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Isa Soares Tonight
U.S.-Israel And Iran War Enters Day 10; Iranians Storm The Streets Of Iran To Celebrate Newly-Appointed Supreme Leader Mojtaba Khamenei; Lebanon's President Calls For An Immediate Ceasefire Along With Direct Talks With Israel; Why Iran Is Attacking the UAE; Top Official: Iran Is Ready For Long War; UAE Has Been Iran's Biggest Retaliation Target; U.S. Repatriation Flights Return Travelers From Middle East; Oil Prices Soar As War In Iran Escalates. Aired 2-3p ET
Aired March 09, 2026 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[14:00:00]
MAX FOSTER, HOST, ISA SOARES TONIGHT: Hello, welcome, I'm Max Foster in for Isa Soares. Tonight, we begin with day ten of the war with Iran, and as
the conflict grows, so does the economic impact. Here are the latest developments.
U.S. President Donald Trump says he'll hold a news conference on the war in about three and a half hours from now, we'll carry it live. Iranians took
to the streets to celebrate the decision to name Ali Khamenei's son, Mojtaba, as the new supreme leader.
The defiant move appears to be aimed at President Trump, who had described the choice as unacceptable. Lebanon's President is calling for an immediate
ceasefire along with direct talks with Israel, that's after the IDF struck Hezbollah strongholds in Beirut's suburbs.
And Israel says it has launched a new wide-scale wave of strikes on Iran. Attacks on energy infrastructure have oil prices surging past a $100 per
barrel at one point for the first time in years. G7 Finance Ministers have been meeting today, but didn't make a decision on whether to release joint
oil reserves.
Earlier, U.S. Secretary of State Marco Rubio told reporters that American forces are on track to topple the Iranian regime.
(BEGIN VIDEO CLIP)
MARCO RUBIO, SECRETARY OF STATE, UNITED STATES: The goals of this mission are clear, and it's important to continue to remind the American people of
why it is that the greatest military in the history of the world is engaged in this operation.
It is to destroy the ability of this regime to launch missiles, both by destroying their missiles and their launchers. Destroy the factories that
make these missiles and destroy their Navy. I think we are all seeing right now the threat that this clerical regime poses to the region and to the
world.
(END VIDEO CLIP)
FOSTER: Kevin Liptak is at the White House for us, Jeremy Diamond is in Tel Aviv with more on the strikes by Israel. But Kevin, if I can just go
first to you, this press conference, we've just heard about it, it seems like quite a statement is going to be made. Am I reading too much into it?
KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: We'll see. I mean, the President has obviously been on the phone, sort of constantly over the last
week talking to reporters, but obviously seeing him answer some of these questions on camera will be a different moment.
You know, he's down at Doral, which is his golf club outside of Miami, and he certainly has a lot that I think people want to ask him about, you know,
the elevation of the new supreme leader in Iran. You know, he had warned ahead of time that replacing the elder Khamenei with the younger Khamenei
would be unacceptable.
He just got off the phone with "NBC", and said it was a big mistake, and said that he doesn't know that it's going to last.
So, I think we have a sense of his viewpoint on that. I think what reporters are really going to want to press him on is, what his end game in
this conflict is, because so far when you listen to the White House Press Secretary, when you listen to the Defense Secretary, all of these
individuals who have been out speaking on behalf of the administration, it has not been precisely clear what exactly President Trump is looking for to
either declare success or to say that this mission is over.
Everything we've heard from now is that we are closer to the beginning of this war than the end, even as all of these costs start to stack up,
whether it's the cost in American lives. You know, we just learned yesterday that the seventh U.S. service member had died as part of this
conflict.
Or whether the costs when it comes to gas prices, which are now at their highest point of either of President Trump's two terms. And so, I think he
will have a lot to answer for today.
The other question that I think people will have is the question of responsibility and culpability for that strike on the girls' school in Iran
on the very first day of the war, President Trump came out over the weekend and said very definitively, that this was the responsibility of Iran, that
they were the ones who carried out that strike, even though the Pentagon says it's investigating.
And even though news outlets including CNN have done their own open-source investigations that suggest it was the U.S. military that was operating in
the region at the time. And so, you know, these on camera press conferences do provide more of an opportunity for sustained questioning and really
pressing the President on what exactly his evidence was on that and all of these other issues.
[14:05:00]
You know, when you're on the phone with the President, I don't know that there is necessarily the instinct to press him on things because he can
just hang up on you. And that's a very different circumstance when he's doing it on camera in front of reporters.
And so, this will be, I think a very important moment at what seems to be a very critical moment in the war itself as it enters its second week as all
of these uncertainties seem to mount, and as Iran elects a new leader that the President has already said he doesn't think he can work with.
FOSTER: Kevin, thank you for that. Conference in a couple of hours. Jeremy, take us through what's happening on the ground there.
