Trump threatens to wipe out Iran as Tehran warns of 'painful' response

Key Points:

• President Donald Trump warned that the U.S. may either destroy Iran's economy or eliminate its leadership if no deal is reached, raising tensions ahead of the UN General Assembly where Iranian officials will attend.
• Iran's military accused the U.S. and its allies of preparing a large-scale strike and threatened "painful" retaliations across the Middle East, warning regional supporters of such an attack would be considered parties to the conflict.
• The exchange escalates the ongoing conflict following the collapse of a June memorandum, with Iranian President Masoud Pezeshkian scheduled for diplomatic meetings at the UN, while Trump remains undecided on potential military action.
• The U.S. State Department issued a security alert due to risks of escalation, following recent missile and drone attacks by Iran-backed Houthi militants on Riyadh, which Saudi defenses intercepted without casualties.
• Despite increased hostilities, oil prices have slightly declined amid hopes for resumed energy shipments from Saudi Arabia, though analysts predict prices will remain elevated due to ongoing market deficits and Iran's continued resistance tactics.