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Early Start with Rahel Solomon

White House: Talks "Going Well" Despite Tehran's Denials; Oil Prices Rise As Trump Threatens Iranian Energy Sites; TSA Workers Start To Receive Back Pay As Shutdown Continues. Aired 4-4:30a ET

Aired March 31, 2026 - 04:00   ET

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

ABBY PHILLIP, CNN ANCHOR & SENIOR POLITICAL CORRESPONDENT: Goodbye PBI. Hello DJT. Well, Florida's governor Ron DeSantis just signed a bill that could rename Palm Beach International Airport to Donald J. Trump International Airport. That, of course, is where Air Force One lands whenever Trump goes to his Mar-a-Lago resort. And if the FAA approves it, the name change would take effect on July 1st.

[04:00:23]

And thank you for watching NewsNight. You can catch me anytime on your favorite social media, Instagram and on TikTok. CNN's coverage continues next.

BRIAN ABEL, CNN ANCHOR: Good morning and welcome to our viewers joining us from the United States and all around the world. I'm Brian Abel.

Straight ahead on Early Start, Israel and Iran trading fresh strikes as the White House claims talks to end the war are going well.

U.S. crude oil closes above $100 a barrel for the first time in almost four years. We'll look at how that's being felt at the gas pump.

And A.I. agents are shaping up to be the next frontier in artificial intelligence. CNN gives one of them a test drive in ordering groceries.

We are this morning following the latest developments from the Middle East, where Israeli police say several cars caught fire in central Israel after being hit by missile fragments following a new barrage fired by Iran.

Police say there were reports of debris in Tel Aviv, but no casualties reported so far. An IDF spokesperson tells CNN the damage appeared to be from a cluster munition. The attack comes just hours after the IDF issued an evacuation warning ahead of a strike on a residential area in Tehran.

Meanwhile, the White House says talks to end the war with Iran are going well, despite Tehran's denials. But U.S. Secretary of State Marco Rubio admits there are questions surrounding Iran's current leadership. (BEGIN VIDEO CLIP)

MARCO RUBIO, U.S. SECRETARY OF STATE: It's very opaque right now. It's not quite clear how decisions are being made inside of Iran.

(END VIDEO CLIP)

ABEL: Despite claims by the administration that it is working, making diplomatic headway, rather, with Iran, President Trump is threatening to obliterate Iran's energy sites if a deal to end the war is not reached and the Strait of Hormuz is not reopened. Here's what the White House had to say about that.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: Of course, this administration and the United States Armed Forces will always act within the confines of the law. But with respect to achieving the full objectives of Operation Epic Fury, President Trump is going to move forward unabated, and he expects the Iranian regime to make a deal with the administration.

(END VIDEO CLIP)

ABEL: Let's bring in CNN's Paula Hancocks now, live from Abu Dhabi, to help us explain what seems to be some contradictory messaging here on the war continuing, but also progress going well with Iran diplomatically.

PAULA HANCOCKS, CNN CORRESPONDENT: Well, that's right, Brian. Despite the differences of opinion and public messaging, when it comes to the diplomatic side, what we're seeing on the ground here is no impact of these talks whatsoever. If anything, we are seeing significant bombardment of Iran and then the other way affecting Israel and the Gulf nations as well.

So starting off with what we've seen in central Israel. Now, we have images showing the damage of some of the debris, which has landed in different areas across central Israel from one of the interceptions. Now, we understand from an Israeli military spokesperson, they believe this was a cluster munition that was used by Iran, which means that the warhead detonates into smaller bomblets, which are then spread against a far wider area.

It is very difficult for the defense systems to be able to take down this type of munition, which is why we see a wider amount of damage. We also see emergency responders on a Tel Aviv beach promenade area. At this point, no reports of any injuries.

Now, what we've seen overnight and early Tuesday morning in Iran has been some significant bombardments. We saw blasts in the city of Isfahan. Now, we have footage of a number of those explosions. In one of these images, you can actually see the minarets of the Grand Mosalla Mosque in the foreground as there is an explosion in the background. So we are also hearing of other cities across Iran having being impacted by these U.S. and Israeli strikes. There was a warning by the Israeli military in one area of Tehran, which they posted on social media. They posted on X saying that there would be an attack in coming minutes. That was several hours ago.

