Iran’s military has dismissed U.S. President Donald Trump’s recent threats to destroy Tehran as a demonstration of “strategic desperation,” signaling readiness to retaliate with even more damaging strikes. The Iranian General Staff characterized Trump’s aggressive rhetoric at the United Nations as an indication of U.S. exhaustion in the ongoing conflict, criticizing his attempts to justify military action on the international stage. This exchange underlines the heightened tensions in the nearly seven-month-long war between the two nations.

Trump’s remarks at the UN highlighted a stark choice for the U.S.: either secure a deal with Iran or escalate military action against the country. He mentioned a “very good” three-hour meeting with Iranian envoys held on the sidelines and expressed optimism that a final agreement could emerge after the United States midterm elections in November. Trump pushed for the global community to maintain strict economic isolation of Iran as leverage in negotiations.

Meanwhile, Iran has communicated its conditions for peace through a Qatari mediator, specifying demands such as an end to U.S. military aggression, lifting of the naval blockade, and the release of Iranian assets. These requests also include reopening the strategically vital Strait of Hormuz, which previously handled about 20% of the world's oil and gas shipments before the conflict. Tehran has indicated it could restore traffic through the strait within a week if the U.S. eases its military pressure and blockade.

In response to ongoing hostilities, oil prices experienced a mild increase, with Brent crude futures climbing about 1% to $100.32 per barrel and West Texas Intermediate up 0.3% to $90.88. Shipping through the Strait of Hormuz remains substantially disrupted, operating at roughly 38% of prewar capacity, while Iran's crude exports have effectively ceased due to the U.S. naval blockade. The Gulf’s oil export routes are increasingly under Saudi influence as regional tensions continue to impact global energy markets.