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, over the course of the day, we've had multiple sirens of incoming missiles, both from Iran as well
as from Hezbollah. Today, we saw that the Iranians used once again, these cluster-type munitions fitted onto the tops of these ballistic missiles,
scattering smaller bombs throughout the area.
And in fact, today, we saw the first fatality as a result of one of these cluster munition attacks with a construction worker on the outskirts of Tel
Aviv who was killed by one of these direct impacts of one of these smaller bombs.
Two other people were seriously injured. We also saw a missile coming in from Hezbollah that hit near the town of Ramla in central Israel.
No serious injuries as a result of that strike, but we are continuing to see as both Iran and Hezbollah are trying to find new ways to get through
Israel's air defenses, to have an impact here, not only in terms of fatalities and casualties, but really just disrupting daily life here in
Israel.
Meanwhile, the Israeli military is continuing to carry out an extraordinary series of strikes in both Iran as well as in Lebanon. And today, we heard
from the Lebanese President, Joseph Aoun, who talked about the fact that the Lebanese government and the Lebanese people are really being caught now
between Hezbollah on the one side and Israel on the other.
He talked about -- he was highly critical of Hezbollah in his remarks, although he didn't name the group directly. He talked about those who
launched missiles at Israel and sparked this retaliation from Israel as endangering the people of Lebanon and really putting the Iranian regime
above the needs of the Iranian people.
He also talked about the growing humanitarian crisis that we're witnessing in Lebanon, with more than half a million people now displaced. Max?
FOSTER: OK, Kevin, Jeremy, thank you both for joining us and updating us there. Now, in an exclusive interview in Tehran, CNN's Fred Pleitgen spoke
with the foreign policy adviser to the supreme leader, who says there's no longer any room for diplomacy.
CNN is operating in Iran with permission of the Iranian government, but maintains full editorial control over what he reports.
(BEGIN VIDEO CLIP)
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Iran has a new supreme leader. What does that mean for your military effort and the
confrontation with the United States and in Israel?
KAMAL KHARAZI, FOREIGN POLICY ADVISER TO IRAN'S SUPREME LEADER: That means the system is quite functioning.
PLEITGEN: So, the United States says it's drastically degraded the Iranian military, the capabilities as far as missiles and drones is concerned. How
much longer can you do this?
KHARAZI: That is one of the false narratives that the United States government is producing. Iranian military is quite strong, as you see,
because they have the motivation, they have the arms that they need, which are produced in Iran.
As a matter of fact, we are not dependent on any other country for weapons and arms.
PLEITGEN: So, your side is ready for a long war with the United States and Israel choose that? Do you consider this an existential threat to the
Islamic Republic?
KHARAZI: It is an existential threat to the Islamic Republic, and therefore, we have to stay with full might as we are doing now.
PLEITGEN: Is your side seeking, or will you seek a ceasefire with the United States at this point in time and with Israel?
KHARAZI: I don't see any room for diplomacy anymore, because Donald Trump had been deceiving others and not keeping with his promises. And we
experienced it in two times of negotiations, that while we were engaged in negotiation, they struck us.
PLEITGEN: How does all of this end then? If you say right now, there's no room for negotiation. President Trump says he wants complete surrender.
What does that lead to?
KHARAZI: There is no room unless the economic pressure would be built up to the extent that other countries would intervene to guarantee this
termination of aggression of Americans and Israelis against Iran.
PLEITGEN: Finally, what is your message to President Trump as we sit here as the war is going on?
KHARAZI: That means that what is important for us is the end of this game, and we are ready to continue that game.
[14:10:00]
PLEITGEN: The end of this game, you mean how this war will end is --
KHARAZI: Yes, at the end of the game would be the time that American and Israelis would come to this understanding, that this strategy is not
working, and they have to stop their aggressions against Iranians.
(END VIDEO CLIP)
FOSTER: The war is impacting people all over the globe in the form of these surging prices, price of oil going past a $100 a barrel mark earlier
today, reaching levels not seen since the invasion into Ukraine of Russia. About 20 percent of the world's fuel actually travels through that Strait
of Hormuz, Richard.
And you'll hear listening to that interview. It's interesting, isn't it? Because this isn't just a military war.
RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: Oh, no, from Iran's point of view, it's an economic war. The adviser said exactly that. He said, this
thing will come to an end, in his view, when the economic pressure is so great by -- not from the U.S., the U.S. doesn't need all that oil, but from
other countries that basically force the U.S. and or Israel into it.
Now, we saw this number over here. There, you've got west Texas at 92, went up to 120, it's come back a long way from that. But that's because what
we're seeing is a lot of knee jerk. So, overnight, there was all sorts of rumors of this, that, near, then you saw the damage at the Strait, et
cetera.
So, that pushed it up. It looks like there might be some form of release from the strategic tomorrow or they're going to discuss it again tomorrow.
