ESCALATION WARNING: Trump's threat to LIGHT UP Iran instantly raises stakes

[0:01] After these strikes, is the ceasefire with Iran still on? [0:05] Yeah, it is. They trifled with us today. We blew them away. [0:11] They trifled. I call that a trifle. I'll let you know when there's no ceasefire. [0:14] You won't have to know. If there's no ceasefire, you're not going to have to know. [0:18] You're just going to have to look at what big glow coming out of Iran. [0:22] And they better sign their agreement fast. [0:25] President Trump telling reporters the U.S.-Iran ceasefire remains in place [0:29] after an exchange of fire in the Strait of Hormuz. [0:32] The Pentagon confirming three warships were all targeted by Iranian missiles, [0:37] drones and small boats. [0:38] The U.S. military responding by hitting Iranian missile and drone launch sites, [0:43] command and control locations and surveillance equipment. [0:46] U.S. Ambassador to the U.N. Mike Waltz saying Iran has created a new agency [0:50] to control shipping in the Strait. Watch this. [0:53] So what are we asking? Cease its attacks on commercial shipping. [0:59] Cease mining and remove its mines from an international waterway. [1:05] Cease tolling, charging illegal tolls in the Strait of Hormuz [1:09] and allow the U.N. to move forward with humanitarian aid, [1:13] life-saving aid through that international corridor. [1:17] Just this week, Iran's own state media announced that the regime has launched [1:23] what it calls the Persian Gulf Straits Authority where it seeks to demand that all ship captains [1:32] from international shipping, commercial shipping, civilian shipping, [1:36] basically have to check in and pay a bribe, pay a toll in order to use these international [1:42] waterways. [1:44] So that doesn't just affect this region. [1:46] It infects the entire world. [1:50] Joining me now, former Trump Deputy National Security Advisor K.T. McFarland. [1:55] K.T., you heard Mike Waltz say this, a bribe, a toll. [2:00] This is the Iranians' new strategy. [2:03] Your reaction? [2:04] The Iranians can say all they want. [2:08] They can't pull any of it off. [2:10] They don't control the strait. [2:11] We control the strait. [2:13] American military vessels are going through the strait. [2:16] When Iran, quote, attacks the American vessels, [2:19] it's like a one-off thing. [2:21] These are their little fast boats. [2:22] They're like speed boats. [2:23] They're like the kind of boats that pull water skiers. [2:25] Can we deal with them? [2:27] Yeah. [2:27] That's all that's left of the Iranian Navy. [2:29] It's not an issue of blowing them out of the water. [2:32] So Iran, you know, look, the Iranian people are proud people. [2:35] They're not going to cry uncle. [2:37] They're not going to admit defeat. [2:39] But the fact is, we've won the war. [2:41] We control the strait. [2:43] And now it's just a matter, will they sign on the dotted line? [2:46] And if they don't sign on the dotted line, as President Trump said, he'll use a military option. [2:50] And even if they do sign on the dotted line, there are only two things that matter. [2:54] Can we inspect it? [2:56] Can we guarantee that they're doing it? [2:58] And if they're not, if they're not abiding by the terms of the agreement, then we'll have to punish them. [3:03] So what does that mean? [3:04] There's something called snap inspections. [3:06] Snap means that we can go any time, any place, anywhere in Iran to look at anything we think is suspicious. [3:12] That's never been a part of any deal we've had with Iran. [3:16] And let's say, for example, they agree to that. [3:18] But then inspectors come and Iran says, no, no, not today. [3:21] How about day after tomorrow? [3:23] Then guess what? [3:23] We assume that they're doing something wrong, that they're not abiding by the terms of the agreement, [3:27] when are we blowing up the facility? [3:29] Well, that means then, if what you're saying is correct, and I've heard the Secretary of State say the same thing, [3:35] that, you know, that's all they do with these negotiations, it's passing notes like you're in class, [3:40] because it's just, all they're doing is just stretching out the time frame. [3:43] And they've been doing this for decades, by the way, to the world, [3:46] but especially to past presidents here, not this president right now. [3:50] So here's the question, if the Iranians do sign on, quote, unquote, the dotted line, [3:55] and then they start to renege, our inspectors don't go in for the nuclear inspections, et cetera, [4:03] doesn't that mean that we're going to have prolonged military assets in that region? [4:08] And what does that look like, KT? [4:12] Okay, so I think that initially, yes, we would have to remain in the region. [4:17] There's nothing in this agreement about the United States Armada leaving, I would point out. [4:20] But we would stay in the region for a period of time to make sure that it is being enforced. [4:24] But there are other countries in the region which have a vested interest in making sure [4:29] that Iran abides by it, you know, the Arab Emirates, Saudi Arabia, Egypt, Israel. [4:34] So I don't think we would have to have the kind of military presence in the area that we've had [4:40] in the last two or three months. [4:42] We wouldn't have to have that indefinitely, maybe for a little bit of time, [4:45] and then we pass it off