LIVETrump threatens Iran with new economic action as Hormuz tensions continue to grip the GulfLast updated: August 20, 2026 | 16:05Gulf News ReportDonald TrumpUS-Israel-Iran waroilIranian FM Abbas Araghchi (L) dismisses Trump’s (R) ‘Economic D-Day’ threatThe Middle East war enters another tense day as Washington ramps up economic pressure on Tehran, diplomatic efforts remain stalled and uncertainty continues to grip the strategically vital Strait of Hormuz. Trump has threatened what he called an “economic D-Day”, warning of a sweeping new campaign against Iran and consequences for countries and businesses that continue to support Tehran. Iran’s FM Araghchi dismissed the warning as an attempt to divert attention from what he described as an economic crisis in the US. Follow this live blog for all the updates: Highlights04:05 PM, 20 August 2026Iran denounces Trump's economic threatIran's Foreign Minister Abbas Araghchi has rejected the economic threats made against his country, saying that such "failed policies" will stir more hostility among Iranians and "bring more failures."Araghchi's comments came a few hours after President Donald Trump threatened "crushing economic measures" against Iran. Trump promised "Economic Warfare and Isolation on an unprecedented scale," but provided few details.In a social media post, Araghchi maintained the threats aim to divert the attention of the US public from domestic financial problems, adding that the US "economic terrorism threatens the global economy and the national sovereignty of countries around the world."02:54 PM, 20 August 2026Oman says regional peace key to lasting Hormuz securityOman said lasting security in the Strait of Hormuz requires regional peace, restraint and diplomacy, while rejecting further escalation and conflict.The Foreign Minister, speaking in Muscat alongside his Japanese counterpart, also called for greater international efforts to safeguard freedom of navigation and the flow of maritime traffic and energy supplies through the strategic waterway.01:45 PM, 20 August 2026Trump unleashes economic war: Will Iran cave in?After nearly six months of war, Donald Trump is trying another way to force Iran to bend: Squeeze its economy until Tehran can no longer afford to resist.The US president has announced what he calls the “MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY”, threatening not only Iran but countries, banks and businesses that help keep its economy alive.The strategy represents an important shift. Washington is effectively betting that economic pressure can achieve what military action and attempts at diplomacy have so far failed to deliver — force Iran into an agreement on US terms.So what exactly is Trump planning, how vulnerable is Iran — and which side can withstand the pain longer?12:44 PM, 20 August 2026Iran Guards say Saudi Arabia will not be able to contain Yemen's HouthisIran's Revolutionary Guards warned on Thursday that Saudi Arabia will not be able to contain the Tehran-backed Houthis in Yemen as the rebels ramp up attacks on the kingdom."Saudi Arabia will certainly be unable to contain Yemen and Ansarullah or remain safe from their attacks," Guards spokesman Hossein Mohebi told Defa Press, using another name for the Houthis."As we have seen in recent days, the more Saudi Arabia attacks, the more it is hit in return."This week, a Yemeni minister told AFP that the Houthi rebels were plotting to seize land along the Bab Al Mandab Strait, which would allow them to further threaten the vital shipping artery.Three Houthi military sources and a spokesman for the Yemeni government forces battling them near the waterway also told AFP the rebels are planning to advance south from their current territory.Get updated faster and for FREE: Download the Gulf News app now - simply click here.11:15 AM, 20 August 2026Iran says executed foreign national over January protestsIran on Thursday executed a foreign national over involvement in the killing of four police officers during anti-government protests in January, the judiciary reported."Ghaem Hosseini, a foreign national," who was convicted of involvement in an incident in central Isfahan province that resulted in the deaths of four police officers, "was hanged after his case was reviewed and his sentence upheld by the Supreme Court," the judiciary's Mizan Online website reported.The report, which did not disclose Hosseini's nationality, said he was convicted "of drawing a weapon and causing fear and terror, creating widespread insecurity, acting against people's physical integrity and national security in a manner that seriously disrupted public order".Iran has already hanged four others over the same case since July.10:38 AM, 20 August 2026Iran FM: Trump's ‘Economic D-Day’ is a diversionIranian Foreign Minister Abbas Araghchi said the so-called “Economic D-Day” is an attempt to divert attention from what he described as an economic crisis in the United States.In a post on X, Araghchi pointed to rising US debt and interest costs, arguing that continuing what he called failed policies would lead to further setbacks and deepen hostility among Iranians.He also accused Washington of practising “economic terrorism”, saying US policies threaten the global economy and the sovereignty of countries worldwide.09:41 AM, 20 August 2026US President announces "unprecedented" economic war against Iran09:32 AM, 20 August 2026Trump says he wasn't 'happy' when South Korea declined to help US with HormuzUS President Donald Trump has expressed dissatisfaction with South Korea over its unwillingness to assist Washington in securing the Strait of Hormuz, whilst questioning the conduct of large-scale joint military manoeuvres targeted at North Korea, a development underscoring friction over burden-sharing and regional security dynamics.Speaking to reporters at the White House, Trump highlighted his displeasure regarding Seoul's response when approached for maritime security assistance in the crucial energy passageway. "I was not happy when South Korea said, no, they're not interested in helping us with the Hormuz Strait, and yet they get 60 per cent of their oil from the Hormuz Strait," Trump said.09:20 AM, 20 August 2026Iran goes on offensive as diplomacy with US stallsSix months into its war with the United States, Iran's military has begun signalling a shift from retaliation to offence, which analysts say could reflect Tehran's belief it holds leverage to advance its demands and break the stalemate.Since US-Israeli strikes launched the war on February 28, Tehran has largely portrayed its strikes against the United States, Israel and Gulf countries as revenge for attacks on the Islamic republic.Now, Iranian officials are openly talking about giving offensive operations a greater priority while keeping control over the strategic Strait of Hormuz, a key source of leverage against Washington that has disrupted a vital global energy route and driven up energy prices.Iran's supreme leader Mojtaba Khamenei outlined that approach in a reshuffle of top military commanders earlier this month, calling for "strengthening maximum deterrence and preparing to conduct large-scale offensive operations against the enemy".09:20 AM, 20 August 2026'More confrontational': Iran's new hardline security leadershipEarlier this month Iranian supreme leader Mojtaba Khamenei reshuffled Tehran's top security team, putting his own personal stamp on the appointments and readying the Islamic republic for a long-term confrontation with the United States.Khamenei, in power since his father Ali Khamenei was killed at the start of the US-Israeli war against Iran in February, has yet to be seen in public since taking on the top job and his health and influence remain uncertain.But on August 9 and 10 he filled key security posts -- many of which became vacant after previous incumbents were killed in the war -- with loyal, veteran figures hailing from the Revolutionary Guards (IRGC), Iran's ideological army, which has a long history of antagonism with the US.The appointments are "indicative of the adoption of a more risk-ready, confrontational stance", said Jason Brodsky, policy director of the US-based United Against Nuclear Iran (UANI) think tank.09:06 AM, 20 August 2026UK summons Israeli envoy over West Bank settlement projectBritain said on Wednesday it had summoned Israel's charge d'affaires and demanded a halt to a major West Bank settlement project after Israeli authorities opened bidding for more than 1,200 homes in the area.The E1 plan, green-lit by Israel last year, has drawn international condemnation, with the UN secretary general saying at the time that it posed an "existential threat" to a contiguous Palestinian state.The project would further separate east Jerusalem, occupied and annexed by Israel and predominantly inhabited by Palestinians, from the West Bank.08:07 AM, 20 August 2026IRGC general says he trusts taxi driver more than Trump