But the risk is very much on the upside here.
FOSTER: But we're seeing it transfer into prices, aren't we? Gasoline prices in America --
QUEST: Sure, 50 percent(ph) --
FOSTER: Have gone up already --
QUEST: Yes --
FOSTER: And it's going to affect every other product pretty much going, right? So, this is going to -- this is being felt.
QUEST: Oh, and somewhat perversely, the United States is seeing this because international prices are going up, but actually doesn't import
much oil --
FOSTER: Yes --
QUEST: Four to 6 percent of its demand from the gulf. So, the United States, the consumer in the U.S. is being clobbered in a way, but actually
does not have the same direct impact here in the U.K., in the -- in the EU, well, of course, that's very different.
The LNG new requirement in Europe post Russia is very high, and that is actually going to -- if this war continues, you're going to see some really
serious -- and that's why -- just look at the market if you just bring in - - if you give me the markets there, that's why you're seeing this, because this is factoring in a whole range of issues that the market just cannot
price at the moment, and in that environment, you mark down.
FOSTER: We don't expect Donald Trump to announce the war is over tonight. But even if he did, it would still take a lot of time, wouldn't it? To
unwind this process. The price increases --
QUEST: Don't even --
FOSTER: Would feed through.
QUEST: Don't even go there. He's not going to do that tonight, and that far from it. And he's actually said, last night, he said on Truth Social
that, you know, the price we pay is higher oil prices and that's a price worth paying at the moment.
So, that's what he's going to continue to do. I expect full throttle justification, full throttle on forward, and of course, his comments in the
last couple of hours about the new leader.
FOSTER: In terms of the shipping, because that's the main issue --
QUEST: Yes --
FOSTER: Right?
QUEST: Yes --
FOSTER: They're not getting out, and there's a suggestion that the French military, the American military could escort these ships. Is that actually
a solution, because insurance is surely still an issue?
QUEST: Yes, and so, the U.S. has -- Donald Trump has suggested they may insure, but that's not realistic, because essentially, he would be taking
on unlimited liability for all those ships. If he's prepared to do that, good luck to him. Unlikely.
So, then you're talking about escorting ships. But the numbers involved would be so big you'd be putting together convoys, and they'd still be at
risk of Iranian drones and missiles.
That's the problem. And even if you had insurance, and you had escorts, which CEO of a tanker line is going to say, I'm going to risk my seamen and
women going through the Strait of Hormuz because of it.
Now, it's not a runner. The reality is putting it in crude blunt terms, the Iranians have got them exactly where they want them, because of that very
narrow area of the Strait of Hormuz.
FOSTER: Are business leaders in the gulf, furious that they're paying the price for all of this?
QUEST: I think furious is too soon to say. I think they're shell-shocked. I think that this is the -- this is the nightmare that everybody knew could
happen for those gleaming beacons and diamonds of growth in the gulf. Everybody knew this was a possibility. Nobody thought it was a realistic
risk. This is now coming to fruition.
[14:15:00]
And when you look at what Dubai is doing, who is protecting you, how it's all going -- Dubai is still standing, Dubai is fully safe. They have to
provide that message because that's what they've been selling for the last 50 years.
FOSTER: OK, Richard, thank you so much. See you in the next couple of hours. G7 Finance Ministers are yet to agree on the joint release of oil
reserves as prices surge. As Richard was saying, the EU policy chief Kaja Kallas warns an end to the war with Iran could be a long way off.
(BEGIN VIDEO CLIP)
KAJA KALLAS, VICE PRESIDENT, EUROPEAN COMMISSION: Iran is responsible for decades of violence, and the fewer options Iran has to terrorize the
region, the better. Iran's military capabilities are limited and the regime is weaker than it ever has been before. But there is no clear trajectory
how this war will end.
(END VIDEO CLIP)
FOSTER: Well, meanwhile, France is deploying almost a dozen naval vessels, including its aircraft carrier strike group, to the Mediterranean Sea, the
Red Sea and potentially the Strait of Hormuz. It's part of France's defensive support to allies threatened by the conflict in the Middle East.
Speaking earlier today in Cyprus, French President Emmanuel Macron touted the possibility of an escort mission for ships to pass through that Strait
of Hormuz.
(BEGIN VIDEO CLIP)
EMMANUEL MACRON, PRESIDENT, FRANCE (through translator): We are in the process of setting up, and we talked about this a little while ago, a
purely defensive, purely escort mission which must be prepared together with both European and non-European states, and whose purpose is to enable
as soon as possible after the most intense phase of the conflict has ended.
The escort of container ships and tankers to gradually reopen the Strait of Hormuz, which is essential to international trade, but also to the
circulation of gas and oil, which must be able to be transported out of this region again.
