World Headlines; Outrage In Iran After Trump Promises Sanctions; U.K., France, Germany, U.S. Decision On Iran; Turkey's Erdogan Fears New Crises In Middle East; Oil Prices Swing After Trump Decision; Mueller Questions Russian Oligarch About Payments U.S. Company Made To Trump's Lawyer.
KRISTIE LU STOUT, CNN ANCHOR: I'm Kristie Lu Stout in Hong Kong, and welcome to News Stream. Iran's supreme leader on a Twitter tirade after Donald Trump pulls out of the nuclear deal. And the U.S. allies are criticizing the decision. Back in Pyongyang, the U.S. Secretary of State is meeting with top North Korean officials ahead of a landmark summit. And questionable payments, the Mueller investigation reportedly asks a Russian oligarch how hundreds of thousands of dollars led in a bank account run of Donald Trump's attorney.</s>LU STOUT: Iran is lashing out at the U.S. for dropping out of the nuclear deal, and its supreme leader, not mincing words on Twitter. He is blasting President Donald Trump, the U.S., and the E.U. as well, saying that they can't be trusted. Meanwhile, Iranian lawmakers set the American flag on fire after Mr. Trump made his announcement. And Iran's parliament is set to vote on a motion that could call for proportionate and reciprocal action. Now, America's European allies are doing their best to save the agreement with the French Foreign Minister insisting that the deal is not dead, but Mr. Trump remains defiant.</s>DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Today's action sends a critical message, the United States no longer makes empty threats. When I make promises, I keep them. We will be instituting the highest level of economic sanction. Any nation that helps Iran in his quest for nuclear weapons could also be strongly sanctioned by the United States. America will not be held hostage to nuclear blackmail.</s>LU STOUT: CNN is covering every angle of this story from around the world. Let's get more on the latest reaction on Iran with Frederik Pleitgen. He joins me live on the line from Tehran. And, Fred, I mean, all out anger in Iran directed squarely at the U.S. Tell us more about the reaction there.</s>FREDERIK PLEITGEN, CNN CORRESPONDENT (via phone): Yes, absolutely right. I think directed squarely at the U.S. is specifically, of course, at President Trump after that speech that he gave last night. But I think it's also somewhat evolves as well. I thin you did have the (Inaudible) of lawmakers in the Iranian parliaments set the American flag on fire. By the way, a (Inaudible), a nuclear flag was also set on fire there as well. They are saying that they think the United States can't be trusted. And that obviously, all of this is squarely on the United States. But then you have President Hassan Rouhani who came out, and he said he believes that potentially, a version of a deal might be able to survive. And that would be the same terms (ph) of the original nuclear agreement, minus the United States. Now, the Iranian defense, they won't guarantee that a deal like that could actually work. And they said they're going to give it a few weeks. They will see if the Europeans are really committed to it because they're really the most important ones with that. It's European companies right now that again (Inaudible) -- because they feel they could quickly expect the retaliation from the United States on these European countries out committed, and they can't keep the deal alive, but whether or not that visibly a reality in this phase of American threat is something that remains to be (Inaudible). It's interesting because even Iran (Inaudible) European nations, he does seem to be digging some sort of leak to President -- to Hassan Rouhani to see whether or not a smaller version of the Iran nuclear deal might be possible. But yes, they're a lot of anger here. There's a lot of disappointment here. And as you can see some of the comments that are coming out, there's a lot of retaliations as well. Kristie.</s>LU STOUT: Fred Pleitgen live from Tehran, thank you. As Fred mentioned, the big question now, could there be a new deal. We have Atika Shubert in Berlin now where the European leaders are reacting at the prospects of another new deal. Atika, U.S. sanctions can be very punishing for European countries. So do E.U. leaders really believe that somehow the Iran nuclear deal can be preserved without the U.S. on board?