When Aladdin calls Jafar a snake, that gives the bad guy an idea. Why not turn into a giant one? He is a sorcerer, after all.
Jafar transforms into a huge slithering black snake and comes at Aladdin.
The Genie can't help, but he clearly doesn't want Jafar to win.
Jafar has Aladdin right where he wants him (squeezed in his snake grasp) when he starts monologue-ing. Jafar tells Aladdin he's a fool for thinking that he could defeat the most powerful being on Earth. In fact, Aladdin's nothing without the Genie.
Aladdin tells Jafar he's wrong—the Genie is actually the most powerful being on Earth. After all, he gave Jafar all those powers. He's much more awesome than Jafar could ever be.
Huh, Jafar has to concede that Aladdin makes a pretty solid point. And now he knows what his third wish will be.
Jafar tells the Genie that he wants to be an all-powerful genie. Mwhahahaha.
The Genie isn't thinking this is such a great idea, but he's gotta do it, anyway.
And, yeah, at first things look bad. Jafar now has tons of power. He's in control of the universe. It's madness. But then a little lamp forms at the base of Jafar's genie tail.
Aladdin reminds Jafar that being a genie ain't all it's cracked up to be. Then, golden arm bands clamp on each of Jafar's wrists as he gets sucked down into his lamp.
Remember what the Genie said the job was all about? "Phenomenal cosmic powers. Itty, bitty living space."