td ameritrade. ♪ welcome to "inside politics." i'm john king. thank you for sharing your day with us. oil prices spike in the middle east on edge following a tax on saudi arabia's energy infrastructure. the trump administration blames iran and the u.s. says it is locked and loaded. plus, aides rush today to say locked and loaded doesn't necessarily mean a military response. and the president insisted he never said something that he said clearly on camera and was then repeated by two cabinet members. nearly 2,000 auto workers on strike. gm says they've made a fair offer.

workers see it very differently. >> job security would be nice if they keep this place open. we don't really have a car. it's scheduled to close. i just need a future. i don't mind working hard to get it, either, but give us something. >> a lot of news to get to that hour including that important strike, but we begin with uncertainty after this weekend's attack on oil facilities inside saudi arabia. we, of course, are watching oil prices. crude oil prices spiking after they effectively were slashed in price. heating oil, natural gas all up as well. top administration officials are meeting today at the white house amid ongoing discussions about the attack and iran's possible role in it. they're also discussing options for u.s. response. president trump this morning suggesting iran might be responsible for the attacks, tweeting in part, quote, now they, meaning iran, say they had nothing to do with the attack on

saudi arabia. we'll see. this comes after his secretary of state was very quick to pin responsibility directly on iran. iran denying any role here. president trump also tweeting over the weekend what many interpreted to be a threat of military action saying, we, quote, are locked and loaded depending on verification but are waiting to hear from the kingdom as to who they believe was responsible for this attack and what terms we would proceed. it is being said that "locked and loaded" is definitely a threat of military action. what are the saudis saying? >> reporter: the saudis are saying it was not fired from yemen, which is what the houthi rebels claimed. they say they were iranian missile systems that hit the petroleum facilities here, so they're clearly laying the blame for the weapons, at least, at iran. they're not saying yet

specifically where they were fired from, only that it's not yemen. they say they will get to the bottom of it. my understanding is there is more information to come on this at this time, but if you take what the saudis are saying in concert what secretary of state mike pompeo is saying, that the weapons systems weren't fired from iraq to the north of saudi arabia, and they didn't come from the south as the saudis say from yemen, that really leaves one place, iran. just to add a little context here, when the saudis in the past have said the houthis have fired weapon systems at them before and they sent the weapon systems to the u.n. for confirmation that they were made in iran, the u.n. has come back and confirmed some of that information. the saudis have a track record of calling it right on iranian-made weapon systems. we don't know yet if that's the case here. they haven't provided the evidence thus far, but that's the direction they seem to be traveling in at the moment,

john. >> nic robertson in saudi arabia. great to have you at the capital in this sensitive time. callie at wood, michael bender and greg ipp. the president says, i want to hear from the kingdom. what do they believe? the saudis are coming up with the same thing mike pompeo said, iran did this. if iran did this, what will the response be? >> that's what they're talking about at the white house today. it is interesting to see there are a number of principals' meetings happening at the white house. it's different to see when there have been incidents like this. the question here is what are the options on the table and what is president trump willing to do when iran shot down a million -- $11 million u.s.

drone, trump was thinking about military action but he called it off before they actually took action. what will it take for trump to take action? i don't think the allies in the middle east are really expecting him to do anything, but it's up to the u.s. to decide what they are going to do before they make any decisions regionally about what they are going to do. >> you see the president's tweet originally, "locked and load loed" and the white house says that doesn't necessarily mean military action. they're trying to buy space. space for what? >> this is really first and foremost their issue. there is some timing issues for the white house. it doesn't feel like there is a lot of urgency in the moment here to respond in the next 24 hours to iran. the president's schedule, in fact, would sort of suggest

