NEW: China out to 'BOG DOWN' US in Middle East, expert warns

>> IS IRAN RESPONSIBLE FOR THE. ATTACK ON THE EAST-WEST. PIPELINELINE AND WHAT DO YOU. THINK ABOUT SAUDI ARABIA? >> President Trump: I THINK. PROBABLY THEY ARE, ON THE BALLS. OF THEIR FEET NOW, I THINK THEY. ARE. THEY HAVE BEEN IN CHARGE OF THAT. FOR A WHILE. HOUTHIS CALLED US AND THEY DON'T. WANT TO FIGHT WITH US. THEY CALLED AND TALKED TO US AND. THEY WOULD MUCH PREFER NOT.

HAVING US INVOLVED. >> Bill: HOTTEST FRONT THAT IS. HOUTHIS IN YEMEN, FOCUS ON. STRAIT OF HORMUZ FOR A COUPLE. MONTHS AND RIGHTFULLY SO. NOW ACTION IN THE STRAIT WHICH. CONNECT THE RED SEA TO THE GULF. OF ADEN AND THE ASIAN NATION AND. LEAD US TO THE SUEZ CANAL AND TO. THE MEDITERRANEAN SEA.

THE HOUTHIS HAVE GONE AFTER A. PIPELINE THAT THE EAST-WEST. PIPELINE THAT RUN ACROSS SAUDI. ARABIA. IT IS IMPORTANT BECAUSE IT. AVOIDS AND TRAFFIC THAT HAS TO. GO THROUGH STRAIT OF HORMUZ. IF HOUTHIS ARE TRYING TO TAKE. CONTROL OF THESE ISLANDS OFF. COAST THAT COULD BE AN AREA FOR. THE SAUDIS. THAT PIPELINE GOT HIT AND SAUDIS.

SAID THEY WERE GOING TO SHUT IT. DOWN. THEY ANNOUNCED IT MIGHT BE A. COUPLE WEEKS TO GET FULLY. OPERATIONAL. THE BEFORE PICTURE AND AFTER. PICTURE DON'T KNOW EXTENT OF THE. DAMAGE, WE'LL WAIT FOR NEWS ON. THAT. HEAD TO THE REGION, TO TEL AVIV. AND STEVE HARRIGAN BRINGS US UP. TO SPEED.

>> Steve: BILL, YOU ARE RIGHT TO. POINT OUT THESE HOUTHI FIGHTERS. TAKING THE PIPELINE AND TRYING. TO BLOCKADE SAUDI ARABIA OIL. FROM GETTING TO MARKET AND. LAUNCHING DRONES AND MISSILES AT. SAUDI ARABIA TRYING TO ATTACK. THEIR INFRASTRUCTURE. A REAL PROBLEM FOR SAUDI ARABIA. AND KEY STRAIT BAB AL MANDEB. STRAIGHT, 12% OF OIL PASSES. THROUGH THAT STRAIGHT AND. HOUTHIS ARE TRYING TO GAIN FULL.

CONTROL OVER IT. THESE FIGHTERS HAVE BEEN AROUND. 15 YEARS AND HAVE BEEN BEATEN IN. THE FIELD MANY TIMES AND FACED. U.S. AIRSTRIKES IN THE PAST, SAUDI AIRSTRIKES AND THEY ARE. FIGHTING WITH IRAN. SPIDER MARKS HAS ONE ANSWER WHY. THEY ARE COMING BACK NOW. >> IT IS VERY DIFFICULT TO BOMB. SOMEBODY LIKE HOUTHIS BACK INTO. THE STONE AGE WHEN THAT IS WHERE. THEY LIVE RIGHT NOW.

>> Steve: MORE ACTION OVER THE. WEEKEND IN THE STRAIT OF HORMUZ. IRANIAN OFFICIALS SAYING ONE OF. THEIR SHIPS WAS HIT BY A. PROJECTILE, ONE KILLED AND. SEVERAL WOUNDED AS U.S. BLOCKADE. AROUND ALL IRANIAN PORTS. CONTINUE TO STRENGTHEN. BACK TO YOU. >> Bill: STEVE HARRIGAN IN TEL. AVIV. >> Dana: HERE IS DAN HOFMAN HERE. WITH US, FORMER CIA STATION. CHIEF AND FOX NEW SAYS. CONTRIBUTOR. GOOD TO HAVE YOU IN NEW YORK.

BURGUM JUST MADE SOME COMMENTS. TO LAUREN SIMONETTI. LISTEN. >> IT TURNS OUT SAUDI ARABIA. REPAIRED IT QUICKLY AND THERE IS. STORAGE AT THE TERMINAL END OF. THAT SO SHIPS CAN CONTINUE TO. LOAD IF THE PIPELINE IS DOWN. TEMPORARILY. THEY HAVE A BUNCH OF STORAGE AT. THE END. >> Dana: HOUTHIS KNOW THAT, DAN.

