ELIZABETH: WELCOME BACK YOU ARE
WATCHING FOX BUSINESS NETWORK,
WE'RE AT BOTTOM OF THE HOUR.
IT IS THIRD INCIDENT IN TWO
WEEKS, AMID RISING TENSIONS WITH
IRAN.
WE'RE JOINED FROM JERUSALEM.
>> U.S. AN SANCTION IRAN FOREIGN
MINISTER LAST WEEK, AND IRAN
SLAMMED SANCTIONS AS RIDICULOUS
AND ILLEGAL.
U.S. DISAGREES.
DOUBLING DOWN ON HIS CRITICISMS
OF SANCTIONS AGAINST HIM AND HIS
COUNTRY, AS IRAN CLAIMS THEY
SEIZED ANOTHER TANKER IN PERSIAN
GULF.
SEIZED A FOREIGN TANKER,
DETAINING 7 CREW MEMBERS ON
WEDNESDAY, IRAN SAID IT WAS AN
IRAQI SHIP, ILLEGALLY SMUGGLING
700,000 LITERS OF FUEL.
THEY CLAIM ST NOT AFFILIATED
WITH THE IRAQI GOVERNMENT, HE
SAID THIS WAS A PRIVATE TANKER.
IN HAS BEEN A LOT OF TENSION IN
PERSIAN GULF, U.S. HAS PUSHED
FOR AN INTERNATIONAL MARITIME
SECURITY INITIATIVE, FOCUSED ON
PROTECTING COMMERCIAL TRANSIT IN
THE GULF, UK ANNOUNCING THEY
WILL JOIN U.S. NAVY IN THOSE
EFFORTS, GERMANY ALREADY SAID
THEY WOULD NOT JOIN A U.S.-LEAD
MISSION IN PERSIAN GULF IN PART
THEY BELIEVE U.S. POLICY OF
MAXIMUM PRESSURE IS A BAD ONE,
AUSTRALIA SAID THEY ARE GIVING
CONSIDERATION TO JOINING THE
U.S.-LED MISSION.
ELIZABETH: THANK YOU SO MUCH.
>> FOR HIS EXPERTISE, JOINING ME
NOW, RETIRED FOUR-STAR GENERAL
JACK KEANE.
WHAT NEXT STEP DO YOU SEE
HAPPENING FROM THIS.
>> I DON'T THINK THAT STRATEGY
THAT THE IRAN AN ARE
THAT THE IRANIAN ARE USING WILL
SUCCEED, THEY ARE ATTEMPTING TO
CREATE AN ECONOMIC CRISIS BY
INTERRUPTING FLOW OF OIL THROUGH
THE PERSIAN GULF, THEY SABOTAGED
6 TANKERS, IT BACKFIRED ON THEM
BECAUSE THEY GOT CAUGHT, IT DID
NOT DISRUPT THE FLOW OF OIL,
HERE, BECAUSE THE COALITION IS
FORMING, I DON'T THINK THEY WILL
BE ABLE TO SUCCEED, THAT WILL
PUSH BACK ON THE IRANIANS, THEY
DON'T WANT TO GET INTO A
GUNFIGHT WITH U.S. OR
INTERNATIONAL AIRCRAFT FIGHTER
AIRCRAFT OUT THERE OR PROTECTION
SHIPS.
THAT NUMBER ONE.
EVERYTHING THAT IRANIANS HAVE
TRIED BACKFIRING, THEY ARE
TRYING TO DO STRATEGIC --
STRATEGICALLY PUT PRESSURE ON
U.S. TO REMOVE SANCTIONS BECAUSE
OF CRISIS THEY ARE TRYING TO
CREATE, AND ISOLATE THE UNITED
STATES, THEY ARE MORE ISOLATED
POLITICALLY, DIPLOMATICALLY AND
ECONOMICALLY, EVEN WHEN THEY
TRIED TO BLACKMAIL EUROPEANS
WHEN INCREASING URANIUM
ENRICHMENT.
THEY REJECTED IT.
SO, THE UNITED STATES HAS MORE
PEOPLE WORKING WITH IT THAN WHEN
THE CRISIS BEGAN.
AND THAT IS SOMETHING THE
IRANIANS DID NOT ANTICIPATE.
ELIZABETH: QUITE A DEVELOPMENT,
A GREAT POINT.
BY THE WAY, HOW MANY TANKERS CAN
IRAN SEIZE TO CREATE A CRISIS?