(END VIDEO CLIP)
FOSTER: Joined by the French Foreign Ministry Spokesperson Pascal Confavreux live from Paris, thank you so much for joining us, Pascal. If I
could start with --
PASCAL CONFAVREUX, SPOKESPERSON, FRENCH FOREIGN MINISTRY: Thank you --
FOSTER: The G7 meeting, because I know your finance minister has been involved in them. They've been discussing whether or not to release your
reserves, to try to add some relief to the oil price. What can you tell us came out of that meeting?
CONFAVREUX: Well, it's of course, of utmost interest for us to be sure that we keep the prices as low as possible for our economies. So, there is
-- as we are heading the G7 this year, where there has been this meeting tomorrow, the Energy Ministers are meeting in Paris on the sidelines of the
civil nuclear summit that we're hosting in Paris.
And thirdly, there is, of course, this initiative that the President wants us to take, which is to have this coalition to re-establish freedom of
navigation in the Strait of Hormuz. And President Macron has announced that we will send two more frigates in the region to be part of the European
Union operation, which is called Aspides, to be part for that in the future.
FOSTER: The idea -- I was just speaking to Richard Quest about the idea of military ships escorting these private shipping vessels. Are they going to
be convinced that that's enough support? Because they're going to -- I mean, how are they going to get insurance, for example? I mean, how does
that process even work?
CONFAVREUX: Oh, well, we're in the process of this, of gathering our neighbors of the European Union and our neighbors of the -- of the region.
What we want to show is that we are proposing a concrete and efficient solution for our economies.
And second, that we are also present for our allies in the region who are attacked by Iran at present, and that France is a reliable and predictable
partner for our partners locally since the Emirates or Qataris.
FOSTER: So, you've got quite significant military assets now in the region, just describe --
CONFAVREUX: Yes -
FOSTER: The priority there and how you're going to use them.
CONFAVREUX: Our priority is threefold. I told you, protect our citizens there, 400,000 are in the region. Protect and in a defensive approach, our
partners and allies. And third, re-establish the freedom of navigation. We have now -- and the President is on this aircraft carrier as we speak now.
The aircraft carrier is off Cyprus coast at present. We have also one frigate, which is called the Languedoc, which is next to Cyprus as well.
All these are strategic signaling for our allies. And more ships are coming. We have some radar system.
We have some Rafale fighter jets that took part into operations to help support our allies. For instance, the UAE.
[14:20:00]
FOSTER: The British deputy Prime Minister suggested that part of their defensive position might be firing at targets within Iran. Is that your
position as well that you might fire into Iran defensively?
CONFAVREUX: We don't want to take part into this war. This war is not ours. These strikes were carried out far from the international or ride.
So, and we don't want the region to fall into this conflict. This is a very high priority for us.
It's to go for the de-escalation to avoid the regionalization of the conflict and the destabilization of other countries, such as Lebanon, which
is a real threat at present to face such a big destabilization for the -- for the -- for this country.
FOSTER: Because this idea of only being involved in a war defensively confuses a lot of people, because if you're involved, you're involved.
Obviously, when you're defending positions, it allows the Americans and Israelis to go on more attacks. So, is it -- can you really separate
yourself from an offensive position?
CONFAVREUX: Oh, yes, because when you're a friend with countries, your friend in the easy times, but you're also a friend during the harder times.
And so, that is what is happening at present. If you ask the Emirates or the Qataris, for instance, they see that we are here also on their side to
help them defend themselves from the attacks they're facing.
So, this is where we -- where we are. Then on Iran, we don't have to forget who is -- who bears the first responsibility for that, which is Iran. Iran
which attacked its own people on the beginning of January this year with extreme violence, and which actually was increasing a big threat to the
region.
Would say it's a prospect to have the nuclear arm or to have these ballistic missiles or this regionalization of the conflict with its
proxies. So, what we call is that Iran stops its strikes on the neighboring countries and have a dramatic change of posture.
FOSTER: Some of the European nations have been accused of not -- you know, showing their support to America quickly enough. I've also heard the other
argument that actually the European nations were only told last minute that this was going to happen.
And if you had been folded into the planning a bit more, you could have been better prepared. Is that a view that France shares?
CONFAVREUX: We would have preferred that before the strikes. These projects were going in front of the United Nations Security Council. Why?
Because first, it's where the international law says that you have two possibilities to use violence.
It's either Article 51, which is a self-defense, or by the authorization given by the United Nations Security Council. And there, everyone, every
country can take -- can take its responsibility and show where it stands and why it does it like that.
So, we would have preferred that because of course, it's the way it has to be.
FOSTER: OK, Pascal Confavreux, as ever, thank you so much for joining us on the program today.
CONFAVREUX: Thank you. Thank you.
FOSTER: Still to come tonight. A new video appears to confirm the U.S. was responsible for that deadly attack on a school in Iran. We'll show it to
you.
