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[US-Iran Clash Ahead of UN General Assembly: Trump Threatens to Destroy Iran, Tehran Warns of Painful Retaliation] 1. Tensions between the US and Iran escalate ahead of the UN General Assembly. Trump threatened to destroy Iran's economy or purge its leadership if Tehran fails to reach an agreement. He told Fox News on Sunday that the only options were to "destroy Iran" or let its economy "rot," and said he was willing to meet with Iranian President Pezechzian during the General Assembly, but also indicated he was in "decision mode" regarding whether to destroy the country. 2. The Iranian military stated that intelligence indicates the US and its allies are preparing a new round of large-scale strikes and warned of "painful" retaliation in the Middle East. Iran stated that regional countries supporting such strikes would be considered parties to the conflict. Semi-official Tasnim quoted Khatam al-Anbia's central headquarters as saying that if the US makes a mistake, all its outposts and interests in the region will become targets of sustained, effective, and painful attacks. 3. The two sides have been at odds for seven months since the June memorandum broke down. A diplomatic delegation led by Pezehizian is expected to attend the UN General Assembly this week and meet with leaders from several countries. The US State Department issued a security alert, warning citizens to be vigilant about escalating tensions in the Middle East and to be aware of flight cancellations and airspace closures. This followed the Houthi rebels' claim on Saturday of missile and drone attacks on Riyadh, triggering the first air raid sirens since the conflict escalated in July; Saudi Arabia stated it had intercepted a ballistic missile without casualties or damage. 4. Despite escalating hostilities, oil prices have recently fallen as traders anticipate the resumption of energy transport from Saudi Arabia. International oil prices fell more than 2% in Asian trading on Monday. A report from Eurasia Group stated that even if oil transport via the Strait of Hormuz resumes, oil prices will remain high, with Brent crude expected to trade between $90 and $110 per barrel for the remainder of the year. 5. Tehran insists it will not reopen the Strait of Hormuz until Washington fulfills its commitments from the June memorandum. The memorandum called for lifting the maritime blockade, easing sanctions, unfreezing Iranian assets, and ceasing US military threats. Iranian Parliament Speaker Ghalibaf stated that Iran must continue fighting and negotiating to defeat its enemies and will only pursue diplomacy if it gains the upper hand on the battlefield. Eurasia Group believes that the Iranian leadership will continue its defensive stance, maintaining control over shipping traffic through military proxies and tanker attacks in an attempt to force Washington to concede.