German Chancellor Friedrich Merz has accused the United States of being “humiliated” by Iran’s leadership, suggesting the Trump administration is being outwitted at the negotiating table. Speaking to students in Marsberg, Merz criticised the stalled US-Iranian talks, which broke down two weeks ago in Islamabad when Vice-President JD Vance led the American delegation without progress. Donald Trump subsequently cancelled a follow-up trip by US negotiators.
Merz’s remarks directly contradict Trump’s portrayal of the impasse. The US president had told Fox News: “We have all the cards,” adding that Tehran could “come to us, or they can call us”. Merz, however, said: “The Iranians are obviously very skilled at negotiating, or rather, very skilful at not negotiating, letting the Americans travel to Islamabad and then leave again without any result.” He added: “An entire nation is being humiliated by the Iranian leadership, especially by these so-called Revolutionary Guards.”
Iran has since proposed a ceasefire deal focused on reopening the Strait of Hormuz, setting aside nuclear weapons, missiles and sanctions for later. Under a parliamentary bill, shippers would pay Tehran for “services” to pass through the strait, which was free before the war. The UN’s International Maritime Organization rejected this, with Secretary-General Arsenio Dominguez stating: “There’s no legal basis for the introduction of any tax, any customs, or any fees on straits for international navigation.”
Mediators view the “Hormuz first” approach as unlikely to succeed because it would not achieve Washington’s war aims, including a permanent end to Iran’s nuclear programme. “Hormuz is a byproduct of the war, so how can this be tackled first?” said a diplomat familiar with the talks. The offer does, however, mark a shift from Iran’s earlier demand for broad security guarantees in exchange for lifting its blockade on Gulf exports.
After the breakdown of talks, Trump imposed a counter-blockade on Iranian ports, deepening Iran’s economic crisis. The IMF forecasts a 6.1% contraction in Iran’s GDP this year, with inflation nearing 70%. The blockade has also prevented empty tankers from returning to port, limiting storage capacity. Iranian Foreign Minister Abbas Araghchi met Vladimir Putin in Moscow on Monday, seeking Russian support. Putin pledged to “do everything that serves [Iranian] interests”, while Araghchi said “the world has now realised Iran’s true power”.
