Trump keeping military options open ahead of potential Iran deal

>> Sandra: WE E ARE AWAITING. WORD OF A POTENTIAL DEAL WITH. IRAN TIED TO SHIPPING LANES IN. THE STRAIT OF HORMUZ. THE TRUMP ADMINISTRATION SAYS. THAT COULD COME AS SOON AS TODAY. BUT THE PRESIDENT IS STILL. KEEPING MILITARY OPTIONS HE SAYS. ON THE TABLE. >> WELL, IF THEY BACK OUT AGAIN, THEY'RE GOING TO GET HIT REALLY. HARD. THEY KNOW THAT. THEY UNDERSTANAND THAT. I HAVE NO CHOICE. THEY CAN'T HAVE A NUCLEAR. WEAPON. IT'S VERY SIMPLE. >> Sandra: FOX NEWS.

CONTRIBUTOR MIKE POMPEO, FORMER. SECRETARY OF STATE AND FORMER. CIA DIRECTOR. MR. SECRETARY, WELCOME TO YOU. WELCOME BACK TO THE PROGRAM. I WANT TO POINT OUT THERE SEEMS. TO BE A LOT OF GROWING OPTIMISM. RIGHT NOW.W. WE SAW IT YESTERDAY AND TODAY IN. THE STOCK MARKET AND ENERGY. MARKET. DOW JONES INDUSTRIAL AVERAGE. RECORD HIGH AGAIN TODAY COME UP. ANOTHER 438 POINTS. OIL PRICES ARE DROPPING ON HOPES. OF A DEAL. OIL IS FIRMLY BACK BELOW $75 A. BARREL COMING DOWN ANOTHER.

ALMOST 2% TODAY. IS THIS OPTIMISM WE ARE SEEING. ON A POTENTIAL DEAL WARRANTED. FROM YOUR VIEW? >> SANDRA, IT'S GREAT TO BE WITH. YOU. MY TAKE ON THIS IS WE BETTER SEE. WHAT'S IN IT AND SECOND, YOU AND. I HAVE LIVED AT. I LIVED IT WHEN I WAS SECRETARY. OF STATE. EVERY SINGLE DEAL THE IRANIANS. HAVE EVER SIGNED UP ON WHETHER. IT WAS THE JCPOA OR THE MOU WITH. PRESIDENT TRUMP, THEY HAVE. WALKED AWAY FROM. THEY HAVE KILLED MORE AMERICANS. THERE'S VERY LITTLE REASON TO.

EXPECT WHATEVER PARTICULAR. ARRANGEMENTS THEY NOW THINK THEY. ARE COMING TO AN AGREEMENT ON. THAT THE IRANIANS WILL ACTUALLY. HONOR THAT FOR ANY EXTENDED. PERIOD OF TIME. THEY DON'T WANT TO OPEN THIS. TRADE WITHOUT CHARGING A TOLL. THAT TAKES AWAY ALL THEIR. LEVERAGE AND IT WILL DENY THEM. WHAT IT IS THEY REALLY WANT. THEY WANT TO BUILD A NUCLEAR. WEAPON. SOMETHING PRESIDENT TRUMP HAS. SAID CAN'T HAPPEN. WE'LL HAVE TO SEE WHAT'S IN THE. AGREEMENT. WE'LL HAVE TO SEE WHAT THE. IRANIANS ACTUALLY COMMIT TO. BUT RATHER THAN THE PIECE OF. PAPER, WE SHOULD LOOK AT THE. IRGC S. ACTIONS ON THE GROUND. WORLD'S LARGEST STATE SPONSOR OF. TERROR. NO REASON TO THINK THEY HAVE.

TURNED OVER A NEW LEAF. >> Sandra: WE KNOW. PRESIDENT TRUMP HAS SAID AND. THEN VERY CLEAR THAT THE GOAL IS. TO OPEN UP THE STRAY END FOR. IRAN TO NEVER HAVE A NUCLEAR. WEAPON. HERE HE WAS YESTERDAY TYING THIS. ALL TOGETHER WITH GAS PRICES. LISTEN. >> THEY HAD AN ALL DAY. NEGOTIATION TODAY AND IT LOOKS. LIKE THINGS ARE VERY GOOD. IF THAT HAPPENS WHEN THIS TRADE. IS OPENED UP THEY'LL NEVER HAVE. A NUCLEAR WEAPON. BUT IF THIS TRADE OPENS UP AND. IS PARTIALLY OPENED ANYWAY AND. AS YOU KNOW WE CONTROL THE. STRAIT TOTALLY THROUGH THE.

