US President Donald Trump says Washington is “only semi-negotiating” with Iran.

Trump speaking to Axios claimed that Iran was in “very bad shape”, pointing to soaring inflation and “the fact they have no money”.

He said Tehran could not afford to pay its soldiers and credited the US naval blockade with worsening its financial troubles.

Trump made no mention of the war’s economic toll on the US. Higher fuel prices have cost ordinary Americans about $80bn, while military operations have cost more than $100bn.

“It will work out. It always works out. It's like a chess game,” Trump said. “We are low-keying it.”