Iran dismisses U.S. economic threats and other developments in the Middle East

In this photo released by the Pakistan Ministry of Foreign Affairs, Syrian Foreign Minister Asaad Hassan al-Shibani, left, shakes hands with his Pakistani counterpart Ishaq Dar before their meeting in Islamabad, Pakistan, Thursday, Aug. 20, 2026. (Pakistan Ministry of Foreign Affairs via AP)

Iran on Thursday dismissed U.S. President Donald Trump’s threats of economic pain and isolation, while Syria’s foreign minister is visiting 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.”

Araghchi’s comments came a few hours after U.S. 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 U.S. public from domestic financial problems, adding that the U.S. “economic terrorism threatens the global economy and the national sovereignty of countries around the world.”

Syria’s top diplomat discusses Middle East in Pakistan

Syria’s Foreign Minister Assad al-Shibani has 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 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.

Pakistani crew members killed in Houthi attack are repatriated

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.

Dar thanked Saudi Arabia’s Foreign Ministry for its cooperation, including medical assistance.

“Pakistan condemns the attack in the strongest terms and reiterates that the safety and security of seafarers must be ensured at all times,” Dar said.

The Associated Press