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Trump Threatens Iran With Economic Destruction, Leadership Elimination Unless Deal Is Reached
US President Donald Trump has threatened to destroy Iran’s economy or eliminate its leadership if Tehran fails to reach a deal with Washington, escalating tensions ahead of the United Nations General Assembly in New York this week.
Trump, speaking to Fox News on Sunday, said the options were “wiping Iran out” or allowing its economy to “rot” unless the two sides reached an agreement.
He also said he was open to meeting Iranian President Masoud Pezeshkian during the UN General Assembly, while indicating that he was still deciding whether to launch further attacks against Iran.
The threats came as Iran’s military warned that its intelligence indicated the United States and its allies were preparing a new large-scale strike against the country.
The Khatam al-Anbia Central Headquarters said any US attack on Iran would trigger “painful” retaliation across the Middle East, warning that American positions and interests in the region would be targeted.
It also said regional countries supporting any such military action would be considered parties to the conflict.
The latest escalation comes seven months into the war and follows the collapse of a memorandum reached in June, with both sides maintaining their positions ahead of Pezeshkian’s planned visit to New York.
According to Iran’s semi-official Tasnim news agency, Pezeshkian is expected to meet with several foreign leaders on the sidelines of the UN General Assembly.
The US State Department has meanwhile issued a security alert warning Americans of the risk of unforeseen escalation in the Middle East, including possible flight cancellations and airspace closures.
The warning followed claims by Iran-backed Houthi militants that they had launched missile and drone attacks on Riyadh on Saturday.
Saudi authorities said they intercepted and destroyed a ballistic missile and reported no casualties or damage. Saudi-led coalition forces spokesperson Major-General Turki al-Maliki also said the Houthis attempted to target civilians and infrastructure in several parts of the kingdom, but the attacks were thwarted by Saudi air defences.
Meanwhile, oil prices have pulled back in recent days despite the widening hostilities, as traders anticipate a possible recovery in energy shipments from Saudi Arabia.
Brent crude futures fell 1.7 per cent to $102.15 a barrel, while US West Texas Intermediate declined 1.8 per cent to $98.46.
Analysts at Eurasia Group said oil prices were likely to remain elevated despite US progress in moving oil through the Strait of Hormuz, arguing that any recovery in oil flows would not be sufficient to address the wider market deficit.
The consultancy forecast Brent crude would trade between $90 and $110 a barrel through the rest of the year.
Tehran has maintained that it will not reopen the Strait of Hormuz until Washington fulfils its commitments under the June memorandum, including lifting the naval blockade of Iranian ports, easing sanctions, unfreezing Iranian assets and ending US military threats.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said on Sunday that Tehran must continue fighting and negotiating to counter its enemies, adding that diplomacy should be pursued when Iran has the upper hand on the battlefield.
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