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The Brief with Jim Sciutto

CNN International: U.S. Energy Secretary in Venezuela; Venezuela's Rodriguez Thanks Trump for Controversial Oil Deal; E.U. Leaders Support Germany After Leipzig Drone Attack; Chipotle Opens its First Restaurant in South Korea; U.S. and Iran Trade Fire Again as Attacks Escalate; U.S. Judge Blocks Trump Order Limiting Birthright Citizenship; Future of Prediction Markets. Aired 6-7p ET

Aired September 02, 2026 - 18:00   ET

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

[18:00:00]

JIM SCIUTTO, CNN ANCHOR, "THE BRIEF": Hello and welcome to our viewers joining us from all around the world. I'm Jim Sciutto in Washington, and

you're watching "The Brief."

Just ahead this hour, the U.S. energy secretary is in Venezuela to finalize President Trump's oil deal. It is not a conventional agreement though.

We'll take a look at exactly what it does and how Venezuelans are reacting. There is growing unrest in Ceuta over the Spanish enclave's migrant crisis.

And New Jersey is now asking the U.S. Supreme Court to shut down prediction markets in the state. It tees up a potential landmark case where justices

may decide if the industry can survive in its current form.

U.S. Energy Secretary Chris Wright has gone to Venezuela to finalize a massive oil deal announced by President Trump last week. Secretary Wright

and Venezuela's acting president, Delcy Rodriguez, former deputy to Nicolas Maduro, both hailing the agreement as win-win.

(BEGIN VIDEO CLIP)

CHRIS WRIGHT, U.S. ENERGY SECRETARY: This is a deal that's a massive win and benefit for the people of the United States of America and a massive

win for the people of Venezuela because what it's going to do is take resources that are underground, not helping anyone, and invest capital and

money and technology and bring them to the surface to better the lives of Venezuelans, better supply energy to Americans. It's a win all around.

(END VIDEO CLIP)

SCIUTTO: Well, the deal's quite unusual structure involves the U.S. government in a new joint venture with a private entity in Venezuela. The

Pentagon would take a 35 percent equity stake, that's right, the Pentagon, in the parent company of a private partner owned by a Venezuelan

businessman, Alejandro Betancourt. The venture would develop the country's oil fields and the U.S. would get a share of that oil at production cost.

U.S. officials have defended Betancourt, rejecting suggestions that he would act as a gatekeeper for investment in the country's oil industry.

Right in front of Secretary Wright and President Rodriguez, a short time ago, U.S. oil giant Chevron then signed an agreement to invest $7 billion

in Venezuela, expecting to double its oil production by 2031. Earlier this year, Chevron increased the ownership stake in its joint venture with the

country's state-owned oil company.

Joining me now is Mary Triny Mena, live in Caracas, and I wonder when you speak to Venezuelans, members of the public, but also perhaps members of

the opposition, do they see this deal as a win-win?

MARY TRINY MENA, JOURNALIST: Of course, there are many questions on behalf of the Venezuelan people, and especially those who are opposed to the

current government, which is an interim government. We need to remember that Delcy Rodriguez was appointed by, previously, Nicolas Maduro, and now

is backed by the U.S. to do this business, and especially to participate in the transition. But right now, they are doing business.

So, for many people here, it was a mystery, a secrecy, the content, the scope, and legality of these agreements that are being signed. Many people

are asking to be made public, especially the common Venezuelans, the regular Venezuelans that are hoping that this will, of course, bring money

into the country to fix many problems that they have, high levels of inflation, and also shortages of basic services.

One of the key agreements assigned today was with General Electric, because the power grid of Venezuela is devastated, and people here suffer six hours

of shortages of electricity. So, it's hard for them to think about a contract or wealth when they are suffering this kind of situation.

Jim, it is important to notice that this agreement didn't pass through the National Assembly. They just promoted the idea to support the agreement.

But some lawmakers from the opposition said, we can, of course, we are willing to back the agreement that will bring prosperity to Venezuela, but

we need to read the actual contract, the fine print of the contract that has not been clear or a spread across Venezuela for people to know the

context of this agreement. Jim.

SCIUTTO: One would say a reasonable request. Mary Triny Mena, thanks so much for joining.

Well, for more now, Christopher Sabatini joins me. He's director of the Latin American program at Chatham House. Christopher, good to have you.

[18:05:00]

First question is on the durability of this deal. So, Chevron's committing $7 billion, expects to double production in Venezuela by 2031. But this

deal is between President Trump. He'll be gone in a couple of years, and really, the unelected leader of Venezuela. Do companies see this as

lasting? And are those investments binding?

