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President Trump appeared to suggest that the United States would impose economic penalties on countries that do business with Iran, though he did not specify what actions he would take.
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President Donald Trump announced "major combat operations" against Iran on Feb. 28, with massive joint U.S.-Israeli strikes.
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President Trump's decision to curtail the military exercises came as allies question the U.S. commitment to longstanding alliances.
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The move by Trump also will start to raise questions about the credibility of Washington's commitment to alliances.
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The Emirates has long been a major trading hub for Iran, and analysts say it has been key to Iranian efforts to evade international sanctions, which Emirati officials deny.
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President Trump had ordered the Defense Department to reduce joint exercises with the key U.S. ally, declaring the drills "hostile" toward North Korea.
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The announcement extends a pressure campaign the Trump administration has waged since April under the banner Operation Economic Fury.
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Kim Yo-jong, a powerful adviser and sister of Kim Jong-un, also said she was "unaware" of any communication with Washington, contradicting President Trump's claim her brother had responded to his outreach.
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South Korea's Joint Chiefs of Staff (JCS) confirmed that ongoing joint military drills with U.S. forces would end early.
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Democratic Senator Jon Ossoff used a speech to note the closeness of one aide to the president.
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The BBC's Bernd Debusmann explains who she is and how she came to hold such a prominent role in the US president's inner circle.
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