Iran and US trade threats as Houthi attacks escalate regional conflict

Iran and the United States exchanged new threats on Sunday, with President Donald Trump warning Iran would face economic collapse or leadership annihilation without a deal, while Iranian forces vowed harsh retaliation for any attack. The conflict remains at an impasse after months. Trump said Iranian leaders should reach an agreement, face ruin, or be annihilated, but added he was open to meeting President Masoud Pezeshkian during his UN visit this week. Iran's military command stated any new attack would trigger sustained retaliation against US bases and interests. The crisis escalated Saturday when Yemen's Houthi group, backed by Iran, launched missile and drone attacks on Saudi Arabia's capital, with smoke seen near Riyadh's main airport. The US State Department issued a security alert warning of potential escalation, while Saudi Arabia faces a dilemma over continuing airstrikes or retreating to avoid drone attacks on critical infrastructure.