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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

Iranian Women’s Rights Activist Defiant Even in Death

Widows, orphans, refugees and scholars came out to commemorate the passing of Shahla Farjad, who died in Tehran.

Iran's chief negotiator Saeed Jalili leaves after his news conference at the Iranian Consulate in Istanbul May 16, 2013. Iran is prepared to pursue nuclear diplomacy with world powers before or after next month's presidential election in the Islamic Republic, its chief negotiator said on Thursday. REUTERS/Osman Orsal (TURKEY - Tags: POLITICS) ENERGY) - RTXZOPV

Netanyahu’s Threats Undermine Possible Nuclear Deal With Iran

Among President Obama’s many challenges in the Middle East, the Iranian nuclear file stands the greatest chance to achieve a swift resolution, according to Iran's former nuclear negotiator.

Visitors from Iran takes pictures outside an exhibition hall of China Import and Export Fair, also known as the Canton Fair, in the southern Chinese city of Guangzhou October 17, 2011. Exporters at China's largest trade show, the Canton Fair, say a darkening economic outlook in Europe and the United States is weighing on orders for Chinese-made goods from Western buyers, potentially boding ill for China's growth prospects. REUTERS/Bobby Yip (CHINA - Tags: BUSINESS) - RTR2SQQZ

Iran's Pivot to the East

Iran's trade patterns have shifted in recent years as a result of sanctions, making Asia a new market for Iranian goods.

Israeli Prime Minister Benjamin Netanyahu (C) sits next to armed forces chief Major-General Benny Gantz (L) and Gilad Erdan, minister of communications and home front protection, during a drill simulating a chemical rocket attack in Jerusalem May 29, 2013. Israel continued on Wednesday with its annual home front defence exercise, launched on Monday, preparing soldiers and civilians for missile attacks. REUTERS/Abir Sultan/Pool (JERUSALEM - Tags: POLITICS MILITARY) - RTX104PX

Israel Awaits Rouhani's Next Move

Just as in the last four years, the summer of 2013 has also started with Israeli intimations about a strike on Iran — but the elections there have staved off the winds of war, at least until next spring.

A supporter carries a campaign poster for Iranian presidential candidate Hassan Rohani on the streets of Tehran June 12, 2013. Picture taken June 12, 2013. REUTERS/ISNA/Mehdi Ghassemi (IRAN - Tags: POLITICS ELECTIONS) 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 - RTX10M6A

Iran-Saudi Relations Under Rouhani

President-elect Hassan Rouhani's expected pursuit of pragmatic foreign and regional policies should lead to improved relations and cooperation with Saudi Arabia.

EDITORS' NOTE: Reuters and other foreign media are subject to Iranian restrictions on leaving the office to report, film or take pictures in Tehran.

Hamas Leader Ismail Haniyeh flashes the victory sign during a ceremony to mark the 33rd anniversary of the Islamic Revolution, in Tehran's Azadi square February 11, 2012. Iran's President Mahmoud Ahmadinejad said on the anniversary of the revolution that the Islamic Republic would soon announce "very important" REUTERS/Raheb Homavandi (IRAN - Tags: ANNIVERS

Hamas Hopes Iran's Rouhani Will Renew Ties

The election of moderate Hassan Rouhani in Iran might open the door for repairing ties with Hamas.

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

Iranian clerics talk to each other during break time at a religious conference centre in Qom, 120 km (75 miles) south of Tehran, March 9, 2011. The clerics are attending the International Conference of Religious Doctrines and the Mind-Body Problem. REUTERS/Morteza Nikoubazl (IRAN - Tags: RELIGION SOCIETY) - RTR2JNWP

Shiite Seminaries in Najaf, Qom Struggle With Dual Roles

Shiite seminaries in Najaf and Qom struggle to balance between preserving Shiite identity, while at the same time maintaining their distance from any sectarian conflict and supporting Islamic unity.

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

Rouhani Decides Honesty Best Policy On Iran's Economic Mess

Iran’s new president looks to US-educated veterans to staff his cabinet and deal with Iran’s economic crisis and nuclear standoff.

Israel's Prime Minister Benjamin Netanyahu (C) attends the weekly cabinet meeting in Jerusalem July 14, 2013. REUTERS/Abir Sultan/Pool (JERUSALEM - Tags: POLITICS) - RTX11MDX

Squeaks in US-Israeli Relations

Israeli Prime Minister Benjamin Netanyahu's comments on "Face the Nation" about what the US should do about Iran stir controversy.

Senior Hamas leader Mahmoud al-Zahar burns Israeli flags in Gaza city in preparation for the movement's 23rd anniversary next week December 9, 2010. REUTERS/Mohammed Salem (GAZA - Tags: POLITICS ANNIVERSARY CIVIL UNREST) - RTXVKMR

Exclusive: Zahar Rebuilds Ties Between Hamas and Iran

Mahmoud al-Zahar is planning his comeback in the Hamas leadership, with the backing of Tehran and the Hamas armed wing Izz ad-Din al-Qassam Brigades.

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

Iran’s Mixed Feelings About Egypt

The coup against former President Mohammed Morsi and the Muslim Brotherhood leads to questions about Iran-Hamas ties.

Irani workers weld the pipeline during a groundbreaking ceremony to mark the inauguration of the Iran-Pakistan gas pipeline, in the city of Chahbahar in southeastern Iran March 11, 2013. Ahmadinejad and Zardari marked the start of Pakistani construction on the much-delayed gas pipeline on Monday, Iranian media reported, despite U.S. pressure on Islamabad to back out of the project. REUTERS/Mian Khursheed (IRAN - Tags: POLITICS ENERGY BUSINESS) - RTR3EUST

Rouhani Stresses Regionalism In Iranian Foreign Policy

Iranian President-elect Hassan Rouhani will consider improved ties with Iran’s neighbors as a priority in his foreign policy.