U.S. President Donald J. Trump makes a health care announcement in the Oval Office of the White House in Washington, DC, on September 18, 2026.
Evan Vucci | Reuters
President Donald Trump has threatened to destroy Iran’s economy or remove its leadership if it doesn’t reach a deal, and the stakes are rising as Iranian officials head to New York to attend a meeting of world leaders at the United Nations this week.
President Trump told Fox News on Sunday that unless the two sides reach a deal, the only options on the table are to “wipe out Iran” or let the economy “rot.”
Separately, Iran’s military announced that its intelligence suggests the United States and its allies are preparing a new major attack and warned of “painful” retaliation across the Middle East. Regional states supporting such attacks would be treated as parties to the conflict, the report said.
According to Tasnim, a semi-official media outlet, Iran’s Qatam al-Anbia central headquarters said, “If the United States commits any mistake against the Islamic Republic of Iran, all of its positions and interests in the region will become the target of continuous, effective and painful attacks.”
The exchange marks the latest escalation in a seven-month war that followed the breakdown of a memorandum of understanding in June, with both sides on the offensive ahead of a diplomatic mission led by Iranian President Masoud Pezeshkian scheduled to attend the United Nations General Assembly in New York this week.
According to Tasnim news agency, Iran’s president is scheduled to meet with world leaders on the sidelines of the United Nations meeting.
In a phone call with a Fox News reporter, Trump said he was open to meeting with Pezeshkian during Congress, but was in “decision mode” on whether to blow up the country.
The U.S. State Department has issued a warning, citing the risk of unexpected escalation in the Middle East, calling on Americans to be more vigilant and to be aware of the possibility of flight cancellations and airspace closures.
The warning came after Iran-backed Houthi militants claimed missile and drone attacks on Riyadh on Saturday, triggering an air raid warning in the Saudi capital for the first time since fighting escalated in July.
Saudi authorities said they intercepted and destroyed the ballistic missile, but no casualties or damage were reported. Saudi-led coalition spokesman Maj. Gen. Turki al-Maliki said on Saturday’s X broadcast that the Houthis also attempted to target civilians and infrastructure in several Saudi locations, but those attacks were thwarted by the country’s air defense forces.
Oil prices have fallen in recent days despite the escalating hostilities as traders look forward to a rebound in energy shipments from oil-rich Saudi Arabia. Brent crude oil futures fell 1.7% to $102.15 per barrel, and US West Texas Intermediate fell 1.8% to $98.46.
Eurasia Group analysts said in a note on Saturday that oil prices are expected to remain high despite the United States’ progress in shipping oil through the Strait of Hormuz. The sources said a recovery in oil spills would not be enough to offset the overall market deficit and expected Brent prices to remain in a higher range of $90 to $110 per barrel through the rest of the year.
The consulting firm said “Iran’s leadership will continue to resist, despite internal conflicts,” as the Iranian government uses military proxies and tanker attacks to block shipping and pressure the United States into making concessions.
Tehran insists it will not reopen the Strait of Hormuz until the United States fulfills its commitments under a June memorandum that called for lifting the naval blockade of Iranian ports, easing sanctions, unfreezing Iranian assets and ending U.S. military threats.
Mohammad Berger Ghalibaf, speaker of Iran’s parliament, said on Sunday that Iran must continue fighting and negotiating to push back its enemies and engage in diplomacy only when it has an advantage on the battlefield.
