Iran brushes off US economic threats, other regional developments

Iran yesterday (20 August) dismissed threats by US President Donald Trump of economic pain and isolation for the country, while six European nations condemned Israel over a settlement project.

Doctors Without Borders criticized the decision by Israel's military not to investigate two fatal attacks on the medical humanitarian organization's staff, and 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.

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

Iranian 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 Trump threatened "crushing economic measures" against Iran. The US president 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 US public from domestic financial problems, saying that US "economic terrorism threatens the global economy and the national sovereignty of countries around the world."

US 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 US allies to make a decision on where they stand.

China's government and India are major buyers of Iranian oil, though Bessent didn't call them out by name.

Doctors Without Borders condemns Israel's military

Doctors Without Borders said that the decision by Israel's military not to open a criminal investigation into two strikes that killed four people shows the country won't take responsibility for attacking civilians.

The international aid group now wants an impartial investigation into the deaths, but didn't specify who should lead the effort.

Doctors Without Borders asked Israel's military to investigate an attack on a Gaza City convoy in November 2023 and a strike on the organization's shelter in Khan Younis in February 2024.

Israel's announcement on Wednesday said that it wouldn't launch criminal investigations into the two cases, in which troops killed the organization's employees.

The decision by Israel's military shows "there is no prospect of accountability within the Israeli legal system for the killing of our staff, just as there has been no accountability for Israel's ongoing genocide against Palestinians," Doctors Without Borders said in a statement that cited 15 staff and 1,700 healthcare workers killed in Gaza since October 2023.

Israel denies accusations of genocide and war crimes and says it's targeting Hamas after the militant group's attack on southern Israel that killed 1,200 people and took 251 hostage on 7 Oct 2023. Israel blames civilian deaths on Hamas, because it operates in populated areas in the tiny, overcrowded Gaza Strip.

UK and others rebuke planned West Bank settlement project

Six European countries along with Canada 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.

The joint statement from the leaders of the UK, France, Germany, Italy, the Netherlands, Norway and Canada said international law is clear the settlement is illegal and noted "unprecedented levels of violence by settlers against civilians."

"We urge the government of Israel to retract these plans immediately and end its expansion of settlements in the West Bank. Not only will they take us further from peace, but they further undermine Israel's international standing," the countries wrote.

Egypt and Jordan also condemned Israel's move.

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 the UK government for "blaming only Israel while ignoring Palestinian extremism."

Gaza funeral for 50 killed in opening strikes of 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 UN agencies and international organizations. It doesn't distinguish between civilians and militants, but says women and children make up around half of the toll.

US sanctions network supporting Hezbollah

The U.S. announced new sanctions Thursday against a network of people who allegedly funneled cash into Lebanon for the Iran-backed Lebanese militant group Hezbollah.

The network run by Turkish businessman Yunus Alper Yilmaz uses couriers traveling on commercial flights between Lebanon, Turkey, the UAE and Iran "to move up to hundreds of millions of dollars between jurisdictions, providing an avenue outside the formal financial system" to move funds to Hezbollah, the US Department of Treasury said in a statement.

The Treasury also redesignated Hezbollah — which was already sanctioned by the US— as an Iranian proxy acting on behalf of Iran's Islamic Revolutionary Guard Corps Quds Force rather than a stand-alone operation.

The redesignation aims to underscore that Hezbollah "operates with little to no regard for Lebanese sovereignty, the Lebanese people or the Lebanese state," the Treasury statement said.

Turkey denies delegation had visited air base in Syria

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 that 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

Syrian 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.

Pakistan's 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 wounded in the attack have also safely returned to the country, Foreign Minister Ishaq Dar said in a post on X.