otherwise. he'll be out of washington for a couple days doing some campaign stops. it's unlikely that the u.s. would lead strikes while the president is campaigning on the west coast. so it does feel like there is some time here to let the saudis get -- figure out what they're going to say. they're sharing intelligence, our colleagues at the journal are sharing that american officials have shown them evidence, intel, to show these attacks have come from iran. and also you have the dynamic here with congress and particularly a republican senate that is sort of reticent to get involved in what they view as a saudi-iran issue. >> they have the evidence gathering, if you will, the intelligence gathering. the questions of possibly war and peace. you have attacks that have cut off about half of saudi's production then you have the tensions. what does that do in terms of

the global economy which was already in an iffy place? >> it's not good. right now it's containable. we have the prices of oil up around $6. for the u.s. that's 3% of gdp. it's not a big deal. it's not zero. they will benefit a little bit from higher prices. also the world knows that we have roughly a billion barrels of spare oil in various reserves that can cover six months of outages. for all those reasons, there is no reason to push the panic button. one thing you should worry about, is there a wider conflict between saudi and iran that results in a higher cutoff of supply? do you have prices spiking $40? that would definitely be a big problem. we have other urgencies going on, the tariffs in china, brexit and so on. how much more can the global economy take? not a lot more. >> do we know, and i don't want to simplify this, but if you're

the average american and you're thinking this through, and you are a stressed american, you might think, what is this going to do to me? gas prices during the presidency, they spike up and down within every presidency, sometimes the president doesn't have anything to do with it, but sometimes the president gets blamed for it. this president is lucky considering gas prices during his presidency have been historically low and you haven't had a huge price spike because of events. he's also a president about to be up for reelection. if this goes on for a bit, what's the impact at the pump? >> first of all, he knows us quite well, which is why the first policy response he's talking about releasing oil from the petroleum reserve. that's a very targeted response, which is probably one reason we haven't seen a lot so far. like you say, prices have moved up and down a lot during his presidency. we had a spike in oil just this last may. so there is no reason to look at gas prices and say, this is a

disaster. but it's kind of the headline risk. just like most people in businesses have not been directly hurt by the tariffs, it's all they read about, and now they'll be reading about gas problems and oil production short shortages. it just adds to the mixture that's very negative for confidences, especially businesses. >> trump made a response about releasing reserves. he also called on agencies to expedite pipeline production, some of the projects in the works in texas and other places, which is kind of interesting in that the release from the reserves should hold the markets over for a while, but meanwhile, this was a single biggest disruption since the first gulf war to oil markets. and even though the u.s. has become the largest producer of crude, that kind of disruption shows what sort of pivotal roles saudis still play in global oil markets. >> there's a supply element and a psychology of the markets. does it matter that the president is having these

meetings today without a national security adviser? does it matter you have a turnover. say this morning, mr. trump, i might also apologize to john bolton who warned repeatedly that iran would take advantage of perceived weakness in the white house. the campaign has been borki iwo and abandoning it now would take more military risks. you have secretary pompeo, you have a relatively new secretary in secretary esper. does the absence of bolton make a difference here? >> of course it does. without a national security adviser who has been with the president as bolton had for over a year, the decision making is not as it traditionally is inside a white house, right? we should also note the president is considering right now who he is going to have step into those shoes. so he's distracted to a degree from focusing on one thing. but i think it's important to

note that, you know, the tweet that we saw from secretary pompeo over the weekend expli t explicitly and quite immediately called out iran for these attacks. that was before anyone else from the intelligence community was able to do so. we still haven't seen any intelligence that explicitly says iran was to blame, so even though john bolton is gone and he was an iran hawk, there is still an iran hawk on the president's national security team, and he is arguably one of the most vocal members of that team, and a member of the team we know the president listens to quite often, and that's important to consider. >> if they stick with that, what will they do about it? what are the options? they seem to be buying some time to think this one through, consult around the world and everything, but an important question is, what do you do about it? if you directly blame iran, what do you do about it? some confusion when the president speaks and then aides come out to say, what he really meant to say is something

