Iran, US trade threats as Houthi attacks escalate

DUBAI/BEIRUT/ DUBAI/WASHINGTON:

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.

Trump has repeatedly made vague threats of major military escalations during the conflict that began with US and Israeli strikes on February 28, without carrying them out.

Earlier, Iran's military central command said any new attack would trigger sustained retaliation against US bases and interests and that Washington's regional allies would be considered parties to the conflict.

The Iranian military added that it had information that an attack was being prepared, without elaborating on what that information might be.

Gulf allies have already been badly scarred by a war that the US and Israel launched with no warning, bringing their cities under Iranian fire and hammering their economies with the crucial Strait of Hormuz waterway blockaded.

On Saturday their predicament worsened further, with Yemen's Iran-backed Houthi group launching missile and drone strikes at the Saudi capital after having made sudden military gains in Yemen's reignited civil war earlier this month.

Reuters video showed a massive plume of black smoke billowing from the area of Riyadh's main international airport following booms overnight.

The US State Department issued a security alert citing the Houthi hostilities. It said there was potential for unforeseen escalation in the Middle East, and Americans should exercise more vigilance and be aware of possible flight cancellations and airspace closures.