(COMMERCIAL BREAK)
[14:25:00]
FOSTER: Back to these very fast-moving developments in the Middle East. President Trump saying that Iran made, quote, "a big mistake". It comes
after Iran appointed Mojtaba Khamenei as its new supreme leader. Meanwhile, one top Iranian official tells CNN, Iran is ready for a long war.
Crowds across Iran pledged allegiance to Khamenei; the second son of the former supreme leader, Ali Khamenei. He was killed in the U.S.-Israeli
airstrikes. Analysts say Mojtaba is likely to continue his father's hardline policies.
As regional attacks escalate, Lebanon is calling for direct negotiations with Israel, and an immediate ceasefire, vowing to disarm Hezbollah and
tensions in the Middle East are rattling global markets. Attacks on energy infrastructure helped push oil prices to a four-year high at one point,
topping a $100 a barrel.
Now, a new video appears to show a U.S. missile targeting the Islamic Revolutionary Guard Corps Naval base next to a school where Iranian state
media say 168 children and 14 teachers were killed. The video posted by a semiofficial Iranian news agency, is the first to show missiles striking
the area in southern Iran on February the 28th.
This comes after U.S. Defense Secretary Pete Hegseth said the U.S. has not yet concluded whether it's responsible for the strike. Here's what he said
on "CBS" "60 Minutes" in an interview recorded Friday.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Have you made any conclusions about whether or not the United States advertently or not, was involved in any military strike at
that school?
PETE HEGSETH, SECRETARY OF DEFENSE, UNITED STATES: Well, we're still investigating, and that's where I'll leave it today. But what I will
emphasize to you and to the world is that, unlike our adversaries, the Iranians, we never target civilians.
UNIDENTIFIED MALE: There was a report late in the week from two officials that it was likely U.S. involvement. Is that report false?
HEGSETH: I've already said we're investigating.
UNIDENTIFIED MALE: If you could tell the American public, it definitively was not us. You would tell us, wouldn't you?
HEGSETH: I would -- I would say that it's being investigated, which is the only answer I'm prepared to give.
(END VIDEO CLIP)
FOSTER: More now from CNN's Isobel Yeung.
(BEGIN VIDEOTAPE)
ISOBEL YEUNG, CNN CORRESPONDENT (voice-over): This is the moment a missile slammed into an Iranian base in Minab, a city in southern Iran just over a
week ago. In this freeze-frame, you can see it clearly. Weapons experts tell CNN, the wings and tail are consistent with a tomahawk missile.
This new video is the clearest evidence yet that suggests it was the United States that struck an elementary school next to that Revolutionary Guard's
base, killing scores of students. The U.S. has been firing those tomahawk missiles at Iran from ships and submarines for more than a week now. Israel
doesn't use them, experts tell us.
UNIDENTIFIED MALE: Mr. President, did the United States bomb a girls' elementary school in southern Iran in the first day of the war, killed
hundred civilians --
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: No, in my opinion, based on what I've seen, that was done by Iran.
UNIDENTIFIED MALE: Is that true, Mr. Hegseth, it was Iran who did that?
HEGSETH: We're certainly investigating.
YEUNG: Iran also doesn't use tomahawk missiles, and using satellite images, it's clear the school was struck nearly simultaneously with strikes
on an adjacent Revolutionary Guard's base, that suggests precision targeting.
CNN geolocated this video. We think this missile struck the military base, not the school. You can see that other buildings in the direction of the
school had just been struck when this was filmed.
(On camera): CNN is still trying to gather visual evidence from the ground, and until we see actual remnants from the munitions itself, it's
impossible to be definitive. But this is the clearest evidence to date. U.S. Central Command says they're still investigating. Isobel Yeung, CNN,
London.
(END VIDEOTAPE)
FOSTER: Israel isn't ruling out expanding its targets including figures at the very top of Iran's leadership. Iran's newly-appointed supreme leader,
Mojtaba Khamenei is widely seen as a hardliner and a close ally of the Islamic Revolutionary Guard.
[14:30:05]
So, could he himself become a target? Here's what Israeli Foreign Minister Gideon Sa'ar told my colleague Bianna Golodryga.
(BEGIN VIDEO CLIP)
BIANNA GOLODRYGA, CNN ANCHOR: Is Mojtaba Khamenei now a target for Israel?
GIDEON SA'AR, ISRAELI FOREIGN MINISTER: Well, you will have to wait and see. But it is clear that he continue the very extremist and mad policies
of his father. He's a hard-liner. He's anti-American. He's anti-Western. And you can see already the cracks inside this regime. And I will give you
one example that demonstrate it, that, during last weekend, we had heard the Iranian president, Pezeshkian, speaking about that, that they are
apologized in front of their neighbors and they will not attack them again if they will not be attacked from these states.
