Trump appears to say Iran should be allowed to ‘take out’ Los Angeles and San Diego

'Let them take out Los Angeles. Let them take out San Diego. This is a very small price to pay,' says US president

US President Donald Trump appeared to suggest on Monday that Iran should be allowed to “take out” California’s two largest cities while discussing war-related price increases.

Speaking at a campaign rally in Grand Island, Nebraska, he argued that Americans should accept higher prices as a cost of maintaining national and global security.

“And again, remember, with the war, it’s just artificial,” he said.

“It’s a little bit high. It’s a small price to pay for keeping the world safe, keeping our country safe."

Trump then referred to the possibility of an Iranian attack on an American city.

“They can take out a city,” he said. “Let them take out Los Angeles. Let them take out San Diego. This is a very small price to pay.”

Read: Iran's Pezeshkian says negotiation with US 'has no meaning'

He said the war was “essentially almost over with” while acknowledging that it could continue for a longer period.

The president also discussed Iran's ability to withstand economic pressure, saying Iranian leaders have described themselves as having a “big threshold for pain.”

“They need it, let me tell you,” he said.

Trump predicted that the conflict would eventually end “one way or the other” before returning to the economic consequences Americans are facing.

"But it's going to end very soon, and it'll end one way or the other," he said, adding that prices are going to come down "very sharply."

California Governor Gavin Newsom criticised Trump's remarks.

"After sending the National Guard and Marines to occupy California, Donald Trump is now saying our foreign enemies should ‘take out’ Los Angeles and San Diego. He is deranged and dangerous," Newsom said on the US social media platform X.

After sending the National Guard and Marines to occupy California, Donald Trump is now saying our foreign enemies should “take out” Los Angeles and San Diego.

He is deranged and dangerous. https://t.co/N4JQfecAYo

— Gavin Newsom (@GavinNewsom) October 6, 2026

US says foreign financial institutions doing business with Iran may be sanctioned without notice

The US Treasury Department said on Monday it was alerting foreign financial institutions that continue to do business with Iran or its financial sector that they may be sanctioned by Washington without advance notice.

"Foreign financial institutions continuing to transact with sanctioned Iranian financial institutions could be targeted at any time without advance notification and should take immediate action to terminate such activity and relationships," the Treasury Department said in its alert.

Washington has attempted to further cut Iran's financial lifelines during the Iran war that ​began on February 28, when the US ​and ⁠Israel attacked Iran and Tehran responded with its own strikes on Israel and Gulf states that host US ⁠bases. US-Israeli strikes ​on Iran and Israeli attacks ​on Lebanon have killed thousands and displaced millions.

Read more: Houthis pushed back from Bab el-Mandeb

Iran was already heavily sanctioned by the US before the war, but Washington has warned other countries in recent weeks to ‌cut their business ties with Iran or risk having key companies and entities cut off from the dollar-based financial system.

Foreign financial institutions facilitating Iran's access to the global financial system, including by providing financial services to Iranian banks or their subsidiaries or branches in third countries, risk being sanctioned for operating in or supporting sanctioned sectors of Iran's economy, the Treasury Department alert said.

They could also be subject to civil and criminal enforcement penalties should Iran-related transactions cause US financial institutions or other US persons to violate sanctions, the Treasury Department added.

Prohibiting the opening or maintenance of US correspondent or payable-through accounts for a foreign financial institution is among the "strict conditions" Treasury warns could be imposed for engaging in sanctioned activities