purchased by a company with a permit. it's still unclear when he obtained the water from that company or another source. the district has since settled that lawsuit. that is it for "the lead" right now. we turn you over to wolf blitzer in "the situation room." \s happening now, breaking news -- imminent deal. u.s. and western partners are on the verge of reaching a history agreement. overcoming 11th hour hurdles in the dramatic final round of negotiations. college terror plot a massachusetts man accused of preparing an attack on behalf of isis targeting dorms and cafeterias possibly with pressure cooker bombs. how close was he to carrying it out? >> shocking escape mexico's most notorious drug lord breaks out a maximum security prison through a mile-long tunnel leading u.s. officials fuming. can he be recaptured?

wrecking ball. republicans pile on donald trump, accusing him of hijacking the debate with the controversial remarks about mexican immigrants. is trump's presidential campaign a defining moment for the gop? i'm wolf blitzer, you're in "the situation room." >> announcer: this is cnn breaking news. we're following the breaking news, a breakthrough with talks in iran now believe to be virtually imminent. cnn has learned that the united states and its partners are closing in on a landmark agreement with tehran to contain its nuclear programs overcoming several last-minute sticking points. we're also following new disturbing details emerging about an alleged terror part targeting american check campuses law enforcement officials say the son of a boston police captain was planning to attack dorms and cafeterias possibly with and

broadcast student executions online all in the name of isis. at the same time iraq now says operations are under way to retake anbar province from isis forces stripping them of their stronghold west of baghdad. we're covering all of that much more this hour with our correspondents and guest, including senator tom cotton a key members of the armed service commit year. elise labott is learning new details of what appears to be an imminent nuclear agreement with iran. what are you hearing, elise? >> wolf, we expected a deal early this morning, but last-minute snags go the in the way, particularly in u.n. arms embargo, particularly the united states very concerned about the lifting of a ban on ballistic missiles. the chairman of the joint chiefs of staff warning that would be a red line throughout the day. we're told that negotiators made

a lot of progress. we're being told within hours that diplomats hope to announce a deal. we're told the presses being prepped for a possible announcement within hours. >> let's talk about this supposedly imminent deal. how do they resolved this issue? what's the formula for allows russia and china, for example, to start selling ballistic missiles antidefense missiles other sophisticated hardware to iran which the u.s. regards as a state sponsor of terror. >> they started out with stark positions. iran wanted the whole u.n. arms embargo lifted the united states didn't want any of it lifted but this arms embargo was imposed because of the nuclear u.n. security council resolutions on the nuclear issue, so as iran begins to complete its compliance with the deal begins to implement the deal my understanding from sources is this will be lifted

in phases. it won't be all at once but's iran shows, it's living up to its end of the bargain, they will be lifted gradually. ballistic missiles will obviously be towards the further end of the deal. but reference illy even those will be kernel. that will definitely be a major concern. we also have to note wolf negotiators are still meeting at this hour after these 18 days though they're finally into the homestretch, putting the finishes touching on the deal. >> the details will be critically important, obviously. elise, we'll stand by. i know you're working your sources. we'll learn more about these details. we're going to get much more on this apparent breakthrough that's coming up. we're also following the rest of a massachusetts man accused of plotting terror attacks on behalf of isis.

evan perez has been working this story for us. evan explain the plot to this massachusetts man was allegedly planning. how close was he to an actual attack? >> close enough that the fbi felt they needed to make an arrest. the fbi describes a chilling plan to carry out terrorist attacks inspired by the boston marathon bombings. alexander ciccolo was arrested after obtaining four firearms. the fbi says he's a muslim convert who had become obsessed about isis. an undercover informant recorded conversation in which he described various plans of attack. he wanted to use assault rifles targeting college dorms in the crowded cafeteria. his plan included pressure cooker bombs like those used in boston. they would be packed with nails and ball bearings. he also allegedly wanted to carry out executions of stutz and brand them on the internet.

