Trump warns Iran faces 'very bad time' if Hormuz talks fail

President Donald Trump has warned Iran that it will face severe consequences if negotiations mediated by Pakistan fail to produce a final agreement, as diplomatic efforts continue amid a fragile ceasefire that has left the critical Strait of Hormuz blocked. Trump, who rejected Iran's latest counter-proposal as "unacceptable" over the weekend, told French outlet BFM TV that he has no certainty about whether Tehran will sign a deal, stating "if they do not, they are going to have a very bad time, a very bad time." Pakistan's Interior Minister Mohsin Naqvi traveled to Tehran on Saturday for unannounced talks, as the South Asian nation serves as the primary international mediator between the two countries since the conflict erupted on February 28. Iranian Foreign Minister Abbas Araqchi confirmed that messages continue to be exchanged with Washington, though at a slow pace, insisting that Tehran will only accept a "fair and balanced agreement." However, Araqchi also issued a stark warning that Iran remains prepared to resume direct military hostilities if negotiations collapse. State media has amplified this message, with broadcasters appearing on air brandishing assault rifles and urging nightly pro-government rallies, while masked Islamic Revolutionary Guard Corps commanders provide weapons training to supporters. The rhetoric coincides with economic pressure mounting on both sides: Iran faces food inflation exceeding 115 percent and a currency trading near its all-time low of 1.8 million rials per dollar, while Americans grapple with rising energy costs, elevated Treasury yields reaching levels not seen in two decades, and increasing borrowing rates as markets anticipate Federal Reserve action to combat energy-driven inflation. A central sticking point remains Iran's demand for sovereignty over the Strait of Hormuz, through which approximately one-fifth of the world's oil and gas normally passes. Parliamentary official Ebrahim Azizi announced that Tehran has prepared a "professional mechanism" to manage traffic through the waterway, requiring commercial vessels to pay fees while denying access to supporters of what Iran calls Washington's "Project Freedom." The economic stakes are underscored by the ongoing blockade, which has forced the US government to auction $25 billion in 30-year bonds at a five percent yield, while Iranian officials have welcomed China's potential mediation following Trump's recent meetings with President Xi Jinping. Meanwhile, Iran has maintained a near-total internet shutdown for 78 days and carried out near-daily executions of alleged dissidents during the conflict, according to state announcements.