Trump threatens to destroy Iran's economy as Tehran warns of painful retaliation

September 21, 2026 at 09:28 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

President Donald Trump threatened to destroy Iran's economy or eliminate its leadership if Tehran does not strike a deal, as Iranian officials head to New York for the UN General Assembly. Iran's military warned of 'painful' retaliation across the Middle East if the U.S. makes any mistake. The exchange marks the latest escalation in the seven-month war after a June memorandum collapsed.

Key Facts

Trump told Fox News on Sunday that the only options were 'wiping Iran out' or letting its economy 'rot' unless both sides reach a deal.
Iran's Khatam al-Anbia Central Headquarters warned that all U.S. positions and interests in the region would be targeted by sustained, effective and painful attacks.
Iranian President Masoud Pezeshkian is due to attend the United Nations General Assembly in New York this week and will hold meetings with country leaders on the sidelines.
The U.S. State Department issued a security alert citing risks of unforeseen escalation in the Middle East, telling Americans to exercise more vigilance.
Brent crude futures dipped 1.7% to $102.15 a barrel and U.S. West Texas Intermediate slid 1.8% to $98.46.

Escalating Threats

Trump told Fox News on Sunday that the only options on the table were 'wiping Iran out,' or letting its economy 'rot,' unless both sides reach a deal. Iran's military said its intelligence suggested a new, large-scale strike being prepared by the U.S. and its allies, warning of 'painful' retaliation across the Middle East. Regional countries backing such a strike would be treated as parties to the conflict, it said. The exchange marks the latest escalation in the seven-month war after a June memorandum collapsed.

Diplomatic Engagement

A diplomatic delegation led by Iranian President Masoud Pezeshkian is due to attend the United Nations General Assembly in New York this week. The Iranian president will hold meetings with country leaders on the sidelines of the UN gathering, according to Tasnim. In a phone call with a Fox News reporter, Trump said he would be open to meeting Pezeshkian during the assembly, but also that he's in 'deciding mode' over whether to blow up the nation.

Regional Security

The U.S. State Department issued a security alert citing risks of unforeseen escalation in the Middle East, telling Americans to exercise more vigilance and be aware of possible flight cancellations and airspace closures. The warnings came after Iran-backed Houthi militants claimed missile and drone attacks on Riyadh on Saturday, triggering the first air-raid alert in the Saudi capital since fighting escalated in July. Saudi authorities said they intercepted and destroyed a ballistic missile and reported no casualties or damage. Oil prices have pulled back in recent days despite widening hostilities, as traders hope for a recovery in energy shipments from oil-rich Saudi Arabia.