according to the fbi, when they searched ciccolo's apart, he already will constructed some molotov cocktails. >> he's 23 years old. he went by the name of ali al amriki it means ali the american. >> according to the fib, he was inspired by the boston marathon bombings. that's what drove him to try to make these plots. incidentally wolf he's the son of a 27-year-old veteran of the boston police department someone who was one of the first responders in -- after the bombing, and we also should note that the fbi says that he has a history of mental illness, that he's been in and out of the mental institutions since he was a child, so that is also going to play into these charges. >> they decided to pick him up and stop him even though they

had been watching him for a long time. >> if you remember before the fourth of july weekend we were getting all this is warnings about possible plots that they were looking as this is one of the ones they were thinking about. what concerned them is not the plots they had their eyes on but possibly missing others they didn't know about. >> with that disturbing story, thanks very much. we'll have more on that later as well. we're following a report from syrian monitors saying two senior isis leaders have been killed for what believed are coalition air strikes within syria. iraq says it's begun operations to try to regain -- barbara, what are you picking up? >> two key goals, the stronghold ramadi the city iraqi forces fled to months ago and fallujah.

the iraqis saying the battle is on the u.s. saying not so fast. they're not seeing a lot of movement by forces on the ground. onducting nearly 30 air strikes around ramadi to try to go after isis staging areas. that they want to get out of the way before the iraqis go in. this takes us right back where we were two months ago. will the iraqis -- will the iraqis fight? be able to take ramadi back and be able to hold on to it. wolf? >> barbara, also over the weekend, the syrian weariryrian war planes

also conducted strikes. what do we know about this attack against isis? >> very fascinating, raqqa in northern -- the self-declared capital, of course, in syria. over the weekend the u.s. was conducting a number of air strikes around raqqa. now they say the syrians were there at the same time. this is very unusual. u.s. officials telling me they believe it actually may be the first time they shared airspace with the syrians. they do not coordinate with them. they have no means the really communicating with them when they're up there on the bombing runs. there's a lot of concern this air campaign may have gotten more dangerous. if the syrians are up there at the same time the risk of course is it could lead to miscalculation. fascinating to figure out what the syrians thought they were going after in raqqa at the time but all eyes on raqqa. this is a place where air strikes have really picked up in the last couple weeks. it is a place where the working

theory, at least, for the u.s. is that the leaders of isis may be holed up there. wolf? >> barbara, thanks very much. i want to talk about all of this republican senator tom cotton the arkansas a member of the intelligence and armed services committee. thank you for coming in. lots to discuss, but let me get your thoughts on this apparent imminent deal. within hours, john kerry could announce along with leadership that this historic deal is signed. don't you want to read the details, the 100-page document before forming a conclusion? i know you hate this deal. >> as you know i don't think we should have gone down? path to begin with. on you in particular by extending the deadline. what the president and john kerry have already said is about to make this deal dangerous for

the united states and for the world. >> why not look at the details. you have 60 days to review it. >> unfortunately i think the details will only show it's even worse than we imagined. >> would you doi say that? >> the started negotiations by saying very simply or goals is to end iran's nuclear program. they dismantle the nuclear program, but since we have walked farp away from that goal. we granted them the right to keep the fortified bunker. now they get a signing bonus, and we might even lift an arms embargo at the time they're still destabilizing the middle east. and still the world's worst state sponsor of terrorism. >> you heard elise labott report that the embargo could be phased out over a long period of time. missiles might not be allowed to be sold by china or russia anytime soon. is that okay? >> no, i don't think it's okay.

