>> horton works. >> what's hortonworks? >> it is data management >> and palo alto based in santa clara. we appreciate it joe, josh, stephanie and john. thank you all. "power lunch" begins now >> and brian, thank you, i am tyler mathis tyler mathisen, welcome to "power lunch" on a busy day on tuesday. a deal or about aggregated deal. president trump is going to announce his decision on the iran deal in one hour from now reports indicate that he'll pul out. what will that mean and the whole issue including the price of oil disney about to release its earnings today the company is working on a cash offer trying to steal deals away from disney. instead of going toe to toe on

amazon, one retailer is working hand in hand with the online giant. you can't beat them? join them. "power lunch" starts now >> welcome to "power lunch." i am michelle caruso-cabrera stocks are lower across the board. the dow is down by 100 points. go goldman sachs and they are all moving higher. ex sara. >> we are counting down to president trump's announcement on the nuclear iran deal his decision no question will have far reach on oil and trade. eamon javers is covering for us at the white house and hans

nichoin this case nichols. >> the speculation is the president is going to pull out of this deal of some way shape or form and it is not clear how he'll be doing or what the caveat will be we are seeing allies around the world putting statements in support of the iran deal i am told that mike pence have gone up to capitol hill where he'll be briefing members of congress on the president's decision and on other topics including north korea. the white house is doing everything it can here to amp up the expense of the president's decision they have not done the traditional background than other administrations have done in the past before the major announcement all the facts gotten exactly right when the announcement is made that has not happened and i am told they delayed and notifying lindsey graham lawmakers of what the decision

is here. so as of right now we don't know what the president's decision is going to be. we'll hear it at 2:00 p.m. again, the expectations, sara, the president is going to pull out of that deal but there may be some mitigating factors and we'll have to watch that we have some significant implications around the world. eam eam eamon javers thank you for much. hans nichols is live for us now. >> may have moderating for us closely of what the forces are in syria they say they have not been a change among iranian forces. to make sure u.s. forces are not in any sort of danger in the

middle east. guys, i have to tell you taking the last six months of this, about four weeks ago, we started detecting a shift here at the pentagon, namely secretary mattis would no longer say that iran is in compliance with the joint comprehensive agreement with iran. mattis serving the decision base to pull out of the deal. all the conversations we have here whether it is iran or north korea, everyone stresses of the important role that mnuchin plays over treasury. after the 2:00 p.m. briefing at the white house is what does treasury say what companies are sanctions and european companies as well how broad will it be >> got it hans from the pentagon let's bring in the ellen walsh

and at the heritage foundation guys, good to have you here. what do you want him to do or what do you think he's going to do. >> first, thank for having me on the show i believe president trump will announce that the united states will reimposing some sanctions against the regime i believe this is the right response of the right call of action by the administration, i believe the iran and the nuclear deal is deeply floored and it is an agreement within a decade or so allow iran becoming the nuclear weapon as a hugely massive agreement, put into place by the obama administration without support of the u.s. by congress and so this is a dangerous deal i think that undermines u.s. interests if the president announced that sanctions will be reimposed against iran >> ellen, what do you think?

>> i agree the deal is deeply flawed and it will allow iran to gain nuclear weapons in the future i don't think withdrawing from the deal is the right decision at this time it sends the wrong message to north korea. >> i heard this before so if we pull out of the iran deal while we are negotiating with north korea and north korea thinks that we are a partner that cannot be trusted nikki haley made a speech and she thought it is just the opposite and it sends a message to north korea we are not going to do a junkie deal and we'll walk away from the bad one >> so nile, let me come back to you, the sunset provisions in this deal which are one of the things that the president objects to after a period of time iran can resume enriching

nuclear fuel which could then be used in a weapon but, i thought one of the provisions of the deal was that iran swore doing that enriching to use in nuclear weapons. am i wrong about that or is everybody assuming once they start enriching it that it does not take much then to put it on a missile and create as bond >> well, i think it is very clear from the evidence outlining a couple of weeks ago by the israelis prime minister based on 100,000 documents taken from iran's research the iranian regime have every intentions of moving forward the iran deal have delays and the momentum that the iranians have it does not stop iran from becoming a nuclear weapon power. without a doubt, once the iran deal actually ends in a decade or so. then iran will move forward with

its nuclear weapon it is very clear from the documentation that this is their intention and so we have to and fully grasp the nature of the threat posed boo i ty the irani regime this deal will not prevent them from doing so. >> so, allaellen, if the presid does pull out more, does that increase the potential conflict in the middle east >> i am not sure if there is anything that could increase the stability that is already going on in the middle east. we have seen iran -- >> well, a broader show down with iran and saudi arabia and the united states. >> it puts saudi arabia and israel more on alert they already feel as though iran is untrust were thiworthy and is that out in the open >> ladies and gentlemen, thanks so much. it is a big day.

ellen, and nile, thank you to you. >> the oil prices are slipping ahead on president trump's decision for more on what to expect, our founding partner and cnbc contributor. last time you were wondering what this would look like. we expect him to pull out the deal and we are learning from reports of what it is going to look like and it is weighing on oil prices explain the move in oil. >> the move has been violent based on headlines that's been hitting on the markets this morning he was going to actually stay in the deal. this reminds me when you are at the track and there is a photo finish between a couple of horses and a big message pops on the board holding all tickets. i would not draw any conclusions now. >> my estimation and this is what i said this morning that he'll pull out of the deal, check the box on the campaign promise and then finesse it from there and in other words -- >> with respect to sanctions

there will be nuance and delays. i don't think he wants to upset the apple card completely yet. >> can we talk about iran's major producer it is one of the top energy producers when it comes to opec. it is going to europe and asia it is not going to the united states >> michelle has been talking about this they sell mostly to india and china. korea and japan have a big appetite for that crude oil. >> does anything happen with iranian exports with the president's decision because a lot of this is done in dollars, correct? >> that's right. it will only be able to affect of 20% of their exports and 5 million barrels of the 2

point-to- million dollars. >> if it happens what will happen to the price of oil and why is it going down now? >> almost 3% >> this market can't afford to lose the chunk now >> things are pretty tight in others in the saudi as are achieving a higher price what the market is surmising right now is trump is going to be trump h he's going to come out here with a lot of buster and not necessarily mock up the flow of oil added iran just yet. he's going to work to get a better deal. some contrary thinking >> he imposes the sanctions and how much they are buying from iran iran can cut prices in order to retain market shares could that not help lower?

>> back before the sanctions were taken off that would have been the case. they had a lot of oil until storage and they were ramping up in production. they are producing in full tilt. the market will be deprived of that oil it is already coming at you full board. >> something important to remember, too. if you go back to 2012, european had a full-blown embargo along the u.s. >> that hurts a lot more >> the european is not going to do that this time around >> everybody and the russians and now we stand alone in in fact i will tell you that some of the commentary that we heard earlier. the evidence was that they ended their nuclear ambitions. when we invaded iraq, george w. bush, the iranians huddled off the nuclear ambition, the nuclear weapon part of their research now, what they had done is

enrich uranium and we know of the center fuses as far as weaponizing, that's not in the cards since 2003. >> as we go into this decision, we are seeing more 2% slides for brandt and wti what levels are we looking for >> if president trump says i am leaving the deal and is short on details and short on what sanctions are going to be snapped back or what the time frame is and we'll say kellyanne conway to come out and explain to us what's going on. this market will collapse. what has been priced in was a full on pull out >> collapse from '68 to where? >> you can trace it down to '62. >> all right, john >> again, capital. >> kill it >> thank you >> john kilda.

wem s we'll see more from you. >> rick santelli is tracking the action >> hi tyler, i give this auction d as in dog for final demand the largest supply size on that issuance since august of 2013. here are the metrics 2.6, 45 points the big positive of this auction if there is one with the direct bidders which is something we have seen in many auctions 12.3%. dealers take 42.2% which is on the big side and the notion that we had to back it up of a higher yield to move the paper and dutch auction, it was mushy so a

d. tomorrow we'll come back with the most important issues of all. 25 billion of 10-yr note total for the week, it will be $73 billion. michelle, back to you. >> rick santelli, one of the junkie auctions is hurting the markets. as we count down on the president's announcement disney and verizon are in negative territory, we'll watch of what's happening with disney and fox and comcast and their earnings after the bell. where are the opportunities if global uncertainty royals the mark disney earnings are on deck after the bell as a multi billion dollars deal we are going to tell you what analysts are hoping to hear. that's all ahead in the next hour of "power lunch."