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wrongly reporting that i would meet with iran with "no conditions." >> i would certainly be willing to meet with iran. >> no pro-conditions? >> no. if they want to meet, i'll meet. >> that was the president of the united states, no pre-conditions. two cabinet members repeated the "no pre-conditions" line just last week. >> i would say secretary pompeo and myself and the president are completely aligned on our maximum pressure campaign. i think you know we've done more sanctions on iran than anybody, and it's absolutely working. now, the president has made clear he's happy to take a meeting with no pre-conditions, but we are maintaining the maximum pressure campaign. >> i think you might have heard the words "no pre-conditions" there. jackie co sin nis with the daily beast, manu raj u and the

"washington post." we talked about the chief consequences, the economic consequences. as this plays out, does it matter if you're an american resident, an american journalist or someone in iran trying to figure out what he's trying to say and he says he didn't say something when he clearly said it. then his aides come out and say, don't pay attention to the president or don't take him literally. >> we've seen this not only with iran but a lot of different situations on the international scale, and domestically, for that matter. whether the president is doing it to sow confusion, whether he's doing it for a reason we're not thinking of, it's a reason why globally there is a lot of confusion in dealing with this white house, because they don't know if an ambassador, if the secretary of state is actually speaking for the president, and the president changes his mind so frequently, it does have -- this is a consequence of that. >> what does the president

actually want here and how does this align with what his own personal views are? often you hear the president talk about retreating from the world, pulling back from military conflicts, trying to pull out from places like afghanistan and the like, not wanting to be the global policeman, as he has said on multiple occasions. the president has a conflict in his own message and what does he ultimately want to get out of here. some claim he doesn't even know what the next steps are, which is why they're probably showing some confusion. >> it's more important if you're an ally than an adversary like iran. what's clear is the president wants the meeting with rouhani, he still wants the meeting. now that eiran has drawn a bold line saying this is not going to happen, trump is trying to say, remember that lils st of a doze conditions that pompeo put out,

that's part of it. "locked and loaded," president trump is much more bold on twitter mobile phone than he is with the adversaries. he showed his rhett tense etice first two years with his ability to do that. >> there are no good choices for the president here. there's no good choice for any president here, whether it's obama or trump or any other administration. but this happens to be as we head into an election campaign. so on the one hand, the president trying to be muscular, "locked and loaded." iran, you'll pay some consequence, whatever that consequence may be. he's a president heading into a reelection cycle that has an economy that's already showing some signs of at least slowing and possibly tipping into recession. so the president tweeted today, fear not. the energy sector can fill in the blanks here.

it's a hard one, anyway, but the timing makes it harder. >> he wants to look tough. he always likes to sort of show that he's out to -- you hit me, i'll hit harder. then he wants to ease people's concerns about any sort of economic recession, people feeling this in their pocketbook as he goes to a reelection. at the same time it's sort of interesting to watch this from the hill perspective. we've seen the president do this -- you mentioned domestic politics. he says one thing and does something else. lawmakers on the hill have done this without reason over and over again. you see romney coming out and saying, attacking iran over this would be a great mistake. let them defend themselves, we're already selling them arms. so lawmakers feel the need to chime in, but over time as he makes these sort of threats on twitter, people are like, is this the boy who cried wolf? they don't know when things are really serious and they need to intervene and try to talk him back, or if this is just trump

being trump on twitter. >> will adversaries even listen to these threats after a while and take they cm seriously? >> this situation escalates dramatically what has been a long and bloody war. but guess what, the united states is with saudi arabia which has been responsible for a lot of bloodshed in yemen, using american weapons at times. that's why you see the democrats measuring inial. tulsi gabbard saying, use having our country act as assault and battery's b is not "america first." they don't need to do this. >> i think that's right. you put all the democratic talking points up there, but there is also a similar sentiment from the republican

majority in congress right now, right? they are still sort of frustrated over the assassination of ckhashoggi and what iran views as a long sought-out battle. >> that's right, this will get attention, but there is the history of the president's mixed and confusing statements but the fact they have coddled khashoggi after that murder, and a lot of people don't have love for khashoggi at this point. united auto workers walk off the job, throwing another wrench into america's economy. ll the b. 2/3 of employees said that the workplace is an important source for personal savings and protection solutions.