>> at a time when iran is destabilizing iraq syria, lebanon, yemen and when they're about to get tens of bills on it would be the height of folly to even discuss the lifting of embargo. i think they'll have to reassure the people there's not lift of the embargo, and they'll offer their veto. >> you think you have the votes to stop it if the president goes forward? >> i can't imagine any members of congress who have supported at this point, voting for the deals that gives them a signing bonus, but also has the possibility of lifting conventional arms embargo. remember this is not like any -- this is not a vote for higher taxes, where you face tv

ads and it's behind you, anyone who votes for this deal is living with the ayatollah's decision to go nuclear or not during the rest of his or her teem. stand by senator, we have more to discussion on this the new isis development, arrest of an individual in massachusetts today, allegedly conspiring to launch some sort of isis attack. much more with senator cotton right after this. [meow mix jingle slowly and quietly plucks.] right on cue. [cat meows]

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breakthrough with the talks with iran now believed to be imminent. western diplomats telling cnn the partners are workclosing in on a landmark agreement. we're back with senator tom cotton of arkansas a member of the intelligence and armed services committee. basically to stop this deal you hate this deal you need 34 senators to blomck it. will there be 34 senators? >> based on the direction of negotiations have taken in the last three months and some of the negotiations we're hearing i believe there will be, i think there will be an orebellion. >> 34 senators to support the

president's deal the john kerry-led negotiations 34 will have to vote yet, and obviously there are more than 34 democrats. >> can't imagine any united states senator or congressman voting to give iran $100 billion or mo in a signing bonus, and at the same time even opening the prospect of lifting the embargo. >> this is iran's money that has been frozen by the international community. that freeze will be lifted as a result of the deal but lifted over a period of time. >> remember why iran's money is frozen. they are an outlaw regime. they killed hundreds of american troops in iraq to including soldiers and marines that were just out patrolling. they are still a force for instability in iraq and lebanon and syria, and yemen. they're still the world's worst state sponsor of terrorism. >> the state department still agrees with you on that. >> if iran wants their money back and be treated like a

normal nation they need to act like it. >> no part of this deal will require iran to release four american citizens being held prisoners, including a former marine. >> i think that should have been a precondition for even starting these negotiations that every american being held hostage should have been released. "wall street journal" has reported that the united states released or helped to release convicted arms dealers secretly in the early days of the obama administration just to get iran to the table. that's the exact opposite of the way we should have been acting. >> what do you make of this arrest today of a 23-year-old massachusetts man, alexander ci. counter colo-- ciccolo, allegedly plotting to go to a college campus or campuses in massachusetts and start killing people. >> it's breaking news an ongoing investigation, so i

don't want to prejudice of investigation, but two points. first the fbi and our intelligence community deserves a tremendous amount of credit for the work they did. this happened on july 4th when people were on the arkansas river or on the national mall celebrating. fbi and intelligence officers were working overtime to keep us safe. second it demonstrates how serious the threat is to our homeland right here from the islam ir state. oftentimes they are recruiting potentially adherents to attack citizens without even going to iraq and syria. that's why we have to keep the pressure on the islamic state. >> you heard the barbara starr error that the iraqis saying they're going to go -- launch a military offensive to retake from isis or isil as some call it. do you have any confidence left in the iraqi military or

government? >> it's unclear if they have the -- the united states is not providing them the level of support they need from the air, but also not providing them the support they need on the ground. we have about 4,000 trops acting mostly as trainers. even some former obama administration officials have said we need to put -- i hope this offensive is successful. i can't say i believe it will be. >> there's much military equipment, sophisticated that the u.s. has given the iraqi military so much has abandoned by retreating iraqi forces and that military equipment is now in the hands of isis. can you truck the iraqi military? >> certainly you could tryst them more if you had special forces and controllers down at the level everyday ground level. it will be there to stiffen their spine and give them the

capabilities -- >> you served with the u.s. military in iraq so you know the situation over there as well. thanks for coming in. >> thanks, wolf. new details of a stunning prison break on mexico's most notorious drug lord escaped. plus republicans now joineding democrats. they're piling in piling on donald trump. the controversy he sparked about mexican immigrants is taking over the race at least seemingly, for the white house at this stage. the american dream is terrifying. american history is the history of the scary thing being the exact thing we have to do. cross that ocean. walk on that moon. fly. none of this makes rational sense. it only makes american sense. here, the hard things show us who we are. leaving your job to start your own thing. having a kid when you still feel like a kid. signing a 30-year mortgage on a home.