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wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. all right, stocks are in the red ahead of the president's decision the dow is first in four sessions of the dow. let's bring in yana barton, goo to have you with us. >> thank you for having me >> what do you advise people to

do right now >> continue to stay in the market and don't time the market timing the market. being selective counts more than anything else because we are going through a change of pa paradigm where we see earnings growth being very strong but multiples are really compressing so what it tells us that you really need to have something unique and that uniqueness comes in the form of pricing power and industry dynamics or other forms of fundamental business trends that are helping. >> that's the paradigm change. who has the pricing power now and therefore would be worth a look >> i think if you look at the leader board year to date, what you are seeing quite quickly is growth areas of the markets are surprisingly are leading the market within the tech space and interestingly enough all

industry except for communications equipment within the technology space reported sales and of the broader market. most of the industries are comprising the sectors continue to be where the growth is. and also being selective with the industrial and consumer spaces and other parts of the markets that are pricing power of dynamics is where we are going to lean right now. >> a lot of people today will be paying attention on what headlines are made with respect to this iran deal. is that a critical deal in your decision making or is it something that most investors kind of play pass and not worry about. >> i chalk it up to short term noise that investors should try to look pass

i would echo to what your guests say, stick to the long-term. it is difficult for us to forecast and predict around what trump says that's kind of the noise that i am talking about we need to focus on longer term fundamentals like valuations and growth >> is it for growth, the big factor is what happens with trade talks and potential for tariffs and a trade war tally. don't you have to look at announcements and tactics and strategies loo i cike north kor iran and trying to gain out what's going to happen for the u.s. and china and trade >> they're tactical implications but look, when you take a step back and take a deep breath and you try to put some numbers around this in terms of trade war and tariffs as you mention, we'll take another step further

as they escalate these are small numbers compared to the first and second largest economy in the world the real economic impact there is pretty small. >> yana, what about the news that rick santelli just brought to us? he had another rough auction and he gave it a d it seems like we are watching it playing out already. we are talking so much of how much money is the government going to borrow. you got yield at 11-year high and it is not atratracting as my bidders as we have seen in the past >> rising interest rates i would refer to them as a tax on the multiples. when you think of where we are going, you cannot bank on multiple expansion but rather expect that base case scenario is your bull case which is why you go back to the fundamentals and go back to where the top line is coming from and what's the earnings trajectory looks like going back to long-term secular

views, there is a lot of industries that go to seismic stretch and disruption that continues to evolve and companies capitalize on the market share gains therefore benefiting from the industry yana, we have to break in, we have breaking news on the iran deal hold on one second as we go to eamon. >> congressional leaders are being informed of the president intent to move the united states from the jcpa. that's the technical acronym for the iran deal. we know mike pepsince is talkint reporters. now, nbc news is reporting is that lawmakers are being told that the president does intend to move the eyes from the joint agreement on iran. the question is what mitigating factors are there in this decision to remove the united states from that deal and what

are the implications for r u.s. allies particularly in europe and whether or not they'll enact their own sanctions? how will that shake out and of course, totally unpredictable factor here of how the iranians will react to all of this. will this be a green light for iran to go back to its nuclear weapon building program or are there other mitigating factors here from traveling down the path we'll wait more from the president at 2:00. >> as he addresses congress and informing congress as you say, eamon, one of the options, too, he can kick it to congress, right? the way the u.s. law was written. he could say i don't like this you guys have 60 days to figure out what you guys want to do >> tit is endless here >> the president has a lot of options and one of them is some

kind of a time delay. he can say we are pulling out six-month now from we don't get x, y, and z. i am cancelling something but i will give you the opportunity to re-negotiate so it will stay in place. that i a lallows the president have tough rhetoric that he likes. and something that's more towards the middle of the road the president can sees himself as a negotiator at all time. we'll have to wait and see because the white house is not confirming reports at this time. >> ma'eamon at the white house,s we wait for the irandeal >> celebrities manning the trading desk at btig raising millions of dollars for charity. straight ahead, we'll check in some big stars working towards a eat cause. our bob pisani has been there

all day. stay with "power lunch."

what do advisors look for in an etf? i tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. hello. give me an hour in tanning room 3. cheers! that's confident. but it's not kayak confident. kayak searches hundreds of travel sites to help me plan the best trip. so i'm more than confident. forgot me goggles. kayak. search one and done. so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.

trading firm, btig is raising money with many charity events bob pisani is joining us, we have enjoyed your interviews all

morning. >> yes, gary cohn, on the economy, we spoke with some celebrities and has very interesting time here. 50th annual event they raised $45 million at that time and shaquille o'neal and we talked about all his business deals and fitness centers and car washes and shoe brands and a number of businesses things are interesting when i asked him what kind of advice he would give to kids today about the value of investing >> children, young guys coming in with a lot of money, this is $100, this is what you want to do is rip the $100 in half 50, save it. don't even touch it and invest and put it away. now you got 50 left. the real smart people, they'll take half of the 50 and put all that away. this right here, have fun. you want to buy houses and cars or planes or travel, this right

here is what you can have fun with and this is right here is what you will need when you retire so you will save it. this is the house money. this is what you play with >> i have a feeling that'll live on in the internet for quite a long time. shaquille o'neal is a backbone of this charity event since it started 16 years ago he comes every year and he's a wonderful man to spend some time with i really enjoyed it. president clinton came by as well >> yeah, he does not get smaller. >> he's the largest man i have met. >> i have many pictures with him and every time i seem to get smaller. >> his hand is the size of a catcher's smith. >> it is hughuge >> bob, he called you a sharp dresser, i thought it was impressive >> he maede the point of saying

one of the reasons he's involved in jc penney is difficult to get close for a guy like him he's getting jc penney stocks, too. >> if he had a bad temper, it would not be good snoch he's daring. >> he's a lovely, gentle giant >> a content war can be brewing. the potential prize, fox's movies and some of its television assets. we'll bring you the latest and tell you what exactly is at stake in this complicated, potential bidding war, straight ahead on "power lunch. i'm dianne feinstein and i approve this message.