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more torture mourmoil in th today because much a strike by general motors. more than 30,000 workers walking out of 30 g mrkm factories in n states. it's the auto industry's first big strike in a dozen years. you see some live pictures of some picketers. they're claiming they're putting wages in front of benefits.

they've been at the table for a few hours today, president trump urging the parties to get together and make a deal. kaylee halsey joins me now. is it one sticking point or multiple things that hold the people apart? >> we have wages, we have trying to get seniority for the temporary workers. really several issues here which are very difficult to work through for both sides. it's hard to tell where they're at at this point. they've been negotiating since 10:00 this morning. i've been told that those negotiations are ongoing at this point. >> i was told just before we came on the air that you had been in touch with gm in the middle of the negotiations saying they go on. the general motors statement on sunday says we presented a strong offer that presents u.s.

jobs and it's disappointing that the uaw leadership has chosen to strike. we have negotiated with a sense of urgency. take us outside the union calculation here. they could have had a strike at one or two plants, they could have done something less broad. they decided to go big. what's the strategy behind that? >> experts are saying the reason for that obviously is to -- we have a lot of frustrated workers here. i'm sure you're aware there are four unallocated u.s. plants, general motors plants. those workers have -- a lot of them have been transferred to other places, and they still have jobs but they're very upset that they've had toleave their homes. i'm from youngstown, ohio. i covered the lordstown assembly plant for four years. i talk to those people all the time. they still have homes in the youngstown area and they're renting apartments where they're at, whether that's bowling

green, kentucky, lansing, michigan or flint, michigan. these people are upset. they feel like gm breached a contract with them, and they want gm to hurt, i think. i think the union leadership recognized that, recognized how frustrated the workers are over that situation. but on top of that, john, you have this ongoing uaw federal investigation into corruption, and really, i think the union leaders recognize that they need to show their members that they have gone to fight for them with a contract with this ongoing federal investigation. they want them to know they have fought for everything they could and going on strike was a last resort. >> kalea, appreciate it. you're on the ground. we'll keep in touch in the days and hours ahead if necessary. the president has to make

war and peace decisions about iran but also has to worry about the economy here at home because of energy prices. here you have an auto strike including states critical to the trump map, and workers who said, i am your voice. select me and your lives will get better. he has nothing to do with the negotiations between the union and gm, but he has everything to do with the outcome here. >> there is a fascinating set of politics at play here, because you have leaders who trend toward democrats, then you have the union workers who over the past few years have become more trump supporters. he really does have to watch his words here because right now the union leaders and the people they lead are in lockstep. >> just to piggyback on that a little bit, trump did earn more support from union workers than republicans in 2012. but he's also closer to the leadership of gm. he tweeted about gm keeping some jobs in the country at one point. one of his former national security and economic council ald vizers is one of the vps for

global public policy at gm. and meanwhile he's trying to throw this needle in states like michigan, pennsylvania, wisconsin. my colleague was up in minnesota. he was working on a story about this issue and talked to a regional labor president in minnesota who said that trump is still a serious problem for him, and he said that he has members who said, quote, i've voted republican and the world didn't fall in, so maybe i better keep doing that. this is a serious issue for unions right now. >> watch it play out again, the largest strike against the auto industry in a dozen years. keep an eye on it. sometimes these things are settled pretty quickly when there is a crisis, sometimes they drag. pete buttigieg, a question to you today. if you win the nomination, who would be your running mate? >> see the journalists licking their chops back there?