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imminent maybe only hours away western nations, diplomats are telling cnn the hope is to strike a final deal in the next few hours. let's dig deeper with the former congressman mike rogers he was chairman of the house intelligence committee, also jane harman the leading intelligence intelligence. disapproval, if they do this the president can veto that then they need two thirds vote two thirds to override, otherwise the deal goes through. does the president have the votes? >> not this minute he doesn't. i think senator tom cotton who was just on this program, makes a good point. if there is relaxation of the u.n. conventional arms embargo, i think people will get very upset. no one is missing the optic that

there are 100,000 hezbollah rockets aimed at israel along the lebanese border and those rockets were provided by guess who, iran. i think over this august recess there will be fast and fewius lobbying. >> a lot of your fellow republicans, congressman, they're clearly going to vote against this deal. what about the president? will he have the support with fellow democrats in the house and senate? >> i think it really depends on what has been negotiated in the last 72 hours, we really don't know. the framework i think was objected to by both republicans and democrats, because it narrow less focused on -- left off weaponization and left off missiles. iran is clearly trying to drive another wedge here with the conventional weapons embargo. that is a serious problem. >> they want let's say russia or china or both.

they'll have a lot of cash once they have $100 billion, and the russians want that, too. that's always troublesome when you talk about where they're going to be and what troubles are ahead on that particular issue? >> it's going to be a complicated argument. one of the issue says whether there was in the interim deal whether this is nuclear related. the u.n. resolution on conventional weapons. common sense would say it isn't, but the iranians are arguing this was in the deal and it's an issue of sovereignty and so forth, but politics does matter here. is it your understanding that all 100 pages about the secret parts of this deal that congress might not necessarily -- and might not necessarily know about.

the other permanent members, including russia and china know about it. why shouldn't the american public and the congress know about it? >> well congress should know about it no doubt about that. i don't care what classification it is but there might be some monitoring sections of that bill that would be classified for a whole host of reasons. >> b, they don't want to disclose the methods of which and how they will continue to monitor certain aspects of any deal. i do believe those portions would legitimately be classified but they should be absolutely fully 100% to congress. >> you make a good point, wolf. they shouldn't be classified so that we can't see them when people in every other country can see them. if the monitoring techniques are kept secret i think that is possibly a good idea. >> we see how these inspections work out anytime anyplace at a

moment as notice or will they have to way 20 days. >> and what sites they go in is critically important. if you want to lose congress, they'll limit the number of places and sites with that 24 hours. >> and congress is primed for this debate. it's a good month for congress. they'll going to be real active. >> once the deal is reached, 60 days to consider it. thanks very much guys. anger over a brazen prison break. from a showers to a secret tunnel. plus republicans joining democrats in denouncing donald trump. he's saying a lot about undocumented immigrants.

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do you feeling now, anger and disbelief here in the united states and in mexico over the brazen way one of the world's richest, most no towerius drug kingpins broke out of prison. brian todd has new information. >> wolf tonight there's so much fallout over this escape that i've spoke to u.s. and mexican officials who have cursed over the phone from sheer frustration. he was not supposed to be able to sneak out, but tonight he is gone he is dangerous, and in mexico city and washington, officials are furious. one mexican official says he's their bin laden, the world's most powerful drug lord with the blood of count less people on his hands.

tonight the ecase of joaquin "el chapo "guzman has u.s. official fuming. >> while dea is very emotional about this, thee disillusioned, they're frustrated and there's a lot of anger, because obviously they wanted him when he was captured in 2014 to be extradited to the united states. >> former top d.e.a. official michael vigil says officials have been venting to hem. mexican officials say he crawled through a small opening down a ladder to a sophisticated tunnel about a mile long. a mexican official tells cnn more than 30 people are now under investigation for possible roles in the escape and said guzman must have bribed several is prison officials. they likely did it for more than just the money. a key motivation?

