Donald Trump said that talks with Iran are now being conducted by phone after he cancelled a planned trip for U.S. negotiators to travel to Pakistan for in-person discussions with Tehran officials.

Trump claimed Iran retains only “a small percentage” of its missile production capacity following recent U.S. strikes, and warned that any deal would require Tehran to abandon its nuclear ambitions. “That’s all they have to do. Just say we give up,” he said.

The comments come as the cost of the conflict mounts, with a senior Pentagon official putting the U.S. war bill at $25 billion so far, marking the first official estimate of the military’s price tag.

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