MARSBERG — Germany's Chancellor Friedrich Merz said in Marsberg that the United States is being humiliated by Iran's leadership, criticizing the course of stalled indirect talks between Washington and Tehran. "The US is being humiliated by Iran's leadership," Merz said.

Speaking about the Iranian leadership and its security forces, the chancellor said: "An entire nation is being humiliated by the Iranian leadership, especially by these so-called Revolutionary Guards. And so I hope that this ends as quickly as possible."

Merz's assessment contradicted President Donald Trump's effort to present the talks positively. Trump told Fox News: "We have all the cards. If Tehran wanted to talk, they can come to us, or they can call us."

Two days before Merz's comments, Trump canceled a trip by U.S. negotiators to Islamabad for indirect talks with an Iranian delegation. A previous round of indirect talks in Islamabad two weeks earlier, led by American Vice-President JD Vance, broke up without progress.

According to officials in the region, Iran put forward a proposal for a ceasefire deal focused on opening the Strait of Hormuz and delaying discussions on nuclear weapons, missiles, sanctions and other issues until later. Officials said Tehran would be prepared to discuss the nuclear issue only after the U.S. blockade had ended. Iranian negotiators are facing domestic pressure from the Islamic Revolutionary Guard Corps and public opinion not to discuss nuclear matters.

After the breakdown of the Islamabad talks, Trump imposed a counter-blockade of shipping through Iranian ports. The blockade has stopped Iran's empty tankers from returning to port, where they could serve as storage facilities. Iran has limited storage capacity for its oil output, and winding down production could have long-term effects on its energy sector.

The International Monetary Fund forecast a 6.1% contraction in Iran's gross domestic product this year and year-on-year inflation at nearly 70%, with higher increases for food staples and healthcare prices. "Undeniably, the blockade is basically sharpening the economic pain that Iran was under even before the war started. But Iranian resilience is not a question of economic pain because Iran is in an existential battle and is willing to absorb a much higher price than it has so far. And the Iranian regime doesn't hesitate to transfer this pain to its population," said Ali Vaez, Iran project director at the International Crisis Group.

Under a bill being prepared by Iran's parliament, shippers would have to pay Tehran for "services" involved in passing through the Strait of Hormuz, which was free before the war. The Strait of Hormuz handled over 90% of Iran's prewar trade. In March, Israel bombed Bandar Anzali, an Iranian port, in an attack on the Caspian route, and before the Israeli strike, the Caspian route fell far short of substituting for the Strait. The Islamic Revolutionary Guard Corps seized the Panamanian-flagged MSC Francesca in the Strait of Hormuz last week.