[04:05:02]

But of course, bear in mind that there is an internet blackout in Iran. So people on the ground would simply not have seen that warning if that was the only way that they were warning civilians. We are seeing the civilian death toll rise across Iran. We're hearing some criticism among human rights groups saying that the number of civilians and children among them that are being killed is unacceptable.

At this point, we hear from Iranian Red Crescent, 1,900 have been killed. This is the most up-to-date figure we have, but they don't break down military versus civilians at this point. We also know that there were some power outages in Tehran, Fars News Agency saying that a substation had been hit by shrapnel.

Now here in the Gulf region, we're still seeing the retaliation from Iran. In fact, here in the United Arab Emirates, just in the past half hour, there were a number of alerts, and we heard in Dubai, a large number of interceptions across many different neighborhoods. We're currently assessing whether there was any impact or whether the debris from intercepted projectiles had any impact. We're waiting for authorities to give an update on that. Brian?

ABEL: OK, and we will see what happens from that. Paula Hancocks for us in Abu Dhabi. Paula, thank you.

President Trump's claim that talks with Iran are going well isn't doing much to calm volatile oil markets. The global benchmark, Brent Crude, that topped $116 a barrel on Monday before settling at $112. West Texas Intermediate Crude here in the U.S. benchmark. You see it down 101.99. And AAA just reported the national average price for regular unleaded gas has hit $4.02 a gallon.

So let's bring in CNN's Eleni Giokos tracking the latest for us from Dubai. Eleni?

ELENI GIOKOS, CNN CORRESPONDENT: How you doing, Brian? Yes, look, markets are very volatile. Oil prices are oscillating between positive and negative territory. But the reality is that you still have the Strait of Hormuz that is effectively closed. We know that Kuwaiti tanker off the coast of Dubai was targeted by an Iranian drone.

And again, it's the messaging around Iran having not only control, but also saying that anyone who wants to pass through the Strait needs to directly communicate with Iranian authorities. And just as Paula said, just here where I am, I heard multiple interceptions, really loud interceptions, just showing that we're very much into this war 32 days in. The IMF coming out with a very stark warning in terms of the ultimate impact. You know, despite the fact that you're seeing these daily moves, again, the duration of the war really matters. I want to take you through what they said in terms of the ultimate effect. They say that it's going to -- in the way that it's going to affect economies. It really has to do with it all roads basically lead to high prices as well as to a slower growth. And that is the reality that people are going to be facing. And it really just depends on how long the conflict will last and how it will spread. And of course, the damage that is inflicted on infrastructure and supply chains.

We really don't know the ultimate damage of an infrastructure, apart from what we heard from the Qatari saying 17 percent of their total capacity has been wiped out. We're still waiting for assessment on energy infrastructure in the region. But supply chains have been completely disrupted. And I want to take you through what the International Air Traffic Association came up with today on jet fuel prices.

And this is where it gets really scary because this is a direct impact on flights as well. The IATA came out with a number saying 104 percent is the increase overall on jet fuel prices over the past month. Asia and Oceania is seeing 134 percent increase on jet fuel prices. In North America, 88 percent right now in increases.

Korean Air coming out and saying they're going into emergency mode because of the price increases and jet fuel shortages. So the oil shock is here. The supply shock is here. The question is how quickly can things get back to normal? It depends on the duration and it depends whether the Strait of Hormuz, Brian, is ultimately going to open up any time soon. For now, this is the reality that everyone in the world is facing.

ABEL: The reality in the real world impacts far beyond the Middle East. Eleni Giokos in Dubai for us. Eleni, thank you.

And for more now, I'm joined by Amena Bakr, head of Middle East Energy and OPEC plus insights at the analytics platform Kpler. Thank you for being with us. You heard Eleni there breaking down some of the consequences of fuel prices surging.

I am hearing from so many people who are having to change travel plans because of the jet fuel prices, for example. I first just want to get your perspective on the trends that you are seeing and what you are keeping your eye on.

[04:10:05]

AMENA BAKR, HEAD OF MIDDLE EAST ENERGY AND OPEC PLUS INSIGHTS, KPLER: Yes, I heard Eleni there and I also heard the big blast being based out of Dubai here. So the war on the ground is still very much active and we don't see any kind of de-escalation despite the comments coming out of the White House and President Trump saying that they are negotiating and are close to some form of ceasefire or an end to this conflict being based out of this region. Iran continues to target the Gulf in the cities, but also energy infrastructure, including the latest attack on the Kuwaiti tanker that happened this morning.

