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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.

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

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.

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.

Meanwhile, Hegseth sought to defend the Iran war in fiery remarks to Congress yesterday, saying it was not a quagmire and attacking Democratic lawmakers as “feckless” for criticising the unpopular conflict.

“You call it a quagmire, handing propaganda to our enemies? Shame on you for that statement,” Hegseth said before the House Armed Services Committee, slamming “reckless, feckless, and defeatist” Congressional Democrats.

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.