CHRISTOPHER SABATINI, LATIN AMERICA PROGRAM DIRECTOR, CHATHAM HOUSE: So, first, Donald Trump, shortly after he removed Nicolas Maduro, convened the

oil, U.S. oil majors in the United States. And he said, look, we're going to do this. We're going to do this. And at the time, he said, go invest in

Venezuela. None of them did, except for Chevron, which already had longstanding projects.

And the reason is exactly the reason why this will not come to fruition. And I really wouldn't put much chance of this really ever happening.

Because first of all, as you say, the interim president is deeply unpopular. She's only an interim president. According to public opinion

polling, she's only about 25 percent approval rating. And this is after the earthquake, of course, in which the government failed to respond

effectively in its search and rescue missions.

So, now she's an interim president. This is also in violation of the Constitution, the Constitution that the founder of her movement, Hugo

Chavez, helped spawn, which basically prohibits foreign interests into basically controlling Venezuelan oil. So, there's a constitutionality, her

lack of popularity and her uncertainty in her future.

And given what I'm hearing, and many others, too, are from the opposition who are understandably upset, not just at stealing their resources, but

they're making a deal with the repressive apparatus that they have been fighting against for now decades, is I can't imagine if elections were to

be held, that they would uphold this agreement.

So, no, I can't imagine that any of the major oil companies are going to rush in and think this is a stable deal. But there are also sort of

logistical issues, too, which I can talk about.

SCIUTTO: But before we get to that, though, as you saw, President Trump said today they're not ready for elections. And he notes how recently they

lived under a brutal dictatorship. Of course, Delcy Rodriguez was part of that dictatorship.

Is there any evidence to state that Venezuela is not ready, if not for elections tomorrow, at least to set a date for elections?

SABATINI: Well, that's exactly the problem is at Chatham House. Actually, we did a study with elections experts, and we calculated that basically it

would take about a year, a year and four months, to have elections in Venezuela, selecting the candidates, rearranging, doing an audit of the

software, as well as basically deciding what elections and what sequence. But those steps haven't even been taken in the discussions. Donald Trump

isn't talking about it.

And again, a year and four months is probably optimistic. And there's an opposition that's in the wings. In 2024, in July 2024, the government held

elections by credible, independent election monitors, including The Washington Post, which analyzed the data. The opposition won 70 percent of

the vote to then-Nicolas Maduro, the president, to 30 percent.

So, there is an opposition. They have held elections. There's a legitimate movement, if you will, that expresses popular will. And Donald Trump is

blocking it. And for one simple reason, the key to the success of his Venezuela, if you will, adventure, it entirely depends on the interim

government and entirely depends on Delcy. And he's not in any mood to do anything that could disrupt that or provoke any sort of social mobilization

that could indicate that people are doing less than what he claimed, which is Venezuelans dancing on the street.

And I'll say this, too. To say that any country is not ready for democracy is insulting.

SCIUTTO: So, on the big picture question, you heard President Trump's energy secretary. President Trump has said many times himself this is a

win-win deal. On the facts, who benefits most from this?

SABATINI: You know, I think right now, I think the president benefits, but it's mostly political benefits. Let's be honest, this is in part a

distraction campaign. He's got midterm elections coming up. Gas is a dollar per gallon over what it was before the attacks on Iran. You've got Canada

and this trade war threatening that it could potentially tax gas and oil exports from Alberta to the United States. He needs a distraction

mechanism. And this was designed exactly to that.

You can go on the White House website and see their statement of this deal and read it. And there are no facts there. This was entirely a means for

him to say to voters, hey, look at this. I now have 65 billion barrels of oil that will basically lower oil prices soon. So, just hang on and wait.

Let's get past these midterm elections.

It's a political maneuver. It's also one that's deeply offensive to Venezuelans. And it's also deeply risky. As your reporter said and your

report said, the person, Alejandro Betancourt, who's a counterpart, has been under investigation in Switzerland and Spain for money laundering and

has been accused of basically stealing billions of dollars from the state- owned oil company, PDVSA, just a few years ago.

[18:10:00]

SCIUTTO: Before we go, one can say this is part of a pattern here of the Trump administration making deals without much substance to them, right? I

mean, you could go back to the MOU with Iran that clearly didn't end of the war or, you know, a dozen trade agreements that were really, you know, one-

sheeters and have not helped, in part because President Trump is often not kept to the terms, but the terms were binding. I mean, do you see

credibility around the world in deals made with this administration?

SABATINI: No. Again, he basically held up this MOU with Iran as just great as if it was like the peace treaty of Versailles, probably a bad example.

