-turn. Two vessels attempted to pass through the straits on Friday.

So it's a real indication that they weren't able to secure safe passage even though Iran is very consistent in its messaging, saying that anyone that's not linked to what they say is an enemy will be able to pass through the strait.

We also know from a lot of experts that there is a toll that is applied to any vessel that is trying to pass through.

But this really just hits home that the Strait of Hormuz still very much under Iranian de facto control. Very difficult for vessels to secure safe passage. And this is another indication I would say, Rahel, of just how tough it is to pass through the strait.

Remember that the International Maritime Organization says there's around 2,000 vessels that are trapped in the strait right now. And we see the visual element of the live pictures from the Strait of Hormuz of all the vessels that are congregated in the Persian Gulf side.

And there are 20,000 seafarers that are unable to get out as we see still conversation kind of circling around are we going to have naval escorts? Is there going to be more insurance guarantees that are going to come to the floor as now we see this extension -- 10-day extension of the United States saying they're engaging in some kind of talk with Iran. Where it stands, we don't know.

Brent Crude prices currently at $109 a barrel, Rahel.

SOLOMON: Where it stands and where it goes.

Eleni Giokos in Dubai. Eleni, thank you.

[05:45:00]

And still ahead, more on our breaking news this hour on the Senate moving forward to fund most of DHS. What it could mean for you.

We'll be right back.

(COMMERCIAL)

SOLOMON: Welcome back. I'm Rahel Solomon. And here are some of the top stories we are watching for you this morning.

While most Americans were sleeping, the U.S. Senate took a big step toward ending the partial government shutdown. It passed a bill that would finance most of the Department of Homeland Security. No funding yet for ICE or part of Customs and Border Protection. The legislation still has to be approved by House lawmakers and then the White House.

[05:50:00]

New York's LaGuardia Airport has reopened the runway where an Air Canada Express jet plowed into a fire truck on Sunday. That is after investigators allowed the plane to be moved to a hangar. The incident left two pilots dead and injured dozens of other people. The fire truck was mistakenly cleared to cross the runway. The investigation could take more than a year.

And President Donald Trump says that he is extended his pause on strikes against Iranian energy sites for another 10 days. Meanwhile, sources tell CNN that the Pentagon is preparing plans for a major military escalation by the U.S. in case diplomatic efforts fail.

And the Senate's DHS funding plan comes 42 days into the shutdown and TSA workers poised to miss their second full paycheck this weekend. Many of them have quit or skipped work causing massive lines at some of America's busiest airports.

CNN's Ed Lavandera shows us the situation in Houston. He filed this report before the Senate vote.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN SENIOR NATIONAL CORRESPONDENT: The nightmare travel scenario continues to unfold here at George Bush Intercontinental Airport in Houston, Texas where throughout much of the day, we've seen continued wait times of 2 1/2, three, four hours at times. Even late into the day we've seen extended times.

Now, airport officials say that TSA is sending 32 additional TSA agents here to this airport but so far, we have not seen any indication that is helping alleviate the stress on the lines. And this is lines that fill up the entire terminal area. It spills down to the lower areas where people have to wind their way through all of these makeshift lines that have been created on the second floor. At some points during the week it's actually gone into another level even below all of this.

And if you look around this way it even spills out into the street and outside the terminal areas where it's usually passenger drop-off. So they have taken up four lanes of traffic there and filled it up with lanes so that people can continue the -- waiting in the TSA pre-line and then they come back into the terminal building here and continue waiting.

The frustration is really starting to mount, you know. You hear that over and over from passengers as we talk to them as they're walking past us in these lines. A great deal of frustration trying to figure out why this has to last as long as it has, especially at this airport.

George Bush Intercontinental Airport has had a callout rate from TSA employees of about 40 percent. Sometimes higher, sometimes lower, but it's really kind of hovered around that mark. And because of that, airport officials tell us that they are barely able to keep about 50 percent of the TSA screening lines in the entire airport open. There's 37 of those.

So this will continue into Friday as well because it's a situation where it's a heavy travel day and also airport officials here bracing for Sunday and Monday travel, which are also traditionally high-level -- high levels of passengers here at this airport as well.

Ed Lavandera, CNN, Houston, Texas.

(END VIDEOTAPE)

SOLOMON: A U.S. federal court judge says that he will not toss out the criminal case against Nicolas Maduro. That's despite a dispute over Maduro's ability to pay his legal fees. The Trump administration is refusing to allow the government of Venezuela to pay the legal bills for Maduro and his wife who are charged with narcoterrorism.

Federal prosecutors said that allowing the Maduros to access that money would be "plundering the wealth of Venezuela." Lawyers for the couple say that refusal effectively violates the Maduros' right to counsel.

All right. And still ahead for us we are tracking the latest March Madness action. Find out which of the Sweet 16 teams are moving on to the Elite 8 coming up next on EARLY START.

(COMMERCIAL)

[05:58:05]

SOLOMON: Welcome back.

Transgender women have been banned from competing in women's events at the Olympics. The International Olympic Committee announced that the new policy requires that all of those participating in women's events to undergo genetic testing.

IOC president Kirsty Coventry explained the decision.

(BEGIN VIDEO CLIP)

KIRSTY COVENTRY, PRESIDENT, INTERNATIONAL OLYMPIC COMMITTEE: The policy that we have announced is based science and it has been led by medical experts with the best interest of athletes at its heart. The scientific evidence is very clear. Male chromosomes give performance advantages in sports that rely on strength, power or endurance.

At the Olympic Games, even the smallest margins can be the difference between victory and defeat. So it's absolutely clear that it would not be fair for biological males to compete in the female category. In addition, in some sports it would simply not be safe.

(END VIDEO CLIP)

SOLOMON: Now, the new policy comes ahead of the 2028 Summer Olympics, which will be held in Los Angeles.

All right, now to March Madness where the Elite 8 lineup is starting to take shape. Arizona will move on to the next round after a blowout win over Arkansas, and Illinois defeated Houston to advance.

And take a look at this dramatic ending in the matchup between Purdue and Texas. The Boilermakers have the ball, the score is tied with six seconds to go, and Purdue manages the tip-in to seal the victory there. They will face Arizona on Saturday.

And Iowa celebrating its first trip to the Elite 8 in 39 years. The number nine seed upset number four Nebraska 77-71. They will take on Illinois on Saturday.

And a welcome sign of spring in Washington, D.C. as the famous cherry blossoms have reached full peak -- peak bloom. The mayor, Muriel Bowser, made that announcement yesterday saying, "It's a beautiful time of year across all eight wards of our city." Reports say that the display is days earlier than expected thanks to warmer weather in the region.

[06:00:10]

The capital's cherry trees were originally a gift from Japan to the U.S. in 1912 and they symbolize the friendship between the two nations. Their delicate and lovely color draw thousands of visitors each year.

All right, that's going to do it for us. Thanks for being with us here on EARLY START. I'm Rahel Solomon live in New York. My thanks to Becky Anderson and her team. "CNN THIS MORNING" starts right now.