But, eventually, you heard the speaker of their parliament saying, no, we will continue to attack. And on the ground, they continue to attack their
neighboring states. So, you can conclude, first, you have cracks which are already open. And, second, it is clear that the hard-liners are still
calling the shots there in Tehran. And, frankly, with these people, you cannot do anything serious if you want to solve conflict, as we saw in all
the efforts that the U.S. had done before June and before this attack during the time of Khamenei.
(END VIDEO CLIP)
FOSTER: Still to come tonight, many Gulf Arab states are reporting fresh aerial attacks from Iran. We'll take you to the United Arab Emirates for a
closer look at why the UAE is being heavily targeted.
(COMMERCIAL BREAK)
FOSTER: Tehran is prepared for a long war and only economic pain will end it. A senior Iranian official is telling that to CNN exclusively.
[14:35:00]
And a short time ago no decisions were made by finance ministers from the group of seven major economies. They met virtually to discuss the possible
joint release of strategic oil reserves in response to surging oil prices.
A cut in output by the Middle East producers coupled with an ongoing standstill in the Strait of Hormuz has sent oil prices soaring to levels of
zero by the end of the year. This is the first time in decades that Russia's full-scale invasion of Ukraine back in 2022.
At the same time, Iranians are being directed to pledge their allegiance to the country's new supreme leader, U.S. President Donald Trump, calling
Mojtaba Khamenei's appointment unacceptable. Across the Middle East, Arab states are reporting fresh aerial attacks today as Iran continues
retaliatory strikes. Bahrain's national oil company has now declared force majeure after an attack on its refinery complex. This notice is served when
unforeseeable circumstances prevent a contract from being fulfilled.
In Kuwait, air defenses are continuing to combat a wave of hostile drones from Iran. State media are saying one of the strikes targeted a government
building. And in Saudi Arabia, the foreign ministry now accuses Iran of attacking the kingdom over, quote, "baseless claims."
As for the UAE, take a look at these images coming from Dubai's international airport. Flights to and from Dubai resuming after an
unidentified object from Iran was intercepted nearby. The UAE has been amongst the hardest hit of about a dozen Middle East countries that say
they've been struck by Iranian projectiles. CNN's Paula Hancocks is in the UAE and sent us this report.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Oh, my God.
PAULA HANCOCKS, CNN CORRESPONDENT (voice-over): The impact of strikes in the United Arab Emirates is far beyond the U.S. military and political
targets that Iran claims. Hotels, airports and energy infrastructure have been damaged by more than 1,700 missiles and drones fired since the start
of the war.
The Emirati military has intercepted more than 90 percent. UAE President Mohammed bin Zayed Al Nahyan has visited the injured in hospital giving
rare comments warning the country's enemies.
MOHAMMED BIN ZAYED AL NAHYAN, UNITED ARAB EMIRATES PRESIDENT (through translator): Do not be misled by the United Arab Emirates' appearance. The
UAE has thick skin and bitter flesh. We are no easy prey.
HANCOCKS (voice-over): After decades of bitter rivalry between Iran and its Gulf neighbors, recent years had seen a rapprochement between Tehran
and Abu Dhabi trade was expanding. Around half a million Iranians call the UAE home. So, why is Iran seemingly firing more projectiles at the UAE than
at Israel, the country who along with the United States started this war?
FAWAZ GERGES, PROFESSOR OF INTERNATIONAL RELATIONS. LSE: Dubai is really the epicenter of globalization. It's a powerhouse. And any attacks on the
United Arab Emirates on Dubai is really a power multiplier from the Iranian perspective. It rattles the world economy.
HANCOCKS (voice-over): Around 100 kilometers of water separate the UAE from Iran. Missiles do not take long to reach Emirati shores.
GERGES: Literally, it's next door. It's much easier to attack Dubai and the United Arab Emirates than to attack other countries, let's say Jordan
or Israel, because Israel is well protected by an air defense system.
HANCOCKS (voice-over): Iran cites the U.S. Strategic Alliance as a reason to fire on Gulf nations. President Donald Trump was here last May, securing
pledges for $3 trillion worth of deals from the UAE, Qatar and Saudi Arabia.
DONALD TRUMP, U.S. PRESIDENT: We have an Iran situation which we're going to take care of one way or the other. We're taking care of it. It'll be
taken care of 100 percent.
HANCOCKS: This is not how the UAE or any Gulf nation wanted it to be taken care of. They had lobbied Trump to diplomacy over war. And a refusal to
allow Trump to use its air bases or its airspace has not insulated the UAE from Iran's retaliation.
HANCOCKS (voice-over): Relations between the UAE and Iran had been strained since Iran's 1979 Islamic Revolution. Three islands claimed by Abu
Dhabi are still controlled by Tehran. But the UAE did restore its ambassador to Tehran in 2022, signaling a cautious diplomatic reset after
years of strain. A reset that has been shattered by Iran's decision to force its neighbors into this war.
Paula Hancock's CNN, Dubai.