So just looking at numbers here, the outages are huge. The impact is huge. We have 260 million barrels that are off the market. These are barrels that haven't been produced. Has there been a counter to that? Yes, the IEA did release stocks, but just, you know, enough to cover that. But if this conflict extends until the end of April, our calculations show that we are going to be reaching a loss of barrels of 570 million barrels.

So this really puts the energy crisis in a completely different stage and it will be incredibly difficult for recovery to happen. The only kind of timelines that we have that we were officially given were by Qatar and also Kuwait. Qatar said it needs five years of repairs for the damages that it faced in two of its LNG trains. And from Kuwait, they said they need three to four months, and this was just recent, to reach their full capacity again.

So the situation is dire, the situation is serious, and it's not just about us choosing not to have one or two vacations. This is about impacting everyone's life, especially developing countries. It's going to get very, very serious soon if we don't see an end to the conflict and a reopening of Hormuz.

ABEL: And to maybe echo what you're describing there, we're seeing the energy industry warning that this oil crisis is only beginning. And according to JPMorgan analysts, the impacts of oil flow disruptions at the Strait of Hormuz will really hit in April. So they will move globally from east to west, analysts say. For those of us who maybe don't follow the logistics causes and effects here, help us understand why April, why the impacts roll westward and what strategies oil companies may have at their disposal to minimize the impacts.

BAKR: Sure. I mean, traffic from the Strait of Hormuz since the start of the conflict, we're at the 32nd day of the war currently. So flows through Hormuz were basically at volumes of around 20 million barrels, that 20 percent of the world's consumption. And traffic has been reduced to a current level of 5 percent, even lower than that. So you're not having the same level of flow, despite the exceptions being made by Iran for some vessels to pass. And the most recent one we've seen is the agreement of 20 tankers going to Pakistan. But that's a trickle. And that's very, very controlled still.

And so far, I mean, the markets have been kind of moving on sentiment driven by messages from the White House, from the US. And those messages were mainly designed around kind of controlling market reaction. But I think it's just a matter of time before the markets realize that reality or the fundamentals on the ground is that we have a massive supply shock, and that's going to catch up. And we are going to see levels that you've seen big banks describe of, you know, 150 plus oil if this conflict continues.

ABEL: OK. Amena, we have just about a minute left. So if you can, can you give us maybe these two diverging forecasts moving forward from this point right now, where, one, where the U.S. does send in ground troops to Iran, to Kharg Island potentially, and then another where diplomacy wins out and this war ends in a week or two, as the White House said yesterday is still possible?

BAKR: Sure. I mean, if an announcement of a ceasefire is made, we might see a sell off that we've seen. I mean, initially, when announcements around that in the market was more reactive and responsive and thought it was real, we did see sell offs happening. But the even if we have a scenario where you announce a ceasefire and you get an immediate sell off, we don't expect prices to return to pre war levels. And I'm talking about, you know, that 60, $70 mark, because there needs to be a recovery and that recovery needs weeks, if not months.

So the longer you prolong that, and if this conflict continues to escalate, and we don't get an announcement of a ceasefire, we are going to see those levels of 150 or 200. Even -- if this doesn't stop, and if we don't see resumption from Hormuz.

[04:15:12]

ABEL: Amena Bakr, despite those blasts near you, good to see that you and that adorable cat of yours behind you are safe and doing OK. Amena Bakr in Dubai for us, thank you.

BAKR: Thank you.

ABEL: Authorities are investigating what led a 15-year-old student to shoot a teacher at a high school in Texas. They say the student shot and killed himself after the attack on Monday morning. The teacher is in the hospital, but there is no word yet on their condition. And there's a key question for investigators, that is how the student got the gun.

(BEGIN VIDEO CLIP)

SHERIFF MARK REYNOLDS, COMAL COUNTY SHERIFF'S OFFICE: During the re -- and I'll -- and I'm never one that's going to back down from a difficult question, but during the reunification process, that student's parents and kin folks were in the reunification line. And so that's partly a part of our investigation. Some of the questions were asked of where the firearm came from.

(END VIDEO CLIP)

ABEL: Now the school was put on lockdown and students were taken to a nearby middle school to reunite with their families. There's no other injuries that have been reported there.