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the issue of corruption for 2020 hopeful elizabeth warren. she said she'll spotlight a nine-point plan for cleaning up politics. top on the list, making sure there are things under value for campaign finance law. she also wants lobbyists banned from all fundraising activity, and she said senior members of congress should be barred from serving on boards at for-profit companies. the senator will unveil this plan tonight. we're told it will be unconventional. how so? >> reporter: we're going to see senator warren do something she doesn't do on the campaign trail, and that is read off a teleprompter. she usually speak off the cuff and doesn't need notes, but

tonight she'll use prepared notes. in fact, the last time was at a launch event in laurel, massachusetts, and what's interesting there are some parallels of that speech she gave back in february and the speech she's giving tonight. that speech in february was in everett mill in lauren, massachusetts. this was the site of the famous 1912 bread strike, one of the country's better known labor strikes, and tonight she'll be speaking in washington square park in downtown manhattan. this is right around the corner from the triangle short waves factory. this is where a big fire took place and dozens of workers ended up dying. that fire led to workplace safety regulations so significant in its symbolism as well. and the backdrop for this anti-corruption plan you just talked about that elizabeth warren released just this morning, which of course has been a big overarching theme of her campaign, and i will just quickly note before i go that she has some good news headed

into tonight as well. the working families party just announced it will be endorsing elizabeth warren in the 2020 primary, john. >> a boost for her as she unfolds this plan, and president trump making the case that on all the issues you're frustrated, there is a rigged system. up next for us, a report on supreme court justice brett kavanaugh. saying allegations ate minimum cal -- at a minimum calls for a new investigation. >> someone should investigate this. because the fact that something has not been prove, it doesn't mean it didn't occur. right? i don't think that in the united states senate that the leader of the senate would allow that

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the ugly partisan clash over supreme court justice brett kavanaugh is back. democrats are calling for kavanaugh to be impeached. kavanaugh, however, says it's kavanaugh being assaulted and the justice department should come to his rescue, whatever that means. the sunday times had an article based on a new book.

it showed a sexual allocation by a classmate at yale who said he witnessed something between kavanaugh and another student. another witness is calling for impeachment proceedings. the book reports the female student declined to be interviewed, and friends say she does not recall the incident. kavanaugh supporters, including the president, are attacking the reporting. the one who is actually being assaulted is justice kavanaugh, the president tweeted. he went on to say, do you believe what these horrible people will do or say? they should be sued. back into the room, the addition of the editor's note opened up to those, the president included on kavanaugh's side, and on the right who think the "new york times" is biased here. that's what they did. they just came right out of the box, why wasn't that in the original piece to steer you from the substance.

this one apparently reported to senator chris coons, a democrat, who advanced it to the fbi, copied senator chuck grassley, the committee chairman, on a note, and then it went nowhere. >> yeah, we're told we saw this letter, it went to the fbi cc-ing the judicial committee. he told christopher wray, the fbi director, about this. according to coons' office, there was no conversation with the fbi afterwards, they simply acknowledged receipt of this letter. you'll recall at the time there was a flurry of allegations coming out against brett kavanaugh. it was unclear what was real, what was not real. it opened up this vicious partisan debate which led to a second hearing for the woman who made these allegations that kavanaugh apparently did that he denied at a party in high school, and that led tie supplemental background check

investigation, a second fbi investigation. the question now was that a limited investigation? we know it was limited. was it too limited, is the ultimate question democrats have been raising since then and continue to raise, and now you're saying you're hearing those presidential candidates saying, it's time to impeach the justice before there is any additional investigation. but that's something chairman jerry nadler is not showing much excitement to do, having an impeachment investigation. >> among the 2020 candidates, warren, buttigieg and castro say impeach. you get this here we go again, i guess, in the story that won't go away. where do we go here? is this just going to be both bases continue their sniping at each other with a man on the supreme court, or will we get something out of congress? >> congress has jurisdiction over the doj and the fbi, so of course they'll be writing to the fbi saying, why did you not follow up on this?

