US, Iran trade threats as Houthi attacks deepen regional conflict

Iran and the United States exchanged fresh threats on Sunday as tensions across the region intensified, with US President Donald Trump warning that Iran could face severe economic consequences or the destruction of its leadership if it refused to reach a deal. Iran’s military, meanwhile, vowed a harsh response to any new attack.

The conflict has appeared deadlocked for months, with neither side showing signs of being ready to compromise. The prolonged confrontation has worsened a global energy crisis, dealt a major blow to Iran’s economy and triggered further instability across the region.

Speaking by phone to a Fox News reporter, Trump said Iran’s leaders should reach a deal or face economic decline and possible destruction, according to the reporter.

Trump also indicated he would be willing to meet Iranian President Masoud Pezeshkian, who is expected to travel to New York this week for the United Nations General Assembly.

Trump has repeatedly hinted at possible major military escalation since the conflict began with US and Israeli strikes on February 28, although no such escalation has taken place.

Earlier, Iran’s military central command warned that any fresh attack would lead to sustained retaliation against US bases and interests. It also said Washington’s regional allies would be treated as participants in the conflict.

Iranian officials said they had information suggesting a new attack was being prepared but provided no details about the source or nature of the intelligence.

HOUTHIS TARGET RIYADH

US allies in the Gulf have already suffered significant disruption from the conflict, with Iranian attacks affecting cities and economies while the strategically important Strait of Hormuz remains heavily restricted.

The situation deteriorated further on Saturday when Yemen’s Iran-backed Houthi group launched missile and drone attacks toward the Saudi capital, following rapid military gains by the group in Yemen’s renewed civil war earlier this month.

Reuters footage showed a large column of black smoke rising near Riyadh’s main international airport after explosions were heard overnight.

The US State Department issued a security alert over the Houthi attacks, warning of the possibility of further escalation in the Middle East. It urged US citizens to remain vigilant and warned that flights could be cancelled and airspace closed.

Saudi authorities did not immediately comment on the incident. However, a Saudi-led coalition fighting the Houthis said it had intercepted and thwarted other attacks targeting the kingdom.

The latest Houthi advances have placed Riyadh in a difficult position, forcing it to weigh continued airstrikes against the group to prevent further territorial gains against the risk of additional attacks on critical Saudi infrastructure.

ENERGY EXPORTS HIT

Houthi advances along Yemen’s coast have given the group greater access to the Bab el-Mandeb Strait, a major shipping route linking the Red Sea with Asian markets and a key corridor for global trade.

At the same time, restrictions on shipping through the Strait of Hormuz have severely disrupted energy exports from the oil-rich Gulf region, putting further pressure on global oil prices.

A US blockade of Iranian ports has also restricted Tehran’s ability to export oil, adding to the economic difficulties facing Iran.

Despite the mounting economic pressure, there has been little indication of a return to the temporary ceasefire reached in June, which collapsed in July amid disagreements over its terms.

Iran reiterated on Sunday that it would not reopen the Strait of Hormuz until the conditions of the June agreement, as interpreted by Tehran, were fulfilled.

Iranian Parliament Speaker Mohammad Baqer Qalibaf said the country would have to continue both military resistance and negotiations, arguing that diplomacy should be used to consolidate any gains made during the conflict.