i thought after sandy hook, where 20 six and seven year olds were slain,

this would never happen again. it has happened more than 200 times in 5 years. dianne feinstein and a new generation are leading the fight to pass a new assault weapons ban. say no to the nra and yes to common-sense gun laws. california values senator dianne feinstein hello everyone, i am sue herrera. here is your cnbc news update at this hour. the u.s. plans to withdraw from the iran nuclear deal, it is not immediately clear which sanctions we are lifting under the deal that may be quickly reimposed. president trump will make the announcement at the top of the hour local health officials in

congo reported 17 death before ebola outbreak were confirmed. authorities are ex ca findie remains of the 12-year-old girl last seen in 1979. they could be looking for bodies up to half a dozen of others, 30 miles from detroit an americamericans are gett enthusiastic of buying electric cars according to aaa says people are buying electric cars that's the news update at this hour michelle, back to you. >> and it can give you anxiety >> thank you, sue. stocks are trading at a narrow range. right now the dow industrial average is lower by about 52 points s&p and the nasdaq are also

slightly lower financials and industrials are your s&p sector leaders. utilities are off by more than 2% >> michelle, expect to hear a heck of a lot like movie block like "avengers" and "black panthers." those are big hits julia boorstin now with more >> fox deals will be in focused on the hill of reports of comcast is at a higher bid analysts are projecting disney's ern earnings are grow 6% we are likely to see the theme park to benefit his ongoing investment in the park and rates

both on the rise for the network devision, it will face scrutiny as it always does investors will press for updates on how espn new app. we'll have to see what bob iger says about the report that comcast is preparing of $60 billion for fox's entertainment assets i will ask bob iger coming up after earnings cross at 4:00 p.m. eastern. >> michelle. >> thank you julia let's talk more of the brewing battle that you mentioned between come bacast and disney. lets bring in our own david faber. >> hey, how do you like the stock prices for you today >> you know shareholders are

speaking with one voice, the management team is speaking with another, if you know anything about brianere roberts, he's be aggressive man we have been saying this as long as steel have been out there day one. i have been reporting on strong possibilities that comcast saw this as an auction and wuould come back at some point. that point is drawing nearer but still remains a point where they get the go ahead if judge leon believes he'll rule the favor against the company on june 12th that would clear the way for comcast of what we have been reporting largely in all cash deal but not necessarily all of it in cash and most of it to acquire those fox assets the asame assets that comcast tried to buy before disney comcast felt like it did not get the audience it deserves to be fair, it did not offer the

deal protection against the potential regulatory review that disney was willing to in the form of reverse break up fee or being willing to buy the regional sports network and divest them as oppose to wilhelmsenisendin them back to fox and any number of other areas, guys brian roberts have said many times since 2004 when he made a hostile bid for disney that he regretted backing off and listening to his shareholders who are not happy at the bid of the time and saying he's not going to make the same mistakes again. >> this is where he find ourselves. >> why don't investors like this idea is it too much money or debt, they don't think synergies are going to work? >> i think it is any number of those things you would have an enormous amount of debt given you would make this largely a cash deal as

opposed to the previous offer dh have been in stock you would need to do it significant premium above disney disney is not going to backup on sky. they're not going to back off here as well and so the premium would have to be very large and not to mention would have to offset the tax, the favorable tax treatments of an all stock deal and pay the 1.5 billion break fee that fox would owe disney there is concerns about that there is a feeling that the comcast camp that the company needs a direct to consumer strategy, hulu, for example, embodies that and it needs to get bigger in the international markets whether it is sky or with star or and india would be apart of this deal for any of those reasons, comcast feels for its long-term future, this is as great deal

that'll make a great deal of sense. it will be difficult to pull off and it is one that we'll be following closely in the weaeks and months ahead >> david faber, thank you. we are joined by matthew harrigan how do you interpret the markets thumbs down for the potential bidding war here for this 21 century fox assets and potentially sky as well. >> well, i think investors have covered a large stock buy back at comcast and i think looking at ryan robert's past behavior on comcast, i never really in to cars they conceive their competitors of silicon valley and netflix on a global basis and this is just another effort to really bulk up with some unique content assets and coming on the market as david alluded to, this is sometimes more or less in a decade as we saw with disney and

earlier and nbc and 2008 and 2009 >> clearly there is willingness to stretch the balance sheet do you think ryan roberts will get it done? >> this is a benign environment for stretching the balance sheet and with taxes and also being reduced and i think disney has an advantage of having the muc murdmurd murdochs i think it is something definitely hard wire and looking at this strategic value of the business and globally and longer term rather than focusing on the media stocker performance and te buy backs and continue to do zomb some buy backs this year matthew harrigan, thank you for joining us a lot of questions >> thank you >> a lot of moving piece including of what happens with

at&t and time warner as julia mentions, be sure to tune in with disney's chairman, bob iger, following the company's earnings report. there will be questions about this >> valiant is spiking more than 16%, reporting a first quarter loss, we'll tell you what's driving the biotech company higher, don't move, stay with "power lunch." ? impossible! a personal' computer?! ha! smart neighborhoods running on a microgrid. a stadium powered with solar. a hospital that doesn't lose power. amazing. i like it. never gonna happen.

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year low >> establishing ecommerce business takes time, money and logistics. a lot of that work have been done for them. we'll talk to the ceo of chico's. plus, we are waiting for president trump of his announcement on whether or not he'll reinstate sanctions on iran we'll take you live to the white house as it happens. "power lunch" is back at two the digital divide is splitting this country. we have parents who are trying to get their kids off of too much social media and computers, and then we have parents who would only hope their children have access. middle school is a really key transition point, right. the stakes start changing. students begin to really start

thinking about their futures. what i like about verizon's approach is that it's not limited to just giving kids new tools, it's really about empowering educators to teach in different ways, and exposing kids to more active forms of learning. giving technology is not a total solution. teaching technology, now that is. anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest.

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every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. as more and more firms rely on ecommerce to build the bottom line, what do you do when the best real estate is selling your products >> our shelly broder is with us >> thank you for joining us. your first interview we are glad to have you on our big announcement so i am sure you are aware of the morgan stanley reports that predicts amazon is the number one seller of apparel in the u.s. in 2018 they call it a number of brands

and yours, chico's is one of them it is dangerous to not be on amazon for chico's future? >> hello it is certainly not as so great f.a.s. is we are a collection of originals and we have three really iconic brands in chico's, in white house black market and in soma and we are fully vertically integrated and the only place that you can buy our product is in our boutiques or online, and since i've become ceo, we've really been focused on turning the business around, on getting our fundamentals right, diagnosing the business and then looking for growth. and finding alternative channels to introduce our products to new customers is what 2018 is all about for us, and so when you'v got so many prime members that we all know the number now, who

better to partner with and to gain those new customers for us. >> shelley, what are the risks, though there are some brands that are worried about going on amazon because of the access to their sales data that amazon will get or even a disassociation with the brand where a consumer says, i bought it on amazon as opposed to i bought it from chico's. are you worried about those two things, about retaining your brand equity >> well, certainly, what's so precious about being a specialty retailer is having that unique, special branded product. i wouldn't want to be in the commodities business today, and i wouldn't want to be selling a commodity online with any online marketplace partner. and so in working with amazon, what we have found is, we're putting some of our most iconic items online with them, our no iron shirt, our travelers, our so slimming pant, but this is also driving traffic to our boutiques. as customers may be introduced through their prime membership to amazon, but they can also return that item, seek additional matching items, in our boutiques with that item

>> very interesting stuff. i know that we have so many more questions we would like to ask you but you know this really big press conference is coming up here with president trump so we're going to have to leave it there. shelley, ceo of chico's, thank you so much for joining us here today exclusively on cnbc. we are moments away from president trump. he is expected to announce that he will take the united states out of the iran deal and we will take you live to the diplomatic room at the white house as that happens. stay with us right here on "power lunch." business. t your with dell small business technology advisors you get the one-on-one partnership you need to grow your business. the dell vostro 15 laptop. contact a dell advisor today.