but the judiciary committee has their hands full now. 2020 is about to kick into high gear, and if they're going to impeach the president, they need to move public sentiment and do it now in the next five months. privately i'm hearing from democrats on the hill, yes, this looks bad and they'll ask the fbi about it, but kavanaugh, jumping on this train that we're hearing 2020 dems riding on right now, there is a lot of skepticism whether they'll go there. >> it's unclear if this is good politics for democrats. let's not forget, in 2015, the whole kavanaugh confirmation process really enlivened their public base in a way we don't know if it would have had that not happened. >> would the doj rescue kavanaugh, and you're asking, what does that mean?

it doesn't mean much of anything, i don't think, other than trump just venting on twitter. >> sometimes it's an impossible story to go through. i want to return now to the top story we had at the beginning of the program. this week's attack on saudi arabia's oil facilities. callie, i understand you have new reporting, your sources telling you what they've come to conclude. >> reporter: that's right. we're now learning that the u.s. has told at least one ally in the middle east that the u.s. does have intelligence that backs up what secretary pompeo has now publicly said, that iran is to blame for these attacks on the saudi oil field, and that the attacks were staged from iran. the diplomat who i spoke to about this did point out, however, that the u.s. has not showed their allies this intelligence yet. there are still internal conversations going on within the u.s. government, within the u.s. intelligence to determine when and if they can share that information. but separately, a u.s. official

is telling my colleague that the u.s. has made the determination that the attack was originated in iran, so now we are waiting to see when and if they are going to share that intelligence with allies in the region and with the public as they determine how to move forward here. john? >> important information, and that if is a big if. we'll continue to stay on top of it, callie. i appreciate the important update there. somber news in afghanistan. a u.s. service member was killed in action today. that serviceman, the 17th american killed in combat in afghanistan this year. we'll be right back.

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boeto o'rourke is sticking o his guns, or perhaps better put, confiscating certain guns he doesn't believe people should own. pete buttigieg argues it goes too far and there could be more moderate steps to get to gun violence. o'rourke calls that a copout. >> this is the golden moment to finally do something. we've been arguing about this as long as i've been alive. while mitch mcconnell is pretending to be at least open to reforms, we have a moment here and we should get things done. >> donald trump and mitch mcconnell pretending to be interested in something that is literally a life and death issue

for 44 million americans killed by gun violence. it's simply not enough. >> it is an interesting subfight with congress debating on whether to do anything. chuck schumer spoke to the president yesterday about moving forward on that, and now you have a fight against two presidential candidates about how big, how bold, what to do? >> but do you want someone who inspires all the passion, who shows that passion like o'rourke is doing? or do you want someone like buttigieg who is talking about getting a deal done and finding a middle ground. >> there was a piece in the daily beast about when o'rourke came out about this, there were a lot of democrats nervous about this, that it would turn into a talking point from the nra and take away a debate and allowing republicans to use it as a scare tactic. >> but nuance rarely wins you

voters because they want you to talk big and bold, talk about you could do anything under the sun without the realities of how you govern in washington, particularly with the senate where the filibuster rules still exist. you need to cut a deal on something like this. guns absolutely divide both parties flight, and you see how hard it is to do something very modest after two massacres this summer. >> buttigieg this summer trying to make that point. it would be harder for buttigieg in a primary point. he said i'm not telling you what to do, but i'm talking about politics, not governing. you need to trim your sales. >> they all agree. they think the moment the democrats start talk about taking away guns, they lose any potential for progress. expanded background checks, 90% of the majority support expanded background checks.

keep something we can actually win. you have to walk until you start running, and if you do this, you freak out republvoters and they away. don't go anywhere. busy day. brianna keilar starts right now. have a good afternoon. i'm brianna keilar live from cnn's washington headquarters. underway right now, the president sparking fears of war after one of the world's big oil sites is attacked. and nearly 50,000 workers walk off the job in the biggest labor strike in a decade. more than a year after brett kavanaugh's con mirrfirmation o supreme court, president trump comes to his defense. and painkillers fate as they file