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August 24, 2026

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Analysis

UAE-Iran trade relationship becomes key test of Trump’s wartime strategy

The Gulf state suspended trade with Iran after new attacks in August. Experts point to risks for both sides as the Trump administration seeks to squeeze Tehran economically.

Samuel Wendel

By Samuel Wendel

In Washington, DC, reporting on regional business and tech

Hamed Malekpour / Middle East Images / AFP via Getty Images

Iran gambles it can outlast Trump’s 'Economic D-Day'

The Trump administration is considering tighter economic pressure as diplomacy with Tehran appears stalled.

People shop at a store in the Grand Reza Bazaar near the shrine of Imam Reza following the funeral of slain Iranian leader Ali Khamenei and his family members in Mashhad on July 10, 2026.

Analysis

Can Trump's economic war ultimately force Iran to compromise?

President Trump's new economic offensive comes as Iran is grappling with war damage, tighter oil restrictions and a shrinking ability to absorb another major shock.

A correspondent in Tehran

By A correspondent in Tehran

In Tehran, reporting on politics

Latest News

Caught in the middle, Oman shrugs off Trump's latest Iran threat

Win McNamee/Getty Images

Houthis claim new strikes on Saudi Arabia after IRGC warning: What to know

MOHAMMED HUWAIS/AFP via Getty Images)

China slams Trump over economic war on Iran: What to know

Foreign Ministry Spokesperson Lin Jian holds a press conference on Aug. 19, 2026.

Trump’s Iran ‘economic D-Day’ threat sends oil prices above $94

Iranians drive past an anti-US billboard at Enghelab Square in central Tehran, Aug. 3, 2026.

Elizabeth Hagedorn

Diplomatic Correspondent

In Washington, DC, reporting on diplomacy, regional politics, human rights

Sabena Siddiqui

In Karachi, reporting on South Asia, Middle East, Iran

A correspondent in Tehran

In Tehran, reporting on politics

Benjamin Houghton

In Durham, reporting on China in the Middle East

Rahim Rahimov

In Baku, reporting on Middle East-Caucasus ties

Mehrnaz Samimi

In Washington, DC, reporting on Iranian culture

Arab foreign ministers attend a bi-annual meeting of the Arab League in Cairo September 9, 2009. Among the issues being discussed is US President Barack Obama's Middle East peace initiative where he has called on Israel to freeze all settlement activity, as a basis for a peaceful solution to the Middle East conflict. Israel recently authorized construction of hundreds of housing units on occupied Palestinian land. REUTERS/Amr Abdallah Dalsh (EGYPT POLITICS) - RTR27MDV

Middle East Needs 'Win-Win' Approach to Regional Security

An approach is overdue for regional security that recognizes the interests of Iran, Israel and all the states of West Asia.

Supporters of moderate cleric Hassan Rohani celebrate his victory in Iran's presidential election along a street in Tehran June 16, 2013. Rohani won Iran's presidential election on Saturday, the interior ministry said, scoring a surprising landslide victory over conservative hardliners without the need for a second round run-off. REUTERS/Yalda Moayeri (IRAN - Tags: POLITICS ELECTIONS) - RTX10PBG

Iranian Reformists Return To Public Sphere

Like bears emerging from a four-year hibernation, Iranian reformists are beginning to speak out again, empowered by the election of President Hassan Rouhani and Mahmoud Ahmadinejad's departure.

Hamas leader Khaled Meshaal (C), Head of Hezbollah's parliamentary bloc Mohamed Raad (R) and Lebanon's Minister of Education Hassan Mneimneh (L) listen to Lebanon's Hezbollah leader Sayyed Hassan Nasrallah speak via a video display during the Arab and International Forum to support the Resistance, in Beirut January 15, 2010. REUTERS/Jamal Saidi (LEBANON - Tags: POLITICS) - RTR28WF6

Is Hamas Considering A Move to Beirut?

Beirut has been the scene of intense political activity by Hamas as it seeks to restore ties with Hezbollah and Iran.

Palestinians buy sweets in Jerusalem's Old City ahead of the Muslim holiday of Eid al-Fitr, which marks the end of the holy month of Ramadan, August 7, 2013. REUTERS/Ammar Awad (JERUSALEM - Tags: RELIGION FOOD) - RTX12D0X

Will Eid al-Fitr Bring Hope For Arab World?

Eid al-Fitr is being celebrated with an especially heavy heart this year, with massacres still taking place in Syria, hatred in Egypt boiling over and the closure of Gaza continuing.