But you get the point. No. And of course, within a couple of weeks, it was out the window.

We saw this also, you know, even basically exploiting his own constituents in his first term, claiming that a wall would be built between the U.S. and

Mexico and that Mexico would pay for it. That never happened. This is just going to be another in a long chain of cons, basically, on the American

people, in this case, unfortunately, the Venezuelan people that Donald Trump is perpetuating.

But as you say, Jim, this is having serious damage to U.S.'s reputation within the world, that it will uphold commitments, but even that it will

make commitments that are serious.

SCIUTTO: Christopher Sabatini, I'm sure it's not the last time we talk about this. Thanks so much for joining.

SABATINI: Always happy to, Jim. Thanks.

SCIUTTO: Well, Ukraine says it is now ready to support Germany, however necessary, following a phone call between the Ukrainian president and the

German chancellor. This comes a day after Germany publicly blamed Russia for a drone attack on a busy airport in the German City of Leipzig last

month. After that call, the German chancellor said Kyiv could count on Berlin for continued civil and military support.

Speaking at a meeting in Ireland, the EU's foreign policy chief said the bloc would discuss its response. Kaja Kallas said the Leipzig incident had

the hallmarks of state-sponsored terrorism. French President Emmanuel Macron also condemned the attack.

(BEGIN VIDEO CLIP)

EMMANUEL MACRON, FRENCH PRESIDENT (through translator): This is also an opportunity for us to express together our support for and solidarity with

Germany, which yesterday attributed the attack in Leipzig carried out a few weeks ago to Russia. It is therefore abundantly clear that this constitutes

yet another instance of interference.

This hybrid war that Russia is effectively waging against us being documented in this way. I wish to reiterate our full support for Germany

and the work being done, and, of course, our solidarity with all our European colleagues.

(END VIDEO CLIP)

SCIUTTO: Joining me now, Tymofiy Mylovanov. He is the president of the Kyiv School of Economics and Ukraine's former minister of economic

development and trade. Tymofiy, good to have you back.

TYMOFIY MYLOVANOV, PRESIDENT, KYIV SCHOOL OF ECONOMICS AND FORMER UKRAINIAN ECONOMIC DEVELOPMENT AND TRADE MINISTER: Hello.

SCIUTTO: So, first, I wonder what your reaction was, not just to seeing Germany formally accuse Russia of this attack, but seeing Ukraine's leader

saying to the German leader, we are on your side, we will help defend you. A reversal of roles to some degree, given, well, how long Ukraine has been

under attack.

MYLOVANOV: Yes, that's true. Germany has been a strong supporter of Ukraine, both financially and militarily. Essentially, every weapon Germany

has in its stockpiles, Ukraine has it to an extent. And now, Ukraine wants -- or uses this opportunity to demonstrate that it is a willing partner to

give back.

In practical terms, Ukraine has the attack, detection and interception which is needed to solve the problem, at least at the scale Germany has.

SCIUTTO: What do you believe Russia's intent is here? I mean, are they escalating by attacking Europe because they're losing in Ukraine, or do

they see an opportunity to win here? Do they sense weakness?

MYLOVANOV: I think there could be calculus in the Kremlin that NATO and the E.U., it's weakest, maybe it's a lifetime opportunity for Russia, or at

least lifetime opportunity for Putin to demonstrate that he can penetrate or harass Germany in particular, but also other countries.

The attacks -- when you talk to officials and military in Europe, they will tell you that all different attacks in cyber, in drones, in information

campaigns that are ongoing throughout these last years and escalating. So, it is true that Russia has been escalating in a hybrid warfare with respect

to Europe, but recently it has been becoming more and more brazen.

[18:15:00]

SCIUTTO: The U.S. is largely silent, not just on Russia's expanded hybrid war against Europe, but also about its expanded attacks on Ukraine. Does

this communicate in your view to Vladimir Putin that the U.S. will not intervene and that it emboldens Russia and Putin?

MYLOVANOV: So, what we see and what officials in Europe are saying that in practical terms, the U.S. is there. It is trying to support, it's providing

material, informational support, financial, even forensic. But it is absolutely true that the public rhetoric, the public position of the United

States administration is such that the Kremlin often can or does misread it as an opportunity to push on Europe.

And I think in my personal view, it would be much better for the United States and for Europe if the United States had a very different public

communication stand. But again, there is a difference between the words and actions.

SCIUTTO: Before we go, U.S. Treasury Secretary Scott Bessent caused something of a storm here by, it seems, blaming Ukraine strikes on Russian

oil infrastructure for the global energy shock. Have a listen to his comments. I want to get your reaction.

