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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

Iran's former chief nuclear negotiator, Hassan Rohani (C), attends a conference called National Unity, Policies and Methods in Tehran November 12, 2007. REUTERS/Caren Firouz (IRAN) - RTX8ZM

Encouraged by Rouhani Election, US Urges Iran to Engage

With the election of Hassan Rouhani, the United States is cautiously optimistic about serious negotiations with Iran when nuclear talks resume in the fall, says a senior US administration official.

EDITORS' NOTE: Reuters and other foreign media are subject to Iranian restrictions on leaving the office to report, film or take pictures in Tehran.
A worker stands in front of an Iranian handmade carpet at a carpet workshop in Kashan, 240 km (149 miles) south of Tehran November 13, 2011. Persian carpet weaving is a historical part of Iranian culture, dating back to as far as approximately 2,000 years ago. Persian carpets can be mostly divided into three size groups: large (3x4 metres), medium (2x3 metres

Ahmadinejad Takes Parting Shot At Iranian Women

The outgoing Iranian president has proposed a bill that would limit the working hours of some women.

Russia's President Vladimir Putin attends a news conference, part of the Gas Exporting Countries Forum (GECF), at the Kremlin in Moscow, July 1, 2013. Putin said on Monday that Russia would not hand former U.S. spy agency contractor Edward Snowden over to the United States but that if Snowden wants to stay in Russia he "must stop his work aimed at harming our American partners". REUTERS/Maxim Shemetov (RUSSIA - Tags: POLITICS ENERGY BUSINESS) - RTX118XS

Russia Steers Conservative, Steady Course in Middle East

Unlike the United States, Russia can walk away from the Middle East at any time.

Supporters of deposed Egyptian President Mohamed Mursi shout anti-army slogans during a protest in Cairo July 9, 2013. Egypt's interim President Adli Mansour on Tuesday named liberal economist and former finance minister Hazem el-Beblawi as prime minister in a transitional government, as the authorities sought to steer the country to new parliamentary and presidential elections. REUTERS/Suhaib Salem (EGYPT - Tags: POLITICS CIVIL UNREST) - RTX11HY6

Iran, Iraq React Differently to Morsi's Fall

A comparison of the Iraqi and Iranian reactions to the situation in Egypt shows a profound difference in their perspectives on democracy.

Members of the Muslim Brotherhood and supporters of deposed Egyptian President Mohamed Mursi shout slogans in front of army soldiers at Republican Guard headquarters in Nasr City, a suburb of Cairo July 8, 2013. At least 51 people were killed on Monday when demonstrators enraged by the military overthrow of Egypt's elected Islamist president said the army opened fire during morning prayers outside the Cairo barracks where Mursi is believed to be held. REUTERS/Amr Abdallah Dalsh (EGYPT - Tags: POLITICS CIVI

Four Reasons Why Iran Wins From Morsi’s Fall

Iran stands to gain regionally from the coup in Egypt.

Stalks of wheat are seen at a farm near Gonbad, 550 km (342 miles) northeast of Tehran, May 6, 2008. Picture taken May 6, 2008. REUTERS/Caren Firouz (IRAN) (PICTURE TAKEN MAY 6, 2008) - RTR20B48

Iran’s Need for Agricultural Reform

President-elect Hassan Rouhani may want to pay more attention to Iran’s agricultural sector, which has suffered under previous administrations.

The Rise of the Iranian Moderates

The international community should seize the opportunity by Iran’s turn toward moderation and engagement under President-elect Hassan Rouhani.

A supporter holds up a picture of presidential candidate Mehdi Karroubi during a rally in Tehran May 29, 2009. REUTERS/Raheb Homavandi (IRAN POLITICS ELECTIONS IMAGES OF THE DAY) - RTXOXBN

Does Rouhani Hold 'Key' to Release Mousavi and Karroubi?

Iranian President-elect Hassan Rouhani said during his campaign that it may become possible to allow the release of those under house arrest and imprisoned after the 2009 presidential election.

Kasbana Hassan gestures inside her burnt out house, where four Egyptian Shi'ites were killed, in the suburb of Zawiyat Abu Musallem, on the outskirts of Cairo, June 24, 2013. Egypt's government promised "exemplary punishment" on Monday after the mob killing of four Shi'ite Muslims near Cairo raised fears of wider sectarian bloodshed at a time of grave national crisis. In Sunday's violence in the suburb of Zawiyat Abu Musallem, in sight of the Giza pyramids, a crowd ransacked and torched the house of a famil

Shiite Leaders in Iraq, Iran React to Egypt Killings

The killing of Egyptian Shiite preacher Hassan Shehata has led many Shiite leaders in Iraq and Iran to call for adherents to tone down sectarian rhetoric.

Rouhani Considers New Approach To Syria

While President-elect Hassan Rouhani will continue Iran’s steadfast support for the Syrian government, he may also be considering a diplomatic initiative for a transition involving both the Assad regime and the opposition.

Clerics work on computers at a religious research center associated with the seminary in Qom, 120 km (75 miles) south of Tehran February 2, 2009. REUTERS/Caren Firouz (IRAN) - RTXB5VD

Iran’s Seminarians React To Rouhani’s Election

Qom Seminary in Iran seems to have pinned its hopes on Rouhani's ability to reduce international pressure and restore the clergy's standing domestically.

Iranian presidential candidate Hassan Rohani (L) waves to supporters in the central Iranian city of Shiraz June 11, 2013. Picture taken June 11, 2013. REUTERS/Fars News/Mohammad Hadi Khosravi (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 WAS PROCESSED BY REUTERS TO ENHANCE QUALITY. AN UNPROCESSED VERSION WILL BE PROVIDED SEPARATELY - RTX10L2E

Rouhani calls for Moderation In First Speech as President-elect

In his first speech as president-elect of Iran, Hassan Rouhani said Iran should avoid extremism.