fear. >> the offering to people in other words you take my money, silver or you take my lead the bullets. >> a u.s. law enforcement official says this escape illustrates week they argued for guzman's extradition when he was captured last year. a mexican official calls that unfair and points out mexico extradited another top deputy only to see him cut a deal in the u.s. the justice department hasn't responded to that claim. guzman's escape has even more lethal fallout on america's streets. vigil says they makes pablo escobar look like a girl scout cookie salesman. the sinaloa cartel has a foothold in chicago, in phoenix, and throughout the midwest. >> they have dropped the price of heroin and increased the production. what you see in the northeast and the northwest, where there

are these big spikes people who were addicted to oxicodone and that derivative are buying the sinaloa's heroin because it's cheaper. >> don winslow can you see hublg these areas could feel the pinch. this is the area -- winslow said in recent weeks there were more than 100 drug-related killings in and around tijuana, and those most likely involved the sinaloa cartel. they may push even harder for this area. it may get ugly in the future weeks. joining us is tom fuentes and evan perez.

tom, this escape plan is very elaborate. tell us what it entailed really when you think about how sophisticated that tunnel was, for example. >> first of all t. required the blueprint of the print so when they tunneled and came up they would come up next to his cell on in his cell. also it entailed having a full construction company. this is a professional construction company, specializing in building tunnels, which he has many companies that he as tunneled under the mexican/u.s. border many times, been caught many times. that's their primary way. he brought a professional engineering company down there to do the actual construction. >> has mexico asked the u.s. for help? >> they have asked the u.s. justice department and the justice department says they are willing to do that wolf. keep in mind that the 13 years he was on the lam the last time the justice department d.e.a. marshal's service, all were working towards trying to capture him. as a matter of fact the d.e.a. and the marshals played a key

role in his capture in masseszatlan. >> if they capture him, the u.s. would love him to be extradited. the mexicans refused to do so last time. >> and i don't think members could would give him up no matter what. i think the mexican government is afraid of him of the extensiveness of the corruption in that country that supports him and the other car tells. i think they're afraid if he came into the u.s. in super max, he might just give it up and do a lot of damage to the mexican government. >> how worried are the u.s. officials potentially that he and the cartel could do while he's out there unaring around. >> they do believe, as brian just pointed out, there will be more violence.

since he's been gone you know there's been inroads by other cartels, and he's going to try to reassert his control not only over his territory, but primacy over the other drug routes. for now they believe -- officials i talked to believe he's actually probably not in mexico probably laying low in neighboring countries until the authorities get tired for looking for him. >> clearly a very sophisticated operation. millions and millions maybe billions that they have. coming up more details about the latest isis-related arrest. the 23-year-old suspect allegedly planned to set off homemade bottoms on college campuses including cafeterias and dorms. donald trump is sounding off, drawing more criticism from some of his fellow republicans. >> i play golf with him, i'm

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rhetoric and sharing an unusual proposal to stop illegal immigration. >> we charge mexico $100,000 for every person they send up. >> reporter: offering up more tough talk on the issue. >> i respect mexico. greatly as a country. but the problem we have is that their leaders are much smarter, sharper, and more cunning than our leaders. and they're killing us at the border. and they're killing us in trade. >> reporter: his speech interrupted by protesters. >> usa, usa! >> i wonder if the mexican government sent them over here, i think so. >> reporter: trump pointed to the recent prison break of joaquin el chapo guzman, tweeting kingpins like him use the border unimpeded for the drug trade. prominent conservatives challenging trump's claims. rupert murdoch who owns fox news tweeting members gantt immigrants as with all immigrants have much lower crime

rates than native born are republican presidential rivals saying he's hurting the party's chances in 2016. >> i think he's hijacked the a date bar i think he's a wrecking pal for the future of the republican party with the hispanic community and we need to push back. >> reporter: with democrats blasting his statements before the hispanic group la rasa today. >> no one, not donald trump, not anyone else will be successful in dividing us based on race or our country of origin. >> i have just one word for mr. trump. basta. enough! >> reporter: a trump adviser pushing back at the criticism. >> he sparked a conversation about really immigration reform. and that's something that i don't think the republican party was prepared at this time for. >> reporter: right now, that conversation is having an outsized impact on the race for the white house. even providing fodder to comedians, prompting a joke from