(BEGIN VIDEO CLIP)

SCOTT BESSENT, U.S. TREASURY SECRETARY: Look, prices are too high. The American consumer got blown away under Joe Biden, 21.5 percent stated

inflation, probably much higher for working Americans. And we are going through an energy shock right now due to both the war in Ukraine and then

the conflict in Iran. And the conflict in Iran will end and prices will come down. Overall, prices are coming down.

(END VIDEO CLIP)

SCIUTTO: Do you hear him there blaming Ukraine for defending itself, blaming the victim?

MYLOVANOV: Yes. I see how people can interpret his remarks like that. I think he's more factually saying that what Ukraine, what the war in Ukraine

does is creates pressure. But we have to be very careful here to distinguish. In fact, the effects of Ukrainian strikes have been to destroy

refining capacity in Russia, which means Russia itself has less gasoline and it has now even to import and definitely has export bans.

But the immediate effects of the strikes have been to increase the crude oil exports of Russia in the global markets because Russia can't refine, so

it pushes forward more of unrefined oil, which is actually good for markets. Recently, that effect has subsided and there has been some effect,

but it's pretty minimal.

I think Russian experts are down by something of a single digit, like 5 percent or less historically. And frankly, the effect of the Iran war is

much more significant.

SCIUTTO: That's why it's good to talk to an economist. Tymofiy Mylovanov, thanks so much for joining.

Still ahead, Chipotle's burrito-sized bet in Asia, the popular U.S. restaurant chain has opened its first East Asian location in South Korea.

Why Chipotle is looking overseas for growth.

(COMMERCIAL BREAK)

[18:20:00]

SCIUTTO: Welcome back. In today's Business Breakout, green arrows across the board on Wall Street. Stocks closed higher for the first time this week

as U.S. Treasury yields eased. Oil, however, continued its march up with Brent Crude trading above $95 a barrel again.

Checking some of today's other business headlines now. Disappointing new U.S. job numbers from the private payroll firm ADP. It says private firms

added a weaker than expected 38,000 jobs last month. Education and health care were hiring, but 17,000 jobs were lost in manufacturing. U.S.

government releases its official monthly jobs report on Friday.

New York City is now banning the use of generative artificial intelligence in much of its public school system. The city announced a one-year

moratorium on the use of A.I. in grades 2 through 8. The measure will affect some 600,000 students. Mayor Zohran Mamdani says the city wants to

protect students' critical thinking capabilities and the relationship between students and teachers.

A U.S. federal judge has delivered a big win for Google in a closely watched antitrust case. The judge allowed Google to keep its advertising

technology business even after finding it suppressed competition. Instead, the judge said the company can change how it runs the business. It's the

third time in recent years the U.S. has tried to break up a tech company on antitrust grounds and lost.

Chipotle Mexican Grill has opened its first restaurant in East Asia now, drawing long lines in the capital of South Korea, Seoul. It marks a major

milestone in the chain's global expansion. CNN's Gage Golding was in Seoul for the grand opening.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Three, two, one, open.

GAGE GOULDING, CNN CORRESPONDENT (voice-over): Asia is getting their first taste of Chipotle. And the American company built on burritos is betting a

big appetite is here. And it might just pay off.

ANDREW CHUNG, SOCIAL MEDIA INFLUENCER: This is the best food in the world.

GOULDING (voice-over): Outside of Chipotle's new restaurant in Seoul, the line stretches for city blocks for Wednesday's opening day. Andrew Chung, a

social media influencer, is first in line.

CHUNG: I got here at 11:00 at night.

GOULDING: You got here at 11:00 night?

CHUNG: At night, yes.

UNIDENTIFIED MALE: They say free Chipotle for a year.

GOULDING (voice-over): It's a welcome sight for Chipotle CEO Scott Boatwright, who's doing something that's been done time and time again,

bringing a U.S. restaurant to South Korea. You can't go far here without spotting an American brand that set up shop in Seoul, an already crowded

cuisine scene.

KO NA-YOUNG, SEOUL RESIDENT (through translator): There's Shake Shack and Five Guys nearby. And when they first opened, people lined up and went

there a lot. But now their popularity has definitely dropped compared to when they first opened. I think that's natural.

GOULDING: How is Chipotle going to stand out in an already diluted domestic market here in Korea?

SCOTT BOATWRIGHT, CEO, CHIPOTLE MEXICAN GRILL: We stand out pretty well in North America already. I think about our brand as more fast casual. As we

prove to the world that eating high-quality, great-tasting food is not an elitist pursuit.

