At a Glance
Trump warns Iran of economic collapse or a wider strike on its leadership if no deal is reached.
Iran threatens sustained retaliation against US bases and interests after any new attack.
Houthi missile and drone strikes target Riyadh as fighting intensifies in Yemen.
Hormuz and Bab el-Mandeb disruptions threaten vital energy flows and add pressure to oil prices.
The Middle East conflict is entering another tense phase, with threats from Iran and the US colliding with fresh Houthi attacks in the Gulf region.
Iran and the United States traded new warnings on Sunday as the conflict that began with US and Israeli strikes on February 28 continued to strain the region and global energy markets.
KEY DETAILS
President Donald Trump said Iran's leaders should make a deal, face economic deterioration, or risk their leadership being wiped out, according to a Fox News reporter. Trump also said he remained open to meeting Iranian President Masoud Pezeshkian, who is expected in New York for the UN General Assembly this week.
Iran's military central command said any fresh attack would trigger sustained retaliation against US bases and interests. It also said Washington's regional allies would be treated as parties to the conflict.
MARKET REACTION
The latest escalation comes as energy exports face growing disruption. Iran continues to block most shipping through the Strait of Hormuz, while Houthi gains near Yemen's Bab el-Mandeb Strait increase the threat to shipping between the Red Sea and Asia.
A US blockade of Iranian ports is also restricting Iran's oil sales.
WHY IT MATTERS
With two critical waterways under pressure, traders are watching for further supply disruptions. Higher geopolitical risk could keep oil markets volatile, while renewed attacks could deepen pressure on already strained energy flows.
Markets will focus on any new US-Iran moves, Houthi attacks, developments around Hormuz and Bab el-Mandeb, and whether diplomacy can reopen the June ceasefire framework.
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Source: Reuters
Time: 12:30 PM EEST