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we are standing by for president trump's decision on the iran nuclear deal. sources to cnbc say he will pull out of the deal. what isn't clear is how and what form a withdrawal will take. let's start at the white house with eamon. >> reporter: couple things to watch for as the president makes this announcement at 2:00 p.m. in the diplomatic reception room here at the white house. one is, is there any timeline associated to the president's decision there's been speculation in washington that there could be a delayed withdrawal or staggered withdrawal over the period of some amount of time that would give allies the opportunity to continue with negotiations that's one thing to look for the other thing to look for is

what specifically does the president say about the european allies we've seen a parade of european prime ministers, chancellors, presidents here at the white house over the past several weeks, all lobbying the president to stay in this deal, which we believe he is now about to announce he's getting out of. so, what does the president say about those leaders and the arguments that they made to him and then finally, what's his message to the iranians here there's been some concern in washington, particularly among former obama administration officials who negotiated this deal, that ultimately, what getting out of the deal means is it's a green light for iran to start rebuilding its nuclear program, which was put on hold with this deal does the president have anything to say to the iranians or any specific elements of his announcement today that are designed to keep the iranians from going down that path? so, a lot to watch for here at the white house, michelle. >> thank you, eamon javers, we will be watching as we await president trump's decision, let's bring in our panel of experts to walk us

through what to expect ariel, bob, and ivan, welcome to all of you ivan, i hope i did justice to your last name if i didn't, i apologize, but because i'm worried about it, i'm going to ask you the first question what do you think the president should do here, weigh the risks of staying in versus those of getting out? >> well, i think he should stay in i don't think he's going to, but i think you have three problems. first of all, you know, this agreement is temporary, 10 to 15 years, but what i not build on it why get rid of it? it's the most intrusive inspections ever, and i think that frankly, if you're going to negotiate with north koreans, if i were the north koreans, i wouldn't negotiate because as far as i'm concerned, and i think the world is concerned, the united states doesn't keep its agreements, so why would they keep it with north korea? also, the alternative is iran racing to get nuclear weapons

and the possibility of war increasing, so -- and also, and the third problem is, i think we become the rogue state iran was the rogue state before, and now at least we're not a rogue state, where everyone -- it's not only the europeans but the entire world is watching so i think we have a number of problems i think it's better to stay in rather than go out >> let me turn to you. one of the criticisms of the existing iran deal is not what it does, though that is certainly subject to criticism, but what it does not or did not do, namely address regional mischief on the part of iran and second, address its ballistic missiles, but that was never really on the table in the first place as i understand it is it fair to criticize that deal for what wasn't even part of the negotiation was excluded there >> you have to take a wholistic -- >> this is for ariel go ahead >> you have to take a wholistic

approach to the middle east security and iran right now is a destabilizing force. it is threatening all our allies, saudi arabia, gulf states, iraq, and lebanon. it wreaked havoc in syria, so you cannot say, oh, if there is a body riddled with cancer, we will address just one pinky and leave the lungs and the liver and the brain sick, so you have to focus on missiles iran is developing its ballistic medium range missiles, cage of delivering nuclear weapons iran is projecting power all the way from the holy city into syria and lebanon, and it's threatening saudi arabia by enveloping it from the south through the houthis in yemen so, we need to address that. we need to address the iranian

position as the principal sponsor of terrorism in the world, and i hope mr. trump will bring on board not only our european european allies but also china and hopefully russia as well >> bob, what do you think the chances are of that? >> i just think the chances are pretty low for china, but you know, there are press reports that russia is already working with france to see about this sunset clause, so i think what we're going to see, whatever we're about to see in the next couple of minutes, there's going to be more negotiations. i don't think russia wants this deal to blow up. i think they're going to try and find a way to help address the concerns president trump has raised, working with the french. so i think the only thing that's certain here is more uncertainty, but we are going to get some more diplomacy. i don't think anyone wants to see this deal blow up, and i think the russians are going to try and help diplomatically behind the scenes. >> bob, i wanted to ask you about energy because you've looked into that and we are seeing crude oil still sell off,

wti down 2.8%. what will you will listening for from the president as it relates to sanctions and just how much pain can the u.s. inflict on iran when it comes to its oil exports and the price globally >> so, we'll be looking very closely for certainty, for indications of when the sanctions period would go back into effect. could be as early as tomorrow, could be september, could be november also, what will he require for a significant reduction? how much of a cut will he want from importers over that period of time? will he be lifting the banking and insurance sanctions in july? so, really, certainty about the next sign post imposition of imi import reduction requirements and so forth, these are the details we're going to be looking for very closely the market had priced in quite a bit of fear, i think almost the worst case, that's why we saw a headline from another agency and

we sold off and bounced up a little bit so i think the market had priced in quite a bit of fear now we have to look at the details of what the president's going to say about the timing and imposition of and scope of actual sanctions >> ivan, ariel, and bob, please stay with us we do want to check in with hans at the pentagon. what are you hearing at this point? >> reporter: well, yeah, u.s. forces, coalition forces in baghdad continue to monitor what's happening on the ground in syria remember you have 2,000 u.s. troops there they want to see if the iranians are going to change their behavior or their posture. so far, there are no signs of any iranian aggression inside of syria, inside of iraq, towards u. u.s.-backed forces i think that's a key thing to look at in the next 24 hours and as we get closer or further away from this actual deal, how does the forced posture change for u.s. forces inside of iraq and syria. those are key questions. they're asking here at the pentagon but i have to say, like everyone else here at the pentagon, they're waiting for an announcement to read and learn about the details of what

president trump is going to say about sanctions. >> thank you very much, hans ariel, two questions for you if i might and inform me if you wouldn't mind. number one, is there any indication that iran since the 2015 agreement has violated it in any material ways >> the israelis are saying that by keeping the -- all the data about its nuclear program, including the bomb designs or activities that were aimed to develop deliverable nuclear warheads, the iranians violated the agreement and they were not -- they were supposed to disclose and destroy this information. i would add to that that the iranian regime right now, by threatening to renew the nuclear program, is trying to build support while the support is crumbling. we have increasing reports of

demonstrations in iran that include not only the educated urban class but also the poor and the rural populations, so that regime is in trouble, and what i think mr. trump is thinking about is give it a push and it could collapse. >> question number two is, when iran talks about resuming its nuclear program, and indeed under the existing jcpoa where the nuclear developments were forestalled for 10 or 15 years, when they say that, are they talking about actually building nuclear weapons, or are they talking about enriching uranium and plutonium or is that a distinction without a difference >> it's a distinction without a difference because you don't need plutonium for anything. >> other than that >> other than having nuclear weapons, number one. number two, senior iranian officials, i believe even the president, said we are going to build any weapons we need to

defend the iranian islamic republic but the islamic republic is now just took over lebanon. hezbollah is a fully owned subsidiary of the slammic republ -- islamic republic the leader of hezbollah has the title of supreme leader in lebanon. they're throwing the weight around they're building, believe it or not, the persian empire that the last time we remember that collapsed about 1,600 years ago, if my history is right the same persian empire that ruled the middle east and fought with the greeks and the romans >> yeah, and just a reminder on the -- one side of your screen, we are looking at a live shot right now of the white house the diplomatic room. we are expecting president trump to arrive any minute now he said on twitter yesterday he would be out at 2:00 p.m. to announce his decision on the iran nuclear deal. one of the hallmarks of president obama's presidency, we

just showed you a live shot of the door where the president will come out of we are waiting for him any moment now in the meantime, ivan, a lot of people have made the link between what we are set to hear today on iran ahead of the president's summit with north korea. and what kind of message this would send if he does pull out of the iran deal to the north koreans and how that could impact those talks going forward. is there a link in your mind? >> definitely. i mean, if we don't keep our agreements, and the world, by the way, doesn't think that iran -- almost nobody thinks that this is, except perhaps israel and the trump administration, thinks that iran has violated any --this in any way, not only the letter but the spirit of the agreement. so i think it does affect -- and of course north korea looks at libya, where we got qaddafi to get rid of his nuclear program and then we overthrew him and they look at this not keeping the agreement.

