TEHRAN, Iran (AFP)—United States (US) President Donald Trump warned Tehran on Wednesday that it should “get smart soon” and capitulate to Washington’s demands for tight controls on its nuclear programme, as a US naval blockade turned the screws on Iran’s economy.

Pentagon chief Pete Hegseth was due to testify before Congress later in the day, but US press reports suggested Trump has already decided to reject Iran’s latest proposed deal to reopen the Strait of Hormuz.

According to the Wall Street Journal, he intends to pursue the blockade of Iranian ports until Tehran is forced to dismantle its nuclear programme.

“Iran can’t get their act together… They better get smart soon,” Trump posted on his social media platform, above a mocked-up picture of himself toting a rifle in front of explosions wrecking a desert fortress and the slogan: “No more Mr Nice Guy.”

Iran has blockaded the strait — a vital conduit for oil and gas shipments from the Gulf — since the US and Israel launched the war two months ago, sending shockwaves through the global economy. But its own economy is also suffering.

On Wednesday, the Iranian rial fell to historic lows against the dollar, while Tehran residents speaking to AFP journalists in Paris reported a sense of despair.

“Every time in recent years that negotiations have taken place, the economic situation of the people has only gotten worse. Sanctions have either started or intensified,” a 52-year-old architect told AFP, speaking on condition of anonymity.

“They go to negotiate and come back with even more sanctions, and the issue is always nuclear. There’s no talk about people, the economy, or freedom. People have the right to not even want to hear the word ‘negotiation’,” he said.

– ‘No trust’ –

During a White House state dinner Tuesday, Trump told Britain’s King Charles III and other guests that Iran has been “militarily defeated”, and added: “Charles agrees with me even more than I do — we’re never going to let that opponent have a nuclear weapon.”

But an Iranian army spokesman told state TV on Tuesday that “we do not consider the war to be over”, saying Tehran had “no trust in America”.

“We have many cards that we have not yet used… new tools and methods of fighting based on the experiences of the past two wars, which will definitely allow us to respond to the enemy more decisively” should the fighting resume, Amir Akraminia said in an interview.

Efforts to end the war have stalled in recent days. The latest Iranian proposal, passed along by Pakistan and studied by Trump administration officials in a meeting Monday, laid out red lines including on nuclear issues and Hormuz, according to Iran’s Fars news agency.

The plan would reportedly see Tehran ease its chokehold on the strait and Washington lift its retaliatory blockade while broader negotiations continue, including over the nuclear programme.

Iranian defence ministry spokesman Reza Talaei-Nik said Washington “must abandon its illegal and irrational demands”.

“The United States is no longer in a position to dictate its policy to independent nations,” he said, according to state TV.

Qatar — a US ally that was hit by Iranian strikes despite its role as a mediator — warned of the possibility of a “frozen conflict” if a definitive resolution is not found.

– ‘No strategy’ –

Trump faces domestic pressure to find an off-ramp as prices rise for oil and other commodities, with midterm elections due in November and polls showing the war is unpopular among Americans.

Brent is above the level it hit before the two sides announced a ceasefire in early April, sitting at around $113, while West Texas Intermediate broke $101.

German Chancellor Friedrich Merz, who earlier had offered guarded support to Trump, said Monday that “the Americans obviously have no strategy” in Iran and that the war was “at the very least ill-considered”.

Trump later denounced Merz on social media, saying he “doesn’t know what he’s talking about”.

Violence has continued on the war’s Lebanese front, despite a recently extended ceasefire between Israel and Hezbollah, the Iran-backed armed group that drew Lebanon into the war by firing rockets at Israel. Israel responded with strikes and a ground invasion.

For the first time since the ceasefire began, the Lebanese army said Tuesday that an Israeli strike had targeted its troops, wounding two soldiers in the south. Another strike Wednesday killed a Lebanese soldier, it said.