and share the responsibility with others in the region who are very capable themselves. [4:50] I want to ask you about what's coming next week. [4:54] So this conflict remains top of mind ahead of President Trump's trip to Beijing next week. [4:58] Reportedly, he wants to end the conflict before he meets with Xi Jinping. [5:02] Watch this, KT. [5:03] A very good relationship with President Xi. [5:09] He's a, you know, I find him to be a tremendous guy and we get along well and do, we're doing [5:16] a lot of business with China and making a lot of money. [5:19] He's been very nice about this. [5:20] You know, in all fairness, he gets like 60% of his oil from Hormoz. [5:25] And he's been, I think he's been very respectful. [5:28] We haven't been challenged by China. [5:30] They don't challenge us. [5:31] And he wouldn't do that. [5:34] So President Trump's visit follows the Iranian foreign minister's meeting with top Chinese diplomats that happened earlier this week. [5:41] And China reportedly is urging Iran to pursue diplomacy and avoid resuming hostilities as it seeks to position itself as a mediator in the conflict. [5:49] So, KT, what are you expecting? [5:51] Because I can think that, it's hard for me to say China as a mediator, but at the same time, which I think is not true, but at the same time, I can think of a million barrels of oil as to why they want to mediate this conflict and see it end. [6:04] What happened last week is that the Chinese officials told the Iranian officials settle this deal now. [6:12] We don't really care about your nuclear ambitions. [6:15] What we care about is all that oil flowing. [6:17] It's not just oil from Iran. [6:19] It's the entire region, as the president just said. [6:21] It's oil from the United Arab Emirates, from the Saudis, from Iraq, from Iran. [6:25] And it does represent about half of Iran, of China's imported energy. [6:30] And it probably all together in China's whole energy mix, that's probably 20%, 10 to 15 to 20% of China's total energy needs, which they're not getting right now. [6:40] So, I think what happens next week is that President Trump and President Xi sit down and say, okay, we're the adults in the room. [6:46] How are we going to deal with this? [6:48] And President Trump will say, no nuclear weapons for Iran. [6:51] And President Xi will say, okay, here's what we need to do to get Iran back in the box. [6:57] And I think that the pressure that Iran will be receiving, on the receiving end from China will be significant. [7:03] China needs that straight open. [7:05] We want that straight open. [7:06] And the roadblock is Iran. [7:08] And the roadblock is Iran. [7:08] Absolutely. [7:09] Absolutely. [7:09] I've got Chris Johnson on the side. [7:10] He's got a question for you. [7:11] Energy policy is his focus. [7:13] Chris, go ahead. [7:13] Right. [7:14] And because we're a net exporter now, and the energy dominance agenda is so big, we obviously are coming from a place of strength in these negotiations. [7:21] But people, there are some folks that are saying President Trump should not go to China because we need to focus on the Iran conflict. [7:27] Obviously, these are intertwined issues. [7:30] You see where China is obviously closely tied to Iran. [7:33] So I would just love to hear your take on the value of President Trump going over and doing these negotiations in China, even if the war is ongoing. [7:40] No, I think it's important to go because the wars aren't going, because the Chinese could help us put pressure on Iran and end it. [7:50] You know, but there's a bigger, I think the bigger issue, though, about Iran and China and energy and us is that President Trump's long-range vision is that the United States is, as you say, dominant, but really dominant from 75% of the world's energy. [8:05] So what would that mean? [8:06] I mean, we now have American energy, oil and natural gas. [8:09] We're the dominant, you know, the major world's exporter. [8:11] We now control Venezuela. [8:13] We have friends in the Gulf region, the United Arab Emirates and the other OPEC members. [8:19] We don't dominate them, but they're close friends of ours. [8:21] And if it got to the point where Iran, if we had a post-war Iran, which was favorable to the United States in energy, we would really dominate 75, 80% of the world's energy. [8:33] And I think that's the long-range goal because as you guys have been talking about all morning, [8:37] it's all about artificial intelligence, the future of the world, quantum computing, all requires a lot of energy. [8:44] And if we're the country that has all the energy and all the tech, we dominate the future. [8:49] Yeah, to pick up on Chris's point, we, as a nation, the United States of America, [8:54] exported a record amount of oil last week, 6.4 million barrels a day. [9:00] That is what we are doing in this country. [9:01] And that's what President Trump came into office saying, drill, baby, drill. [9:05] And it's happening, that U.S. production is ramping up. [9:07] And that's why they're meeting with all the energy executives, Exxon, Chevron, [9:11] to make sure that we are energy independent, but we're also more of a net exporter than we are right now. [9:17] It's such an incredible time. [9:19] Katie McFarland, it's always great to speak with you. [9:21] Thank you for being here. [9:24] It's a pleasure and an honor. [9:25] Thank you. [9:26] All right.