Trump REJECTS Iran's latest peace proposal with ominous joke that Pete Hegseth 'loves war': 'We are not satisfied'

By ELINA SHIRAZI, US SENIOR POLITICAL REPORTER Published: 17:43, 27 May 2026 | Updated: 17:58, 27 May 2026 President Donald Trump issued a chilling warning to Iran during a high-stakes Cabinet meeting today, rejecting Tehran's latest diplomatic overtures while boldly asserting that the Islamic Republic's military has already been utterly dismantled. Speaking to reporters and officials at a cabinet meeting, Trump made it clear that while Iran is desperate to come to the table, the United States is holding all the cards and will not accept a subpar deal. 'Iran is very much intent, they want very much to make a deal,' Trump told the room. 'So far, they haven't gotten there. We're not satisfied with it, but then we will be. We will be either that, or we'll have to just finish the job.' In a characteristically sweeping assessment of the geopolitical landscape, the President claimed that Iran's armed forces have been completely neutralized by American military might. 'But the Navy is gone, as I've said 1000 times,' Trump stated. 'The Navy is gone, their Air Force is gone, everything's gone, and they're negotiating on fumes. But we'll see what happens. Maybe we have to go back and finish it. Maybe we don't right now.' Trump noted that his top envoys, including Steve Witkoff and Jared Kushner, are actively working on the situation, but insisted Tehran simply has no leverage left. The tense atmosphere in the room briefly shifted to awkward amusement when the President turned his attention to his newly appointed Defense Secretary, Pete Hegseth. Pointing to Hegseth, Trump quipped: 'Secretary of War Pete Hegseth. Central casting. He loves war.' President Donald Trump issued a chilling warning to Iran during a high-stakes Cabinet meeting today, rejecting Tehran's latest diplomatic overtures while boldly asserting that the Islamic Republic's military has already been utterly dismantled Speaking to reporters and officials at a cabinet meeting, Trump made it clear that while Iran is desperate to come to the table, the United States is holding all the cards and will not accept a subpar deal In a characteristically sweeping assessment of the geopolitical landscape, the President claimed that Iran's armed forces have been completely neutralized by American military might Hegseth responded to the ominous joke by shrugging his shoulders with a nervous smile, as laughter rippled through the Cabinet room. Turning back to the economic devastation facing America's adversary, Trump claimed that Tehran's leadership completely miscalculated his political staying power, thinking they could outlast him through the upcoming midterm elections - a strategy he scoffed at. He painted a bleak picture of an Iranian economy in total meltdown, plagued by a staggering 250 percent inflation rate and a completely worthless currency. According to the President, the regime's economic framework has entirely collapsed, leaving them with no choice but to rely on the internet to manage public perception. The President then called upon Secretary of State Marco Rubio to brief the Cabinet on the fast-moving diplomatic situation. Trump praised Rubio for being ‘all over the place’ and doing a ‘fantastic job.' Rubio doubled down on the administration’s position. ‘Well, first of all, the bottom line is, Iran's never going to have a nuclear weapon,’ Rubio said, reinforcing the President's message. ‘And if recent events have done anything, it's just remind us once again that they are the world's leading sponsor of terrorism, and they can never have a nuclear weapon.’   While Rubio maintained that the administration’s strong preference is to find a peaceful resolution, he made it clear that the clock is ticking and America’s patience is not limitless. Iran has seized on oil tankers moving through the Strait of Hormuz by deploying speed boats  An oil tanker burns after being hit by an Iranian strike in the ship-to-ship transfer zone at Khor al-Zubair port near Basra, Iraq, on Wednesday, March 11 'Now, the President's preference, Mr. President, your preference as you have told us repeatedly... is to negotiate these things and to figure out if you can have agreements. Diplomacy is always the first option,’ Rubio explained. Rubio revealed that there has been 'some progress and some interest' from Iran, promising that the administration would see 'over the next few hours and days whether progress could be made.' However, the Secretary of State concluded with a fierce warning, reminding Tehran that military action remains firmly on the table. ‘I just want to remind everybody, Mr. President, you know this well, you have other options available to you if that doesn't work,’ Rubio said. ‘They will never have a nuclear weapon, and they most certainly will not have one, as long as you're President of the United States. On that point, it's very clear.’ The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? 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