President Donald Trump declared at the White House on Monday that Iran is the “number one state of terror in the world.”

During a meeting with Pakistani President Imran Khan at the White House, President Trump told reporters his views on the latest developments regarding Iran.

First, he highlighted the country’s precarious economic situation, with 75% inflation and an erratic domestic policy.

They don’t know whether they’re coming or going. They have tremendous problems economically. Their country is in turmoil. They’re having demonstrations all over Iran. They’re inflation rate is at 75%. They have a lot of problems,” the president said.

In connection with the Iranian intelligence ministry’s announcement of the arrest of 17 U.S. CIA spies allegedly captured last year, Trump said it was false.

That’s totally a false story. That’s another lie. They put out propaganda,” the president said.

He went on to explain that the United States is prepared “for the worst,” but also said it is “ready for common sense” in relation to the Ayatollah regime.

But we are very geared up. And if they—they are really the number one state of terror in the world,” warned the president, who also confirmed that the U.S. military shot down an unmanned Iranian airplane.

According to an official report received by the military, the Iranian drone was a thousand yards away from a U.S. Navy ship in the Persian Gulf last Thursday.

Separately, Secretary of State Mike Pompeo said in an interview with Steve Doocy, Ainsley Earhardt, and Brian Kilmeade of FOX and Friends on Monday that the Iranian regime has a long history of lying.

They lied about where they shot down the American UAV. They’ve now lied in the last few days about where they took down this tanker. It’s part of the nature of the ayatollah to lie to the world,” Pompeo said.

Iran’s tension with UK

Tension with Iran is also spreading to the United Kingdom and has escalated enormously following the capture on Friday of a British-flagged oil tanker in the waters of the Gulf of Hormuz.

The Stena Impero, with 23 crew members on board, is still being held by Iranian security forces for allegedly having “violated international maritime standards,” which British Prime Minister Theresa May has described as “unacceptable and highly conflictive,” according to Time magazine.

The United Kingdom’s official reaction to this incident is not yet known because Boris Johnson has just been confirmed on Tuesday as May’s successor at the head of the British Conservative Party and the country’s leadership.

The Strait of Hormuz, off Iran’s southern coast, is a crucial channel for international oil shipping, with 17.4 million barrels passing through every day.

That is about one-third of all oil transported by sea and one-fifth of the world’s total oil supply.