david letterman, playing off the 1980s film "three amigos." >> donald trump has pissed off so many mexicans he's starring in a new movie entitled "no amigos." >> he's dismissed it before sorry. one more thing about that exchange between el chapo guzman and trump, we know donald trump is an avid fan of twitter and it looks as though el chapo guzman may be a big twitter user too. an account believed to be used by guzman tweeted at trump in spanish, promising in rather colorful language to make him "swal he his words" about guzman. trump's campaign alerted the fbi which is looking into it though it's unlear at this point if that tweet constitutes a threat legally speaking. also not entirely certain who sent the tweet. >> just investigating, not necessarily starting a formal criminal investigating, just looking at this alleged threat? is that right?

>> that's exactly right. a formal -- opening a formal investigation is a whole other process. they're looking into it as they would any time someone like trump brings an alleged threat to them. >> they should look into that obviously, it's a serious issue. we'll take a look at and see what else we can find out about it athena thanks very much. coming up new details of an alleged isis-inspired plot to bomb u.s. college dorms and cafeterias s cafeterias. we're learning new information about the massachusetts man under arrest. the breaking news we're following, a nuclear deal with iran. now said to be imminent. but before we get to all of that i want to take a look at what's going on in the democratic side right now. the hillary clinton is getting more information, releasing more information i should say, about her economic policies. here's our brianna keilar. >> hard-working americans -- >> reporter: in the first economic policy speech of her campaign hillary clinton

slammed florida senator marco rubio for his tax proposal. >> senator rubio's would cut taxes for households making around $3 million a year by almost $240,000. >> reporter: and jeb bush for saying this. >> people need to work longer hours and through their productivity gain more income for their families. >> reporter: bush clarified he was talking about americans who are working part-time and want to work full-time, but clinton seized on his comments. >> now, you may have heard governor bush say last week that americans just need to work longer hours. well he must not have met very many american workers. let him tell that to the nurse who stands on her feet all day, or the teacher who is in that classroom, or the trucker who drives all night. let him tell that to the fast food workers marching in the streets for better pay.

they don't need a lecture. they need a raise. >> today in washington -- >> reporter: she targeted wisconsin governor scott walker for taking on unions. >> republican governors like scott walker have made their names stomping on workers' rights. and practically all the republican candidates hope to do the same as president. >> reporter: as clinton laid out a plan she said will increase take-home pay for the middle class, she said corporations should profit-share with employees. >> hard-working americans deserve to benefit from the record corporate earnings they help produce. >> reporter: she questioned the side effects of the so-called shared economy. jobs created by companies with similar business models to uber. >> this on demand or so-called gig economy is creating exciting opportunities and unleashing innovation. but it's also raising hard questions about workplace protections and what a good job will look like in the future.

>> reporter: the former senator from new york whose family foundation is under fire in part for accepting corporate donations, embraced the economic proposals of popular elizabeth warren promising to take on wall street. >> we'll ensure no firm is too complex to manage or oversee, and we will prosecute individuals as well as firms when they commit fraud or other criminal wrongdoing. >> reporter: reaction now from some of the republicans. srepublicans, the bush campaign saying hillary clinton is proposing failed policies of the obama economy and promising his policies with spur economic growth. the rubio campaign saying clinton wants to take us back to yesterday, that's a quote, and slamming the economic policies of clinton years. but also the bush and obama years. wolf? >> brianna keilar, thank you. we're following the breaking news, a final nuclear deal with iran now said to be imminent. stay with us.

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happening now, breaking news. nearing a deal. secretary of state john kerry pushing toward a big announcement. will negotiators reach the finish line in the next few hours? students targeted. new details about an isis-inspired plot to bomb college dorms and cafeterias and to execute students live online. tonight, an american has now been arrested along with an arsenal of weapons turned in by his own fath