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Trump calls Iran a “failed state” and claims inflation has reached 300%

US President Donald Trump described Iran as a “failed state” and “dead,” claiming it had lost its military and economic capabilities and that inflation there had reached about 300%. In a post on Truth Social, he said Tehran no longer had a navy, air force or currency. The article did not include an Iranian response to his remarks.

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Donald Trump speaks into a microphone with one finger raised, wearing a small American flag pin on his suit.

US President Donald Trump described Iran as a “failed state” and “dead” on Sunday, 31 August 2026, claiming that its inflation rate had reached about 300% in remarks posted on Truth Social amid rising tensions between Washington and Tehran.

Claims that military and economic capabilities have been lost

Trump claimed that Iran had lost its military and economic capabilities, saying it “no longer has a navy, an air force or a currency.” He added that the Iranian authorities were not paying the salaries of soldiers or police officers.

It no longer has a navy, an air force or a currency.

Accusations against Iran’s leadership

The US president said Iran’s leadership was in “complete chaos” and unable to properly represent the country. He also accused it of relying on what he called fake news about the United States and being prepared to kill protesters.

The article did not include an Iranian response to Trump’s remarks or claims.