Lebanon's Hezbollah leader Sayyed Hassan Nasrallah makes a rare public appearance as he addresses his supporters during a rally to mark Quds (Jerusalem) Day in Beirut's southern suburbs, August 2, 2013. Nasrallah delivered a speech to hundreds of supporters in support of Palestinians in his first public appearance since last September. He has been living in hiding, for fear of assassination, since Hezbollah fought a month-long war with Israel in 2006. REUTERS/Sharif Karim (LEBANON - Tags: POLITICS CIVIL U

Nasrallah Calls for Muslim Solidarity In Quds Day Speech

Celebrating Quds Day at a particularly polarized moment in the Arab world, Hezbollah Secretary-General Hassan Nasrallah reminds his Sunni counterparts of the need for solidarity with the Palestinians.

Turkey's Prime Minister Tayyip Erdogan (2nd R) gestures as he welcomes Iranian President Mahmoud Ahmadinejad (2nd L) before holding talks in Istanbul December 22, 2010. They were accompanied by Iran's Foreign Minister Ali Akbar Salehi (L) and Turkish Foreign Minister Ahmet Davutoglu. REUTERS/Tolga Bozoglu/Pool (TURKEY - Tags: POLITICS) - RTXVYLW

Turkey’s Tentative Iranian Spring

Although Iran is not expected to change its Syria policy, working with Iranian President Hassan Rouhani may help ease regional tensions.

Iranian President-elect Hassan Rohani speaks to the media following a visit to the Khomeini mausoleum in Tehran June 16, 2013. Reuters/Fars News/Seyed Hassan Mousavi (IRAN - Tags: POLITICS) ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. FOR EDITORIAL USE ONLY. NOT FOR SALE FOR MARKETING OR ADVERTISING CAMPAIGNS. THIS PICTURE IS DISTRIBUTED EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS - RTX10Q4G

Rouhani’s Cautious Pick For Defense Minister

Iran’s new defense minister is a sign of President Hassan Rouhani’s interest in balancing moderate and conservative forces.

Iran's chief nuclear negotiator Hassan Rohani speaks with a Reuters correspondent during a private interview in Tehran February 6, 2005. REUTERS/Raheb Homavandi RH/CJF/AA - RTRMHK5

Iran’s New President Side Steps Questions About Talks With US

Iranian President Hassan Rouhani treads carefully in answers to questions about US-Iran relations in his first press conference.

Israel's Prime Minister Benjamin Netanyahu draws a red line on the graphic of a bomb used to represent Iran's nuclear program as he addresses the 67th United Nations General Assembly at the U.N. Headquarters in New York, September 27, 2012. The red line he drew represents a point where he believes, the international community should tell Iran that they will not be allowed to pass without intervention. REUTERS/Lucas Jackson (UNITED STATES - Tags: POLITICS) - RTR38I7P

Is Netanyahu Preparing To Bomb Iran?

Is Prime Minister Benjamin Netanyahu, “the weakest leader Israel has ever had,” about to make the historic decision to bomb Iran?

Mohammad Nahavandian, head of Iran's Chamber of Commerce, looks on during an interview with Reuters in his office in Tehran February 20, 2010. Western-backed sanctions on Iran to crimp its disputed nuclear activities will not have the desired impact as the country increasingly turns to Asian and regional countries, Nahavandian said. To match interview IRAN-ECONOMY/SANCTIONS REUTERS/Morteza Nikoubazl (IRAN - Tags: POLITICS BUSINESS) - RTR2ALV8

Rouhani's US-Educated Chief of Staff Knows East and West

Hassan Rouhani's chief of staff is a US-educated technocrat who is close to Iran's religious and merchant classes.

Prince Bandar bin Sultan (R), secretary-general of Saudi Arabia's National Security Council, and Russia's Prime Minister Vladimir Putin enter a hall for a signing ceremony in Moscow July 14, 2008. Picture taken July 14, 2008. RUSSIA/RIA Novosti/Alexei Druzhinin/Pool (RUSSIA) - RTX7XR3

Russia Considers Saudi Angle in Syria

The visit of Bandar bin Sultan, director-general of Saudi Arabia's intelligence agency, to Moscow last month was all about Syria.

What to Wear in Tehran: The Evolution of Islamic Chic

The once-drab Iranian hijab has blossomed into colorful and figure-hugging styles that satisfy the letter if not the spirit of Islamic law.