U.S. President Donald Trump told Fox News on Sunday that options included "wiping Iran out" or letting its economy "rot" if no deal is reached. Separately, Iran's military warned of "painful" retaliation across the Middle East if the U.S. makes any mistake against the Islamic Republic, citing intelligence of a new large-scale strike being prepared by the U.S. and its allies. The exchange marks the latest escalation ahead of the UN General Assembly, where Iranian President Masoud Pezeshkian is due to attend. The U.S. State Department issued a security alert citing risks of unforeseen escalation in the Middle East. Oil prices have pulled back in recent days despite widening hostilities.