Iran Dismisses US Economic Threats, and Other Developments in Middle East

Iran on Thursday dismissed U.S. President Donald Trump’ s threats of economic pain and isolation, while the U.K and other nations condemned Israel over a controversial settlement project. In Gaza City, a mass funeral was held for 50 people killed in Israeli airstrikes nearly three years ago but whose remains were just recovered. Meanwhile, Syria’s foreign minister visited Pakistan, which is seeking to defuse tensions between the United States and Iran. Here’s a look at the latest developments in the Iran war and the wider Middle East on Thursday. Full coverage can be found here.

Iran denounces Trump's economic threat

Iran’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.” Why Donald Trump Threatened ‘Tremendous’ Punishment for Countries Doing Business With Iran.

Araghchi's comments came a few hours after 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 that the threats aim to divert the attention of the U.S. public from domestic financial problems, adding that U.S. “economic terrorism threatens the global economy and the national sovereignty of countries around the world.” Donald Trump’s 60-Day Iran Deadline Expires: Here’s Where Things Stand on War, Nuclear Talks and Hormuz.

U.S. Treasury Secretary Scott Bessent said Thursday that Iran will face the “greatest coordinated economic isolation in the history of the world." In a CNBC interview, Bessent threatened secondary sanctions on nations and companies that conduct business with Iran, saying it's time for U.S. allies to make a decision on where they stand.China and India are major buyers of Iranian oil, though Bessent did not call them out by name.

UK and others rebuke planned West Bank settlement project

Several countries condemned the latest development in a contentious Israeli settlement project near Jerusalem that would effectively cut the occupied West Bank in two. Israel’s Ministry of Construction and Housing issued a tender for constructing several compounds with more than 1,200 homes in total in an open tract of land east of Jerusalem. It’s the latest step in a project under consideration for more than two decades, which critics say would prevent the establishment of a contiguous Palestinian state in the territory.

British Foreign Secretary Ed Miliband called the publication of the tender “an unacceptable and destructive act” and denounced “settler violence and terrorism.” In a statement released on Wednesday, he added that the British government “demanded an immediate reversal” and had summoned the Israeli chargé d’affaires.

Egypt and Jordan also condemned Israel’s move, which Cairo said would isolate east Jerusalem from its Palestinian surroundings. Israeli Foreign Minister Gideon Saar responded on Thursday by defending “the historic right  of the Jewish people to reestablish their national home in the Land of Israel — including in the area in question.” Saar criticized Britain’s government for “blaming only Israel while ignoring Palestinian extremism.”

Gaza funeral remembers 50 killed in opening strikes of Israel-Hamas war

A mass funeral Thursday in Gaza City remembered 50 Palestinians killed in Israeli strikes in the opening months of the Israel-Hamas war but whose remains were only recently recovered from under rubble.

Dozens of mourners carried the remains, draped in Palestinian flags, through debris-strewn streets before lowering them into graves. Some held portraits and posters with photos of the deceased.

“We were able to recover them after three years of war, after three years of anguish, pain and torture. We were able to recover them, and dignify them in their final resting place. We were able to pray over them and bury them,” said Lina Karam, who lost her father and other members of her family. The 50 bodies were from three families who were killed in airstrikes in November and December 2023.

The nearly three-year war has killed more than 73,400 Palestinians, according to Gaza’s Health Ministry. The ministry, which was part of the Hamas-run government, maintains detailed records viewed as generally reliable by U.N. agencies and international organizations. It doesn’t distinguish between civilians and militants, but says women and children make up around half of the toll.

Turkey denies delegation had visited air base in Syria that was hit by Israel

Turkey has denied that a Turkish military delegation had visited an air base in northern Syria that was hit by Israeli airstrikes, and vowed to continue supporting Syria in its efforts to rebuild its military.

The Israeli strikes targeted the Abu Duhur base early on Tuesday, causing damage but no casualties. Israeli Prime Minister Benjamin Netanyahu’s office said Israel had attacked the base because Syria was “on the verge of breaching” an agreed-upon “status quo in security matters” by allowing Turkish troops to deploy there. Syrian officials have said that a Turkish delegation visited the base before the Israeli strike to review rehabilitation work underway there.

Syria's top diplomat discusses Middle East in Pakistan

Syria's Foreign Minister Asaad al-Shibani arrived in Islamabad for talks expected to focus on regional issues, Pakistan's Ministry of Foreign Affairs said. The visit comes days after Israeli airstrikes targeted an air base in northern Syria, causing damage but no casualties.

Pakistani officials say the country's political and military leadership remains in contact with both Iran and the United States over efforts to de-escalate tensions and push for the resumption of talks after a 60-day deadline under a June memorandum of understanding expired. The agreement was brokered by Pakistan with help from regional countries.

Bodies of Pakistani sailors returned after Houthi attack

The bodies of two Pakistanis killed in last week’s Houthi attack on a Tanzanian-flagged commercial vessel in the Bab el-Mandeb Strait have been repatriated to Pakistan. Six Pakistani sailors who were injured in the attack have also safely returned to the country, Foreign Minister Ishaq Dar said in a post on X.

(The above story first appeared on LatestLY on Aug 20, 2026 10:31 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).