WHEN U.S. OIL BOOM IS LOWERING
PRICES, YOU KNOW.
HOW MUCH -- WHAT AFFECT CAN THAT
STRATEGY HAVE?
I WOULD LIKE TOO SWITCH GEARS.
THIS STORY IS IMPORTANT.
CHINESE STATE HACKER NOW
SUSPECTS OF TRYING TO HACK INTO
THREE ELECTRIC UTILITY IN U.S.,
WE DON'T EN THE NAMES ARE
LOCATIONS, THIS IS AN
ACCUSATION, CYBER PROS, AT PROOF
POINT SAY THAT EVIDENCE JUST
POINT TO CHINA, TRYING TO DO A
HIJACK OF THE UTILITIES, YOUR
REACTION?
>> CHINESE ARE PROLIFIC IN THEIR
PENETRATION OF U.S. CAPE
CAPABILITIES.
RUSSIA DOES SOME OF THIS AS
WELL, IRAN TO A LESSER DEGREE,
AND NORTH KOREA TO A LESSER
DEGREE.
BUT THE CHINESE HAVE SIGNIFICANT
INTEREST IN THIS A LOT ISIC
MORING A AND PROBE -- EXPLORING
A AND PROBING.
IF WE GOT INTO A CONFLICT WITH
CHINA THEY WOULD CONDUCT MASSIVE
CYBERATTACK ON U.S.
INFRASTRUCTURE, FINANCE,
TRANSPORTATION.
AND UTILITY TO TRY TO SHUT US
DOWN AS MUCH AS POSSIBLE.
SO A LOT OF THIS IS WITH THAT IN
MIND.
THEY DO MILLIONS OF PROBES A
DAY, IN TO UNITED STATES NOT
THOUSANDS OR HUNDREDS OF
THOUSANDS, MILLIONS, THAT IS THE
REALITY OF WHAT IS TAKING PLACE
HERE.
ELIZABETH: YOU MAKE A POINT
BECAUSE, TO -- WHAT YOU SAID, A
LONG SIDE THAT WE HAVE NORTH
KOREA AGAIN TODAY LAUNCHING TWO
SHORT RANGE BALLISTIC MISSILES
FROM WEST COAST THAT IS FOURTH
MISSILE TEST IN ABOUT TWO WEEKS,
WHAT IS YOUR REACT TO THAT
STORY.
>> NORTH KOREANS, THIS IS AGAIN
PART OF THEIR PLAYBOOK.
THEY TAKE BELLIGERENT ACTS,
RHETORIC TO SUPPORT IT, THEY
WANT THAT AS LEVERAGE PRIOR
TOGOING INTO THE NEGOTIATIONS
BECAUSE THEY BELIEVE IT WILL
HELP THEM IN TERMS OF THE GOALS
THEY ARE TRYING TO ACHIEVE.
THE HANOI SUMMIT BLEW UP IN
THEIR FACE, THEY EXPECTED TO GET
SANCTION RELIEF, THEY GOT
NOTHING.
EVERYTHING THEY HAVE BEEN DOING
SINCE WITH REACT TO THAT ABJEC
FAILURE.
I DO BELIEVE THAT ADMINISTRATION
SHOULD CALL THIS OUT, I DON'T
AGREE WITH PRESIDENT MINIMIZING
SHORT RANGE MISSILES, BECAUSE
THEY HAVE DO CONSIDERABLE DAMAGE
TO SOUTH KOREA, AND JAPAN.
WE HAVE TO BACK OUR ALLIES IN
THAT SITUATION.
THIS IS PREPARING FOR
NEGOTIATIONS.
ELIZABETH: WE HAVE A MILITARY
BASE THERE?
>> WE HAVE A MILITARY BASE IN
SOUTH KOREA, RIGHT?
CORRECT?
>> WE HAVE MANY MILITARY BASES
IN SOUTH KOREA, ONES NEAR SEOUL
WE PULLED BACK FROM.
WE USED TO BE UP AGAIN THE DMZ,
THIS SITUATION IS TENUOUS.
BEING WITHIN 75 MILES OF SEOUL,
NORTH KOREA LONG-RANGE ARTILLERY
AND ALL THEIR MISSILES CAN DO
CONSIDERABLE DAMAGE NOT JUST TO
THE MASSIVE CITY IN SEOUL BUT TO