(END VIDEOTAPE)
FOSTER: The U.S. State Department says it's facilitated almost two dozen evacuation flights from the Middle East. The assistant Secretary of State,
Dylan Johnson, said that the department would continue to ramp up its efforts, but also claimed that some people being offered transport
facilitated by the U.S. were turning it down, opting for commercial options instead.
Let's bring in Jennifer Hansler. Why is that, then, Jennifer?
[14:40:00]
JENNIFER HANSLER, CNN STATE DEPARTMENT REPORTER: Well, Max, we're hearing that as commercial options continue to increase out of the region.
According to the State Department official, Americans are opting to book their own travel to get back where they need to go.
Part of this may be the fact that these evacuation charter flights, which the State Department says now number in the more than two dozen range, are
going to specific sites. They may be going to a third country that might not be where a particular U.S. citizen wants to end up. And then from
there, they have to arrange their own travel onwards from there, which can be costly and onerous. So, they may choose to instead just book their own
travel from where they are in the Middle East.
However, this ramping up of efforts that we've heard from the State Department comes after they were criticized in the outset for the slow
start and kind of mixed messaging. A lot of folks we talked to in the region who were stranded there at the start of this war said they weren't
really sure what to do because they were hearing both to shelter in place, but also to leave now.
It seems like they have gotten some handle on these evacuation operations right now, as they are ramping up these options. And we just heard from the
State Department in the past hour saying that the offers of seats on charters have exceeded those that have actually taken advantage of those
offers.
Now, we still don't have an exact number on the number of Americans who have taken advantage of these charter flights to get out of the Middle
East. They have said it is in the thousands, and they said they have helped some 20, some thousand who have called into that task force line, giving
them options on how to leave. But we don't have exact numbers at this point.
Of course, all this happening as the situation in the Middle East continues to escalate, we have seen a number of embassies from the U.S. across the
region put on ordered departure, meaning that they are ordering their non- essential diplomats to leave those countries. Just yesterday, they told their non-essential personnel in Saudi Arabia that they had to leave as the
situation continues to escalate and as U.S. facilities are targeted. Max.
FOSTER: Appreciate it. Jennifer Hansler, thank you so much. Well, still to come tonight, as the war escalates in the Middle East, the price of oil
surges. When we come back, I'll ask an expert on energy markets how high prices could actually go.
(COMMERCIAL BREAK)
FOSTER: The war in the Gulf is sending shockwaves through the global economy. Oil prices have surged past $100 a barrel today amid deep concerns
about supply disruptions.
[14:45:00]
This is footage from a major fire burning at Bahrain's largest oil refinery after an Iranian missile attack. And this is tracking data of ships
gathered around but not going through the Strait of Hormuz, which is of course next to Iran. In normal times, 20 percent of all ships around the
world travels through that strait. Today it's virtually shut down.
Joining us now, Amrita Sen, the founder and director of Market Intelligence, a firm that specializes in advising companies about energy
markets. I bet you're busy, aren't you, at the moment. Thank you so much for joining us. First of all, how are businesses coping? Because it's
impossible to predict what might happen here.
AMRITA SEN, FOUNDER AND DIRECTOR, MARKET INTELLIGENCE: Yes, no. Look, thanks for having me. And I think the question you ask is probably the most
pertinent. Like, I would say this in my near 20 years of doing this, I've never seen something like this. And I've spoken to enough, you know, oil
company CEOs around the world who've said the same thing and who've probably been doing this for longer than I have. And I think the reason I
say this in the answer to your question is that it's not that things are changing by the day, they are changing by the minute.
It is genuinely been such a task to just keep on top. I mean, we are deploying, you know, we've got access to satellite imagery to just check
the real extent of damages. We've got a ship tracking team. So, we've obviously got the breadth of that coverage, but genuinely, like a minute to
minute, different things are getting attacked. More and more ships are being stuck on the, around the Strait of Hormuz, like you mentioned.
The volatility and the uncertainty, it's -- I mean, you've seen what oil has done. Just this time last week, Brent Crude prices were about $72-ish.
And we went all the way to 120 almost today, and now we're just under 100. That kind of volatility is extremely difficult for businesses to manage.
FOSTER: Europeans are responding to this. We just heard in the last couple of hours, the French government suggesting they will accompany oil tankers
through the Strait of Hormuz. Is that a solution for you, do you think?
SEN: We've heard this before from the U.S. as well, but there's a difference between the statements coming out and the reality of how this is
actually flowing. Nothing's changed since the U.S. announced it, and the U.S. is arguably a lot more powerful in terms of the Navy and what they can
do. The problem is it's actually physically putting the system together to be able to do that. And when we are talking to shippers, they are saying
when they've reached out to the U.S., for instance, they've said this is going to take them weeks to put together. It is not that simple to just,
you know, expect these things to happen overnight.
