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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

A general view shows smog over northwestern Tehran November 23, 2010. Tehran is choking. Gridlock on urban highways makes the city feel more like Los Angeles than the Middle East, while adding a toxic yellow halo of smog to otherwise perennially blue skies. Picture taken November 23, 2010. To match feature IRAN-METRO/ REUTERS/Raheb Homavandi (IRAN - Tags: ENVIRONMENT TRANSPORT CITYSCAPE) - RTXVHZE

Iran’s Renewable Energy Sector Poised for Growth

Higher energy costs should be a boost for Iran’s renewable energy.

Supporters hold a poster of Turkish Prime Minister Tayyip Erdogan during a rally of ruling AK party in Istanbul June 16, 2013. Tens of thousands of Erdogan's supporters massed at a rally in Istanbul on Sunday, as riot police fired tear gas to break up pockets of anti-government protesters in the city center several kilometers away. REUTERS/Murad Sezer (TURKEY - Tags: POLITICS CIVIL UNREST) - RTX10PUP

Erdogan’s Sinking International Prestige

The more Turkish Prime Minister Recep Tayyip Erdogan lashes out at “international conspirators” as the cause of his troubles, the more his international reputation suffers.

Turkish Prime Minister Tayyip Erdogan (R) and Kurdistan Regional President Masoud Barzani pose for the media before their meeting in Istanbul April 19, 2012. REUTERS/Stringer/Pool (TURKEY - Tags: POLITICS) - RTR30XVX

Turkey’s Missed Opportunities With the Kurds

Disarray in Turkish foreign policy is not allowing Turkey to play its rightful role in supporting Kurdish national unity.

Palestinian Minister of Civil Affairs Mohammad Dahlan speaks during a news conference at King Hussein Medical City in Amman. Palestinian Minister of Civil Affairs Mohammad Dahlan speaks during a news conference at King Hussein Medical City in Amman September 4, 2005. Dahlan received treatment in Jordan for a back complaint. REUTERS/Ali Jarekji - RTRMKD0

Former Favorite Son Dahlan Slams Abu Mazen for Corruption

Two recent cases raise questions about the democratic practices of the parties to the peace.

A protester opposing Egyptian President Mohamed Mursi holds a sign reading "Depart" near riot police during a protest against the new judicial law in front of Egypt's Shura Council in Cairo May 25, 2013. Egypt's highest court ruled on Saturday that parts of a revised election law setting out terms for a parliamentary election were unconstitutional, casting fresh doubt over a poll that has already been delayed. The Shura Council has approved, Saturday, the referral of the contentious amendment proposal of th

Is the Middle East Rejecting Radicalism?

The world should not miss the opportunity for stablility and progress offered by the Middle East's rejection of radicalism.

Iraqi Ambassador Says Iraq Willing To Help Bridge US-Iran Divide

Lukman Faily, Iraq’s Ambassador to Washington, says his country is ready to help, if asked, to mend US-Iran ties.

EDITORS' NOTE: Reuters and other foreign media are subject to Iranian restrictions on their ability to film or take pictures in Tehran.

A vendor sits under an anti-Israel mural during a demonstration after Friday prayers in Tehran October 9, 2009. REUTERS/Morteza Nikoubazl (IRAN POLITICS RELIGION) - RTXPGS2

Ahmadinejad Tepidly Received On Final Iraq Visit

The final visit to Iraq by outgoing Iranian President Mahmoud Ahmadinejad highlighted the mixed relations between the two countries during his term in office.

A man walks past a poster at a conceptual art exhibition about HIV/AIDS in Tehran December 2, 2007. REUTERS/Morteza Nikoubazl (IRAN) - RTX4B45

US Treasury Tries to Boost Medical Sales to Iran

The US government says it will increase humanitarian trade with Iran, but sanctions lawyers say the measures are not enough and still require authorized channels between US and Iran banks.

Iranian rial (R) and U.S. dollars banknotes are seen as a money exchange vendor counts Iraqi Dinars banknotes at his shop in Baghdad January 30, 2012. In the money changing shops dotted around Baghdad's Karrada district, Iraqi merchants dabble in many currencies, but these days some joke that banknotes from neighbouring Iran and Syria are only worth plastering on windows as decorations. Picture taken January 30, 2012. To match Feature IRAQ-SANCTIONS/ REUTERS/Saad Shalash (IRAQ - Tags: BUSINESS) - RTR2X5U

Iran’s Civil Society Movement Against Sanctions

The government of Iran might soon be grappling with how to manage a popular mobilization against US and international sanctions.

McKeon, House Cautious on Syria

Buck McKeon, Republican chairman of the House Armed Services Committee, says the military’s intervention in Egypt was the right thing to put Egypt’s democratic transition back on track.

A general view of the Natanz uranium enrichment facility, 250 km (150 miles) south of Tehran, March 30, 2005. Iranian President Mohammad Khatami Khatami took a group of journalists deep underground on Wednesday into the heart of the nuclear plant which Washington wants dismantled and whose existence was kept secret until 2002. REUTERS/Raheb Homavandi RH/CN - RTR6JAI

Tight IAEA Inspection Regime Hampers Iran's Nuclear Breakout

IAEA Deputy Director Herman Nackaerts says his agency would know "within a week" if Iran tried to divert uranium for higher enrichment.

Hamas leader Khaled Meshaal (R) attends a rally in Tehran university February 2, 2009. A delegation from Hamas, headed by its leader Meshaal, arrived in Tehran on Sunday as part of a regional push to reinforce support for the Palestinian group after the Israeli invasion of Gaza. The portraits on the left are that of Late Leader Ayatollah Rouollah Khomeini (L) and Iran's Supreme Leader Ayatollah Ali Khamenei. REUTERS/Raheb Homavandi (IRAN) - RTXB5LP

Will Hamas Re-Enter Iran's Orbit?

Former Egyptian President Mohammed Morsi's fall may encourage Iran and Hamas to renew ties.