if i were north korea, i would be very leery of entering an agreement after those happenings >> ivan, what would you say when nikki haley says she thinks it's just the opposite, that if we do pull out, it sends a strong message to north korea that the deal we do with them, if we do one, is going to be much stronger and require much more compliance >> i don't think they've had much success with the north koreans in the past, and i don't think that's going to work >> but the north koreans have cheated tremendously in the past, right? >> of course >> they haven't been trustworthy either >> well, the united states didn't fulfill the 1994 agreement by giving them light water reactors, giving them sanctions research and the oil shipments to north korea were spotty so we didn't follow that agreement either, and so yes, north korea has cheated. we haven't followed the agreement sometimes. and i think that we -- trump has this approach of tough guy all the time, and that works in some cases, but it causes a lot of friction, not only with our allies but with everybody else,

but this is beyond tough guy this is not following an agreement. if we change diametrically our policy -- >> i want to get ariel in here hold on one second s&p 500 is off 8.5 the industrial's lowered by 61 nasdaq is lower by 16 and oil is off by $2 or a decline of nearly 3% russell 2000 is in positive territory. ariel, what did you want to say? >> number one, north koreans are giving up -- if they're giving up, i hope they're giving up their nuclear arsenal, not because they want to, but because china told them to today, as we speak, kim jong-un is meeting with president xi of china, and china is calling the shots on that. i do not know what kind of deal or promise of a deal we have with president xi, but i think this is already that whole dynamic is above president kim jong-un's pay grade. in terms of trump's negotiating

tactic, this is classical trump. if you read his book,he comes very, very strong with highest demands possible and then negotiates down to a compromise he can accept or in this case the united states can accept trump is not crazy he's not looking for a war with iran but this regime may need to negotiate because, for example, if you shut down again the swift banking system, the bank transfers in and out of iran, that economy will collapse, and the people are restless already. that regime -- job one for that regime is survival so they may go very far to compromise, including on the nuclear deal >> i want to bring you a headline from reuters. israel says spots iranian military movement in syria israel is ordering readying of bomb shelters on israeli-held golan, the mountains in northern

israel, which shares a border with syria, guys, and bob, it is a reminder that we don't know exactly how iran is going to respond to what president trump announces today. >> that's right. i think it's safe to say, though, the iranians are going to try and stay close to the europeans, and as long as the iranians feel that france, germany, and britain are staying with them or trying to make the deal work or perhaps facilitating these ongoing negotiations that we're probably going to have, it's unlikely iran will bolt from the deal and resume overt enrichment. that could may well happen later this year. >> what about that military movement and the fact that israelis are being ordered to bomb shelters? >> well, there has been a scale-up of conflict between israel and iran. their proxy war is intensifying. in the last few weeks and months, we have had major israeli attacks on ianian facilities iran has attacked israel with a drone. so that is separate, i think, from these nuclear negotiations, but iran and israel have been spoiling for a fight, and if it

intensifying their conflict for several weeks now so that's not too surprising to hear >> bob, we probably only have about 30 seconds can you tell me, if indeed they really do a lot of snap back sanctions here, how much oil do you think would actually come off the market if the europeans aren't going along with the president? >> well, i think the europeans will have to go along to some degree, right? you don't want to get shut out of the u.s. banking system, but long story short, if the president -- >> can i explain that? in other words the governments don't say, we're going to go along with what the president says and do an embargo, it's just that none of their banks are going to be willing to fitness the transaction to purchase the oil >> exactly the company has to decide, i can trade with iran or the u.s., i got to stay with the u.s at a maximum, 500,000 barrels a day by the end of the year but i think that's high end. other companies will pick up the slack. the chinese will get a discount. they'll be delighted to pick up

some iranian barrels at lower prices and probably take a little more but i think we expect about 100,000 to 200,000 barrels a day by the end of the year assuming the president, again, leaves the door open a little bit partner ongoifor on g negotiations >> we'll find out the iranian reaction because we are learning that the president will announce iran's reaction to president trump's nuclear deal decision on tv that comes from the iran state news agency. that will a question of if they continue to stay with the deal with the europeans and make nice as much as they can with the europeans in order to keep the business flowing, keep the oil flowing. >> it's going to be a televised statement, he says, that's going to happen immediately after the president issues his statement >> i think it's bob and john, an hour ago, basically had the amount of oil that would come off the market at something at the high end of half a million barrels a day and bob just said

200,000 or thereabouts and the question obviously is, what will that do to the price of oil. >> how much is baked in. remember, oil's up 13% >> we've got to interrupt. president approaching the podium let's take you there for his announcement on what he plans to do with the iran deal. >> my fellow americans, today i want to update the world on our efforts to prevent iran from acquiring a nuclear weapon the iranian regime is the leading state sponsor of terror. it exports dangerous missiles, fuels conflicts across the middle east, and supports terrorist proxies and militias such as hezbollah, hamas, the taliban, and al qaeda. over the years, iran and its proxies have bombed american embassies and military installations, murdered hundreds

of american service members, and kidnapped, imprisoned, and tortured american citizens the iranian regime has funded its long reign of chaos and terror by plundering the wealth of its own people. no action taken by the regime has been more dangerous than its pursuit of nuclear weapons, and the means of delivering them in 2015, the previous administration joined with other nations in a deal regarding iran's nuclear program this agreement was known as the joint comprehensive plan of action or jcpoa. in theory, the so-called iran deal was supposed to protect the united states and our allies from the lunacy of an iranian nuclear bomb, a weapon that will only endanger the survival of

the iranian regime in fact, the deal allowed iran to continue enriching uranium and over time reach the brink of a nuclear breakout the deal lifted crippling economic sanctions on iran in exchange for very weak limits on the regime's nuclear activity and no limits at all on its other maligned behavior, including its sinister activities in syria, yemen, and other places all around the world. in other words, at the point when the united states had maximum leverage, this disastrous deal gave this regime -- and it's a regime of great terror -- many billions of dollars, some of it in actual

cash, a great embarrassment to me as a citizen and to all citizens of the united states. a constructive deal could easily have been struck at the time, but it wasn't. at the heart of the iran deal was a giant fiction, that a murderous regime desired only a peaceful nuclear energy program. today, we have definitive proof that this iranian promise was a lie. last week, israel published intelligence documents, long concealed by iran, conclusively showing the iranians' regime and its history of pursuing nuclear weapons. the fact is, this was a horrible one-sided deal that should have never, ever been made. it didn't bring calm it didn't bringpeace and it never will. in the years since the deal was