GOULDING (voice-over): But is it really affordable? Let's say you get a chicken bowl or burrito, add in some guacamole, chips and a drink. It would

cost $21,900 South Korean won, or just over $16, which is a little more than the typical traditional Korean lunch.

GOULDING: Do you think that Koreans will ante up that extra money to come here and buy this?

BOATWRIGHT: I think so. And what really drives that purchase intent is the flavors that are very unique.

GOULDING: Opening day, obviously wildly successful here, and it comes on the heels of a successful second quarter for Chipotle, the company, posting

billions in total revenue. But the real question is, is whether or not this continued international expansion, specifically here in Asia, will drive

the revenue that the company needs whenever there's inflation, rising labor and food costs back in the United States.

[18:25:00]

BOATWRIGHT: It's a good question. I think there's inflation every year in our business. And we risk mitigate that inflation by supplier

diversification, country of origin diversification. And so, we have a really balanced supply chain, and we're really building Chipotle into a

global iconic brand.

That does allow us to take our foot off the gas pedal in North America. We're still going to build 350 new locations in North America this year

with eyes toward that similar growth in 2027.

GOULDING (voice-over): Chipotle's CEO is keeping future locations in Asia under wraps, but the company said more spots in South Korea and adding

Singapore is already in the works. For now, though, Seoul gets Asia's first bite.

Gage Golding, CNN Seoul.

(END VIDEOTAPE)

SCIUTTO: Coming up next, we have the latest on the U.S. war with Iran ongoing following a night of intense strikes. We look at what each side is

accusing the other side of and examine exactly where the war stands now as President Trump is, once again, threatening escalation.

(COMMERCIAL BREAK)

SCIUTTO: Welcome back to "The Brief." I'm Jim Sciutto, and here are the international headlines we're watching today.

U.S. Energy Secretary Chris Wright visits Caracas to meet with Venezuela's acting president, Delcy Rodriguez. Both have set a massive oil deal. It's

now official, however, many details remain unclear. The controversial agreement involves the U.S. government, a private Venezuelan company, and

more than 65 billion barrels of oil reserves inside Venezuela.

The still-deadlocked jury in the Lindsay Clancy murder trial has wrapped up a fifth day of deliberations. Clancy is accused of murdering her three

children in 2023. The defense argued she had postpartum psychosis and should not be found criminally liable. Prosecutors say she acted

intentionally. The judge has instructed the jury to come back for a sixth day of deliberations.

[18:30:00]

After some nine months at sea, the USS Abraham Lincoln has docked in Thailand. The Lincoln had been at sea for a record-setting time, engaged

largely in the war against Iran. During its deployment, concerns raised about on-board conditions and the crew's mood were raised. The families of

crew members say they are just happy to have their loved ones back.

And we have new developments in the war with Iran. In just the past several hours, Tehran says 18 people were killed, more than 100 wounded in

overnight strikes by the U.S. President Trump says the attacks struck Iran's radar systems and other facilities along the Strait of Hormuz. Trump

is acknowledging the intensity of the strikes, but still says more may be to come.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: We hit them hard last night, very hard. They gave a little love tap, but we hit them very hard last night. We took out

all of the new equipment that they tried to build along the Strait of Hormuz, some defensive, some offensive. They were trying to see the ships

because they can't see the ships. You know, we're taking out a lot of ships. They can't see it because they have no radar because we blew it up.

And we blew up much more than their radar last night. It was a very heavy attack last night. And we're prepared to do another one anytime we want.

(END VIDEO CLIP)

SCIUTTO: Iran, in retaliation, launched ballistic missiles toward Jordan as well as drones against Bahrain and Kuwait, vowing what it called a

crushing response of its own. Tehran claimed an attack on Erbil in Iraq's Kurdistan region as well.

Iranian leaders say that among those killed last night were four people attending a wedding who died from falling shrapnel. Iranian authorities say

a four-year-old was among the victims. The U.S. denies striking civilians.

Joining me now, Firas Maksad, managing director for the Middle East and North Africa at Eurasia Group. Firas, good to have you back.

FIRAS MAKSAD, MIDDIE EAST AND NORTH AFRICA MANAGING DIRECTOR, EURASIA GROUP: Thank you, Jim.

SCIUTTO: So, I'm trying to figure out what the Trump strategy is because he says in one moment that the U.S. is going to continue to strike Iran.

They will retaliate, that they're taking out facilities along the Strait of Hormuz. But he also says that he's happy with the status quo and is not

interested in negotiations anymore. Is there a coherent policy there?

MAKSAD: Well, I mean, I don't know about coherent, but there clearly is a new approach with the launch of the effort to economically strangle Iran.