BLOCKADE. IF WE HAVE NO FRICTION THEN OIL. WILL GO DOWN COME I THINK IT. WILL GO DOWN TO TWO AND A HALF. DOLLARS A GALLONON. >> Sandra: A FAR CRY FROM. WHERE WE ARE TODAY. GASOLINE PRICES, THE NATIONAL. AVERAGE BACK TO $4.08 A GALLON. THE PRESIDENT IS HOPEFUL THAT. ONCE A DEAL IS AGREED WE WILL. SEE THE PRICES COME DOWN IN A. BIG WAY. MR. SECRETARY HOW MUCH MORE ROOM. IS THERE? THE PRESIDENT IS SAYING MAYBE. THERE IS A DEAL TODAY THERE. MAYBE THERE'S NOT.

MAYBE WE GO ON ANOTHER FEW DAYS. COME ON MAYBE A WEEK. MAYBE IRAN SAYS THEY HAVE A DEAL. AND THEY BREAK THE DEAL. HOW MUCH MORE TOLERANCE DO YOU. THINK THERE IS TO FINALLY GET TO. A POINT WHERE WE CAN GET BACK TO. LIFE HERE AND GET THOSE ENERGY. PRICES BACK DOWN AND MAKE THE. AMERICAN PEOPLE HAPPY? >> MY SENSE IS THE BEST WAY TO. GET THESE ENERGY PRICES DOWN IS. TO CONTINUE TO PUT PRESSURE ON. THE IRANIAN REGIME. I DON'T SEE A NEGOTIATED. SOLUTION WHERE THE IRGC SAYS WE. ARE NOT GOING TO GO KILL 40,000. MORE OF OUR OWN PEOPLE.

WE'RE NOT GOING TO THREATEN. ISRAEL. WE'RE NOT GOING TO TELL THE. HOUTHIS WHO FIRED IN THE LAST. 24 HOURS WHILE THESE. NEGOTIATIONS ARE GOING ON WITH. IRANIAN WEAPONS AND IRANIAN. MONEY FIRED TO CLOSE THE OTHER. STRAIT. THE TASK TO GET ENERGY PRICES. LOW IS TO ACTUALLY DO WHAT. PRESIDENT TRUMP TALKED ABOUT AT. THE VERY BEGINNING. GET THE REGIME TO A PLACE WHERE. THEY ULTIMATELY CAPITULATE IN A. WAY THAT DELIVERS A LONG TERM. LOW SET OF ENERGY PRODUCT, NOT. JUST CRUDE OIL, NATURAL GAS,

FERTILIZER. ALL THE THINGS THAT MOVE THROUGH. THE STRAIT OF HORMUZ CAN DO SO. WITHOUT A REGIME THAT HAS THE. LEVERAGE TO SHUT IT DOWN AT ANY. MOMENT. >> Sandra: WE HAVE TO WONDER. WHAT THE PERSPECTIVE IS OF IRAN. AND THE WALL STREET JOURNAL DOES. THAT WITH THIS PIECE ON IRAN'S. STAKING EVERYTHING ON. CONTROLLING THE STRAIT OF. HORMUZ. CENTERING STRATEGY ON. CONTROLLING THE STRAIT IS AN. EXTRAORDINARY GAMBLE AND ASSUMES. TRUMP WILL PREFER A MESSY. VOLATILE STALEMATE OVER AN. ALL-OUT WAR. IN PLAYING HIS CARDS SO. AGGRESSIVELY, TEHRAN RISKS. MISCALCULATING WASHINGTON'S.

BREAKING POINT AND THREATENING. ITS OWN ECONOMIC SURVIVAL. WE KNOW THAT THEIR ECONOMY IS. EXTREMELY HARD HIT THROUGH ALL. OF THIS AND PERHAPS. PRESIDENT TRUMP HAS PLAYED HIS. CARDS EXACTLY RIGHT HERE. >> THERE'S NO DOUBT THAT EPIC. FURY, MIDNIGHT HAMMER, THE WORD, THE ECONOMIC PRESSURE THAT'S. BEEN PUT ON THE IRANIAN REGIME. HAS BROUGHT THEM TO A DIFFERENT. PLACE THAN THEY ARE TOTODAY AND. THE QUESTION IS WHEN WILL THEY. REACH THE POINT WHEN THEY ARE. PREPARED TO ACTUALLY CAPITULATE? I HOPE WE FIND OURSELVES THERE.

TODAY. I DON'T THINK WE ARE AT THAT. POINT. YOU CAN SEE THIS. YOU CAN SEE THIS IN A BROAD. RANGE OF CONFLICTS. THE CHINESE ARE WATCHING, THE. RUSSIANS ARE WATCHING. EVERYONE IS SEEING WHETHER THE. WEST IS PREPARED TO PROTECT. WESTERN CIVILIZATI.