reached, iran's military budget has grown by almost 40% while its economy is doing very badly. after the sanctions were lifted, the dictatorship used its new funds to build nuclear capable missiles, support terrorism, and cause havoc throughout the middle east and beyond the agreement was so poorly negotiated that even if iran fully complies, the regime can still be on the verge of a nuclear breakout in just a short period of time the deal's sunset provisions are totally unacceptable if i allowed this deal to stand, there would soon be a nuclear arms race in the middle east everyone would want their weapons ready by the time iran had theirs making matters worse, the deal's inspection provisions lacked

adequate mechanisms to prevent, detec detech, a detect, and punish cheating and don't even have the unqualified right to inspect many important locations, including military facilities not only does the deal fail to halt iran's nuclear ambitions, but it also fails to address the regime's development of ballistic missiles that could deliver nuclear warheads finally, the deal does nothing to constrain iran's destabilizing activities, including its support for terrorism. since the agreement, iran's bloody ambitions have grown only more brazen. in light of these glaring flaws, i announced last october that the iran deal must either be renegotiated or terminated

three months later, on january 12, i repeated these conditions. i made clear that if the deal could not be fixed, the united states would no longer be a party to the agreement over the past few months, we have engaged extensively with our allies and partners around the world, including france, germany, and the united kingdom. we have also consulted with our friends from across the middle east we are unified in our understanding of the threat and in our conviction that iran must never acquire a nuclear weapon after consultations, it is clear to me that we cannot prevent an iranian nuclear bomb under the decaying and rotten structure of the current agreement.

the iran deal is defective at its core if we do nothing, we know exactly what will happen in just a short period of time, the world's leading state sponsor of terror will be on the cusp of acquiring the world's most dangerous weapons therefore, i am announcing today that the united states will withdraw from the iran nuclear deal in a few moments, i will sign a presidential memorandum to begin reinstating u.s. nuclear sanctions on the iranian regime. we will be instituting the highest level of economic sanction any nation that helps iran in its quest for nuclear weapons could also be strongly sanctioned by the united states. america will not be held hostage to nuclear blackmail

we will not allow american cities to be threatened with destruction, and we will not allow a regime that chants death to america to gain access to the most deadly weapons on earth today's action sends a critical message. the united states no longer makes empty threats. when i make promises, i keep them in fact, at this very moment, secretary pompeo is on his way to north korea in preparation for my upcoming meeting with kim jong-un. plans are being made, relationships are building, hopefully a deal will happen, and with the help of china, south korea, and japan, a future of great prosperity and security can be achieved for everyone

as we exit the iran deal, we will be working with our allies to find a real, comprehensive, and lasting solution to the iranian nuclear threat this will include efforts to eliminate the threat of iran's ballistic missile program, to stop its terrorist activities worldwide, and to block its menacing activity across the middle east. in the meantime, powerful sanctions will go into full effect if the regime continues its nuclear aspirations, it will have bigger problems than it has ever had before. finally, i want to deliver a message to the long suffering people of iran the people of america stand with you. it has now been almost 40 years since this dictatorship seized power and took a proud nation

hostage. most of iran's 80 million citizens have sadly never known an iran that prospered in peace with its neighbors and commanded the admiration of the world. but the future of iran belongs to its people. they are the rightful heirs to a rich culture and a an ancient land, and they deserve a nation that does justice to their dreams, honor to their history, and glory to god iran's leaders will naturally say that they refuse to negotiate a new deal they refuse. and that's fine. i'd probably say the same thing if i was in their position but the fact is, they are going to want to make a new and lasting deal, one that benefits all of iran and the iranian people when they do, i am ready,

willing, and able. great things can happen for iran and great things can happen for the peace and stability that we all want in the middle east. there has been enough suffering, death, and destruction let it end now thank you. god bless you. thank you. >> the president announcing that he was going to do what many assumed he was going to do he's signing a declaration saying that the united states is pulling out of the six nation do deal that postponed, at least for a few years, iran's development -- enrichment of nuclear material and development of nuclear weapons let's go now as he displays his

signature, announcing that he has pulled the united states out of that agreement. controversial move, of course. let's go to eamon javers at the white house. >> reporter: tyler, the president there continuing his criticism of the iran deal, criticism that dates back to the campaign trail the president said it simply didn't go far enough, it didn't cover ballistic missiles >> we will be will shortly in a matter of virtually probably an hour he's got meetings set up we have our meetings scheduled we have our meetings set the location is picked the time and date, everything is picked and we look forward to having a very great success we think relationships are building with north korea. we'll see how it all works out maybe it will. maybe it won't but it can be a great thing for north korea, south korea, japan, and the entire world we hope it all works out thank you very much. >> are the americans being freed? >> we'll all soon be finding out. we will soon be finding out. it would be a great thing if

they are we'll soon be finding out. thank you very much. >> vice president mike pence, national security adviser john bolton, obviously in the room. >> the president there at the end talking about the incipient or upcoming summit between the united states and north korea and announcing during his discussions of iran that secretary of state pompeo is at this moment either on his way or in north korea to do some more of the spade work and foundation laying for that summit that should take place over the next four to six week or so let's go back, shall we, to eamon javers, whom we jumped in on there, as the president began his post remarks remarks eamon. >> reporter: tyler, i was just going to say that the president was continuing his criticisms, which we've heard over the years. he's called it one of the most disastrous deals of all time so one of the things we were listening for was would there be any caveats or time delays or

exemptions or carveouts and correct me if i'm wrong, but i didn't hear any of those in this deal the president saying these sanctions are going to go back into effect and they're going to go back into effect immediately, and signing that proclamation there on the spot. so this appears to be a full reimposition of sanction we'll have to wait for some of the details to be briefed out by the white house and treasury department in terms of exactly what's going into place when and what that means for corporations >> we're showing benjamin netanyahu in a split screen with you. he has begun otoaddreto addresse country of israel. it's in hebrew right now but go ahead. >> reporter: we're going to wait for the details of exactly what's going into effect on a rhetorical level, no additional negotiations proposed by the president he's saying this is going into effect and it's going into effect now, so that's fairly dramatic from the president of the united states and also a

message there to the iranian people saying that we support you. it's the regime that we have a problem with so, the president signaling to the folks in the street in iran, anyway, that the united states has their back if not their leadership and finally, a message to north korea, which i think was one of the lynchpins of this entire speech in which he said, when i make a promise, i keep the promise so the president is distinguishing here a promise that was made by the -- his predecessor, barack obama, in terms of the iran deal then, and a promise that the president would make now under this administration the president suggesting to the north koreans that they can engage in deal making on nukes with this administration, because this president will abide by his promises, even as he's sort of tearing up, in effect, a deal that was signed by president obama back in the previous administration. so, fascinating multiple messages there >> trying to counter those criticisms if you pull out here, what is that going to meet for north korea. trying to address those head on. thank you very much, eamon here is reaction in the markets. i expected oil to rise because

it was much sharper, his statement, than a lot of people had expected, as aiden highlighted. there were no delays, et cetera. dow briefly went positive. defense etf is higher, that makes sense to me, and the energy etf is also higher. that makes a lot of sense. how is this playing out in the persian gulf states? let's bring in hadley, she is live in bahrain. >> reporter: hey there, michelle it's absolutely no coincidence at all that president trump's speech came just one day after what we saw in knows lebanese elections with hezbollah taking over 50% of those seats and president trump mentioning again and again about iran being the greatest sponsor of terror certainly in the region and of course he referenced hezbollah several times there and i think it's really interesting to note that he also tied all of this back to the potential for some kind of a nuclear fight between the saudis and the iranians because, of course, just a month ago, we heard from the crown prince of saudi arabia, basically saying that if iran were to get a bomb, saudi arabia