And it doesn't reduce the risk, or rather it doesn't take away the risk entirely. The U.S. had suggested something very similar to occur in the Red
Sea when the Houthis were attacking the Red Sea last year. And what you had is a few shippers said, OK, we'll take the risk, but flows have not gone
back to normal. And I think that's the critical thing over here.
It might allow some confidence to come back if we get down to those levels. And again, the timing is critical. Every day that's going by, we are losing
10 million barrels per day of crude flows and 5 million barrels per day of oil products. But it's more that even if it does come, not everybody is
going to return to normal.
FOSTER: Even if they do manage to open up the strait, the war will still be missiles flying, won't they, presumably? What insurance company would
insure these ships? Because that's the other issue. Even if it's open, they might not be able to go through if they don't get the insurance.
SEN: Absolutely. And I think that's one of the biggest things right now. War insurance is a genuine problem. You can't get insured for different
parts of the ship. Even if you can go in insured, by the time you come out, the insurance is lapsing. There's a whole host of things in the shipping
industry that's been affected. And the point you raised earlier is actually very valid, right?
Let's assume there is some form of a ceasefire, right? That's what the market's looking for. I think we have to be very, very honest about the
fact that whatever the new normal is, is not going to be the old status quo. And the fear, when I'm talking to people in the market, is that what
if this becomes a bit more like Russia-Ukraine, that Ukraine has consistently attacked Russian refineries through drones?
And what if that continues? Yes, there is a ceasefire, or let's say talks are ongoing, yet you get these sporadic attacks on tankers or sporadic
attacks on infrastructure. There will be a lot of caution in going back to just assuming that everything is going to be normal again and that flows
are going to go back to the pre-conflict levels overnight. That's not going to happen.
FOSTER: Exactly. So, the prices will keep going up. I mean, what projections are you making at the moment?
SEN: Look, we've been saying that unless there were energy infrastructure damage, prices would be around the 80s. As soon as energy infrastructure is
damaged, we'd be testing $100. That's what's been happening.
[14:50:00]
Right now, genuinely, the fear we have is that the governments are going to come out, the French, the Europeans essentially shouldn't just say, the
French governments also said this, US, Japan, Korea, they will come out and say, we're going to probably tap into the strategic reserves to tamp down
oil prices. That will help a little bit.
But again, every day that's going by, a strategic reserve might give us a million, million and a half barrels per day while you're losing 10 of crude
and five of oil products. So, prices need to go up to the level where demand needs to start coming off because supply loss is just too much. And
our economists have calculated in today's inflation, that's $185. Now, that's not the crude price, that's the end product, like what you and I
consume, that's jet fuel, diesel, et cetera. Funnily enough, jet fuel and diesel prices are already there.
FOSTER: Yes. OK. Amrita, really appreciate your analysis today. Thank you for joining us.
SEN: Thank you.
FOSTER: I will be back in just a moment. But still to come, many players on the Iranian women's football team are fearing for their lives. We'll
tell you what some of them want the Australian government to do.
(COMMERCIAL BREAK)
FOSTER: Five players from the Iranian women's football team have applied for asylum in Australia. U.S. President Donald Trump also says he'll grant
asylum to them if Australia doesn't. There are questions around the players' safety if they return back to Iran after they refused to sing
Iran's national anthem at a game last week. This CNN's Christina Macfarlane with more.
(BEGIN VIDEOTAPE)
CHRISTINA MACFARLANE, CNN SENIOR SPORTS CORRESPONDENT: They have not said anything publicly just yet. But as you say, developments have been coming
thick and fast on this story today. And I've been speaking to sources who are close to the players.
You'll remember, of course, after they took that stance not to sing the national anthem, Iranian state TV came out and branded them as traitors,
saying they were the pinnacle of dishonor. And pressure has been growing on the Australian government since then to provide them asylum, to not have
them sent back to Iran. And there were questions, too, as to whether the players themselves would seek asylum after their play was done in
Australia.
Well, today we heard that five players are now safe with the Australian police, having left the team and the team hotel. And they are saying that
they do not want to return to Iran. This tournament has been incredibly fraught for these players. We know that they have been closely monitored by
the IRGC. And in fact, one of the traveling members of the team, a man that is thought to be affiliated with the IRGC.
[14:55:00]
And we know that their phones have been tapped coming into this tournament. And now, many of them are facing an impossible decision. The decision to go
home and to be punished or even honestly face a death, because that is the charge for treason, or to stay and risk the fact that their families, their
loved ones might also face similar consequences.
And I was told by a source earlier today that three of those five players have said that their families have actually been threatened already back on
the ground at home in Iran. So, you can just see how difficult, fraught and urgent the situation is there on the ground right now.
(END VIDEOTAPE)
FOSTER: Christina Macfarlane there. Thanks for joining us tonight. Stay with CNN. I'll be back with "What We Know" after the break.
(COMMERCIAL BREAK)
[15:00:00]
END
