Iran and U.S. trade threats after Houthi attacks escalate regional conflict

DUBAI/WASHINGTON, Sept 20 (Reuters) – Iran and the United States exchanged new threats on Sunday, with President Donald Trump warning Iran would fail economically or face its leadership being wiped out if it didn’t make a deal, and the Iranian military saying it would retaliate harshly to any fresh attack.

The conflict has looked stalemated for months, with no sign either side was ready for concessions even as it has deepened a global energy crisis, cratered swathes of Iran’s economy and spilled over into new regional escalations.

In a phone call with a Fox News reporter, Trump said Iran’s leaders should make a deal, rot economically or be wiped out, the reporter said. However, with Iran’s President Masoud Pezeshkian expected in New York this week for the United Nations General Assembly, Trump said he would be open to meeting him, the Fox reporter added.