German Chancellor Friedrich Merz has sharply criticised the United States' handling of negotiations with Iran, saying Tehran is humiliating Washington at the diplomatic table. Speaking to students in Marsberg, a town in central Germany, Merz suggested that the Trump administration was being outplayed rather than outright stalled. "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 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 remarks come after the United States cancelled a planned visit by negotiators to Islamabad, the Pakistani capital, where indirect talks between US and Iranian delegations had been taking place. A previous round of talks there, led by US Vice-President JD Vance, broke up without progress. The cancellation further dimmed hopes for a diplomatic resolution to the conflict, which has seen Iran blockade the Strait of Hormuz — the gateway to more than 90% of Iran's pre-war trade — while the US imposed a counter-blockade on Iranian ports. The International Monetary Fund has forecast a 6.1% contraction in Iran's economy this year, with inflation running at nearly 70%.

Iran has since put forward a new proposal centred on reopening the Strait of Hormuz, setting aside discussions on nuclear weapons, missiles, and sanctions for a later stage. The UN's International Maritime Organization rejected a related Iranian parliamentary proposal to charge ships fees for passing through the strait, stating there was no legal basis for such levies. Analysts and mediators involved in the talks are sceptical that this "Hormuz first" approach can succeed, as it addresses none of Washington's core demands, including a permanent end to Iran's nuclear programme. Iranian Foreign Minister Abbas Araghchi travelled to Moscow on Monday, where he met President Vladimir Putin, who pledged Russian support for Iran amid the economic pressure of the blockade.

Merz also said he saw no clear US strategy for ending the conflict, drawing comparisons to previous American military engagements in Iraq and Afghanistan. He noted that European allies were not consulted before the US and Israel launched strikes on Iran on 28 February, and said he had conveyed his scepticism directly to President Trump. His comments deepen an already serious transatlantic rift — Trump has himself expressed frustration with NATO allies over what he sees as insufficient support, and has threatened to halt arms supplies to Ukraine as leverage.

The diplomatic impasse carries significant risks beyond the region. Analysts warn that even a deal to reopen Hormuz would leave Iran in possession of approximately 440 kilograms of highly enriched uranium — enough in theory for a dozen nuclear warheads — while Tehran could reconstitute much of its military capacity relatively quickly. Trump faces mounting domestic pressure over rising fuel prices and broader inflation, and is reportedly keen to resolve the crisis before a planned meeting with China's President Xi Jinping in mid-May, as well as ahead of the FIFA World Cup, scheduled to be held across North America in June and July.