And the FBI says the attack on a synagogue in Michigan earlier this month was a Hezbollah inspired act of terrorism. Investigators say a man rammed a truck into the building while more than a hundred children were inside for school. The synagogue security officers exchanged fire with the attacker before he shot and killed himself inside the vehicle. Authorities say the truck was filled with fireworks and gasoline meant to cause a huge explosion.

The suspect was identified as a naturalized U.S. citizen from Lebanon. The FBI says he acted alone and was inspired by Hezbollah propaganda after members of his family were killed a week earlier in an Israeli airstrike in Lebanon. The FBI held a news conference on Monday where they revealed some of the evidence they've found.

(BEGIN VIDEO CLIP)

JENNIFER RUNYAN, SPECIAL AGENT IN CHARGE, FBI DETROIT FIELD OFFICE: During the morning and early morning of March 10th, he continued his online searches with specific search terms and phrases such as the largest gathering of Israelis in Michigan, Orthodox synagogues, Israelis near me. What time is the Trump rally in Michigan? As well as a sinner affiliated with the Israeli embassy in Michigan. He later attempted to try and delete these queries, but we were able to recover them.

(END VIDEO CLIP)

ABEL: One of the synagogue security officers was hit by the vehicle and injured, but there were no other casualties aside from the attacker.

Still to come, back pay slowly starting to roll in for TSA agents. But what else is Congress doing to end the partial government shutdown? We'll have the latest just ahead.

(COMMERCIAL BREAK)

[04:22:28]

ABEL: It's been 46 days since the U.S. Department of Homeland Security shut down, and it will be at least two weeks until it can possibly reopen. There's growing criticism of lawmakers as both chambers of Congress are in recess right now. They've been spotted at places like Disney World in Florida and a Las Vegas casino as thousands of DHS workers go unpaid.

Lawmakers hit a stalemate after Republicans in both chambers passed competing proposals to fund DHS. Senate Republican leader John Thune says he will not call senators back from recess until there is a deal with Democrats.

There is one bright spot amid the shutdown. Security wait times have plunged from hours to minutes at some U.S. airports. Monday was the first time about 61,000 TSA workers started getting paid since the beginning of the partial government shutdown.

CNN's Pete Muntean spoke with travelers in Maryland about the shorter lines and progress made in Washington.

PETE MUNTEAN, CNN AVIATION CORRESPONDENT: The woman who arrived here at BWI Thurgood Marshall Airport nine hours early with a folding chair, probably not going to need to use it because this is the line right now at the security seat checkpoint here at BWI. The wait time's gone from about three hours on Friday and Saturday to about three minutes now, thanks in part to the fact that TSA workers are now getting paid. They just got back pay for some of the paychecks they did not get during this historic government shutdown impacting the Department of Homeland Security. I want you to listen to that passenger. Her name is Wanda Pharris. She's going back to Huntsville, Alabama, and she is acutely aware that this is only a ban day, that it's now up to Congress, which is on recess, to make a long-term fix here.

(BEGIN VIDEO CLIP)

WANDA PHARRIS, TRAVELER: Yes, it's at 8:00 tonight, but I must be home, and I couldn't stand in the lines that long. So I did, in fact, I had a back chair to bring with me in case I had to stand. I think our lawmakers need to really come together and remember why you are in Washington, D.C. You're for the people. You're here to work for us.

(END VIDEO CLIP)

MUNTEAN: On Friday, only two of four TSA checkpoints were open here at BWI. The number of TSA workers who have called out sick has gone up a little bit, and the latest data from the TSA is that on Sunday, 38.5 percent of them called out sick here at BWI alone. There's a bit of a lag in those numbers, so we'll see as we get new information.

Pete Muntean, CNN, Linthicum, Maryland.

[04:24:58]

ABEL: A mechanical issue forcing a Delta Airlines flight from Sao Paulo, Brazil bound for Atlanta to return to the airport shortly after takeoff. There is some video. Delta hasn't provided further details on the incident yet. But this video taken by one of the passengers on board shows sparks and flames coming from the aircraft's left engine. Look at that terrifying scene.

And then there's this video from a plane spotter that shows what appears to be the engine bursting into flames right after takeoff. Nearly 300 people were on board that flight. No injuries were reported.

Still to come, we go inside Israel's military operations in Lebanon and see how civilians on both sides of the border are coping.

(COMMERCIAL BREAK)

[04:30:00]