would follow suit as well and we know they're moving forward with their nuclear ambitions as well, as a result of this, and i think it's also very interesting to note that while this is a, you know, a good thing when it comes to saudi arabia, the uae, bahrain, their outlook for the region, it has major implications for the opec agreement because tough europea -- you have the europeans and russians wand wondering what's going to happen next. >> and netanyahu saying that israel greatly appreciates what president trump has done let's listen he's speaking in english >> if you leave all of this unchanged, all this combined is a recipe for disaster, a disaster for our region, a disaster for the peace of world. this is why israel thanks that president trump did an historic move, and this is why israel thanks president trump for his courageous leadership, his commitment to confront the terrorist regime in tehran, and his commitment to ensure that

iran never gets nuclear weapons, not today, not in a decade, not ever thank you. >> prime minister netanyahu who obviously, guys, has been in favor of the u.s. withdrawing from the iran nuclear deal, addressing the nation, both in english and in hebrew, which is a powerful statement >> never liked it. argued forcefully against it on the floor of congress. yeah >> absolutely. also, just getting some other headlines from macron, saying he is going to work with his allies >> and iranian state tv says trump decision is illegal, illegitimate and undermines -- you would predict that from them >> let's bring back in our panel. ariel cohen, bob mcnally and the independent institute's ivan eland. nice of you to stick with us ariel, your first reaction to what we heard from president trump talking a lot tougher than

many had expected, and i think we saw that in the price of oil brunt briefly going positive >> well, let's start with the price of oil russia's pumping under capacity. russia can probably increase by half a million barrels a day if the prices remain above $70, our shale oil will be able to fill that void. venezuela doesn't know what to do with its heavy oil. i'm not worried about the price of oil because of iran libya's coming back online so, no worries there in terms of trump, trump delivered a powerful message to the iranians, and i think we have a good chance that provided the internal contradictions of that regime allow that, they will be back to the negotiating table and maybe not directly, maybe with a good services of the russians or the europeans. the russians, by the way, are in the dog house because of the

sanctions over ukraine and the crimea and president putin made it very clear he would like to crawl out of the dog house and start getting the sanctions lifted, getting some brownie points with trump on iran, probably would take him a long way to do that >> ivan, comment here from president macron, crossing the wires, saying france, germany, and the uk regret the u.s. decision to leave the iran nuclear deal the nuclear nonproliferation regime is at stake what do our european allies do next, ivan >> well, you know, i mean, this could be some ploy by trump to get a better deal with the iranians of course, he tried that with the south koreans and he got a little bit better trade deal doing that but as i was saying before my previous point was interrupted, you can do this tough guy negotiation thing, but this is beyond that. this is breaking agreements that the united states, not just obama, agreed to

and presidents can't come in and say, well, i'll keep the agreements that i want to -- that i negotiate and i want and you babies "r" -- but i ahead m predecessor and i want to undo everything he does both presidents represents the united states. the other thing i noticed was how close the verbiage was to george w. bush's verbiage when he invaded iraq, which turned out to be a tough guy disaster move he said, iran is the world's greatest sponsor of terrorists and shouldn't have these powerful weapons almost identical rhetoric and he spent very little time telling us exactly why the iranian deal is flawed. also, the israelis clearly want the u.s. to attack iran to take out the regional rival so, you would think israel would benefit from a 10 to 15-year

high us t hiatus but i think that's what they want, they want the u.s. to go to war with iran and take out the regional rival or at least debilitate it. so i don't think the israeli government always has the best interests of israel involved >> let me turn to bob. the president said that the sanctions will come back and if iran begins to develop a nuclear enriched fuels and weapons, that it will suffer as never before and he said, at one point, they are going to want to make a new deal do you see it that way >> yeah, the president has told us that he is going to up the pressure he's going to turn the vises on the torture machine but i agree with your colleague a little earlier. i want to hear the treasury briefing i want to hear the white house briefing i'd like to see the details of when and how sanctions would go back into effect >> that was not specified at all, when, how, on whom, under what circumstances, what carveouts there might be

>> our members briefed by president trump about the cuba policy and how he was going to change it dramatically and ultimately, it wasn't quite as dramatic as had been promised. >> so, bob, you make a point that i think we've all been thinking about here, and that was one of the areas where he said that the sanctions are going to come back and presumably come back very swiftly, but the exact scope and reach of them, as well as the timing, was something that was not specified. >> that's right. and you know, the president has enormous discretion. he could impose every sanction tomorrow if he wanted, oil, banking, insurance, et cetera, or he could follow the law that exists and do -- wait sixmonth to assess the oil reductions, wait until july for banking, so we really do need to see the details here before we can calculate what kind of economic pain the president is about to administer to iran i think that's going to be very important and only clear from the details, not from this announcement >> ariel, we told you earlier that rouhani -- iranian state tv

is calling this illegal, illegitimate, and undermines international agreements what other kind of reactions would you expect from the iranian regime right now >> rouhani is under a lot of pressure from the hard liners. he himself has a pedigree of being a hard liner so there are really no soft liners in that regime the iranians have a bunch of options in terms of terrorist attacks, in terms of using the shia minority in saudi arabia to destabilize saudi arabia the saudis are under a lot of pressure and are scared of the rise of the iranian power in the region they are involved in a war in yemen nearby, and what my colleague ivan eland said about, you know, insinuating that israelis want america to get into war -- israelis are the ones who are threatened by the

iranian regime with annihilation let's not forget that. >> bob, you know, to your question, hold on one second treasury has just put out a statement saying they're going to be reimposed subject to certain 90-day, 180-day winddown periods and the office of foreign asset control has posted to its website is that quicker than you would have expected? >> no, it is not that suggests a six-month winddown period. we do have to hear whether the import reductions will be assessed during that winddown period or will it start after that the bottom line is the president can go one of two ways >> seems to me, folks, we've got sanctions on a lot of countries right now. i wonder how well they really work we've got them against north korea, cuba, russia, certain players in the chinese banking system and we've got them now reimposed against iran do they work >> you know, they do, because whatever the disagreements other countries may have with our

policy, there's one thing they love more than anything else and that's -- >> money >> dollars, exactly. access to the u.s. banking system and if president trump puts the choice to every country on earth and says, you can deal with iran or you can transact with the united states, but you make the choice, most countries are going to go with the u.s it's a tough choice to make. they won't like being forced to make that choice, but most rational countries and companies are going to choose the u.s. banking system and dollars over dealing with iran. >> and tyler, i think a lot of people who have worked in dr treasury would say sanctions are better than war. this is a choice they make to do this, rather than something else >> but you know what also occurs to me is that the people in the countries who are subject to sanctions have a seemingly extremely high tolerance for discomfort and pain. >> they've said that about the russians, for example. >> in a place like iran, they've been used to it. >> yeah. cuba they've been used to it. north korea. used to it >> i was in russia recently.

let me tell you something about the russians >> go ahead. >> yeah? >> the russians are looking at the short-term horizon and say, oh, the sanctions are not really messing us up, you know, the restaurants in moscow are full, but when they're looking medium and long-term, and they figure out they cannot get technology for the offshore arctic oil development or for their shale, massive shale development in western siberia, they're worried and president putin is putting the word out he wants to negotiate, he wants to solve the eastern ukraine problem, and maybe just maybe eventually come to some kind of an understanding over the crimea. it's going to be tough, but the sanctions over russia are much weaker than the sanctions we're going to impose on iran, and the iranian leaders better face the choice, are they going to negotiate or possibly the people may swipe them away. >> gentlemen, thanks so much for being here for this very important event for us ariel cohen, bob mcnally, ivan

eland, thank you >> just wanted to point out some of the defense names because we're not seeing a ton of market reaction but that is one place you're seeing strength in the session. aerospace and defense companies, northrop grumman, huntington ssnss the dow at the low of the n't go away. "power lunch" is back in two minutes. we're going to take a look at the market reaction. don't move up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital.