So, we've moved from trying to use kinetic force, military force, against Iran.

For quite some time now, the military options in front of the president are quite unattractive, particularly because Iran has succeeded not only in

taking the Strait of Hormuz, blocking traffic, taking the Strait hostage, but also threatening retaliatory action against American bases and against

American partners and allies in the region.

So, the shift now is towards a policy of economic coercion. That is proving to be more promising, especially if President Trump has the patience, not

something that he's widely known for, but has the patience to stay the course and then is able to ensure cooperation from Iran's main trading

partner. China tops that list.

I'm quite doubtful that the president is going to want to levy sanctions against Chinese entities as he gears up towards a summit with the Chinese

president next month. But if he can get others in the region, Turkey, Iraq, the UAE, some of these countries around Iran to crack down on its illicit

trade and activities, I think he can make some headway.

SCIUTTO: The thing is, this regime has suffered through a fair amount of economic pain in recent years, punishing sanctions, et cetera. Not a

blockade, but still punishing sanctions. They have no interest in placating their own people, of course. They're not interested in -- but they're

interested in survival here.

So, what is the evidence that this time will be different, right? I mean, what is the choke point exactly, in your view, at which point the economic

pressure forces some sort of concessions?

MAKSAD: Yes. And that's a great question, Jim. It's a coercive stalemate, and there is no knockout blow anytime soon. Probably not in 2026. On one

hand, the Iranians right now are unable to export their oil. The vessels coming through, Iranian vessels coming through the Straits, are down to

zero.

But what's happening, on the other hand, and why these strikes overnight, the past 48 hours, have been taking place, is because the U.S. military has

been quite successful in trimming back Iran's ability to harass ships in the Straits.

[18:35:00]

Shipping, according to U.S. Secretary of Treasury Scott Bessent, some 17 million barrels of oil is going through the Straits. That number can be

disputed, but certainly there is more oil coming out of the Gulf now. These other American partners are able to export their oil. Iran is not. And if

you buy into that, that means with the two clocks ticking, an Iranian clock and President Trump's clock, it seems like Iran's clock might run out

faster as a result of the new dynamic.

But you're absolutely right that this regime has proven quite resilient and it has no qualms with its people suffering long-term.

SCIUTTO: I mean, Iran's leverage, really, beyond striking U.S. bases in the region, Gulf allies inflicting economic costs, and human costs, right,

in those places as well, is that the U.S. military has a limited timeline on just being able to stay there and carry out these strikes and depleted

munitions, not just attack missiles but air defense missiles. How intense is that pressure on the U.S. military? How long can they stay?

MAKSAD: Yes. That is the working assumption, but with the replacement of a carrier group, the Lincoln Group, just left the area and the deployment of

the George Washington, what CENTCOM and the U.S. military are signaling is their staying power and the willing to stay long-term.

I think the ticking clock on the U.S. side has to do more with the economics. Oil, although contained in the prices, currently hovering about

$90, is ticking upwards. As we look into the fall, there are product shortages. Diesel, in particular, is at historic highs in the U.S.

And so, there are elements and dynamics at play on the U.S. side, aside from the military, that is going to make it more difficult for President

Trump to stay the course, keep that policy of economic coercion and strangulation on Iran. And that's why I may have said in my comments that

what's required for this policy and strategy to succeed is patience.

SCIUTTO: Yes, it's a game of chicken, a geopolitical game of chicken. Firas Maksad, thanks so much for joining.

MAKSAD: Yes.

SCIUTTO: Well, we do have this news just in to CNN. That is a federal judge has now blocked the Trump administration from enforcing a new

executive order targeting birthright citizenship. After the U.S. Supreme Court rejected his previous effort, President Trump signed a new order

which limited the number of people eligible for such citizenship. The judge, in this case, issued a preliminary injunction at the request of

advocates for immigrant rights. We'll continue to cover that story as more developments come.

Back to our global news agenda. Rescuers are now racing to find thousands of people who remain missing. One week after those catastrophic flash

floods devastated a wide area on both sides of the Nepal-China border. More than 1,100 people are now confirmed killed. Some 4,500 remain unaccounted

for.

The U.S.'s contact still has not been established with some of the hardest- hit parts of Nepal. Some 640 workers are feared trapped inside hydropower tunnels after the flooding left a number of energy-generating sites buried

under mud.

Well, as families in Nepal wait for any news of their missing loved ones, CNN's Hanako Montgomery joined a Nepali police team on their search for

flood victims.