>> Dan: THEY DO AND HOUTHIS GIVE. IRAN STRATEGIC DEPTH. AND IRAQI MILITANTS SEEING. HOUTHIS, AND LAUNCHING ATTACKS. IN REGION AND AGAINST OUR. ALLIES, INCLUDING IN JORDAN. THEY ARE DOING THIS TO DISRUPT. WORLD ECONOMY AND DRIVE UP PRICE. OF OIL TO CREATE IMPRESSION. UNITED STATES IS NOT RELIABLE. ALLIES. THEIR ULTIMATE OBJECTIVE WHICH. THEY SHARE IS TO ELIMINATE U.S.

INFLUENCE IN THE REGION AND IRAN. SELF-DESIGNATED SPHERE OF. INFLFLUENCE. >> Bill: CHINESE ARE COMING HERE. IN 10 DAYS AND THE PRESIDENT. TALKED ABOUT IT OVER THE. WEEKEND. U.S. JOURNAL, LINKING A STRIKE. THAT KILLED THREE TROOPS TO. IRAN. IN MY VIEW, THIS HAS BEEN GOING. ON FOR SOME TIME. CHINA IS ONE ASPECT OF IT, RUSSIA ANOTHER. THE PRESIDENT WAS ASKED ABOUT. CHINESE INFLUENCE AND PROBABLY.

GAVE ANSWER A LOT OF POLITICIANS. WANT TO GIVE. >> WE RECENTLY REPORTED CHINESE. ENTITIES MAY HAVE PROVIDED. IRANIANS WITH SATELLITE IMAGERY. >> President Trump: THEY. BASICALLY DO WHAT WE DO. I WOULD SAY THIS. I THINK HE'S BEHAVED REASONABLY. WELL. WE HAVE BEHAVED REASONABLY WELL. WHEN THEY SAY THAT CHINA SPIES. ON US, I SAY, YOU ARE RIGHT AND.

WE SPY ON EMTHIS, TOO. WE SPY ON THEM, TOO. >> Bill: WHAT DO YOU MAKE OF. THAT? >> Dan: WE DESTROYED A LOT. CHINA WANTS TO DIVERT RESOURCES. FROM PACIFIC. THEY SHARE THAT INFLUENCE WITH. IRAN IN THE MIDDLE EAST AND I. THINK THAT IS WHY THEY ARE. SUPPORTING IRAN. WE HAVE SEND ACCESS OF.

DICTATORSHIP. THEY ARE ALIGNED LIKE NEVER. BEFORE ESPECIALLY IN MIDDLE EAST. AND UKRAINE. >> Dana: WHAT DO YOU THINK IS. MOST EFFECTIVE APPROACH FOR. PRESIDENT TO TAKE WITH XI WHEN. HE MEETS HIM LATER THIS WEEK? >> Dan: THE PRESIDENT SAYING. WHAT HE SAID ONE THING, BEHIND. SCENES MAY LOOK TO DES RUPT. CHINESE INTELLIGENCE. THAT IS DIFFICULT TO DO AND A. CHALLENGE WE HAVE TO FACTOR INTO.

TARGETING OF IRANIAN SITES. >> Bill: WHEN YOU TAKE A STEP. BACK FROM THE IRAN CONFLICT, HOW. DO YOU SEE IT UNFOLDING? WHERE DOES IT GO? WHAT IS THE NEXT BIG PIECE OF. THAT STORY? >> Dan: I THINK WE'RE SEEING. CONTROLLED LEVEL OF ESCALATION. IRANIANS FOR SURE ESCALATED AND. WANT TO DISRUPUPT GLOBAL ECONOM. ESPECIALLY IN ADVANCE OF. MIDTERM. QUESTION FOR THE UNITED STATES. GOES BACK TO BEGINNING, WE.

LAUNCHED THE WAR TO GET A BETTER. DEAL THAN THE JCPOA. THERE WERE SUNSET CLAUSES ON. IRAN'S NUCLEAR PROGRAM. HOW WE GET FROM HERE TO THERE IS. CHALLENGE FOR THE TRUMP. ADMINISTRATION AND MAY REQUIRE. FURTHER ESCALATION ON OUR PART. IRAN HAS SHOW NO INTEREST IN. NEGOTIATING WITH US IN GOOD. FAITH. >> Dana: AN INTERESTING TIME. YOU HAVE RUSSIA, IRAN AND CHINA.

ALL HAVING DIFFERENT CONFLICTS. OF THEIR OWN AND THEN THIS CE. FREHLEY -- AI RACE WE'RE TALKING. ABOUT. DO YOU HAVE THOUGHTS ON PAUSING? >> Dan: I'M NOT SURE WE WANT TO. PAUSE ON AI, IT IS IMPORTANT TO. CARRY ON. IF WE DON'T PAUSE OUR. ADVERSARIES WON'T PAUSE. WE NEED FULL EFFORT FROM. DIRECTOR OF NATIONAL. INTELLIGENCE, IF DIRECTOR IS. LOOKING FOR A JOB, GO DETECT.

WHAT ADVERSARIES ARE DOING TO. TRY TO STEAL OUR AI AND USE. AGAINST US. WE NEED TO HAVE DISCUSSIONS IN. OUR GOVERNMENT ABOUT HOW TO. CONSTRAIN IT, IF WE NEED TO. BUT STOPPING IT, SLOWING.