♪ welcome back to "power lunch," everybody. let's look at the defense stocks which are on the move as the market moves lower >> they are moving lower broadly speaking but the defense sector itself is actually moving higher, and this is being helped along by some of the new highs that we're seeing in one of the etfs right now of the day. it's backed up it was up by about 1.5%, now up by about 1.25% some of the big components in there like general dynamics, raiton it's going to be a sector that's repricing a little bit more, perhaps geopolitical risk a little bit more of the

handicapping of armed conflict at some point. it had pulled back by about 10% since around the end of april through the beginning of may so just repricing a bit now, sarah, i should also point this out, guys, boeing has issued a statement. boeing shares are lower on the day. because they have quite possibly what could be about $20 billion worth of orders with iran air and osiman iran airlines boeing has issued the following statement. following today's announcement, boeing will consult with the u.s. government. we'll continue to follow the u.s. government's lead so that's the reason why boeing is bucking the trend, moving to the downside, possibly this idea that it could be at risk offioffin losing some orders >> saudi arabia supports the u.s. decision to withdraw from the iran nuclear deal. on the defense names, thank you very much. more market reaction to president trump's decision seema is live at the nyse today. >> the big topic o. df the day e on the trading floor is of

course president trump's announcement, the decision to withdraw the united states from the iran nuclear deal. at one point, the dow actually went positive as president trump was speaking but as you can see now, we are at session lows with the down down over 130 points, the s&p, the nasdaq falling into negative territory you were pointing out defense stocks slightly higher but that's not helping the dow some larger constituents are leading the dow jones industrial, lower. also just want to point out energy stocks. they have been basically trading between positive and negative territory, but right now, the s&p energy sector, lower as we look at wti crude, back below $70 a share at 1.82% decline there. last thing i would just say, one trade ser telli trader is telling me here that what president trump announced today may be a negotiation tactic, a strategy, if you will. at this point, no final deal similar to what we've seen in

his approach to north korea a tariffs. at this point, no final deal >> thank you very much new sanctions from the treasury department will follow the president's announcement to pull out of the iran deal we will bring you the details next

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i am announcing today that the united states will withdraw from the iranian nuclear deal. we will be instituting the highest level of economic sanction any nation that helps iran in the quest for nuclear weapons could be strongly sanctioned by the united states. america will not be held hostage to nuclear blackmail >> that was a president moments ago. this is a live picture, we have some translation crossing.

iran says teheran is remaining in the nuclear deal without washington that's the one headline we got so far from the speech, and we'll watch for more as it happens. in the meantime -- and that trump has a history of undermining international treaties is also saying at this point the other news in the last few minutes is the treasury department announced new sanctions following the announcement from the president, and kayla has the details. >> reporter: a statement from the treasury secretary saying the department will take immediate action to implement the president's decision, and it will reimpose sanctions on business activities in iran, subject to certain 90 and 100-day wind down periods saying there is a frequently asked questions section on its website for companies that are looking to figure out how this decision could affect business operations if they are seeking licenses to do business in iran or if they have already been granted licenses you may remember a lot of

businesses have been doing business with iran because there were limits on doing business denominated in u.s. dollars or cleared through u.s. banks keeping financial institutions and multinational companies from expanding there or opening offices there. you can see pharmaceutical companies, energy companies, natural resources companies, and as we mentioned before, aircraft companies whose licenses were under review by treasury as it will be affected by the decision to reimpose sanctions. back to you. >> we have to highlight, you made a good point, which is that actually not a lot of business, ultimately ended up getting done in iran because people were afraid of the treasury sanctions still in place for ballistic missiles, worried that if they did business there, they would be out the u.s. dollar and swiss system if they did anything. you -- the iranians did not actually see more progress on that point and disappointed. >> reporter: yeah. it was expected that would loosen over the course of time

perhaps around 2023, but that, of course, now will not happen you had a lot of financial institutions fined for money laundering, taking a risk averse approach to funding business on behalf of clients, customers, and companies considering doing business in iran this could have a limited effect, but worth noting back in october, then secretary of state tillerson when asked about the effect on companies based on whatever the administration was doing, he said that it should have no effect, so that gave some companies a level of confidence to continue license applications, but, of course, the president made a different decision today >> certainly thank you. brent, by the way, going positive up, now, and s&p energy stocks are now positive on the session. a lot more on market reaction to the president's decision this hour to itex the iran nuclear deal next on "power lunch.

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checking stocks remaining lower after the president announced this hour he's going to pull out of the iran deal pulling the u.s. out of the deal, briefly positive in the speech, but resuming declines. i note, guys, brent crude oil, positive, also, after that speech wti remains lower, but losses cut in half. defense stocks on the move etfitb on pace for the best day since march 26th, a lot of names moving higher. wti oil down 1.3%.

they were down about 3% before president trump's speech there, the defense names, a lot of them up 1.5%, 2%, and. speaking to reporters at the white house, iran decision puts sanctions back in place that existed at the time of the deal immediately. no new deals permits, sanctions effective immediately, and saying it would be a mistake, people would be mistaken to assume this decision is a precursor to u.s. boots on the grounds in iran. >> and yet, and yet, bringing back john, there are things from the treasury, even though the sanctions are reimposed immediately, indicating certain transactions would be allowed to continue for 180 days, unless i'm misreading this. >> what i saw as well. >> unless i'm misreading it, referencing to petroleum

transactions have also some set period of 90 to 100 days effectins may not be as immedia as tomorrow. >> there's two ways of slicing or dicing this my opinion, it could get nasty from here. buckle up. i really had thought that president trump would try to finesse this, nuance this, negotiate this, but now you have seen the u.s.-israeli-saudi lay bare by the two countries to support president trump's decision >> both long time enemies of iran >> right both who have been under attack. the proxy from iran, saudi arabia has been getting hit by missiles from the rebels in yem yemen, and israeli folks were taken cover as president trump made the announcement. >> iran's president just said that if negotiations fail, the islamic republic enriches

uranium more than before, so throwing down the gauntlet there. >> talking about scenarios to your producers, i describe this as the worst case, and this is where we are at. >> yet, wti just down 1% >> in post market trading, 2:30 was the settlement i think there's some effect, but the temperature now is not going to be steady or go down, but only up. just started to hear the rhetoric, and to the extent now there is some actions if there's some stepping up by iran of the proxy strikes, they have been at the breaking point for some time now with traveling the world, they caught a break. now he's back in country now trump has dope this. one of the next attacks or

potential ataxes or attempted attacks even could be the precursor. >> ceiling on oil you foresee? >> the good news for us, saudis has 3 million capacity, but could drift up to $85. $100 plus is possible. >> john, again, thank you. >> thank you thanks for watching "closing bell" -- "power lunch" - >> thanks for whatever >> "closing bell" is next. >> we're on the floor of the stock exchange, volatile day for stocks as they hang on every word from washington >> announcing today that the united states will withdraw from the iran nuclear deal. >> full details on iran and what it means for oil and the markets. >> i'm julia in los angeles as disney is set to report earnings, we have a first cnbc