(BEGIN VIDEOTAPE)

HANAKO MONTGOMERY, CNN CORRESPONDENT (through translator): Down in Nepal's plains, the river gives up its dead. Floodwaters carry them far from where

they were last seen, scattering them along the riverbanks.

MONTGOMERY: Right now, we're on a search and recovery mission with the Nepali police. They've found hundreds of bodies that have washed downstream

from the Himalayas in this river, so we're just going to go and see if we can find any more human remains that might need recovering.

MONTGOMERY (voice-over): Using sticks to probe the tall grass, they search for what the floods left behind. They find nothing, so the search continues

downstream.

MONTGOMERY: They say they found something. I'm just going to put on my mask here in case it's a body. We found an animal carcass, and you can tell

that it's been here for a few days. It's pretty badly decomposed.

MONTGOMERY (voice-over): The police tell us the same is happening to human remains.

UNIDENTIFIED MALE (through translation): These scenes are very heart- wrenching, but we're keeping strong and working. MONTGOMERY (voice-over):

The places to search seem endless. And what they do recover, they bring here -- a center where photographs of the found dead flicker across

screens. Families stare at image after image, looking for a brother, a son, or for this man, his sisters.

[18:40:00]

KUMAR POKHAREL, BROTHER OF MISSING SISTER (through translation): I'm still hoping that they come back. We're looking for them and contacting all

possible places, but we haven't found any leads.

MONTGOMERY (voice-over): The police tell me over 800 people were reported missing at this center alone. Just 12 were returned to families. Some, he

says, are so badly decomposed, they're unrecognizable.

SUB-INSPECTOR HARI SHARAN DHAKAL, POLICE OFFICER (through translation): The situation is very challenging. We're getting dead bodies, body parts,

and we don't have enough people who are able to do this work.

MONTGOMERY (voice-over): Reunited holds a different meaning here. Finding remains confirms an unbearable truth, but an end to the search for some

families, allowing them to lay their loved ones to rest. But they're considered the lucky ones. The hundreds who can't be identified are brought

deep into the forest, to a freshly dug mass grave.

Numbers are assigned for the unnamed, with the bleak hope that using collected DNA samples, one day, someone will come looking for them. Back at

the river, the police find what they're looking for.

MONTGOMERY: When we were with the Nepali police, we didn't find any remains, but the same team, they called us and they told us they found two

bodies in the river. And now, begins the really painful process of identifying these people and then reuniting them with their families.

MONTGOMERY (voice-over): Behind every missing person is a family still waiting. And behind every recovered body, the enormous task of learning who

they were.

Hanako Montgomery, CNN, Nepal.

(END VIDEOTAPE)

SCIUTTO: Just an awful tragedy. Well, anger and frustrations from residents of the Spanish City of Ceuta as there are protest over the

thousands of migrants who remain there. We'll have the latest details next.

(COMMERCIAL BREAK)

SCIUTTO: There is growing unrest in Sueta, Spain, over a migrant crisis that has now lasted over a month. More than 70,000 migrants surged into the

enclave from Morocco. This during the last two days of July. Some have stayed, putting strain on aid organizations and the local community.

Protesters took to the streets of Ceuta and other Spanish cities today to demand action from the government in Madrid. Clarissa Ward has the story.

[18:45:00]

(BEGIN VIDEOTAPE)

CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: Thousands and thousands of people have taken to the streets of this relatively small City

of Ceuta, just 84,000 people actually live here. And so many of them are out tonight to demonstrate just how fed up they are with this crisis.

You probably remember it was just over a month ago that more than 70,000 migrants came in from the border with Morocco. The majority of them

returned to Morocco, but the Spanish government says at least 5,000 migrants still remain. The local authorities here say the real number is

actually 9,000, as many as 9,000 migrants, including more than a thousand unaccompanied minors, which creates huge problems for a small community

like this in terms of feeding them, housing them.

A lot of them are sleeping rough in makeshift shelters on the beaches. And people here, you can hear it, they are saying enough is enough. You see

over and over again the slogan, Ceuta is not for sale, Ceuta will defend itself. They want Spain and the government to take the initiative to bring

this crisis to a rapid end.

(END VIDEOTAPE)

SCIUTTO: Our Clarissa Ward there. Still to come, a U.S. state versus prediction markets. New Jersey asking the Supreme Court to hear a case that

could slow the growth of popular sites such as Kalshi and Polymarket. We're going to have the details after the break.

(COMMERCIAL BREAK)

SCIUTTO: The U.S. Supreme Court could take up a potential landmark case involving the regulation of prediction markets. New Jersey is asking the

court to rule on whether states have the power to oversee these popular platforms, even perhaps shut them down. Prediction markets such as

Polymarket and Kalshi have argued they are financial exchanges that should only be federally regulated. A coalition of 44 U.S. states, however, call

them gambling sites.