</s>ATIKA SHUBERT, CNN CORRESPONDENT: Absolutely. As the Foreign Minister of Germany Heiko Maas said last night, this deal is not dead. And in fact we heard from Chancellor Merkel -- Angela Merkel just a few minutes ago, she held a press conference, and what she said was that we must make sure Iran adheres to its obligations in the agreement. Iran has so far stuck to its obligations, and then she addressed, you know, whether or not there would be new deal. She said rather than questioning the Iran deal currently, we need to talk about a broader deal that goes beyond it. So, her view very much in line with what France and Britain have also been saying is that this current deal, the JCPOA, must be preserved, but there is scope to try and expand upon it. That it's not a perfect deal. But it needs to be kept so that we can -- they can keep Iran to its obligations, and then make it bigger, make it broader. That's Germany's position, and it's in line with both France and Britain.</s>LU STOUT: What Trump did can be seen as a really bitter defeat for America's top allies in Europe including Germany. And they have been ignored by Trump. They have been alienated by Trump. What does this mean for the relationship between the U.S. and the E.U.?</s>SHUBERT: Well, this is a huge transatlantic risk. I mean, both Chancellor Merkel and French President Emmanuel Macron had gone to the White House, and trying to convince President Trump to keep the Iran deal. They work together intend among this, and clearly their efforts failed. And now President Trump by pulling out of the Iran deal has really left it up to Europe to try and salvage what remains. So it's really up to Europe now to convince Iran to basically ignore the United States, to stick to its restrictions in the deal, and at the same time, try and keep protect its own companies which may now be hit by U.S. sanctions. So, what President Trump has done is rather than put pressure on Iran. He's actually put tremendous pressure on his E.U. allies, and it's now up to Europe to try, and hold it together.</s>LU STOUT: Yes, and for Europe, a very complicated fight to hold it together. Atika Shubert reporting live from Berlin, thank you. Now, the President of Turkey says the U.S. decision to withdraw won't just affect the region, but the entire world, and he's worried that it could trigger new crises in the Middle East. Recep Tayyip Erdogan sat down for an exclusive interview with Becky Anderson. And she joins us now live from Ankara. And, Becky, just how concerned is Mr. Erdogan about the geopolitical and economic fallout from Trump's decision on Iran?</s>BECKY ANDERSON, CNN CORRESPONDENT: Very, I think the answer to that is. Look, it is no surprise that some key U.S. allies in this Middle Eastern wider region are applauding Donald Trump's moves, mainly Saudi Arabia and Israel, but it is clear that these could drive a significant wedge between Washington and its key NATO ally, Ankara. I sat down with President Erdogan at what is an incredibly important time for this region. When it feels like the very order of the Middle East is at stake. And I put it to him, I asked him, what do you think the impact of the U.S. pulling out of this Iran deal will be on this region. This is what he said.</s>RECEP TAYYIP ERDOGAN, PRESIDENT OF TURKEY (through a translator): This nuclear deal was previously called unattainable, but it was rendered possible after years of negativity raising hope all around the globe in the end. And Trump in the hat turning this deal around and retrieving from this deal possibly is not just going to impact the region, but also the entire world. The whole economy is at stake, and that is the reason why (Inaudible) will be hit. And the United State might gain some certain positivity of the withdrawal from this or the rising oil prices, but many of other countries in poverty will be hit even harder and deeper, and at the same time we hear new crises will break out -- would break out in the region. We don't new crises in the region.</s>ANDERSON: So here is what we know, the most immediate effect of this decision by Donald Trump to violate the rules of this deal will be reimposition (ph) at some point seeing over the next couple of months well it seems of sanctions against the oil, and banking sectors. Upon of what the President of Turkey was telling me there was simple this. And we saw this yesterday. The upping, the serge in oil prices ones this decision was made. Now look, Turkey and Iran have upped the stakes so far as trade volumes are concerned between the two countries over the past couple of months. And a lot the oil that imported into Turkey for example comes from Iran. But I think he was talking about the wider picture here. What will be the effect on oil prices as when the Iranian oil sector is sanctioned once again. So that is one issue. But I think the wider issue that he was talking about is want to hear that those in Washington and in capitals in the west will be worried about. This is the increasing influence that we've seen across this regional, of Turkey, along with Iran and