Iran’s Inflation Has Soared, Government Has No Money to Pay Salaries, Trump Says

WASHINGTON: US President Donald Trump has said Iran is facing severe economic difficulties, with very high inflation and the government lacking money even to pay the salaries of its troops.

According to CNN, Trump said in a telephone interview that the United States was holding limited and quiet talks with Iran, while Washington was closely monitoring the situation in the country.

Trump said Iran’s economic condition was very poor and that Washington was assessing the impact of economic pressure on the Iranian economy. He indicated that economic pressure remained an important part of the US approach toward Tehran.

The president’s remarks came as Iran was reported to have put forward new conditions for reopening the Strait of Hormuz, a key global energy shipping route whose disruption could have significant implications for international oil markets.

Iranian Foreign Minister Abbas Araghchi, however, has previously said that Iran and the United States were not currently engaged in negotiations.

The conflicting statements from Washington and Tehran have added uncertainty over the nature of any diplomatic contacts between the two sides, as regional tensions remain high.