This would be the first big challenge to prediction markets to make its way to the Supreme Court. CNN, we should note, has a partnership with Kalshi

and uses its data to cover major events. However, CNN editorial employees are prohibited from trading on that and other prediction markets.

Marshall Cohen joins me now. So, this is New Jersey taking the lead here, but it's a bipartisan coalition of 44 states arguing these platforms are

gambling. So, what's their argument and what's the significance if the Supreme Court were to take this up?

[18:50:00]

MARSHALL COHEN, CNN SENIOR REPORTER: If they take this up, it would be hugely consequential because it could add some much-needed clarity to this

situation.

Prediction markets have really exploded in the past year, Jim. They used to be a very obscure niche activity, and now they see billions of dollars in

trading volume every single week. You mentioned the 44 states. There is broad agreement across the country. Democrats, Republicans, blue states,

red states from those state AGs arguing that this is gambling, plain and simple. They're not buying the idea that these air financial markets that

should be federally regulated. They want this to be regulated like casinos, like sportsbook by the state. New Jersey, the first to take this to the

Supreme Court.

Now, I want to read for you a quote from the attorney general of New Jersey, Jennifer Davenport. She said this today, we are calling on the

Supreme Court to resolve this issue and recognize that Congress did not silently make the sports betting industry immune from state law.

And, Jim, they feel pretty good because it was just a few days ago that a very similar case out of Nevada reached a resounding victory for the states

with a federal appeals court in the Ninth Circuit ruling that states can move forward with these regulations of the prediction markets. But, of

course, to bring it back to this case, New Jersey, it was Kalshi that won at the trial level. Kalshi won that appeals review, and they think they're

going to win at the Supreme Court too.

Let me read for you the reaction from a Kalshi spokeswoman to this new litigation, she said, we disagree with New Jersey's filing. Kalshi is an

open nationwide financial exchange. It cannot be regulated by 50 different regulators.

Jim, obviously, it's not a sure thing that the Supreme Court will take this up. They still need to decide that question before they get into any of

this. But everyone I talked to in this space says that there really needs to be a resolution. It could either come from Congress, which we all know

doesn't really take much action about on anything, or it could come from the high court. And that's probably how it's going to get resolved. Jim.

SCIUTTO: And like so many things, Trump's family has a direct financial interest in this industry, political implications.

COHEN: You are correct. President Trump's family is financially connected to the prediction market industry. Donald Trump Jr. And his company are

major investors in Polymarket. He is also an adviser to Kalshi. President Trump's social media company, Truth Social, they have announced some plans

to get into the prediction space as well.

If the prediction markets win this case, it would be good for the president's bottom line. There's no way around it. It's true.

SCIUTTO: Marshall Cohen. Thanks so much.

Well, now to sports. The NBA has issued stern penalties against the Los Angeles Clippers. The team must forfeit, this is big, five consecutive

first round draft picks starting in 2029, pay a $30 million fine and submit to five years of strict league monitoring.

An independent probe found that the Clippers improperly funneled off court endorsement opportunities to their star forward, Kawhi Leonard, through

corporate partners in exchange for team business. Reports stated the franchise also covered personal expenses for Leonard and failed to report

improper solicitations made by his former business manager.

Finally, tonight, King Charles and French President Emmanuel Macron viewed the famed Bayou Tapestry at the British Museum in London just a short time

ago alongside Queen Camilla and Bridgette -- Brigitte, I should say, Macron. They saw the nearly thousand-year-old historic tapestry, the

embroidery depicting the conquest of England by the monarch's ancestor, William the Conqueror.

Back in that year, we all remember from school, 1066. The historic loan is part of a deal with the French government, bringing the tapestry onto

English soil for the first time since it was made.

(BEGIN VIDEO CLIP)

KING CHARLES III: The tapestry's story is one of ambition and uncertainty of oaths and journeys of ships, councils, kings, comets and consequences.

Yet it is not merely an English story, nor only a Norman one. Indeed, from the moment of its creation, it may have brought together our two peoples.

MACRON: We do not know for certain where this masterpiece was embroidered. And some of the rather quirky creators in his borders still leave us

scratching our heads.

[18:55:00]

But what we do know is that the epic it tells bound our cultures, our histories and our destinies together.

(END VIDEO CLIP)

SCIUTTO: Thanks so much for joining us tonight. I'm Jim Sciutto in Washington. You've been watching "The Brief." Please do stay with CNN.

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