Russia at the expense of influence of the U.S. Many people in this region quite simply say there is a complete vacuum of U.S. policy in the Middle East into which Iran, Russia, and Turkey are stepping. We have seen Turkey on a collision of course with Washington over the past few months or so at the U.S. support for anti-regime troops on the ground in Syria and Turkey says terrorists, the tit-for-tat hostage, diplomacy that we're seeing. The U.S. evangelist pastor here being held in detention on terrorism charges, the Turks saying they won't fit to (Inaudible) extradited of course from the U.S., the Muslim critic, that the president here accuses of closing the coup -- the attempted coup in Turkey last year. So there is a lot of sort of infrastructure issues between Washington and Ankara at the moment. Some will say this is a collision course and this is not doing that relationship any favors whatsoever, Kristie.</s>LU STOUT: Becky Anderson live in Ankara, thank you. And tune in later today for Becky Anderson's, again, exclusive interview with the Turkish President. Coming up on Connect the World 4:00 p.m. on London, and 7:00 p.m. Abu Dhabi time, that's 11:00 p.m. here in Hong Kong only on CNN. And Ali Khamenei, the Iranian Supreme Leader is still on Twitter. Moments ago he said this, quote, if we agree with them on the issue of our presence in the region, and our missiles, the U.S.' problem with Iran won't be over, and the U.S. will create a new problem. And oil markets, they have seen wild swings since Donald Trump made an announcement that the U.S. is going to withdraw from the Iran nuclear deal. For more on that, the economic impact of the decision, John Defterios at CNNMoney joins me now live from Bahrain. And, John, what has been the overall economic fallout of Trump's decision.</s>JOHN DEFTERIOS, CNN CORRESPONDENT: Well, couple of interesting twist to this, Kristie, the financial market fallout is quite limited, but all the attention is really on the oil market after the decision by President Trump. We're right near a four year high that we saw overnight, $77 on international benchmark which is ICE Brent, and WTI or NYMEX out of New York, trading around $71 a barrel. This reflects the course of future supplies of Iran. For context here, Iran has added nearly 1 million barrels a day since the sanctions were lifted in 2016. Under the sanctions, they were limited to just over 1 million barrels a day who would replace that supply at how quickly without supply drop-down because of the U.S. sanctions is a huge question mark. We know the White House is trying to face in tougher sanctions over the next six months. We don't think 1 million barrels a day is going to come off to the market, but it could be $200 to $300, U.S. is even thinking about incentives against those who are importing that Iranian oil would get them to look for different supplies going forward. We have to watch the OPEC, non-OPEC agreement that was struck at the end of 2016 which took 1.8 million barrels a day off the market to sop up the extra crude that was out trading in the market, the biggest supplier is Saudi Arabia. If Iran's supplies drop with Saudi Arabia fill the void or some in Riyadh would like to see higher prices ahead of the Saudi Aramco IPO, but if history tells us anything, Saudi Arabia has always filled the void during conflict, during the Iran-Iraq War, during Iraq's invasion of Kuwait, many times in the past, even the Iraq war in 2003 with U.S. invasion, Saudi Arabia was there to fill the void. The OPEC Secretary-General told me in our exclusive interview yesterday, nothing is safe site in the market, we will step in if necessary. We will get better indications of that towards June if price of crude continues to rise. Now, for some context here, it took four years to build the oil market back up from $75 a barrel. Those in OPEC don't want to see the price shoot up and shoot back down again because demand would drop and the price rises too quickly. They are very aware of it. Saudi Arabia would probably step in, in fact they put out a statement suggesting they would do so if necessary to mitigate the risk in their words, Kristie.</s>LU STOUT: John Defterios live from Bahrain for us, thank you for that. You are watching News Stream. I'm coming to you live from Hong Kong, and up next, Pyongyang is playing host to the U.S. Secretary of State at the top of the agenda, of course, a historic upcoming meeting between Donald Trump and Kim Jong-un. And the potential release of three U.S. detainees. Also ahead, the U.S. Special Counsel questions a Russian oligarch about the money paid to a former Trump attorney, Michael Cohen, after the 2016 election. We've got the latest from Washington, coming up.